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To ensure you have the right size contract workforce, go to expresspros.com solve your workforce challenges when you choose Express to support your hiring in a variety of roles, including two of our biggest areas, manufacturing and logistics, visit ExpressPros.com today. That's ExpressPros.com Bloomberg Audio Studios podcasts Radio news Bloomberg Tech is live from coast to coast. Caroline Hyde in New York and Ed Ludlow in San Francisco. This is Bloomberg Tech. Coming up, Anthropic and Google discussing a deal for cloud computing services valued in the high tens of billions of dollars. Plus we break down earnings, Netflix and Texas Instruments in focus while we await Tesla's results after the closing bell. And hot on the heels of AT&T his own earnings, we discuss with the company's CEO John Stanke. Let's get to our top story overnight. Bloomberg breaking the story that Anthropic is in talks with Alphabet, specifically Google for cloud computing capacity. High tens of billions of dollars. TPU's are in the mix. When we broke the story, Alphabet shares jumped in aftermarket. Amazon fell. This is where we're trading right now on Wednesday's session I broke that story with Bloomberg's Rachel Metz. Let's get out to her. Actually Rachel, like the details are quite simple to understand. Early talks and they're around capacity but let's recap what we know. Yeah so as you said, the two companies have been discussing a plan for Anthropic to use Google's tensor processing units. TPU's these are chips that are can be used for a lot of things, but they also can be used for AI workloads. And Anthropic, I think it's important to remember is already A customer of Google's for its cloud service. And also Google is an investor in Anthropic and, and Anthropic has a similar deal with Amazon too. So that's, that's why you sort of see these mixed reactions. There has been a lot of reaction to our reporting. Later in the program we're going to speak to Bloomberg Intelligence about their take on it. Anthropic have been busy of late, right. We've reported that Dario Amade did this kind of tour of the Middle east seeking both money and compute capacity. The compute capacity bit is where people are trying to understand this. Like is it that just Anthropic really needs as much capacity see as it can get? Or is this a story about how actually Google is kind of becoming the better partner for Anthropic beyond an Amazon? I think there's a couple of things that could be happening here. One is that yes, building the kind of AI models that Anthropic is building is extremely compute intensive and you can't just use like any cloud capacity you could find anywhere. And you can't just use any chips. You have to use certain chips that are going to work well for the kinds of large language models you're building and the kind kinds of models that they are serving to people. So it seems like a vote of confidence potentially for Google and for its chips. I mean, hardly any companies beyond Video amd, maybe one or two others have chips that people are willing to be using for these kinds of AI workloads. It also could make people a little nervous about what it says about Amazon and its ability to provide the services that a company like Anthropic needs. Bloomberg's Rachel Metz, thank you very much. Let's get to the earnings story, starting with Texas Instruments. Its stock fell the most in three months after it gave a lackluster forecast for the current quarter. Bloomberg's chips reporter Ian King is with us. Actually, probably more simple story than than we expected. We got a lens into the health of analog devices. Texas Instruments is analog chips. You covered the earnings blow by blow. What do we need to know about this? So the first off the numbers, not too bad. 14% growth for most companies would be fine. Projecting something in the region of 11% for this current quarter. But what they said was more important. What they said was things are coming back, everything's okay, but just not at the pace that we had been expecting. There's still some uncertainty out there. This is macro related. Companies aren't investing in their factories perhaps as quickly as we had hoped. And really clearly they were sort of painting this picture of a kind of an anemic kind of return to growth for the whole industry. When I was reviewing your story, the CEO said that overall, the semiconductor market recovery is continuing. That that seems a little bit incongruous with the market's reaction to what's going on. The stock's down 5% but also kind of, you know, what's specific to them. What they're projecting is basically seasonal, right? What would happen normally if everything is equ the fourth quarter. The problem is with that is that if we're in this recovery period, if we're in this bounce back from this inventory correction that we've suffered, things should be growing quicker than that. People should be rushing to stock up. People should be rushing to build new things and they're not. Bloomberg's Ian King, thank you very much. We actually just had some breaking news at the top of the show and it is move shares of Google. You can see there on the screen, the company ran an algorithm on its way Willow quantum computing chip that can be repeated on similar platforms and outperform classical supercomputers. A breakthrough, it said clears a path for useful applications of quantum technology within five years. This was detailed in a paper published Wednesday in the science journal Nature. And you can see there on the screen the right hand side of the chart. When those headlines hit Alphabet shares who had given up the gain