Bloomberg Tech Podcast Summary

Episode: Broadcom Follows Oracle in Disappointing AI-Focused Investors
Date: December 12, 2025
Hosts: Caroline Hyde (New York), Ed Ludlow (San Francisco)
Notable Guests:

• Kyle Ackerman, BNP Paribas (Semiconductors & Networking Hardware)
• Maggie Eastland, Bloomberg (China chip market coverage)
• Brody Ford, Bloomberg (Oracle reporting)
• Margie Patel, Allspring Global Investments
• Dara Khosrowshahi, CEO, Uber
• Louis Taylor, CEO, British Business Bank
• David Sacks, White House AI & Crypto Czar

Episode Overview

This edition of Bloomberg Tech tackled sharp market moves driven by AI sector disappointments, specifically from Broadcom and Oracle, and widened into major tech, investment, and geopolitical threads—from state-backed chip efforts in China to US executive orders on AI regulation. The show featured deep dives on industry shake-ups, faltering investor sentiment, the hype and headaches around AI infrastructure, and extensive expert commentary.

Key Discussion Points & Insights

1. Broadcom and Oracle's AI Disappointments Spark Market Selloff

[02:12–09:39]

• Broadcom's Stock Falls: Broadcom experienced its biggest stock decline since January, sparked by investor disappointment not with its AI revenue, which actually beat and raised guidance, but its lack of a clear forward-looking AI revenue forecast. CEO Hock Tan described 2026 AI revenue as a “moving target” and refused to provide annual guidance (quote below).
• Backlog and Margin Concerns: Broadcom revealed a $73 billion AI-specific backlog. Of that, $21 billion is tied to lower-margin TPUs for Anthropic, leading to investor angst about future margins.
• Comparison with Nvidia: Broadcom is viewed as approaching Nvidia’s status, dominating two out of three “infrastructure buckets” (compute and networking), and building a full solution stack in AI—an overlooked advantage according to Kyle Ackerman.
• Oracle's Delay: Oracle was also called out for delays in completing massive OpenAI-related data centers, now pushed from 2027 to 2028 due to labor and material shortages.

Notable Quote:

• Hock Tan (Broadcom CEO), on skipping AI revenue guidance:
  “It's hard for me to pinpoint what 26 is going to look like precisely...So I rather not give you guys any guidance, and that's why we don't give you guys, but we do give it for Q1.” ([04:05])

Analyst Perspective:

• Kyle Ackerman (BNP Paribas):
  “I think what's interesting here...some of the company actually beat and raised guidance. AI sales were above expectations...But I think the reason why the stock is down...is in part because there are some investors a bit worried about the margin structure of the Anthropic deal.” ([04:42])

2. China’s $70 Billion Semiconductor Investment

[09:39–12:19]

• Unprecedented Scale: China is weighing $70 billion in state backing for its chip industry, rivaling US efforts and aiming to build domestic champions, such as Huawei, Cambricon, and SMIC.
• Strategic Priority: Emphasis on AI chip makers and manufacturing, but continued headwinds due to tech restrictions and the inability to fully access advanced manufacturing nodes.
• US-China Tech Decoupling: China prioritizes self-reliance and may rebuff US chips (Nvidia H200s) in an effort to foster its own supply chain.

Notable Quote:

• Maggie Eastland (Bloomberg):
  “China will face headwinds because it still has restrictions on many of the equipment technologies and the foundries that can't access TSMC for those advanced node chips.” ([11:28])

3. On-the-Ground Details: Oracle’s Data Center Delay

[12:19–16:11]

• Scale & Labor Shortage: Oracle’s multi-gigawatt data center builds for OpenAI are “unprecedented” in size and complexity; delay is attributed to a tight pool of skilled labor in rural build locations.
• Revenue Timing: Some existing locations are already contributing revenue when operational, but future sites mean longer waits for returns.

