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- [00:00]
Carolina Hyde
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Mike Krieger
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Mike Krieger
As they launch products.
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That's metronome.com how can you free your.
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Amazon Business Announcer
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- [01:20]
Carolina Hyde
News.
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Andrew Feldman
Bloomberg Tech is live from coast.
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Amazon Business Announcer
To coast with Carolina Hyde in New York and Ed Ludlow in San Francisco.
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Ed Ludlow
This is Bloomberg Tech Coming up Cor We've signed a deal to supply Matter with as much as $14.2 billion worth of computing power plus a change of.
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Carolina Hyde
Leadership at Spotify as CEO Daniel Ek stepping aside after almost two decades and.
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Ed Ludlow
Anthropic releases a new AI model designed to code longer and more effectively than prior versions. We speak with Anthropic Chief Product Officer.
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Carolina Hyde
But first Ed, we are both here in New York this week and checking out markets that are just taking a pause amid some macro focus of course potential shutdown of the US Government that's on every investors minds. What does that mean in terms of data? What does it mean in terms of the future of rate policy for the Fed? We're currently completely flat just inching into the green on the NASDAQ 100. But it's way more interesting underneath the hood and you're looking at that.
- [02:20]
Ed Ludlow
Yeah. Our top story is Core Weave and Matter. It's the latest core weave capacity deal, $14.2 billion. The stock has been on a tear since its listing in March. Right now trading at its Highest level in around six weeks. Clearly that big G. Following the Bloomberg report, the market's kind of focused on this idea that it evidence Core Weaves move beyond one single customer, which is Microsoft. But actually, as Brody Ford often says, Carrie, the devil's in the detail on this one.
- [02:46]
Carolina Hyde
Let's get that detail. Freddie Ford's with us. You help break this story. Core we've has tripled since its IPO. We're up another 15%. What does it mean to be adding matter to the fold as well as Open Air more recently, of course, and Microsoft?
- [03:01]
Brody Ford
Well, it means that Coral isn't just a colonial state of Microsoft. Right. That was the concern for so long with these new clouds that, gosh, if their biggest customers are companies that also effectively compete with them, that seems like a pretty indefensible business. But you start getting companies like Meta and Open Air who are likely to be longer term buyers of this technology. And so I think folks are getting more comfort that Core Weave and companies like it may have a more sustained place in this infrastructure buildout.
- [03:33]
Ed Ludlow
$14.2 billion is a very large number, Brody, but the terms of the contract extend to 30, 2032. You know what I'm going to say because we discussed it this morning. There is skepticism here because there are many unknowns. For example, does Core, we've actually have a data center somewhere that's built and operating that they can assign matters workloads to?
- [03:54]
Brody Ford
Well, what the CEO told me is that they never sign a deal if they don't have the right power and data center allocation ready to go. I don't think there's a data center that they're just going to flip on and say, all right, Matt, here you go. But you know, this contract goes till 2031. They're probably going to need to buy a bunch of chips, fill it up and hand it over to Meta. And what that also means is they're going to take out a lot more debt. I mean, Core Weave is kind of famous at this point for levering itself up to a pretty incredible degree. And we'll probably see a little more of that.
- [04:24]
Ed Ludlow
The role of debt in financing infrastructure. That's becoming a story of the year 2025. Bloomberg's Brody Ford with the call. We've met a story. Thank you. Meanwhile, AI's boom is sending investors searching for trades in an overlooked group, suppliers of the gear used to make chips. Let's bring in Bloomberg's tech equity reporter, Ryan Vlastelica. Lots of readership on this story and some names that have not been at the forefront of what's happened within the semi space. Give us your reporting.
- [04:53]
Brody Ford
Hey, good morning.
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Ryan Vlastelica
Thank you for having me. So yeah, this is a trend that we have been seeing throughout 2025. Now that some of the more well known AI trade seems like maybe those are getting a little bit mature, investors are looking elsewhere. We've seen it in storage companies, we've seen it in memory companies and now we're seeing it in the semiconductor capital equipment companies. Names like Lam Research, Applied Materials, KLA Core, Teradyne. These kinds of companies make the equipment that is used for building the semiconductors. Building all this manufacturing out. These are getting sort of a second derivative move given the, you know, the sheer build out. We're seeing all the chips that are required for AI. Obviously it's going to mean higher demand for the chip for the machines that make those chips.
- [05:36]
Carolina Hyde
We constantly question valuations, Ryan, should we worried about them for these names?