they'd seen from our reporting on Anthropic suddenly jumped in the session to a gain of around 2%. We will continue to track that story and Alphabet shares throughout the show. Okay, back to earnings. Another steep share drop. Netflix disappointed investors with its results. The streaming giant blamed a tax dispute with Brazil for a cut to its third quarter earnings. Let's get more with Bloomberg's media editor Felix Gillette. This tax issue like yesterday I went on television all day long saying maybe there'll be a foreign currency benefit to Netflix's earnings, we'll learn about advertising. But actually this tax issue is the main story. Just explain it. This is a long going dispute that Netflix has warned about in filings before. They didn't factor it into the forecast. They ended up having to pay several hundred million dollars more to Brazil. They're saying it's a one time deal. It's not going to the material impact moving forward. They're trying to steer the attention back to the growth, you know, 17.5% growth in sales for the quarter and you know, profit growth also up. You know, we were talking Felix about the idea that Netflix wants to be judged by its sort of traditional financial metrics. Those are quite good generally speaking, right? Yeah, yeah. I mean, they were fine at this point. I think investors were looking for more than fine. They were looking for complete blowout quarter in part because, you know, they had such a strong slate of program in the third quarter. You know, Wednesday new episodes, Squid Game, new episodes, K Pop, Demon Hunters. So at this point, yeah, the programming look good, the growth and sales look good, but investors wanted more. Bloomberg's Felix Gillette really appreciate your time. Thank you very much. Aoko Yoshioka is a portfolio consulting director at the Wealth Enhancement Group, which holds some of the major magnificent seven names, Texas Instruments. And I think we can also talk a little bit about Netflix. That's where I'd quite like to start earnings season in technology can bring all kinds of beautiful stories. Did you have a tax dispute with Brazil on your bingo card for what Netflix would tell us about the world of streaming? I did not have Brazil tax issues on my bingo card, but I think the Netflix Netflix earnings were actually pretty decent. You know, we forget that Netflix has actually come a long way from a free cash flow growth perspective. They were only generating about 1.6 billion about two and a half years ago, and now they're generating close to $8 billion in free cash flow and that's slated to go to $11 billion. So we'd like to focus on that metric versus the Brazilian tax issue. Okay, team, let's leave the shares up. I also was showing shares on the screen. The Stock's down almost 10% on track for its biggest drop since April 2022. What was the big picture story about the health of streamers and streaming here and where Netflix sits in that landscape? Sure. I think from a consumer standpoint, you know, Netflix is one of those go to programs that consumers are going to continue to go to. I think that, you know, for, for Netflix, the content you mentioned has been very solid. And even if the macro environment is a little shaky out there, I think Netflix will continue to see subscriber growth. And that's what we'd like to see over time. Let's get back to our top story today. Overnight, Rachel Davey and I broke the story that Google is in early talks with Anthropic for a cloud computing deal. Capacity in the high tens of billions of dollars. When we broke that stock story, Alphabet shares really jumped in after market. They've given up some of that gain in the market open this morning and Amazon fell. Wealth Enhancement has some Exposure, particularly to Alphabet. What is your reaction to that reporting and what does it signal to you for those companies involved? You know, I think in general, the sort of clue to me is just that the infrastructure buildout is still in its early phases. Right. You know, we've heard so many announcements over the last several months and yet here we are with another one. And just when you thought you weren't going to get another announcement related to AI infrastructure build outs, you here we are with Google and Anthropic. I think that the race is clearly on and we'll have to see who's really going to win. But the build out is sort of still in its early phases. The cloud computing market, as we've always understood and talked about it, is number one player, Google Cloud, number three player in the specifics of this story. Both of those companies as it relates to AI workloads have some questions to answer here. Right. So Amazon is also a significant investor in Anthropic. Our reporting says that Anthropic wants to use TPU's. What are you learning about the competitive nature of Alphabet's cloud offering or Google's cloud offering versus Amazon's in the AI domain? Sure. So I think we have to really dig into this in terms of, you know, what are the TPU's offering in terms of optimizing workflows that GPUs aren't and how is this better suited for, you know, Google's sort of overall workflow and how they're going to be using AI through Gmail and Google Maps and a lot of their applications that they have in house. And then how does that fit related to Amazon and how, you know, some of the algorithms are working for Amazon's suggestions for retail as well as advertising? I think there's still a lot to dig into here in terms of how this is all going to work out. Texas Instruments is worth lingering on, I think. You know, sometimes it's seen as almost like a crystal ball of what all kinds of end markets around the world will