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Cybercriminals. Count on chaos. Count on Veeam to stop them fast. Partner with them and get 24. 7 ransomware support from the first red flag to full recovery. Whatever the world throws at your data, it's all good. Learn more@veeam.com that's VECOM these days, AI can help you adopt better time management, but it can't stop colleagues booking meetings during lunch. But how about being able to easily adopt industrial AI to streamline your business? Siemens Xcelerator helps you find the right AI providers and easily understand what they offer so you can use modular solutions to quickly scale up and grow your business. That's AI for real from the global market leader in industrial AI, Siemens. Learn more on USA.siemens.com AI your next product launch is coming fast. Don't let billing slow you down. Legacy systems can't handle usage based billing. That means your team is stuck gluing code together, piecing through spreadsheets and running ad hoc queries just to figure out what to bill. With Metronome you can roll out new pricing in minutes instead of months, whether it's usage based, seat based or a hybrid model. Visit metronome.com to see how companies like OpenAI and Anthropic launch billing as fast as they launch products. That's metronome.com Bloomberg Audio Studios podcasts Radio News Bloomberg Tech is live from coast to co with Caroline Hyde in New York and Ed Ludlow in San Francisco. This is Bloomberg Tech. Coming up, Alibaba shares surged to the highest level in nearly four years after revealing plans to ramp up spending. Plus Stargate takes shape. Five new data center sites in the U.S. planned as open air ploughs $1 billion into infrastructure along with partners Oracle and SoftBank. And Jimmy Kimmel returned to TV Tuesday night saying it was never his intention to make light the murder of Charlie Kirk. We have the latest. Let's turn our attention though to the markets which are flat on the day at the moment and I'm looking the NASDAQ up. Well, we're currently lower by a tenth of a percent. We have been trading higher. Look, we've got sensitivity, sensitivity to the macro data. Home sales come in strong. Yields on the bond market therefore push higher. Also though the bond market US treasury market being affected by a big corporate debt sale coming from a big tech player. Ed yeah, there's a lot of stories to get to in the program. You are right. Oracle shares are down, but it's a debt story. Tapping corporate bond markets for $15 billion of debt, including a very rare 40 year note in the program. We're going to get to that and their role in what's happening with open air and the Stargate build out. Alibaba having a really strong day simply pledging to spend even more on AI than the $50 billion they already disclosed. And then micron strong forecasts for the current period in line with consensus above consensus. But as you know is always the case. There are elements of the street that were even more bullish. They wanted to see more from the memory maker in that it's playing in a day centers carrot. So Anyone has added 40% to its share price in just this month alone. And first it is United Nations General assembly still underway this week here in New York. And we now go to the UN Rose Garden. My Bloomberg surveillance is Annmarie Horden is standing by with a special guest. Thank you so much, Caroline. Well, as far as the UN General assembly goes, this one was of Note. The past 24 hours we saw really a massive geopolitical shift from the rhetoric of President Donald Trump. And I'm so glad right now to get the insight of what this means for Europe. She's European's top diplomat and also the former Estonian prime Minister Kaia Kallas. Thank you so much and welcome to Bloomberg tv. Thank you for having me. So yesterday President Trump came out with this post on social media saying he thinks Ukraine can actually get back all of the land. A very different tone than what we saw from him even just three weeks ago. He said that the European Union would have to be on board with this. So what is the path forward? Well, it was also very positive statement. I mean before I also met met with the Ukrainians who had a meeting with President Trump and also said that it was a very good meeting asking, you know, how, you know, us can support also Ukraine and saying that, you know, Russia's economy is not doing well. All what we also read in the in the post. So we have been on that line and and we really welcome the shift in the tone. The president also talked about even going further into even Russia. Is Europe prepared to buy more weapons to then give them to Ukraine? Well, we are doing a lot. I mean this year only our military support to Ukraine has been 25 billion, which is more than any other year. It is clear that we have to help Ukraine to defend themselves because as President Zelensky said in his speech as well, I mean if we allow Russia will just go further, we have to push them back. We have to also say that this is not okay. And, and you cannot let the aggression pay off. Do you have a sense of which European countries though, are willing to put in more funds when it comes to Ukraine, whether or not it's funds directly or to actually buy those weapons? Well, we have different initiatives also to help European countries to help Ukraine, but also invest more in their own defence. And, and we are putting a lot of funding on the, on the table. Of course it is difficult. It requires also member states to make some very difficult decisions like cutting social spending, but also raising taxes which are not popular. That very clear. But we are in this situation where we are, where we have to invest in defence. And the problem is that you need it when you actually don't feel the need yet. So you need to