- [05:41]
Ryan Vlastelica
Well, I'd say if we were talking about this maybe a month or so ago, that would be a lot less of a potent issue. But some of these companies have really seen very steep rises. They've really become momentum favors favorites over the past couple of weeks and months. And I think right now they are getting to a little bit more elevated levels. But certainly they are not sort of a nosebleed, real sort of bubble kind of valuation. But they certainly come up a lot from where they were earlier this year.
- [06:02]
Ed Ludlow
Ryan, if you walk into a fab, a clean room where semiconductors are manufactured along the line is machines for lots of different companies at the beginning of that line you're probably likely to have one from Lam Research. The chart that we took from your story shows Lam being a real outperformer here. Is there anything more to know about that name?
- [06:21]
Ryan Vlastelica
I think they are one that is specially used with Micron. So the memory chips, that has been another area of focus this year. So that high bandwidth memory, I believe that Lam works on machines that are used in those. I think that's probably certainly a component to that business there.
- [06:35]
Carolina Hyde
Ryan, it's always great to catch up with you. Ron Vasilika, we appreciate it. Meanwhile, sticking with chips, Taiwan's premier says that trade talks with the United States have entered, quote, the crucial closing stages, indicating the global chip hub is finally nearing a deal with the Trump administration. Now investment in the US Was among the issues discussed in Washington in recent days, according to a source, as well as lowering the 20% tariff imposed on the island.
- [06:59]
Ed Ludlow
And yes, some other news we're tracking Google's agreed to pay $24.5 billion to resolve Donald Trump's claims that being blocked from posting on his YouTube channel after the January 6, 2021 riots at the US Capitol amounted to illegal censorship. That's according to a court filing, which also shows $22 million will go toward construction of a new ballroom in the White House, a project near and dear to Trump, while the remainder will go to a handful of other plaintiffs who joined him in legal action. Okay, coming up, anthropic has new AI model that codes on its own for up to 30 hours straight. No need to feel it. Soylent? No Red Bull Anthropics Chief Product Officer talks to us About Claude Sonnet 4.5 Conversations Next this is Bloomberg Tech.
- [07:54]
Carolina Hyde
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.
- [08:02]
Amazon Business Announcer
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- [08:05]
Carolina Hyde
You can undo the unpredictable and get your data back so fast you won't even have time to miss it.
- [08:10]
Amazon Business Announcer
With Veeam, it's all good.
- [08:12]
Carolina Hyde
Keep your business running. @veeam.com that's V E E A M.
- [08:17]
Public Investing Announcer
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. 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 principal. Brokerage services for U.S. listed registered securities options and bonds in a self directed account are offered by Public Investing Inc. Member FINRA and SIPC Crypto trading provided by BAKKT Crypto Solutions, LLC. Complete disclosures available@public.com disclosure so have you.
- [09:19]
Amazon Business Announcer
Heard the story about the prescription plan?
- [09:21]
Public Investing Announcer
With savings automatically built in, it's where a family of any size can feel confident the cost of their medication won't hold them back.
- [09:31]
Amazon Business Announcer
Go to CMK Co Stories to learn how CBS Caremark helps members save just by being members. That's CMK Co Stories.
- [09:49]
Ed Ludlow
Deepseek updated an experimental AI model, calling it a step toward next gen AI. The latest version introduces a new technique it calls Deep Seek Sparse attention or dsa, a mechanism designed to explore and optimize AI training and operation and improve efficiency when processing long tech sequences.
- [10:09]
Carolina Hyde
Car let's stick on the models. AI startup Anthropic is out with a new 1, Claude Sonnet 4.5. The company says it can code longer, more effectively than prior versions. Let's get more with Anthropic Chief Product Officer Mike Kroger. Mike, it's wonderful to have you on 30 hours straight is how long that it can code on its own. What are the technical feats needed to be able to go that long where humans can well, definitely not survive that unless there's a whole load of caffeine involved.
- [10:38]
Mike Krieger
Good morning. I think one of the main advances we made was around memory and what we call context management. So if you think about how you know a human works for longer periods of time, you're writing things down, you're making sure you can always pick up where you left off if you're coming back the next day. So with Cloudson at 4.5 we did a lot of work on that memory management. So the model you think about it sort of writes down what it's doing, keeps track of its state and then if it needs to sort of backtrack, it's able to then keep going and that's how it's able to stay coherent for a much longer period of time than any other of our models.