do. Coming up next because of, because of how many analog chips go into all kinds of things. What was your read on the print there? Sure. So I think in general that, you know, as Ian said, that this, the overall quarter and earnings were actually pretty decent 14% growth. But I think the read through into industrial markets, into automotive, into some of the consumer electronics that are more basic really shows that we're not in a macro environment that is growing gangbusters. So outside of all of the AI investments that we're seeing in the economy, we're not seeing that sort of economic growth take off as much as I think people had hoped for. We're in it. This is it. Technology earnings season, my Super Bowl. Super Bowl. I don't know if it's your super bowl. What was it that we were expecting to hear and what do you need to hear from the technology sector specifically the Mag 7, I suppose, to keep the direction of travel that we have seen in equity markets. Sure. So next week will be the big week for all of this, including a Fed meeting to cap it all off too. So I think for, for us, we're always going to be looking at commentary around Capex spend. I mean, this is what really set it off years ago. And we're going to continue to see whether or not that spend continues from the hyperscalers or whether or not they need to take a little bit of a pause. But I think we're going to continue to see that spend. I mean, we're seeing announcements left and right and so we'd like to kind of dig into that during earnings season. Do you expect that tariffs specifically or any other Trump administration policy will play out on the calls or in the statements in the tech side? Maybe a little bit, but I don't think it's going to be as prominent as some of the consumer names have talked about with, with tariffs and goods. I think it's going to be a less of an issue. You know, I think we've, we've seen all of this talk about exporting that has had a little bit more of an impact and the sort of tit for tat with China, that's probably going to be a little bit more of an impact. But overall, I really do think that investors are going to be focused on general Capex spend. ROI around AI. Right. And you know how that's playing out. Yoshioka of the Wealth Enhancement Group, really appreciate you rolling with the news of the day and a big tech earnings season coming up, AT&T CEO John Stankey joins us to talk about the company's earnings. And it was a big one. Investors still making up their minds. That's next. This is Bloomberg Tech. Welcome to our Bloomberg TV and radio audiences worldwide. We bring in @&T CEO John Stankey. The company reporting results this morning that showed higher than expected subscriber growth, though some analysts noting customer churn and average revenue per year per user showing signs of strain. John, it's great to have you back with us, you know, with your story. Thanks for having me. You're welcome. It's like a simple story. You know, the data from the quarter is very clear. There was an element of promotion and marketing and deals that drove it. But how would you summarize it? Look, we had really strong growth as you indicated, and we're really comfortable with our growth. As, as I think you're probably aware of, we've been focusing on customers that want to buy both wireless and broadband from us. And when we can do that, even if it's promotional, that's a good customer to pick up because they have great lifetime values and over time they'll churn less and they'll address that very issue that you alluded to, which is the increasing churn in the industry. And we kind of anticipate as we acquire these customers we're going to see a little bit of our WHO pressure partly because we obviously give them a better price for their loyalty and over time we move them up on the continuum of services we sell. So excuse me. By and large we feel really good about it. John, I don't know if you have some water there with you. Let me give you a second just to take a quick drink if you need it. Of course, in the quarter and we've discussed this with a number of the carriers, it was iPhone 17, you know, I was there at Cupertino Apple park on the day of its release. Can you give us a real time sense, even if it's from the promotion perspective, of how big a factor the iPhone 17 was for you? Well, I think it's, it's not a huge factor, but clearly there was a little bit of suppressed activity after the last iPhone cycle a year ago. Maybe some folks anticipated it was going to be a little bit larger. Customers were seeing if it was really frame breaking and change and concluded possibly that it wasn't and delayed waiting for the next cycle. And I think, you know, you can only suppress that activity for so long and now the new device comes out, people see what it is. So there, there has been an increase over last year and maybe some other previous years. It's not a record breaking cycle but it's strong and we're seeing that as a result. But I don't think it's anything dramatically out of pattern given the, the suppression we've seen in the market and we were very effective at working through it. 400,000 over 400,000 postpaid phone net ads shows we can compete in that space and do well with it. If you're joining us on Bloomberg television and radio, we're speaking to at&T CEO John Stankey, final on the iPhone 17, will it be more of a factor in the three month period that ends in December, the holidays? Well, the holiday season moving through the fourth quarter is always a peak season for everybody in the industry. I expect that's going to continue to be the case this year. I don't see anything what we've had over the first couple