Loading summary
Transcript101 lines
- [00:03]
A
Bloomberg Audio Studios Podcasts radio news.
- [00:12]
B
Bloomberg.
- [00:13]
A
Tech is live from coast to coast with Caroline Hyde in New York and Ed Ludlow in San Francisco.
- [00:23]
C
This is Bloomberg Tech. Coming up, Dell rises after almost doubling its growth estimates for sales and profit through to fiscal 2030, boosted by the demand for AI products.
- [00:34]
A
As we speak with a key AI player, the CEO of Core. We've joins us on the company's latest purchase and a weigh in on the wave of compute deals and Tesla might.
- [00:44]
C
Unveil a new cheaper version of its Model Y as soon as today. We'll discuss what to expect.
- [00:50]
A
Meanwhile, let's check in on these markets which maybe take a bit of a breather. Maybe there's a possibility of some profit taking as we have just ramped higher and higher day after day notching new records in the S&P 500. We are flat on the NASDAQ 100. Remember we saw got a government has shut down on our hands but we do still see some buying of some key names. What are you looking at?
- [01:10]
C
Your top story is Dell and much like the broader market, it's lost a bit of steam. We were up almost 6% earlier in the session, now up 2% through the fiscal 2030 they have almost doubled their outlook. They're seeing top line growth 7.9percent bottom line growth adjusted EPS 15%. But the story is really clear traction in the air server business. They have a backlog. Margins will improve. It's worth digging into.
- [01:34]
A
It is and we do that. Bloomberg's Brody Ford. Just how seismic is this to give us the guidance all the way out to 2030?
- [01:41]
D
You all said it.
- [01:42]
B
Great.
- [01:42]
D
It's AI servers, right? Somebody needs to buy in video chips, package them into servers and sell them to somebody else. And Dell has emerged as a very successful company doing that. The opportunity appears larger than Wall street had anticipated. Sales are going to be pretty healthy growth rate in the coming years though of course as with a lot of AI infrastructure, the question is margins. Those are going to rem pretty tight those operating margins in the single digits which often gives investors anxiety. But the growth rates are good enough that today doesn't matter.
- [02:17]
C
The numbers are really interesting. So in the quarter gone dell did booked $5.6 billion worth of business. They shipped more than $8 billion worth of servers and they have this like almost $12 billion backlog. And how they're explaining it is that server margins right now are depressed waste because it costs money to move quickly. I think that's the conclusion I'm getting anyway.
- [02:40]
D
Yeah, that's Right. I mean it costs a lot of money to move quickly. These are massive deals. The supply chain is tight and so if you want to be a buyer that gets priority, you're probably going to pay a little more. The air infra market, whether you're talking about compute servers, really anybody, but in video it's very competitive right now. And so if you want to move with scale, you have to accept some lower margins. Dell has been willing to do this and it's winning some big deals from companies like Cor.
- [03:08]
A
We've core weave big deal. We talk about G42, we think about the global impact here. But Brody, at the moment we're in this market where anything where you bolt on I helps your stock do relatively well. Just talk to us about what IBM has been announcing in the folding in of anthropic.
- [03:23]
D
IBM is another one of these companies seen as a bit of a legacy company, forgotten a bit by the, you know, average investor on Wall Street. Today they announced that they're going to be using anthropic models for their coding assistant. This matters because anthropic model really is the favorite for coding. And so I think this is being taken as a bit of a cosign for IBM's tool that hey, large enterprises, you're not just going to pop into cursor. You're probably going to do it through a more regulated environment and maybe IBM will be that vendor.
- [03:56]
C
Slight tangent. Yesterday Brad Lightcap, who's OpenAI CEO, told me that Codex, which is their somewhat similar product, the use of that is up 10x since August. So and I noticed on social media there's a lot of debate about like which one's better. Leave that to the Bloomberg Tech audience to decide. Yeah, IBM does software. I think a lot of people don't appreciate that this story is indicative of that. Just explain what they offer exactly.
- [04:23]
D
IBM offers a variety of software whether it's in, you know, financial processing transaction, whether it's in coding assistant. It's a lot of somewhat custom development helping large enterprises get all of their data in order, let's say run AI models on it. Let's say, you know, use it your existing data and your coding environment. They have a pretty wide swath and as you said, folks don't realize a lot that it's their largest business segment at this point. This is not the kind of outsourcing IBM of years past.
- [04:58]
C
Bloomberg's Brody Ford on some of what's happening in tech today. Thank you very much. When Caroline and I woke up this morning and Sat at our desks, markets were pushing higher, there was a lot of enthusiasm about AI and we've lost a lot of steam. I'm not saying it's the fault of this program going to air, but those major indices are now marginally in the red. There are concerns that we are losing steam and the words AI and bubble keep coming up a lot. Let's get a discussion with Janet Moody, RBC Bruin Dolphin head of Market analysis. All of these deals announced this week were driving us at the index level. When it comes to technology, we're now losing steam. What is the principal direction of travel here? Janet, when it comes to the tech sector?