- [11:07]
Carolina Hyde
How much have you managed to lower therefore those ideas of inaccuracy or more broadly that well, that they're making things up? Hallucination has always been the key issue had been something that's limited agent adoption.
- [11:21]
Mike Krieger
Yeah this is a model that we have that is also, besides being our most powerful, is also our safest and most coherent. So as the lowest hallucination rate and is the least susceptible to things like jailbreaks. And I think that matters a lot. I think I tell my product team all the time it's, it's no use going for 20, 30 hours if you're making mistakes along the way. And so having it be both accurate, producing good code, that's the prerequisite and then you can focus on scaling up on the time horizon.
- [11:44]
Ed Ludlow
Mike, can we talk a bit about the audience For Claude Sonnet 4.5 the real emphasis from Anthropic from from the early days was enterprise customer as opposed to a sort of direct to consumer. But this field of tools for the developer is expanding, it's probably more competitive. Who are you hoping uses this?
- [12:04]
Mike Krieger
It's really, we've, we've taken a business focus, but that also manifests kind of in the prosumer space. And so we have a lot of what we call power users who might be developers or might just be early adopters who want to bring AI to their work. So one of the things that Sonnet 4.5 can do along with writing code, is also creating really professional looking Word and PowerPoint and Excel documents. It actually uses the same coding capabilities under the hood, but not to write code, but instead to produce documents. And that sort of capability means that we're starting to see adoption in the enterprise as well.
- [12:34]
Ed Ludlow
Mike, you and I have discussed this in the past. We know Mike Krieger is Mike Krieger CTO Instagram and what I'm seeing right now in the field of your peers is the reports on OpenAI and what matter is doing in social media and video. Is that a direction you want the product team to take Claude in?
- [12:54]
Mike Krieger
We're focused much more on the, on the productivity use case. And so when I think about our roadmap, it's very much how do we take work off people's hands or how do we accelerate folks and make them, you know, the work the best that it can be? How do we automate your work in the browser? So much more on that productivity side of things. And I don't think you'll see us play very much in that entertainment space.
- [13:12]
Carolina Hyde
Mike, that productivity perspective, it's come under some concerns recently. Think about the MIT report, everyone suddenly talking about this. Only 95% of the tests were basically failing out there in the wild product. How are you making sure that enterprises adopt your products but actually see the productivity gains from them?
- [13:32]
Mike Krieger
I think this is really important where if you know, it gets brought into the workplace without the right either tools around it or enablement, what you end up with is this disillusionment a couple of months later around, well, folks aren't adopting it or yeah, it helped me a little bit, but not enough. And so we have a lot of emphasis on let's make sure the work is actually good. You know, you might hear this word online like slop. Where is creating work that actually is just is not very good? And I think of us, we're trying to produce the anti slob work that actually, you know, maybe gets you 80% of the way there, but it's 80% that then lets you complete the work in a way that you're proud of rather than, you know, oops, it did something. But now I feel like I have to start over because it didn't really help. So I think that's the really key piece for enterprise adoption.
- [14:10]
Carolina Hyde
And therefore does it remove the need for so many people or ultimately there's still this argument this can augment, but will it start to replace?
- [14:18]
Mike Krieger
Mike we think a lot about what the comparative advantages are of people, you know, as it relates to AI. There's a lot of still relationship building and trust, critical analysis and strategy that really comes on the human side of things. And so we really try to design tools that as much as possible play up those parts of that human AI interaction knowing that, you know, there will be, you know, labor shifts that are almost inevitable, but if we can design our products along the way to maximize both people's understanding of AI but also their use in a complementary way.
- [14:49]
Ed Ludlow
Mike, OpenAI's holding Dev Day next Monday. It's probably on your calendar for peripheral awareness, but I'm very conscious that you're kind of speaking to us 24 hours after the news of Claude Sonic 4.5 came out. Have you any data on the sort of reaction to it early demand and where that's coming from?
- [15:10]
Mike Krieger
It's been really interesting how quick people are to adopt a new model. So by I think about 1pm yesterday, we already had more usage of Cloudson at 4.5 than all of our other models combined, which really speaks to the eagerness of a lot of these startups that are using or building on top of our models as well as early adopters to on day one you saw GitHub and cursor and Windsurf and many of these products that build on top of our models want to incorporate clouds on at 4.5 and so we had this really early crossover moment as well.