do the decisions way before you actually need the defense capabilities. And if you do it, it acts as a deterrence so that the aggressor would not look your way. Trump also said yesterday the US Is prepared for more powerful sanctions, robust sanctions, tariffs on Russia, but only if the European Union is in lock step. Now, we have seen movements the European Union is talking about when it comes to things like fossil fuels. They are ready to do these tariffs, but we are three years and seven months into this war. Why did it take for President Trump to convince Brussels to do what Brussels probably knew from the very beginning they had to do? No, excuse me, we have done 19 packages of sanctions and we would like our partners to be in lockstep with us because we have put a lot of pressure. Then next, the package that we propose now has also crypto financing institutions, also energy. Yes. What President Trump says about energy is true. We have been saying for the. I know you specifically talking about this for years, quite some time because we have been dependent on Russia and now we are phasing out and it's true that it should be faster. We are trying to push those few member states who are still buying Russian energy to show that actually if you want this war to stop, you need to really cut off the funding of this war which comes from the fossil fuels. Hungary, Belgium, France, do you think they're really prepared to do this? I mean, these countries, I mean the countries who are dependent on some are making great steps and some, some are not. So, so clearly some are great friends of, of President Trump, which has been also our appeal to President Trump to talk to them, like Hungary, for example, is necessary. The neighbors around Hungary, for example, have proposed solutions so that they can get energy from the neighbors and do not have to depend on Russia. But So far they haven't really wanted to as the energy is much cheaper. Do you view this posture now from the United States? Some are calling it a full 180. Do you view it as concrete? Is this tangible? How long will it last? Well, we welcome those statements and, and the change of tone, like I said. So, so let's this also really tangible steps. I mean, on the European side, we have been keeping this line, also putting our money where our mouth is. I mean, supporting Ukraine, their defence capabilities, investing more in our defense and also pushing back Russia, putting pressure on Russia. What we want to see from all our allies. One country that could really put pressure on Russia is China. Given the fact that you've been working with the United States when it comes to Russia, could more be done between the European Union and the US to put pressure on China to then put pressure on Putin? The US has tariffs on China. Is it time for the European Union to consider putting the walls up on China? Not just what's going on in Ukraine, but also they're pretty much dismantling the European industrial base? Well, it is true we have two big worries with China. One is the economic cursive practices that they are using against European companies, which are really hurting our company's industry. And, and the other part is them being the key enabler of Russia's war in Ukraine. So we had the EU China summit. We are stressing all these points and really raising these points and also acting on them. If you look at the sanctions package, we are sanctioned also Chinese companies who are enabling this war to continue. So we are not, or let's put it this way, that we are believers of free trade, so we are not using tariffs as the measures, but we are putting pressure by other means. I just want to finish on the incursions when it comes to European airspace. Friday it happened in Estonia, a country you used to lead. Is Estonia and these countries prepared to do what the President Donald Trump thinks NATO allies should do, shoot these Russian aircrafts down? Well, NATO is a collective defense alliance, which means that attack on one is attack on all. This is Article five. So it's clearly if those, you know, drones, our airplanes are violating the airspace are creating security risks, then there has to be proper response. The estonia asked Article 4, which is consultations, how to continue. And all the member states in NATO's, including United States, have vowed to keep up their commitments. Madam Callis, thank you so much for your time. Bloomberg TV today. Caroline. Ed, of course, that was your Europe's top diplomat welcoming the really reversal we saw from the president of the United States right here at the UN yesterday when it comes to Putin's invasion of Ukraine, Bloomberg's AnnMarie Horden @ the United nations, thank you very much. Coming up on Bloomberg Tech, the largest US Maker of computer memory chips gave an upbeat forecast for the current quarter. We'll talk about what's lifting Micron's outlook next, why the shares aren't doing so well. This is Bloomberg Tech. Data threats don't knock. They sneak in quietly, make themselves right at home. But when you partner with Veeam, you can spot threats before they're a threat to your business. Whatever the world throws at your data, it's all good. Get data resilient@veeam.com that's V E-E-A-M.com in business, they say you can have better, cheaper or faster, but you only get to pick two. What if you could have all three at the same time? That's exactly what Cohere, Thomson Reuters and Specialized Bikes have since they upgraded to the next generation of the cloud. Oracle Cloud Infrastructure OCI is the blazing fast platform for your infrastructure, database, application development and AI needs where you can run any workload in a high availability, consistently high performance environment and spend less than you would with other clouds. How is it faster? OCI's