of weeks of the introduction to suggest we're going to see a step function change from current rate and pace. So all of our forward guidance that we've given expects that it's going to be competitive, that we're going to compete and continue to earn our fair share of service revenues on those converged customers. Right. I talked about and I expect that it'll be as rambunctious in the industry as it has been and we'll do just fine. John, if I turn on my television and watch a show that has ads or I scroll on any given social media timeline, I keep seeing AT and T it talking about itself as a home Internet provider. I know that's been a priority. Have you any evidence that that push has been a success and that you have positioned AT&T in that domain? Well, I'm glad you're seeing those means we must be getting our right market and targets out there. And I think this quarter was an excellent example of it. We had our best broadband gain on our strategic products and services, fixed wireless and fiber than we've had in eight years. And so over 550,000 ads on those strategic products and a net gain of over 230,000 of broadband total. It's the best we've done in eight years. I think that's a good strong indication that it's working. Especially when you consider the industry has been rife with examples of our competitors adjusting their offers, trying to do different things to stem the momentum we've had. So I feel really good about where we're going on that front and to the effect we can add that with wireless subscribers, which we're showing that we can do over 50% of the time when somebody buys our fixed wireless product and we're over 41% penetrated on our fiber base. That's a winning combination economically. And what kind of differentiates us from everybody else in the industry? Okay, shares are down a touch more than 1% which in the grand scheme of today is. Is modest, is a decline. The back and forth you had with the analysts was yes, churn is up and RP are down. But you seem not to Be concerned about that. Why? Why is that not the metrics by which we should should look to progress? Part of it, I think, Ed, as well as we've got a little bit of churn going on in the industry from CEO change outs and there's a little uncertainty around what the competitive posture is going to be. And then you look at the data points you just referenced and we're the first to report and people are asking, you know, what's going to happen when we hear from everybody else. And my answer to your question is we're going to talk about the fact that we're focused on putting customers together with wireless and broadband. And part of that dynamic is go penetrate segments that we've not been successful at penetrating or as successful. So when we go to value segments that were maybe a little under shared in, you're going to naturally have a little bit less ARPU or average revenue per user when you pick that customer up. And when you combine wireless and broadband together, you may be giving initially a little bit better deal to do that, but that's designed into the plan. We want to grow in aggregate service revenues, which we've demonstrated that we can do that. We indicated we're going to see some strengthening of that as we move through the year from where we were this quarter. And I'm okay with a little bit lower ARPU if we actually execute on this consolidated customer strategy and are more successful at penetrating some of these segments that we haven't been as active in. John Stankey at&t CEO. It's great to have you back here on Bloomberg Tech. Thank you very much. Okay, coming up, ARM could be on the way to providing full chips as customers demand faster paths to market. We have more on that next. This is Bloomberg Tech. When your data goes dark, Veeam turns the lights back on. Partner with Veeam to increase your data resilience and get the right data recovery options for any kind of disruption so you can undo the unpredictable and get your data back so fast you won't even have time to miss it. With Veeam, it's all good. Keep your business running@veeam.com that's V E E A M dot com. You're thoughtful about where your money goes. You've got your core holdings, some recurring crypto buys, maybe even a few strategic options plays on the side. The point is you're engaged with your investments and public gets that. That's why they built an investing platform for those who take it seriously. On public, you can put together a multi asset portfolio for the long haul. Stocks, bonds, options, Crypto. 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Need an AI specialist to tailor the tone of your market report to sound real smart in real time. Do that with the all new Adobe Acrobat Studio. Learn more at adobe.com/do that with Acrobat. ARM is exploring an expansion into producing full complete chips as customers seek faster routes to market. CFO Jason Child discussed the plans with Bloomberg Tech's Tom MacKenzie in London. We're actually exploring building full chips and the reason why is we are actually having customers in this cycle basically asking us can you help us be able to get products to market faster? Which means instead of us just taking the IP from you, can you actually just really help us design the chip? So it's something we're exploring. Coming up, Netflix drops as a tax dispute with Brazil cuts into its earnings, which on the whole were pretty good. But that is quite a drop on track. In fact, for its biggest drop in a couple of years, we will have more on that story with the key analysts and some of the sound from the earnings call coming up next. What a day. What a show. Stay with us. This is Bloomberg Tech. Welcome back