Notable Quote:

• Brody Ford (Bloomberg):
  “These are unprecedented scale data centers, right? I mean gigawatt scale data centers. Unprecedented. And Oracle is trying to do effectively five of them at once.” ([13:54])

4. Is the Dip a Buying Opportunity? Long-Term Outlook Amid ‘Hiccups’

[16:11–18:46]

• Sector Resilience Argued: Despite stock drops in Broadcom and Oracle spooking the NASDAQ, Margie Patel of Allspring Global argues these are minor setbacks, not fundamental shifts:
  “I actually thought that Broadcom's numbers were quite good and people were just...very nervous at the end of the year particularly with some bad news we've seen such as from Oracle...I think it's really more just end of year jitters rather than anything fundamental.” ([16:11])
• Debt and Volatility: Oracle’s heavy debt is noted, but big tech companies generally have strong cash flow to weather volatility.

Notable Quote:

• Margie Patel:
  “So I think next year looks pretty good sailing.” ([17:32])
  “It's a volatile sector and that's why the returns are higher because you have to be prepared for these little downdrafts in order to get the upside.” ([18:46])

5. Uber CEO on International Robo-Taxi Push

[24:19–27:14]

• Asia and Middle East Focus: Uber expects to operate robo-taxi services in over 10 markets, notably expanding in APAC, the Middle East, and possibly Japan, Hong Kong, and Australia.
• Regulatory Landscape: The bottleneck is regulatory approval and pilot programs—not tech readiness.
• Innovation Tailwinds: Uber sees communal rideshare and autonomous vehicles as crucial solutions for aging populations and underserved regions.

Notable Quote:

• Dara Khosrowshahi (Uber):
  “The technology is absolutely getting there. These are the robot drivers—doesn’t get tired, doesn’t get distracted—and we very much look forward to working with various authorities to introduce ride share into the markets.” ([25:28])

6. Rivian: Ditching Nvidia for Custom AI Chips

[28:11–32:59]

• In-House Hardware: Rivian announced a major pivot, developing its own AI chip (RAP1) for self-driving, breaking from reliance on Nvidia. This move is billed as delivering better performance, velocity to market, and savings.
• Integration with LIDAR: Their Gen 3 vehicle architecture will feature high-end LIDAR and vastly more compute for genuine autonomy.
• Comparison to Tesla: Unlike Tesla (who bet on camera-only systems), Rivian’s approach is multi-sensor and hardware-heavy.

Notable Quotes:

• Rivian:
  “The decision to build an in house was based on a very rigorous analysis of the benefits we could come...velocity or ability to get to market very quickly with it, performance and cost.” ([29:59])
  “The next big step is personal level four. And what I mean is the vehicle can operate empty, it can operate without anyone in the driver's seat. It can pick your kids up from school. It can drop you at the airport.” ([31:46])

7. The UK's Tech & VC Ambitions

[37:31–42:16]

• Pitch to Valley VCs: The CEO of the British Business Bank, Louis Taylor, is in San Francisco courting venture expertise and encouraging UK pension funds to allocate more to tech scaling.
• Strengths and Needs: UK outshines in incubating startups (AI, fintech, life sciences), but struggles with scaling and retaining companies versus the US.
• Brain Drain & Local Funding Push: There's explicit acknowledgment of brain drain, with efforts underway to build local expertise and capital pools to keep innovators in the UK.

Notable Quote:

• Louis Taylor:
  “We incubate companies incredibly well, we scale them less well, and we haven’t had the scale up capital we need...we have the second largest funded pension scheme in the world at around £4 trillion, but we have an allocation issue.” ([40:10])
  “Success breeds success. We've got a lot of the right things in place, but it's just this top end that we need to really make sure that we realize more potential and keep the flywheel going.” ([41:27])

8. White House Executive Order: AI Regulation Goes Federal

[42:47–51:49]

• Patchwork Problem: David Sacks outlines the need to prevent a patchwork of contradictory state-level AI laws, arguing for a unified federal framework to ease compliance burdens and foster innovation.
• Principles Only, For Now: The EO doesn't set rules but expresses values (child safety, copyright, local control) and instructs Congress to enact a comprehensive law.
• Pushback Powers: DOJ is tasked to form a litigation force to counter excessively burdensome state AI laws (with Colorado cited as a likely legal battleground).
• Job Loss Myths: Sacks argues job loss fears are overblown, citing no discernable post-ChatGPT disruption, substantial economic growth, and surging demand in sectors like construction.