- [15:38]
Ed Ludlow
That is interesting data. Correct me if I'm wrong, but this model is running on Project Rainier, right? Is that sort of operationally and infrastructure wise where the training and now inference of it is being done?
- [15:52]
Mike Krieger
So we do our both training and inference across. You know, we have partnerships with Google and Amazon, but we have a significant part of this model being served now from Amazon as well. And we're seeing a lot of growth on AWS Bedrock as well.
- [16:07]
Carolina Hyde
Just going to that infrastructure layer. You're obviously the product visionary here, but you need to have the energy, the compute to bring your products to life. Many worrying that we're in some sort of bubble cycle around AI. How do you think about that as you drive this business forward.
- [16:21]
Mike Krieger
Mike I think there's this combined need to both scale up for the training side, but also on inference. And as we've scaled, especially with our business arrangements and the companies building on top of Sonnet, I think we now have sort of forward looking perspective on what our inference needs will be. And I think that'll let us go out and also secure the kinds of compute deals that we need to both feel the training, but also have that sort of revenue generating inference side as well.
- [16:45]
Carolina Hyde
And we get so focused on the compute needs of the United States. But we've been talking a lot about that in Europe, how it's scaling in the UK from your adoption. How are you seeing things different globally? Mike of those that are actually deploying, what's happened with Sonnet 4.5 and the.
- [16:59]
Mike Krieger
Latest models, we see this a lot in terms of our global footprint. There's something we started expanding earlier this year and so for our rollout of Trainium 2, which is the, the chip that Amazon has built for us that we use pretty extensively for our cloud models, a lot of that deployment is actually international and when I go to Europe, for example, I hear a lot of questions about data locality and making sure that inference is happening in local data centers. And the only way we're going to be able to do that is to have that international footprint of these chips. And so you're seeing the same in apac.
- [17:29]
Ed Ludlow
Mike, we are going to ask you a question about talent wars, but I'm just going to make an appeal to you to just be be honest with me on this. How big a factor it is or isn't for you right now in the product team at Anthropic in particular, I'm looking at the pace at which Open Air is putting stuff out. Matter is putting stuff out just through your experience. What's the talent situation?
- [17:52]
Mike Krieger
Right now I'm seeing much more of that talent sort of back and forth happen within the research side in general, a little bit less on the product, although I think there are some key hires where that's been the case. One thing that's been a positive sort of maybe surprise or just outcome of how mission oriented a lot of Anthropic the anthropic team really is, has been. It's affected us very minimally in terms of that back and forth that you're seeing maybe among some of the other frontier labs, which is very encouraging. Of course you have to continue to make sure we build a great culture and maintain that mission alignment. But so far it's been, it's been minimally affecting us.
- [18:26]
Ed Ludlow
If we take Sonnet 4.5 as the case study, what were the types of roles that you needed to bring in to roll out the release?
- [18:35]
Mike Krieger
I think people think of, you know, research and model science as being fairly cut and dry. I actually think that there's a lot of art and taste to it as well. You're making a lot of decisions from a research engineering perspective around what are the tasks the model needs to improve on, how will it improve on that, how will we know that it's improving on that? And so a lot of that reinforcement learning, post training piece is the key shape of what we really thought about in Sonnet 4.5.
- [18:59]
Ed Ludlow
Mike Krieger, anthropic Chief Product Officer, was a real deep dive into Sonnet 4.5. Thank you so much for joining us back on Bloomberg Tech. Coming up on the show, DoorDash has a new autonomous robot. Meet Dot. Hi, Dot. We'll talk to the VP of DoorDash Labs about what this robot delivers in terms of its capabilities. That's next. This is Bloomberg tech. Delivery company DoorDash is unveiling a new autonomous delivery robot called Dot. The company says Dot is the first commercial delivery bot to seamlessly navigate bike lanes, roads and sidewalks. Here, tell us more. As she read, Vice president of Doordash Labs. This robotics experience includes work with Zoox Nvidia, but the real terms, parameters for deployment, which cities, how many deliveries, when.
- [20:19]
Ashu Rege
So we have been focusing on the greater Phoenix area and that's the, our focus for this year. We are hoping to address about 1.5 million customers by the end of this year. And then, you know, as, as we progress, we'll, we'll see what happens. DOT likes to travel though, so hopefully we can expand to more cities.
- [20:39]
Ed Ludlow
Team, let's bring up some pictures of DOT again. I mean, to me, Ashu, this looks kind of the design like a bit like a stroller or a pram, as we might have said in the United Kingdom. Could you just talk us through the design of it and then how this is what you arrived at? Sure.