to Bloomberg Tech. One of our top earnings earnings stories is Netflix stock down significantly 10%, putting it on track for its biggest drop since April of 2022. The story isn't the one we were expecting necessarily. A tax dispute with Brazil hit the company in the quarter, but Netflix, the streamer has been saying for quite a long time, judge us by traditional financial metrics. Netflix, please, Wall street, look beyond the content. Look beyond the subscriber count, which they don't disclose in the same way anymore. There's still a lot to talk about when it comes to Netflix. So let's get to Alicia Reese Wedbush Senior VP of Equity Research and let's start with what is the headline? The Brazil tax disputes idiosyncratic to the quarter and Netflix itself, let alone the sort of broader streaming landscape. What did you make of that? Well, they took the tax from 2022 to present and so if you look at it on a holistic basis, it was over 300 basis points impact to operating margin in the quarter. So that's why there was such a huge mess. But if you look forward, if you extrapolate that, it's only going to be about 20 basis points hit annually going forward. So there's a pretty big difference. Having had to take that over that long period of time. The legislation in Brazil, you know, just, it was unclear and made them, you know, think and many other companies, not just Netflix think that they didn't need to pay that up until recently so they had to kind of back back pay that or at least set aside the money for that. You know, again, idiosyncratic, as you say. There are a lot of other interesting highlights and maybe some disappointments on the, on the revenue line given the K pop demon hunters. Phenomenal. Okay, so dig into some of those disappointments, you know, is that you disappointed in the sense you had higher expectations, slightly higher expectations. The thing is that Netflix is trading at such a high or it was trading at such a high multiple. Netflix has to continually knock it out of the park. And revenue was in line roughly and the fourth quarter guidance didn't impress, you know, extravagantly as Netflix typically does. And that's one of the big reasons I think the stock's trading down. That being said, I think there's still plenty that you could pick out of the earnings call and the shareholder letter. They're very exciting for the future. You know, like I've been super fixated on programming. I've been watching Black Rabbit, which interesting piece of television. Despite the kind of spend and commitment to the slate, the free cash flow figures were really interesting. Like what do you make of the balance between like committing to content but also those traditional financial metrics? Yeah, yeah. The free cash flow is so impressive. They pulled back on the content spend just a little bit. I think they didn't need to spend quite as much and they don't need to in the fourth quarter just given the slightest that they already have and how sticky it already is. I think the most important thing though, is to really dig into the advertising opportunity right now in the third quarter. I think the thing that made the UCAN region not quite as exciting as it typically would be is that Netflix, while they're getting a lot of advertisers and they're getting all the bookings and their CPMs have probably leveled off from all the data we've gathered. What it looks like, like, is that their ad delivery rates are just so incredibly low that they're not booking all of it. You have a lot of people on the ad tier. You just need to give them a little bit more ads to really get that revenue to ramp up in the fourth quarter. You have more live events and they can issue ads across all tiers. And so they'll start to pick up on that in the fourth quarter and certainly through 2026. You know, I'm the generation, the last generation where you had to have ads when you watch shows on television. So trying to process that. Look, Bloomberg and others reported that Netflix is one of the companies circling for a part of Warner Brothers discovery. Ted Sarandos addressed this idea of M and A on the call. Listen to what he said. We've been very clear in the past that we have no interest in owning legacy media networks. So there is no change there. But in general, we believe that we can be, and we will be choosy. We have a great business. We're predominantly focused on growing organically, investing aggressively and responsibly into the growth and returning excess cash flow to shareholders through our shot to share repurchase. Your interpretation of what Ted Sarandos was saying. Look, 10 years ago, HBO was the top content that everyone wanted. And Netflix was. Did not shy away. Reed Hastings did not shy away from saying that that was what they were shooting for. Netflix was shooting to be like HBO Max or HBO at the time. They've since surpassed them. They're leagues ahead. Now, that being said, you know, Warner Brothers still has some really excellent content. And if Netflix has an opportunity to kick the tires and see if they can get a piece of that and not the legacy media piece, sure, of course they're going to look at it. And if they can get it for a good price, of course they will. However, they're. They're not the only ones looking at it, and they're certainly the only one who's looking at it just piecemeal and trying to take the best bits and not the rest of it. So I don't think they're going to be as competitive as the other bidders in, you know, looking at this ultimately, you know, what Ted also said that was really important is that they don't need to use M and A to reach their targets. They don't need to do that to reach all