block storage gives you more operations per second cheaper. OCI costs up to 50% less for computing, 70% less for storage and 80% less for networking better. In test after test, OCI customers report lower latency and higher bandwidth versus other clouds. This is the cloud built for AI and all your biggest workloads right now with zero commitment. Try OCI for free. Head to oracle.com strategic that's oracle.com strategic join Bloomberg in Houston or via livestream on November 4th for the future. Finding the opportunities this 2025 event series will examine how companies are investing in their businesses to create efficiencies, innovating their products and services, and improving the customer experience. This series is presented by Invesco QQQ Register at bloomberg live.com/future investor Houston that's bloomberg live.com/Future Investor Houston Microsoft will start using AI models from Anthropic to help Parrot's Workplace AI Assistant, a product that has so far, of course been mostly driven by OpenAI. Starting today, business users of Microsoft's Copilot branded AI assistant, well, they will be able to toggle between OpenAI and anthropic models for certain functions like digital research assistants or building customized AI tools. Bloomberg's Brody Ford joins us for this and so many other stories. Brody, we start with the idea that Microsoft's becoming less and less dependent on OpenAI and vice versa. That's the big question for Microsoft, right? It's kind of stake its AI bets on the idea that Open Air will be its golden goose. These two companies are have slowly moved apart from one another and today we see Microsoft making a big partnership with the other kind of leading frontier model, maker of anthropic, showing that you know, they're testing the waters, they're looking around, they aren't as bad. On the Altman show, Brody, the big story in the market today is is Oracle tapping corporate bonds? $15 billion including a 40 year note which is a rare thing but actually it just speaks to what you wrote about in the Tech In Depth newsletter. There are all these pledges and Oracle and others are writing all these checks for future infrastructure and now they're trying to work out how they're going to cover those checks. Oracle is one of the great cash cow businesses of all time but its cash flows went negative and it's going to be negative for the next couple of years. They've committed to serving open AI, serving customers like Metta with huge data centers and that money's got to come from somewhere. And so folks have wondered where that will be. And so seeing them tap the debt markets in a big way today is not a shocker. But it's maybe a larger sum than we anticipated and how amazing that people are willing to commit to buying 40 year debt when still we're wondering if we win the race in that time. But I think it speaks to what was announced late yesterday as well. Open Air articulating those five new sites around the United States. The idea that they need, they're going to be playing 400 billion of the 500 billion committed in Stargate. But what was really interesting and Shereen Ghaffari wrote about this was that basically some Altman saying we haven't quite got funding tied up here yet. We're having to be creative basically is what they're saying. And look at how Nvidia invested in Open Air. Off the back of that you're hearing these fears of a circular spending a lot more, right? That 100 billion going from open Air to Nvidia to Oracle and back, right? And the Oracle's new co CEO said that in Texas yesterday as well. That look we're clearly doing something here. You can see it, we have ambitious plans. The money is something we're still figuring out this is a historic amount of investment and we're going to have to use interesting new structures was I think his words. There's three new sites right in this expansion of Stargate, Shackelford County County, Texas, Donna Ana County, New Mexico and then somewhere in the Midwest that we don't know about. Explain Oracle's involvement because they are actually at the heart of this story. And I think it's worth lingering on. Oracle has agreed to effectively be the infrastructure middle person, right? They're going to go out and find data center developers who have figured out the power. They're going to rent big old buildings from them, fill them with servers and then use power from those servers and give it to OpenAI. They have committed to a pretty incredible project here and it's work that's worth noting that Microsoft passed on. They said that for whatever reason they weren't going to do that. And so Oracle has found its way to be taken seriously in the cloud infrastructure game, did something huge, but now it has to deliver and has to find some money to do it. That's Brody Ford. Great reporting. Thank you very much. The other big story out there in the market is Micron shares a little bit under pressure. The company reported a strong outlook for the current quarter helped by demand for high bandwidth memory. In the context, it's a classic scenario Carol talking about earlier where it beat consensus on its, on its outlook, but at the very high end of estimates. You know, this was a high bar kind of quarter. Let's get out to Kim Forrest, CIO at Bocker Capital Partners. You know the market starting to understand the HBM is absolutely critical to the infrastructure build out we've got, but still such a high bar for Micron. What was your reaction and interpretation of those numbers? I thought they were incredible because I had, you know, consensus estimates kind of in my mind whenever I was looking at this stock. Now the other thing that is missing from this equation is it's run up tremendously in the recent past. So I think there is a little. But maybe some of the traders that aren't in, that