- [20:57]
Ashu Rege
So there were three sort of key pillars for us when we looked into the design of dot. The first one was product market fit. So we wanted to make sure that Dodd would have the right cargo capacity and the payload that it can carry up to 30 pounds fits a vast amount of the DoorDash deliveries that we do today. The other big part was it had to be going at speeds that allowed us to do a big chunk of deliveries in the 3 to 5 mile range. And that's why the design point was it needs to be able to go on bike lanes, on roads, on sidewalks. But the other key part is the pickup and drop off for deliveries, which makes it very different from ride hail. And one of the key feedbacks we had gotten from merchants was it is absolutely imperative to have the robot come as close as possible to the merchant in right next to the doorstep, which is what Dodd does. And so that was a key design feature, was that it could go on sidewalks and be sort of narrow enough to navigate sidewalks pretty well.
- [22:03]
Carolina Hyde
That what ASHU currently isn't on the market because you were already using COCO Robotics, backed by Sam Altman. There are others on the market. Is it just the speed, the pace that they can't meet?
- [22:13]
Mike Krieger
Yeah.
- [22:13]
Ashu Rege
So we actually also announced the key product called the Autonomous Delivery platform, which we actually, in which all our partners, including COCO and our drone partners and other robots including dot, can participate. And the idea is that as the demand for delivery is growing, we have an all of the above approach, which is there'll be dashers, there'll be drones, there'll be dot. And so we are looking to work with all of our partners to enable this, this different modalities. So we believe the future will be multimodal for delivery. And that's, that's, this is the first step towards that.
- [22:50]
Carolina Hyde
I cycle every day, I navigate dashes. How will, how many dashes will I be navigating in the future? Is this going to replace Korea's in the longer term? How much of a percentage do you want delivered by dot?
- [23:03]
Ashu Rege
Well, we don't look at this as a percentage. We look at it as just a growing piece. So if you think about the just over the last few years doordash, the demand for delivery has been growing significantly year over year. So we think of this as, like I said before, it's just going to be multimodal. There are going to be many, many different forms of delivery. And you look at the range of deliveries we do, if you just look Back to even five years ago, we were doing mostly restaurants. Now DoorDash does groceries, it does household items like, you know, two toothpaste or diapers, even home electronics. You can buy a complete laptop on DoorDash and have it delivered to your doorstep. So we expect all kinds of deliveries to be happening on our platform. And this ADP that we announced yesterday is the first step towards that.
- [23:48]
Ed Ludlow
Ashu, who is going to manufacture DOT and where will they manufacture dot?
- [23:55]
Ashu Rege
So at this point we are going through that process of figuring out all of the, all of the pieces of where the manufacturing is going to be and where you know, all the components etc.
- [24:04]
Ed Ludlow
So it's not decided.
- [24:06]
Ashu Rege
It's, it's still being discussed internally as to how we will end up doing this.
- [24:11]
Carolina Hyde
Is the aim to have it largely US made.
- [24:15]
Ashu Rege
So we, you know the technology that we have developed here is all built here in the US in DoorDash Labs. So it's pretty much purpose built homegrown robot and it uses a state of the art technology. Again developed by the engineers at Doordash. It is fully L4 autonomous system. So as you can see it navigates through all of the various situations it can encounter whether it is pedestrians or cars. And again going up on sidewalks, going up to your doorsteps, lots of pedestrian and what are called VRUs, vulnerable road users which means kids, pets and, and so on. So all of that technology is, was developed at Doordash Labs.
- [24:56]
Carolina Hyde
I said motoring along at 20 miles an hour next to me on the cycle lane. So shortly I'm sure. Ashu, thanks so much for joining us. Reggae Vice President of Doordash Labs at Doordash and coming up, AI chip startup Cerebra Systems. It's closed a new funding round, an over $8 billion valuation. We're going to talk to the CEO Andrew Feldman because remember this is is a company that actually wanted to ipo. Does that delay that inevitable? We could talk the ambitions next. And what are you looking at to.
- [25:23]
Ed Ludlow
Private markets conversation in equity markets and technology? There is some stuff going on. I mean the broad story is that we are basically flat on the Nasdaq 100 traders are in wait and see mode. Will we get some economic data? Will we not? But we know the big story out there on the single mover side is core. We've up 13% highest level in six weeks on a $14.2 billion computer deal with Matter, which is down one and a half percent. So much more to come on the show. Stay with us. This is Bloomberg Tech.