of their, you know, their growth goals. And so, you know, it would be a night it's a nice to have, not a must have for Netflix. Alicia Reese, Wedbush, thank you very much. Okay, let's stick with the earnings story. Tesla will report its results results after the closing bell. Let's get the preview. Bloomberg's Craig Trudeau, our global autos are joins us. The quarter gone was record breaking, a number that I don't think many of us saw coming in terms of delivering EVs to customers. But as you know, it came with the asterisk that it was against the expiry of a federal tax credit in the United States. Is that the story tonight with Tesla or is there something much bigger here that we're bracing for? Yeah, I think there may be some possibility that we get some surprise about, you know, maybe some of the costs that it took to achieve those results. And because I think, you know, we heard Tesla itself executives on the call a quarter ago kind of saying contradictory things. Right. Of, of, you know, we've, we've got a fair amount of, of demand and yet we do have some incentives on offer on top of, of the seventy five hundred dollar tax credit and you know, sort of go out and buy your Tesla now before, before it's too late. You know, the big question though, I think and the big point of emphasis for everybody is going to be do we hear Elon, you know, say again, you know what? Yes, we may be in for a few rough quarters because of these credits going away and just how tough the sledding is going to be, particularly in the US Market. And also I think, you know, outside of the US we are just seeing Chinese manufacturers just really give Tesla a run for its money. And how, how concerning is that really quick, Craig, is tonight's earnings call a precursor for the compensation package vote on November 6th? It does feel like a topic that will be difficult, difficult to completely ignore even if, if, if with any other CEO they would shy away from addressing the issue of, of their own, you know, payday, and yet I would expect it absolutely to come up. There's so much anticipation for this. Next month we're going to be running the blog on the Bloomberg terminal, I think online as well. Either way, you know where to find us. Bloomberg's Craig Trudeau, thank you Very much. Matter is set to seal a an almost $30 billion financing package for its Datacenter site in rural Louisiana, marking the final step for the largest private capital deal on record. Blue Owl Capital and Matter will split ownership of the Datacenter site, with the tech giant retaining just 20% of it. That's according to sources. Blue Owl Co CEO Mark Lipscholz sat down with Bloomberg's Dani Burger to discuss the challenges of getting this deal done. It was difficult to, I'd say, innovate together with Metta. That is to say, it's new, it's groundbreaking, as, as you observe, it's a scale no one has dealt with. But Metta is an incredibly innovative company, right? So this is, this is a beautiful marriage of a deeply innovative company, meets this sort of need for innovative capital solutions, which certainly, Lee, we think of as our calling card at Blue Owl. And so together we're able to craft something really bespoke at a scale that nobody has seen before. And that is exciting. And, you know, they have a great team there. You know, the CFO Susan Lee and the team, Todd Hessey and Michael Hart, they're really good at what they do. And working together, we were able to do something that really worked out for them and creates a great investment for us. There's a lot of excitement around AI and I think a lot of players would also look at Meta as a counterparty and also be excited by that. How competitive was this deal? So I do think, at the end of the day, partnerships will define this industry for the foreseeable future. And that's because it isn't just about capital. I mean, yes, capital is a necessary and important component and in Quantum's that people are not used to. But it isn't just capital. It's capital married with knowledge, capital married with skills to be able to craft a solution. It's not just a generic building. You have to picture the magnitude of what we're all talking about, right? There's a 2 gigawatt complex. So just to frame that, you know, that's, that's more than a big city in America consumes in power in one site. You know, this is the largest a status center complex being built as far as we know in the world today. But remember, it's bigger than the One we announced three weeks ago, the Borderplex project, that's $22 billion, which is bigger than the one we had before that, which is Abilene, Texas, which is 15 billion, through phases one and two. All of those are Blue Owl solutions. All of them are different because, because in the case of say Abilene, you have Crusoe who's a fantastic developer partner. So there we're partnered to a developer in putting together that massive and successful project for Oracle in Borderplex. We're building it internally. We have our own business called Stack Thousand people captive that does the developments, very complex projects. So Stack is developing Blue Owl as the capital partner. The Borderplex project here Metta is going to build and going to operate the data centers themselves. Those three different flavors, all of them require a different customized solution, all of which require really deep knowledge on the one hand and really deep access to capital. And we have uniquely brought those two together. And so I think people know if they come to us we can deliver all the capital one stop shop with the knowledge you need to do it right. So as the deals get bigger and bigger Again, this $127 billion, how do