aren't going to stay around in the name are out because of the great gains they've gotten in the recent past. So there's a little bit of profit taking going on, but really all arrows are green and pointed up. So I think the stock is pointed up into the right and some of the areas that I think are most kind of strange is is old tech is coming back for them as well. And I mean that's kind of great too for a lot of players if you are a tech oriented investor. So regular servers, you know just the stuff that Microsoft and Oracle has been building for itself for enterprise to rent out us, that sort of stuff is on the upswing. It has been missing for a couple of years. Right rate. And then here's a crazy idea. PCs because they're killing Windows 10. There is going to be increased demand for PCs and probably the higher end pieces as people start to play around with AI. So all arrows look upwards and I don't really care what the stock's doing today. It generally does, it does this and it's not trading off quite as much as it had in the recent past on the day after earnings. Well Kim, trading up in the recent past is up 94% year to date. Second best performer on the Philadelphia index this this year. I'm going to ask you something generally about infrastructure. Are various technology companies writing checks that energy companies, the grid, utilities can't cash in the future? Like something has got to give here? Yes, absolutely. We have this crazy thing called the physical world world right. That is running up against the virtual world and I'm one of the people that really worry about this. I think AI is going to add productivity but the open air kind of model of we're going to have one big brain that you're going to tap into. It worries me first of all for just tally up the expenses. I'm someone that came out of tech because the companies, these AI companies I was working for were not profitable because they didn't understand the problem. The cost of the problem had to be lower than the cost of this or sorry higher than the cost of the solution. And I don't really understand what's are solving. Like you can't do a quick like back of the envelope calculation and go yeah, people are really going to benefit from these financially. So these are the things that I worry about. Not just power but who's going to pay for all this infrastructure. 40 year notes for Oracle. Lovely. That they think they're going to get paid back. Shorter timeline than that but I don't understand the use case where businesses are going to pay like right. Enormous sums of money. To cut to the chase, do you think this is more you know the idea of big bubble rather than big bet bets? I do, I do and it's a very, very big bubble because they've solved a very big problem, natural language processing. But people are conflating that it's more than that, that this is a thinking machine and it is not. I think that this will be used. I think lambs are very useful, but they are not the answer the end all be all of AI. So therefore exposure. At the moment you talk about open air, open AI and there's a lot of private money going into OpenAI but OpenAI's demand props up the future revenue streams of Nvidia, maybe even Micron as well. How much can you keep buying in to these companies like Micron that is posting gross margin in excess of 50% in the here and now? Well, here's, here's my model. It's, it's the third option that we're not talking about is that companies, and I'm not recommending them, I'm using them as an example. Example. Palantir solves smaller problems with AI that still need the same sort of chips, the same sort of infrastructure, but not just not quite as much. Right. So they, they're solving problems, smaller problems at a smaller cost. And that I think is going to be the, the formula and there will be many of these. But unlike OpenAI that seems to think that, you know, we're going to have server from New York to San Francisco, you know, throughout the country, like all of the country is going to have those. It's hyperbole, of course, I don't think that. But you know, the scale is not the same as with a smaller AI sort of model. Kim Forrest Capital Partners always love the straight talking. Thanks for joining. Jimmy Kimmel returned to the airwaves last night after Disney lifted its suspension following remarks made by the host about the assassination of Charlie Kirk. Here is what Kimmel had to say about the controversy. And the truth is, I don't think what I have to say is going to make much of a difference. If you like me, like me. If you don't, you don't. I have no illusions about changing anyone's mind. But I do want to make something clear because it's important to me as a human. And that is, you understand that it was never my intention to make light of the murder of a young man. Bloomberg's Hannah Miller, who covers Hollywood and entertainment, joins us now. Emotional at times, but also fighting talks at others, particularly when targeted at Brendan Carr, the FCC and the White House. Yeah, if you listen to the rest of that monologue, you know, Jimmy goes hard after Brendan. Car. Car. And really calls him out for stifling free speech. And, you know, he makes very clear he's not sorry about what exactly. He said he's sorry if he caused offense over the death of Charlie Kirk. Hannah, the president reacted in a post on Truth Social. And we also had the reporting from Bloomberg about recent days, Kimmel meeting himself directly with Disney executives. What's the reporting we need to know about on that? Yeah, so even before Jimmy Kimmel went on air, you had President Trump posting on Truth Social, you know, making these vague legal threats, you know, saying that he had previously gotten millions of dollars from abc, referencing a past lawsuit that they had settled and