- [05:43]
E
Hi, thanks for having me at. I do think that the markets have been rallied very strongly. Is almost like a straight line, particularly for the chip companies. So I think taking a breather is absolutely normal and I think some investors would be taking profits, so I'm not too worried about that. I do think that the direction of travel would continue to be upward because what we have seen is that there are a lot of mega ideas and they involve a lot of infrastructure, a lot of capex spending and it stays within the ecosystem and I think it just gives you visibility over that longevity of, of that spending.
- [06:25]
C
Janet the driver in Monday's market was the deal between AMD and OpenAI. We spoke to AMD CEO Lisa Su. Listen to this.
- [06:34]
F
I have full confidence in, you know, OpenAI, Sam, Greg, Sarah.
- [06:39]
B
I mean this is a massive opportunity.
- [06:41]
F
For us right now right here.
- [06:42]
B
It's about who has the most compute.
- [06:45]
C
And how fast can we get it.
- [06:46]
F
Online and we're committing to doing this together.
- [06:51]
C
The question was whether Open Air was good for the money that it needed to fund all of these projects. And the market seems nervous about that. How nervous about it are you?
- [07:03]
E
So so far I think the financing has been coming from really investors and companies with very deep podcasts. I mean we're talking about the hyperscalers, including Nvidia's investment into opening. That's 100 billion there. So I guess, you know, from the liquidity perspective that's pretty ample. And so far we're not seeing a lot of credit or debt financed activity going on into this spending. So I think on that front I'm comfortable and I think, I think the key theme is that there's just so much demand for compute out there, so many companies can benefit from that. And the building of the infrastructure in AI, it involves not just a single company but really countries and many companies working together in the ecosystem. So I believe that this does really gives you visibility of the longevity of this trend going forward.
- [07:54]
A
But the reporting keeps on coming back to us. Why, if there's unlimited demand for compute, does AMD need to give so called incentives, it feels like to open AI to share in on its own winnings of future revenue? Why does Nvidia have to put $100 billion to work in terms of equity investment in OpenAI? And if they should be just winning out for the sheer demand and scale of compute? And why does Oracle become one of the best performing stocks when clearly some of the profit margins don't always accrue to an Oracle? How do we decide which company really should win here? Janet?
- [08:30]
E
Yes, so I think the big players in this ecosystem, in this buildup of infrastructure will likely be clear beneficiaries. I think that's more on the hardware, the equipment building side of AI. I mean there will be definitely some big winners in the software side of things, but we don't know what's the next killer app. So that's a bit more difficult. And that's why I think the key favorite for investors remain that infrastructure build out. Whether you talk about data center, cloud, compute and etc. And I believe that, you know, I think some concern is right. A lot of this, you know, this closed loop of capital liquidity investment is based on confidence, is really the confidence that there is going to be insatiable demand for compute and is really hard to, to gauge how much of that. But if we do believe in this, the leaders in the AI, I mean Jensen Huang talked a lot about how the demand for compute is just going to be so many, you know, tenfold up from, from here. So I think, you know, I would like to listen and believe in the experts in terms of their vision on how much there is on the computer demand. And so far it seems very, very solid.
- [09:45]
A
Yeah, promises and vision. But Janet, what data do you turn to for hard fundamentals? Because at the moment the MIT report showed that some of these ultimate focuses on productivity aren't actually paying off. Where is it that you're going to get your confidence that can be grounded in fact, not vision?
- [10:03]
E
I mean so far if you look at the corporate earnings growth, right, you look at the hyperscaler, they're still delivering double digit earnings growth. And in fact you can attribute a lot of that to AI. The improved efficiency in say advertising and cloud computing demand and things like that is actually a lot of a big proportion of the earnings delivery is already based on AI. And I think there's Still a lot of potential and I think in terms of the actual data, I think you just need to look at the earnings revision. I mean typically you can see today from Dell just one example that earnings estimates and revenues are keeping revised outward. So there's really clear visibility you're going to as long as far as 2030. So I think these are really hot data that you can look at.
- [10:53]
A
Janet Mo, thank you for that read from RBC Brewing Dolphin. It's always so great to check in with you. Meanwhile, coming up we're going to speak with Michael Entrator, Core Weave CEO. It's going to be talking about the latest ideal that he's doing. Bit of M and A and where is he finding confidence for the never ending wave of ideals? This is Bloomberg Tech AI hyperscaler Core Weave has announced it set to buy UK based Monolith AI expanding beyond cloud infrastructure structure to offer broader AI solutions in this case to industrial and manufacturing companies. Joining us now, Michael Entraita, Core Weave CEO. There's been a wave of M and A coming from you Michael. I want to understand why you're broadening out in this way.