you make sure, just given the sheer size of it, that Blue Owl as a whole isn't overly dependent and exposed to be it just this individual deal or these ideal deals you're making. Yeah, well, so people that you know here at Blue Owl, like our business is built on risk management diversification. In fact, our whole business is about downside protection. So actually comes naturally for us to be thinking about, you know, where are all the different pockets of risk and how do we manage them. Now, very importantly in this space different from most others, remember we're dealing with companies that are the biggest companies in the world with the best credit ratings in the world. So there is a different question when it comes to concentration. You know, that is to say having a lot of exposure to Microsoft, a lot of exposure to Metta, a lot of exposure to Amazon. Those are pretty darn good exposures. Blue Alco CEO Mark Lipschultz along with Bloomberg's Danny Burger. In other matter news, the tech giant is cutting roughly 600 positions from its AI unit to move more quickly in the race. The cuts won't affect matters newly formed Lab unit though the company says it will continue to hire for air efforts, markets and some of those highs in the hundreds of millions of dollars when it comes to comp. Okay, coming up, Apple faces a few wrinkles in its plans for a giant foldable iPad. But more on the Bloomberg exclusive next. This is Bloomberg Tech. You're thoughtful about where your money goes. You've got your core holdings, some recurring crypto buys, maybe even a few strategic options plays on the side. The point is you're engaged with your investments and Public gets that. That's why they built an investing platform for those who take it seriously. On Public you can put together a multi asset portfolio for the long haul. Stocks, bonds, options, crypto. It's all there plus an industry leading 3.8% APY high yield cash account. Switch to the platform built for those who take investing seriously. Go to public.com and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com paid for by Public Investing. All investing involves the risk of loss including loss of principle. Brokerage services for U.S. listed registered securities options and bonds in a self directed account are offered by Public Investing Inc. Member Finran SIPC. Crypto trading provided by Backed Crypto Solutions LLC. Complete disclosures available at public.com disclosures Introducing the all new Adobe Acrobat Studio now with AI powered PDF spaces do more with PDFs than you ever thought possible. Need AI to turn 100 pages of market research into 5 insights with a click. Do that with Acrobat. Need templates for a sales proposal that'll close that deal. Do that with Acrobat. Need an AI specialist to tailor the tone of your market report to sound real smart in real time. Do that with the all new Adobe Acrobat Studio. Learn more at adobe.com dothatwithacrobat At GSK we believe that to get ahead of disease you need to understand its root cause. And that's why we combine our deep understanding of immune science with cutting edge technology. It helps us to create targeted therapies that match the right treatment to the right patient, transforming the lives of millions. By uniting science, technology and talent. We work tirelessly to get ahead of disease together. Visit gsk.com to discover more. Samsung and Google have launched a new mixed reality headset, a precursor to smart glasses that the companies say are coming pretty soon. Bloomberg's consumer tech reporter Sam Kelly joins us now. Tell me about this project. It's a first step, right? But you've been able to get an insight into Samsung and Google's mixed reality capabilities. That's right, yeah. So Samsung's been working on this for quite a while. Directly compete with Apple's Vision Pro headset. You know it works very similarly. You put it on. There are two different main areas ways to sort of engage with the device. One is sort of a pass through experience where you kind of see your home screen apps in front of you using gestures to point and touch your fingers together, almost like pinching to open up apps and experience things. That way you can also have A more immersive experience, such as, you know, watching Netflix or watching an NBA game where you feel like you're immersed there. Also, you know, because Google is involved too, you can experience Google Maps in a certain way where you're on Street View and kind of go into different restaurants. And of course, the big thing here is AI. AI hasn't really had a major place on headsets before, and now you can communicate with Gemini, ask it questions. If you're watching a movie, you could circle an actor's face and say, who? Who is this actor? Where do I know him from? So that adds a new layer to headsets in general. Let's turn our attentions to Apple. Bloomberg has some reporting around Apple's plans for a foldable iPad. Quickly, it's hit some snags. So what do we know? Yes, so Apple's been working on this for a while. Was projected to come out in 2028. Now Bloomberg is hearing that will be pushed back to 2029 or even beyond. So the concept is just an iPad that will opens up, it folds, kind of look more like a MacBook when folded. But some challenges around the engineering related to the display, also related to the weight. You know, to keep these things light is a big challenge. Now Apple is trying to make it lighter. It also comes at a time when Apple's trying to drum up sales around iPad and also just bring new innovation into its product lines. In General, we're seeing it experiment the iPhone Air just came out recently too, so new form factors, but we might