that, you know, he, he might go after them again. So, you know, again we're seeing this contentious relationship between the Trump administration and media and also the two major TV station known as customers Sinclair, nextstar that put out the content to many, many Americans are still having Jimmy Kimmel live on hold. So how does that impact Disney's business model here? Yeah, so about 23% of the country was not able to see this. You know, they were, they saw other broadcasting, you know, news programming, things like that. You know, we've seen a lot of talk about the business impact when it comes to subscription cancellations. When you look at, at Disney plus and Hulu, Jimmy Kimmel actually made a joke about that where he read instructions about how to, you know, get your subscription back if you did cancel. So, you know, it's been very interesting to see the impact on Disney, Bloomberg's Hannah Miller and the team at screen time round the clock reporting. Really appreciate it. Welcome back to Bloomberg Tech. I want to get right right to Alibaba's US listed shares or ADRs. We've just in the last couple of minutes come off a session high. We're up nine and a half percent on track for the biggest jump in about a month. The shares trading at their highest level since the middle of 2021. The story is really simple. Overnight, Alibaba said it was going to commit to spending even more than the $50 billion it had already committed for artificial intelligence. And that is something we see in China. Caro from Huawei through to Tencent. But Alibaba a key name and clearly it's driving markets. And the last thing I'd say is I saw a headline on the tunnel this morning that when those ADR jumped in the free market, the rest of the market went with it. We saw futures gain as well. So we're paying attention. We are. To $35 billion added in market cap and to a new large language model update too from Alibaba. Let's get to it. Bloomberg's Henry Ren, who covers equities and tech, joins us now. And it does seem to be the fact that Alibaba is all in in whether it's offering cloud, whether it's expanding its investment, whether it's thinking about its own chips too. Yes, it's about building an ecosystem. Thanks for having me. So it's Alibaba's annual developers conference and lots of surprise. The biggest surprise, as you mentioned, is about them raising the Capex guidance for Capex over the next three years. We already knew from February that In the next three years they're going to commit it over 50 billion USD of spending on infrastructure. But they said they will be spending more and. But although that they didn't give specific numbers, but investors are already getting excited about their projects. So the shares rallied, of course. And on data center and cloud, the company said it has already been expanding overseas. It will continue to do so and over the next year it will be building data centers in countries like the Netherlands, France and Brazil. And that's another plus. And on the model side, the company released this new Kuwen Max 3 model, which according to the company is among the top in the charts. The benchmark as well. So all those are pluses. And for Chinese investors that are enthusiastic about developments, the shares have reacted positively. Bloomberg's Henry Rand out of London, thank you very much. China's biggest tech firms are pouring unprecedented sums into artificial intelligence matching the massive investments already underway in the US Global tech investment firm. Process holds a significant stake in one of those giants, Tencent. Joining us now is CEO Fabrizio Bluisi who visits us in San Francisco. You know, Henry did a good job breaking down what Alibaba had to say. You through your lens of Tencent understand what's happening in China. How do you interpret and react to what Alibaba told us overnight? Hello, Ed and Caroline, pleasure to be here. Thanks for receiving me. We are extremely excited about in China. I know there is so much geopolitical tension about who is going to end. This is not like a simple win thing. This is going to change the world in the next 10, 20 years substantially. And the giant clients of China are invested substantially against that. Alibaba is doing a great work, but also Tencent is doing a great work. Deep seat had a big impact in what everyone is doing here also in Europe and us. So we are bullish. This is going to keep growing. I want to give you one extra data. China 10 days ago released it is a plus policy. Yes. Where they say in three years 70% of the device are going to be enabled using open source AI in 10 years the whole society is going to be disrupted by AI. So it's amazing how committed China is to AI. And I think it's our obligation in US to do that. Is our obligation as one of the biggest European companies to invest in Europe so we can keep the pace or do better. You know, overall what these Chinese technology companies share is their commitment to spend. But they are very different. They have different proportions of the business. On e commerce, pure cloud computing, how should we distinguish Tencent's AI strategy from Alibaba? What is the piece of Tencent's AI plan that you are most bullish on? Has WeChat and we should pay and all the communications in China runs against three shots. And the impacts of AI in communications in companionship is amazing and now in shopping through messaging. So we are very bullish that there is a lot of things to do to Tencent. But I want to remind you all we are trying to replicate that in Europe, India and Latin America. That's what Process is doing today. I think China is playing very well. US is playing very well. But that is a big space for other big tech champions in Europe. Europe is more or less the size of the American economy but has like