- [25:57]
Public Investing Announcer
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 principal. 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 Bakkt Crypto Solutions LLC. Complete disclosures available@public.com disclosure so have you.
- [26:58]
Amazon Business Announcer
Heard the story about the prescription plan?
- [27:00]
Public Investing Announcer
With savings automatically built in, it's where a family of any size can feel confident the cost of their medication won't hold them back.
- [27:09]
Amazon Business Announcer
Go to CMK Co Stories to learn how CVS Caremark helps members save just by being members. That's CMK Co Stories.
- [27:22]
Mike Krieger
This is what the market used to sound like. Pretty complex.
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Mike Krieger
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Mike Krieger
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- [27:51]
Mike Krieger
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- [27:57]
Carolina Hyde
Welcome back to Bloomberg Tech. Let's check in on these markets because on the surface, some calm. We're currently off by just a quarter percent of the NASDAQ 100 anxiety about a potential government shutdown here in the U.S. what does that mean for key data in the jobs market, particularly on Friday? What does it mean for the Federal Reserve? We stand pat in terms of big tech. But underneath the hood, let's look at individual movers because there are some big deals being done once again in the Spectrum space. We are having the best month for Echo Star on record, up more than 20% because it keeps on selling Spectrum. This time we understand it's likely to be selling to Verizon. There's talks aplomb at the moment for us. Three licenses already they've been selling to AT and T and Space X. Let's have a little look at what's also on the move. Big deals being done in AI compute. We're going to delve into that throughout this section. We're up 12 13% on core. We've $14 billion deal to matter yet more GPU access, more compute. But we've got plenty more when it comes to the world of AI infrastructure.
- [28:51]
Ed Ludlow
Yeah, a lot More happening in technology in private markets. AI chip making stock startup Cerebra Systems has closed a $1.1 billion funding round. Cerebras, which aims to rival in video, now has a post money valuation of $8.1 billion. The company's CEO Andrew Feldman joins us for more. Andrew, good morning. Welcome to Bloomberg Tech. You know my assessment of where Cerebras is is that you claim that the technology is as competitive or better than what Nvidia Systems offer offer and you are aggressively building out that infrastructure and you are doing deals with end customers. In the context of this funding round, what's your priority here?
- [29:32]
Andrew Feldman
Sure, I think it's not just what what what we think. Every third party benchmark has shown that we are order 20 times faster than in video GPUs at 4 for inference work. So that's for the using of AI. And so this is the largest and sort of fastest growing part of the market. So we, we wanted to fuel our continued extraordinary growth. And so we're going to use this money to double our manufacturing capacity. We manufacture in the US and we're going to double in the US to extend our footprint more data centers so we can support more customers. And those are, are in the US as well.
- [30:19]
Ed Ludlow
Okay.
- [30:20]
Andrew Feldman
And to continue to invest behind our, our pioneering technology which has sort of solved problems that were open for 75 years in the compute industry.
- [30:31]
Ed Ludlow
Andrew, to what extent are you supply constrained? In other words, you have all of these customers. Are you having to choose who gets first dibs when some capacity comes online?
- [30:42]
Andrew Feldman
Right now one of the most challenging components is to get access to two data centers. And those are some of the massive contracts you discussed in your previous segment with Core Weave that they're providing to the likes of, of Metta, that is also one of our customers. But we the ability to stand up and deliver data centers filled with our gear so that our customers can enjoy the benefit of the fastest inference through the cloud is one of the limiting factors.
- [31:16]
Carolina Hyde
Right now you've got what, five new data centers just in the course of 2025. Looking at Dallas, Oklahoma City, looking at Santa Clara, what's really interesting Andrew, is that where are you building? Are you literally going out there building? Are you just trying to win future relationships with a Core Weave so that they take your compute rather than that of Nvidia?
- [31:38]
Andrew Feldman
Well, I think we are renters of data centers. We are not builders of data centers. And so we partner with, with those who own the real estate and those who stand up the facility. We fill the facility. We rent the facility and then fill it with our infrastructure and that infrastructure is then used by customers around the world either by the by the day, by the month, by the token to get their their fast AI. And so I think that's the way we, we think about it.