Notable Quotes:

• David Sacks:
  “You've got a thousand different bills going through state legislatures right now to regulate AI...what we need is a single federal or national framework.” ([43:30])
  “The EO provides for a number of tools that can be used to push back on excessive state regulation...” ([45:04])
  “Yale just released a study...there was no discernible disruption to the US job market [from AI]...more jobs are being created than being lost...So this whole idea of job losses just isn't true.” ([47:37])

Other Key Moments and Quotes

• Supply Constraints and Bubble Talk:

  • "It's not a winner take all...hyperscalers are adopting custom compute as well as GPUs." – Kyle Ackerman ([07:02])
  • On supply chain tightness: “Some of the areas that are the most tight in our ecosystem coverage include lasers for optical transceiver components.” ([08:30])

• Tech Market Weakness:

  • NASDAQ down 2% on day; Broadcom off by 11%. Reflects wider investor anxiety about the delay in realizing AI-driven revenue streams.

• US-China Chip Rivalry:

  • On China’s chip buy policy: “China is not taking [Nvidia’s H200s] because they want to prop up and subsidize Huawei. They want to create a national champion.” – David Sacks ([50:52])

Timestamps for Important Segments

| Segment | Speakers/Guests | Timestamps | |-------------------------------------------------|--------------------------------------|-------------| | Broadcom's Miss & Analyst Deep Dive | D, E, Kyle Ackerman | 02:12–09:39 | | China’s $70B Chip Plan (Maggie Eastland) | D, E, Maggie Eastland | 09:39–12:19 | | Oracle Delays and Implications | D, E, Brody Ford | 12:19–16:11 | | Sector Resilience/Broadcom: Buy the Dip? | D, E, Margie Patel | 16:11–18:46 | | Uber CEO on Robo-Taxis in Asia | E, Dara Khosrowshahi | 24:19–27:14 | | Rivian’s Custom AI Chip, Break from Nvidia | D, E, Rivian Executives | 28:11–32:59 | | British Business Bank on UK Tech Scale-Up | D, E, Louis Taylor | 37:31–42:16 | | White House on National AI Law (David Sacks) | D, E, David Sacks | 42:47–51:49 |

Memorable Moments & Quotes

• On Broadcom’s AI Forecast Reluctance:
  “It's hard for me to pinpoint what 26 is going to look like precisely.” – Hock Tan ([04:05])

• On Tech Stock Volatility:
  “It's a volatile sector and that's why the returns are higher because you have to be prepared for these little downdrafts in order to get the upside.” – Margie Patel ([18:46])

• On AI Regulation Patchwork:
  “You've got a thousand different bills...to regulate AI and over 100 measures already passed. Some of these bills are contradictory and you’ve got 50 different states running in 50 different directions.” – David Sacks ([43:30])

• On China’s Semiconductor Strategy:
  “China will face headwinds because it still has restrictions on many of the equipment technologies and the foundries that can’t access TSMC.” – Maggie Eastland ([11:28])

• On Rivian’s Hardware Leap:
  “The decision to build in house was based on a very rigorous analysis...” – Rivian ([29:59])
  “The next big step is personal level four.” – Rivian ([31:46])

Tone & Flow

The episode leaned analytical yet urgent, reflecting Wall Street’s immediate anxiety over missed lofty expectations, alongside a broader tech industry reckoning about infrastructure, government policy, and international competition. Expert voices pushed nuance—emphasizing long-term optimism, the dangers of overreacting to short-term jitters, and the complexities of both technical innovation and regulation.

This summary covers all the major content sections, key analysis, and direct speaker insights in sequence with the original show, skipping sponsor messages and non-content parts.