ASML, Process, Spotify, Mistral, maybe three or $400 billion companies. We believe there will be trillion dollar company in Europe. That's why we're investing hard in Europe to build there. The same thing in India. We invested hard in India, we invested a lot in Latin America. And it's good to remind sometimes everyone including my US France is going to be a global thing and we have many global tech champions around the world. That's what Process is doing fabric. You're trying to make Process that global tech champion in. Can you describe the exact tactic of that at the moment? Because it seems like you're all in on this idea of lifestyle, e commerce system more broadly. How do you become the bigger than the sum of your parts? Definitely we are very excited about what we are doing. Our first part of this strategy is to invest in our three ecosystems. Latin America where we are doing very well through I food and a whole ecosystem around iFood. For example desperate acquisition we did for $2 billion dollars a few months ago in India we making many investments that are growing faster through AI. For example, today we announced the investment in the biggest mobility player in India and in Europe we are really investing to develop technology innovation. In Europe we did the just takeaway acquisition there just for five months ago. It was approved by European Commission in five months. What is Like a record time. We are very excited about the that that's what Europe needs to move faster, to take more risk and to create local champions. We expect that to close this offer in one week, next Wednesday actually. And this is just the first step. We are going to keep investing harder in Europe. We are announcing we are launching next week the Air House Amsterdam where you have hundreds of people together with universities and other companies developing local models in Amsterdam in the Netherlands. Because we need players investing really hard there there. I'm quite confident with the level of scale that we have with 30,000 people, the level of investment in disruptive AI models. We will, we will help Europe to position itself as a leader in this race. What about other areas of M and A then? Because you're trying to make your portfolio ever more focused. Where could you make additional add ons? Where's interesting. As I said, we spent 7 billion the last few months. We are going to keep spending, hoping the next next few days announced another big investment in France of a lot of money. Yeah, just a few days to keep investing a lot in Europe. My commitment was to invest up to $15 billion in Europe and we are moving fast on this direction. I'm a little frustrated. The European Commission also asked me to divest $2 billion, $1 billion before I keep investing. I think this is the wrong mindset. Europe needs to invest. Then I can do it by myself. 50, $100 billion and that's what Europe, Europe needs. So I want to hold you to account or something because you said to our US audience don't forget Europe. When I look at what you have done, there's been some selling down in Delivery Hero. Also some of the Chinese meituan for example. Yeah, so. So net net. You're going to continue adding proportionately to the European investment and taking potentially from other proportionally we are going to invest substantially more in Europe. We have up to $15 billion to invest in Europe. The delivery heroes sell. Discussion about selling now was our agreement with the European Commission. They asked us to divest. Yes. And I disagree. Thank you European Commission. We did a deal in five months. We are moving fast. That's what European Europe needs. But they also said please sell a little. That's the wrong strategy. We had to invest more $15 billion faster. That's what I'm going to keep talking in Brussels and that's what I think Europe needs. Everyone was talking this week about the Mario Draghi report. Yes. He said Europe needs to be more aggressive, needs to consolidate local champions. One year after the report, just 11% of the report was implemented. That's not enough. But the good news Process is very committed to help collaborate, work together. We need bigger companies investing more and fast in Europe, specifically in developing AI. So I'm quite excited. I know many times here in TV we say it's a bubble. It's not. I'm absolutely sure the impact in AI in the next 10 years is going to completely change who are the winners. So if you're not moving fast in the impact in AI today in process is disruptive. We are moving faster, we have better service for our customers, we are more efficient. Obviously there is lots of people investing a lot specifically here in U.S. u.S. Obviously lots of the companies people are investing today, they are also going to fail. That's part of the process. We're not going to have only winners. We have two winners and losers. We are working three times harder in process to make sure that we are one of those winners, specifically in Europe and India and Latin America. Well, let us know which is the French winner in the next few days. Fabrice Luisi, great to have you back. Process CEO. Now let's turn to the efforts to harness the power of AI. That's what Ruth Porat, Alphabet's president and CEO has just been discussing with Bloomberg's Francine Lacqua at the Bloomberg Global Forum in New York. Take a listen. I think where we are with AI is it is both moving really fast and really slow. And what I mean by that is when you focus on the science, the breakthroughs in science are breathtaking, the pace at which we're seeing advancement. And I think one of the best ways to think about that is actually with my colleague down who runs Google DeepMind and the work he did to develop something called AlphaFold, which is the 3D prediction of protein structures, which is viewed as the single greatest contribution to drug discovery in our lifetime. And he went from working on that. He's been in neuroscience and computer science physics for his whole life. But four years ago started on this journey to take on what had been a 50 year grand challenge to predict protein structure of the protein structures for all known proteins. And in four years he went from an idea that people challenged, is it possible? And he said, why not? To a solution which has now been open sourced. 