- [32:14]
Carolina Hyde
Carolyn Andrew, we think about your customers and you're mentioning the likes of matter. I'm interested in also where the money has been coming from for this round because I noticed that that one of your key backers of the past isn't on the list it seems G42 key investor in previous and of course Middle Eastern based relationships potentially CEO with China and that's been an issue for CFIUS in particular if you wanted to ipo have you decided not to take money from them this time?
- [32:40]
Andrew Feldman
No, that wasn't, that wasn't the situation at all. I think it is very common in in your dash to get to being public to raise raise a late stage round from from public market investors. Our lounge around was was led by Fidelity in a treaty that included Tiger Global Valor 1789 it included Alpha Wave, all of whom have large and predominant public market practices. And so I think this was a round that was aimed at a different class of investor. We are continuing to collaborate with G42. They are our strategic partner. We are building enormous clusters in the US for them. We are training models, we are serving models including one that they built in partnership with their leading university in the uae NBC UI so that that partnership remains rock solid.
- [33:49]
Ed Ludlow
Andrew, quickly then the obvious question is does your ongoing association with G42 preclude you from pushing forward with an investment based on the history of the CFIUS review?
- [34:00]
Andrew Feldman
Oh not at all, not at all. I think each investor has their their own appetite appetite by stage and what we found in this round was that the lead investors had a very large appetite and so we were able to meet that appetite. We cleared CFIUS in March and so there is nothing blocking the ipo.
- [34:27]
Carolina Hyde
So when Andrew, when in mid March we cleared no. When will you ipo dare we ask?
- [34:36]
Andrew Feldman
Yeah, that's the big question. I appreciate you asking. I and as you also know I'm unable to tell you with S1 on file but I appreciate it.
- [34:44]
Carolina Hyde
We keep the dance going. Andrew Feldman, it's so good to have you CEO of Cerebra Systems. We appreciate it. Look, we're going to stick with infrastructure now because spending has been dominant theme in equities ever since Chachi Beatty turned everyone's attention to the technology and of course its compute needs. But the proliferation of data centers across the United States is putting pressure on energy supply and sending wholesale electricity costs soaring for you, for customers paying their bills. It's more on this with the big take. Let's bring in Bloomberg power reporter Josh Saul, sort of Bloomberg Data viz reporter Leo Nicoletti. And I start with you, Josh. The compute you go down to the individuals. This is affecting you particularly Go to Baltimore. Can you tell us a little bit about how you found these individuals and what the effect on them is of. Well, basically all the data centers being built pretty close to them.
- [35:32]
Brody Ford
Right. So the headline here is that data centers and their massive power demands are driving up power bills for everyone. The people that we spoke to in Baltimore, some we found because they had testified in a city council meeting about their bills, some we found because they were eating eggs next to us at a diner. We talked to a lot of people and everyone's really upset and having a hard time paying their power bills because of this effect.
- [35:56]
Ed Ludlow
Leo, this is the latest in a series really of pieces of data journalism from this newsroom about the impact of the build out in data centers. Just explain methodology. And the data set that we arrived at that gave us that headline.
- [36:11]
Ryan Vlastelica
Yeah, so you know, essentially we dove into very granular data on wholesale power prices, which is an important component of what then makes up power bills. And we looked at locations, tens of thousands of locations throughout the country and we kind of related it to the location of data centers. And what we found essentially is that areas located closer to data center activity are much more likely to experience price increases than areas located far from data centers.
- [36:44]
Carolina Hyde
That's what's so interesting about Datacenter Ali in the Virginia region. And this is why you go to Baltimore. Can you therefore just break down us in New York? Are we going to be feeling the impact? How are you going to start seeing people built up and affected by region that they live and how certain local governments are going to have to stand in and help in some way?
- [37:04]
Brody Ford
Well, data centers affect power prices and you're power bills in two main ways. One, they just use up so much power that economics 101, it makes power more expensive for everyone else. And two, they require so much infrastructure, you know, new transmission lines, new power plants, the way utilities work is those costs are spread out among everyone. The reason this might matter for some of your, some of our, some of our listeners here, maybe they pay their, they're like I pay my power bill, fine, that's okay. And support people have a hard time paying theirs. Okay, but it can really affect these companies because if data center developers, big tech firms have a harder time connecting to the grid or if that's slowed down because of public anger, that slows down some of these AI plays like we were just listening to. And it can also hurt utilities if they're, if regulators tell them that they, that they need to do something differently that can affect everything from their share price to their future planning.