have to wait a little bit longer. Bloomberg. Sam Kelly, thank you very much. Let's get some more news in talking tech. First up, China's demanding some U.S. u.S. Chip firms submit sensitive data about their sales as part of a probe of American suppliers. Companies have been asked to provide further details, including costs, profits, customer names and transaction details. Plus, SpaceX CEO Elon Musk took aim at NASA's interim administrator, Sean Duffy. Musk took to X to insult Duffy, criticizing his proposal of folding NASA into the Department of Transportation and potentially staying on as the administrator instead of fintech billionaire Jared Isaac. Man and OnlyFans CEO Kylie Blair says the platform has paid out more than $25 billion to its content creators since it was founded. She spoke with Bloomberg's Caroline Hyde at the Bloomberg Tech conference in London. We've paid out 25 billion to creators since 2016. So there's not very many tech companies that can talk about creating wealth for others rather than just profiteering, essentially. And so for us, as a company that makes us very proud when we talk to our content creators and we understand the difference that it's made to their lives, the way that they can continue to challenge themselves or build their fan base or try something new, be a bit disruptive, be a bit, you know, reinvent themselves in some way. And so for us as a business, providing a platform and enabling creators to have the tools to do that and to connect with their global fan bases is really the thing that makes us very proud. Coming up, more on Google and Anthroposit Anthropics talks that Could Be Worth Tens of billions this is Bloomberg Tech OpenAI unveiled its first AI powered web browser trying to take on Google in that new front. The browser, called Chat GPT Atlas, is designed to be a more personalized web experience and also field tasks such as booking flights or editing documents on a user's behalf. Back to our top story. Sources saying Anthropic and Google in discussions for a potential deal that would have Google providing cloud computing services to Anthropic high tens of billions of dollars. Mandeep Singh of Bloomberg Intelligence wrote Google's expanded Anthropic deal may speed TP EU commercialization and cloud growth, echoing Oracle's multi year OpenAI partnership that's driving its infrastructure revenue toward 106 billion by 2030. Let's get to buy. Anurag Rana, who's joining us from Chicago, what is your take here in your thesis on what what this reporting about Anthropic and Google represents? See, there are two aspects of it. Anthropic has been working closely with Amazon Web Services. It also has investment from Google. So it is logical that they will be using some cloud capacity from GOOG as well. But the big question is whether this talks a little bit about us as infrastructure or this is just a matter of looking for capacity at this point because everybody is constrained. Microsoft recently signed some new deals with a couple of new clouds, which gives us some insight that there may be more of an issue of they are not being able to build infrastructure as the demand is coming in. And that's no different than what's happening with, you know, Open Air also. So it could be just a capacity issue longer term. We anticipate all large lag language model to work with almost every hyperscale cloud provider that's out there because of the size of, you know, the expectations when this gets to the enterprise level. So that let's linger on that last point. We'd reported just last week that Anthropic executives are doing this tour of the Middle east to secure money but also just like more capacity as a case study. Like a lot of people react our reporting with, with a, a lack of understanding of how anthropic can need that much capacity. Like is it justified? Yeah, I mean if you look at the economic projections or the growth projections for both these vendors, whether it's OpenAI or anthropic, I mean we are just in a very early innings of enterprise applications being built using some of these models. So we have this is a multi year trend. The big question obviously is whether the GPUs that they are getting from us, are they good enough or not? That we'll find out over time. I can't make that prediction today. Whether you know, going to Google only for tech reasons but if you look at what even Microsoft is doing, you know they have allowed Open Air to go out and sign deals with Oracle with you know, other new clouds core, we being one of them. So you know everybody is going and trying to find capacity right now and that's the state we are in at this point. One source did tell me that the talks are about TPU's but we'll keep reporting and we'll get the analysis from Blooming Intelligence Intelligence and Anuragrana. Thank you very much indeed. That does it for this edition of Bloomberg Tech. A lot of breaking news, a lot of it originating from Bloomberg's newsroom. But we are like right in the thick of earnings season. So recap on the podcast. You know where to find it on the Bloomberg terminal as well as online on Apple, Spotify and iHeart. I appreciate all of you that tune in live every single day, but I know so many of you listen to this show in the form of a podcast. Whether it's here in Silicon Valley or beyond. Have a great week. This is Bloomberg Tech. Every business starts with an idea. How can you go from daydreamer to industry leader? Amazon Business accelerates your journey with smart business buying. Get everything you need to grow in one familiar place. From office supplies to IT essentials and maintenance tools. 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