3 million scientists around the world are using it, 190 countries and the Nobel Prize. That is the speed of change. And we're seeing that across Google DeepMind. What is slow is actually the implementation in both the public and the private sector. We're still very early days. The excitement about AI is across the board. The economic upside 4 trillion potential contribution to GDP by 2030 with proper application across industry in the public sector, what's called diffusion, it's the better delivery of health care, better delivery of education. And that is still very early days. AI is clearly a lot more than a chat bot. It's about a fundamental rethink of the process of processes that we have. And I would say for each one of us as leaders, we need to start on that journey. That was Alphabet President and CIO Ruth Porat from the Bloomberg Philanthropies Global Forum earlier today. Okay. Coming up, Steve Jiang, founder of Kindred Ventures, joins us for a conversation about the opportunities all of these announcements create for the private investor, for the venture capitalists. That's coming up next. This is Bloomberg Tech. On September 25, Bloomberg Green returns to New York to bring together leaders from business, finance and government during Climate Week nyc. Join us for a half day of timely insights and high impact networking backed by Bloomberg's global journalism and data expertise. Together we'll explore strategies for future proofing business and communities from the planet's most pressing climate challenges. Supporting sponsor Susano Learn more at BloombergLive.com Greenlight and why companies are investing hundreds of billions of dollars in data centers. We've been talking about that. Announcements just keep coming From Alibaba to OpenAI and Nvidia on Monday. I want to get the private market perspective on this with Steve Jiang, founder of Kindred Ventures, an early investor and here with us, VC Spotlight. And you're operating at a different level of, of the curve, right? I think that's one way of putting it it. But I do want to get your, your reaction to that open air Nvidia deal because it's all of it that's happening in the market right now. Right. And thank you for having me. It's great to be back. It's both surprising in scale, but not surprising that it's happening. Number one, I think we're undershooting or underestimating how much compute we need for not only training but for inference that growth, that growth in demand is scaling out in every direction. Right now we're seeing that across early stage startups as well as growth stage startups and public companies. So if you think about what's happening today globally, first off, every region is now in the competition, the model competition race number two, there are specialized models in video, in audio, in voices and speech models. Yes. Physics models, medical science models. You look at what DeepMind is doing, you look at what small startups like so font are doing in medical sciences and then you also see what's happening in particular with demand. And so we're just moving from an experimental phase into a commercial application phase. So everything that's happened up until today has just been in that experimental testing phase. And so if you think about Tik Tok and Instagram and YouTube on the consumer level, there's double digit adoption right now on creators and users. They're using AI tools and then if you look at enterprises and small businesses, they're already starting to use voice AI for call centers, they're using it to write reports, they're using it for search and answers. So we're just at the beginning and I think every single, I look back yesterday, we came on today and I saw all the projections from a year ago and we're already surpassing that by 10x today. But inference, demand alone. But Steve, the reason we come to you is because the prowess of the bets you've already met and we think about perplexity and we think about play. I How do you ensure, Steve, that you're not part of what some are starting to feel is like a house of cards of everyone giving money to the same sort of players. And ultimately, if the productivity doesn't achieve, if the money doesn't achieve, then suddenly we start to see some real holes. I think what's important here is that you do see the demand and you do see the uptake commercially. You see revenues, you see adoption, you see usage. I'll give you an example of this. So today in terms of generative media, generative video is relatively new. Well, let's say it's about a year and a half old. Google, ByteDance and many other small startups are providing these models, the compute just for that, which is showing up on YouTube, which is showing up in video ads, which is now showing up through Creative Eye on Comcast and Universal Channel. Video ads now is making real money, it's making real CPMs for real brands. And so as long as there is economic productivity on the demand side, that's why you're seeing all this scaling of cost of investment in GPUs, data centers and energy and you see these long term contracts. $100 billion dollars was an amazing size for a SoftBank Vision Fund five years ago and today that's just one company making investment for a round trip commercial deal. Steve, you're in the green room right when Fabrizio Boise was