- [37:57]
Ed Ludlow
Leo, you know, data analysis can take you in lots of different directions. So the headline is up to 267% more. But were we able to rank, you know, in which geographies, regions this, this gain in price is most present and what are the factors behind it?
- [38:15]
Ryan Vlastelica
Yeah, so we looked at data, like I said, all over the country, tens of thousands of locations. And of course there are areas in the country that are more affected than others, especially on the east coast, the Northeast, the PJM grid in Northern Virginia. But also interesting, Baltimore, which doesn't have data centers immediately nearby, but it is actually very close to Northern Virginia. That is data center alley. And what we found is people and locations in the Baltimore area were experiencing some of the Highest increases, sometimes three times as much since 2020 in 2025 than other parts of the country.
- [38:59]
Ed Ludlow
It is today's Bloomberg Big take the impact of data centers on boosting the cost of electricity consumers. Check it out. Bloomberg's Joshua Leo Nicoletti, thank you very much. Now coming up, shares of Spotify are lower today as the company announces changes in the C suite with the departure of CEO Daniel Ek. And it is moving the stock a little bit lower. We'll have more next. This is Bloomberg Tech Big changes over at Spotify, CEO Daniel Ek is stepping aside after almost two decades, leaving the leadership in the hands of Chief Products and Technology Officer Gustav Soderstrom and Chief Business Officer Alex Norstrom starting January 1st. The two officers have been CO presidents since 2023 and have been largely leading strategic and operational development. Bloomberg's Spotify reporter Ashley Kahman is with us on set. You know, the stock tells a story. It's down more than 5% on the news, but we gave the context. After two decades, Daniel Eck is passing on the torch, right.
- [40:13]
Ashley Kahman
And a founder. So that's obviously always going to be big news and investors always have strong feelings about that. But the way they're portraying this is that kind of status quo. They're saying Alex and Gustav have been doing this work essentially since they took over as co presidents and that Daniel's kind of the visionary and he's still going to be very hands on. That's what they're telling everybody.
- [40:32]
Carolina Hyde
But what's not status quo is the world of music and the way in which Spotify is trying to identify new ways of doing audio books and trying to galvanize people perhaps around AI development of music and whether or not they want to be paying actual musicians royalties. How will these two leaders navigate that?
- [40:50]
Ashley Kahman
That's the big question. I mean, they're portraying this as a huge opportunity, right? AI music, huge new frontier expanding to new markets that are never really adopted. Streaming or haven't in the same amount that they, the US and Europe have. But these are also the big challenges. I mean, there's a world in which if everyone can create their own music, do they need to have a streaming service? So these are the big questions that, that Spotify and Alex are going to have to answer. Can they actually bring the value of I get these emerging markets to pay more and then from a video front, compete with YouTube.
- [41:21]
Ed Ludlow
I think it's worth a health check. On Spotify generally, like at the end of 2022, this was a 75$80 stock. It's now $689. Like clearly something's going right there. I spend quite a lot of time on Spotify. I know Cara does too. They're still dominant in certain categories. Like how do you see them as the beat reporter?
- [41:39]
Ashley Kahman
Yeah, no, they absolutely are the biggest music streaming service. So they have owned that category completely. Part of the reason the stock was down at that time was because they had been investing so much money in podcasting.
- [41:50]
Ed Ludlow
Yeah.
- [41:51]
Ashley Kahman
And the investors didn't like that now in this past year. I mean, they switched to a loss now, but they were profitable for a full year. They showed they can do this. Investors loved that. And so I think they just have this new confidence that they're going to spend their money more wisely and if necessary, flip the switch to turn to profitability.
- [42:07]
Carolina Hyde
Now that was a big message from himself. I leave it in profitable hands. I leave it on a high, basically. What's he leaving to do? Because he's staying on as chair, is going to be there for strategy. But he has been active in founderland, building new companies, companies and new ventures and backing defense ones, health ones.
- [42:23]
Ashley Kahman
Exactly. So he didn't really speak about that. He really kept it focused on Spotify. But it does seem like he's going to spend more of his time in his investments, probably focusing on what they're up to. But he is again really saying he's going to be involved in the day to day with Spotify. He's going to be sharing his office as he does with Alex and Gustav.
- [42:40]
Carolina Hyde
As well as she common of Bloomberg. So appreciate the time on all things Spotify. Meanwhile, coming up we speak with Microsoft Security Corporate VP Asu Jackal as the company unveils Microsoft Sentinel or improvements to it about a unified focus on security as a Bloomberg Tech.
- [43:05]
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