sat in that chair and he Talked about the bubble in the context that like. Well that's normal part of the game. Some failures you need to find successes. Do you, do you think about it in those terms? In the context of this, such a capital concentration in these few names there's always going to be an arbitrage between current demand and economic productivity. Revenue. Right, and, and the investment capital and the timeline in between. Bubbles are necessary for a collection and you know, hyper focus of talent, engineering talent, research talent, building talent as well as capital. And that's what creates that enormous growth and velocity in any sort of tech cycle. We saw this every tech cycle cycle. This tech cycle is very different because there's real revenue and commercial application happening. So again look at, look at GPUs as just one part of this energy is the other part, data center space is the other. Then there's a software infrastructure layer there, so called middleware which was a bad word in the last tech cycle but is actually where value capture and differentiation happens now. And so this is really important. You see companies like together AI, AI. You see companies like foul in the generative media cloud space. These companies and core weave, a core weave is a company that started out as a bitcoin mining data center. Steve, can I go to that, can I go to crypto? Because we're talking about a potential bubble and I know that you've got a lot of experience in crypto. I'm looking at tether, potentially looking at funding with a valuation of $500 billion. Is that a bubble sign to you or not? On the stable coins right now? And crypto, there's an interesting thing happening right now where fintech as we knew it, global payments infrastructure companies like Stripe and many other companies fragments around the world in effects is getting slowly transformed by crypto, especially stablecoins. We don't. It is again very easy to underestimate this. I think it's harder to, to really look at the frontier to say how big could this be. But you see the US government and many other foreign governments, this is an area unlike AI where there isn't a concept of sovereign crypto. In AI we have sovereign AI and there's a competition in, in crypto, interestingly there's much more of a cross border collaboration that wants to be on blockchains. This is obviously very recent in terms of government push with administration but underlying that is still compute. Same data centers that are providing AI compute, high performance compute are also supplying it for crypto. So fascinating. Steve Zhang managing partner and founder of Kindred Ventures giving Us the full picture social media app Instagram is proving more popular than HEPA, reaching 3 billion monthly users. This is parent company Matter looks to short form videos and private messaging to really drop drive the growth. For more, Bloomberg's Kurt Wagner joins us. You've had a really interesting conversation with Adam Mosseri. What did he detail about the forward path for Instagram? Yeah, the big thing for me that I took away is that they're leaning into these products that not have not necessarily been historically how you think of Instagram. You think of these glossy life moments, the traditional feed, they're leaning into DMs, leaning into reels, stories, things like that. So Instagram has changed a lot since 2010 and the 3 billion they're leading into that change. I think part of the discussion was about testing and changes to the algorithm. What are they doing? They're going to let people essentially pick the topics they want to see more of, so be more explicit in the things that they're hoping to see. You know, you can pick your favorite sports team, you can go very granular. And they say they're able to do this because of the advancements in AI. They're able to read videos with AI, determine exactly what's in them and then feed that to you. Historically, Ed, you know, it's been more implicit. Like they will look at your behavior and try and guess what you like. Like they're going to run this test where people can be a lot more specific about what they want to see and hopefully change their algorithm to show that. And also interesting where they're testing that and which parts of the globe they really want to penetrate. Yeah. So the algorithm test is going to be in several different markets. They are doing a test in India specifically around reels, where they're going to open the app into reels. So instead of opening into that main feed, you're now going to get basically TikTok when you open it. Instagram, where they're banned. And I was going to say, and there's a reason they're doing it in India, because TikTok is banned in India. Right. So this is a great opportunity for them to kind of take advantage of the fact that a core competitor is not in that market. Bloomberg's Kurt Wagner. It's a kind of must read based on an interview. Adam Mosseri, who heads up Instagram, really appreciate you joining the show on it. That does it for this edition of Bloomberg Tech Car. You do not want to forget to check out our podcast. There is so much debate out there. Around AI. Stick with us for it. You can find on the terminal says online on Apple, Spotify and iHeart. What an incredible time to keep on telling these stories. This is Bloomberg Tech. On September 25, Bloomberg Green returns to New York to bring together leaders from business, finance and government during Climate Week nyc. Join us for a half day of timely insights and high impact networking backed by Bloomberg's global journalism and data expertise. Together we'll explore strategies for future proofing business and communities from the planet's most pressing climate challenges. Supporting sponsor Susano learn more@BloombergLive.com greenny.