- [11:41]
G
Yeah, thank you very much for having me. It's exciting to be back and yes we've been, we've been quite active on the M and A front as we continue to build and broaden our offerings. Many of them are organic things that we're building internally. And as you can see with the model if a deal, as you can see with the open pipe deal, as you can see with the weights and biases deal that we did earlier this year, there is a tremendous focus that we have on broadening out how we're going to be able to support our clients. From the software side, obviously there's also the core scientific transaction that is in process and once again it is part of our vision of being able to offer a turnkey solution from the bricks all the way up through the infrastructure and through the software to be able to serve our customers in the best way possible.
- [12:40]
A
And is that because also it's more profitable? Michael, we're looking at reports at the moment about Oracle and ultimately how razor thin its profit margins are when you're thinking about renting out compute because of the cost of ultimately the GPU's coming from Nvidia. How hard is it to make your bread and butter to work from a real profit margin perspective?
- [12:58]
G
Yeah, look, you know the profit margins we're able to garner with, with, with the infrastructure that we sell are significant. We're excited about it, we've, we've really been able to drive our business in accordance with, you know, our objectives. We're scaling at an incredibly fast pace. And so with that you get short term distortions. But, but in terms of the business strategy and execution, couldn't be happier. When, when you think about where the space is today and where the space is going to be over the next several years, the broadening out of our offering of software solutions really allows for an incredibly effective way of bringing on new clients that are going to pay for not only the infrastructure, but also the services that they get when they need to be able to integrate artificial intelligence into their broader mission. And so we're excited about that. We think it's the right way to go. We've been aggressively pursuing it. We brought on some great teams and, you know, you'll be seeing products coming out of those teams imminently.
- [14:05]
C
Michael the top story today is Dell roughly doubling its growth projections for both sales and profit through fiscal 2030, largely because of AI server demand. And you are one of the key customers for Dell in that respect. From the customer's perspective, what does that kind of bigger picture forecast from Dell signal to you?
- [14:26]
G
Look, you know, there's a lot of noise in the space again and this happens periodically and you know, but when you take a step back, you're seeing incredibly strong demand from Dell. You're seeing instructive, incredibly strong demand across the hyperscalers as they're able to embed AI into their products. You know, the profits that those are driving are the underpinnings. You're asking about what people look to. That's what they look to, right? Like they look to people that are able to generate revenue from their existing client base using AI. And that is incredibly strong. We've seen it repeatedly. You're seeing it again with Dell. It's really exciting. And once again you zoom out just a bit here and it's really an incredible space going through an incredible transition. That transition is causing a systemic imbalance in the infrastructure side, which is what drove us towards the, the, the deal that we are looking at with Core Scientific. Core Scientific is an infrastructure provider for us. They are one of many. You know, over the, since our last earnings call, we've increased our contracted pipeline of power from a 2.2 gigawatts to now up to 2.8 gigawatts, which is a new number that we're putting out there, of which none of that comes from Core Scientific. We have broadened our strategic relationships with other private providers of the infrastructure. A great example of that is Galaxy Digital, you know, where, where we're able to go ahead and get large blocks of contiguous power to continue to buy infrastructure that will be made available to our clients as they continue to build. And ultimately that brings us back to this particular acquisition that we're looking at. You know, it's an acquisition that we put out there several months ago. Core Scientific provides core weave with over 500 megawatts worth of infrastructure which we currently have contracted. Therefore, you know, we have a great relationship with them. Regardless of the outcome of this acquisition, we will continue to have a great relationship with them as they deliver power to us within our data centers that we share with them. It is a small and shrinking part of our portfolio. And ultimately that led us to, you know, the position where, you know, really under no circumstances will we readdress the bid that we put out. That's the number. We think it fairly represents the value for them. We think it will be great for the two companies to move forward together. The systemic imbalance within the infrastructure is causing, you know, it really is stressing the supply chains and causing all kinds of delays.
- [17:16]
C
Yeah, I'm sorry to cut you off. We're going to run short of time. And I got to ask you this. 24 hours ago, we had AMD CEO Lisa Su and OpenAI President Greg Brockman on the program. Program. There are lots of unanswered questions about the 6 gigawatts of capacity. They've agreed, will call. We've participate in support in that arrangement. Just very briefly.
- [17:38]
G
Yeah, so. So we support OpenAI enormously across the space and we have great relationships with amd. We use their infrastructure within our portfolio. How they choose to divvy that out, we don't know yet. You know, we're more focused on the 14, you know, the minimum deal that we did two weeks ago, which was a minimum of $14.2 billion, which will continue to expand with matter that will come online in 2026. We're really excited about that. And you know, the, the, the AMD deal with, with OpenAI is just another example of the recognition across the space of how much of this infrastructure is required and how much demand all of these providers of artificial intelligence are, are encountering.
- [18:23]
C
Michael and Trader, of course, thank you very much for being back on Bloomberg Tech. Now coming up, Tesla set to unveil a more affordable version of its Model Y. We have more on that next. This is Bloomberg Tech.
- [18:48]
A
It's time now for talking tech. And first up, bank of New York. Mellon was exploring tokenized deposits, enabling clients to make payments using blockchain technology that could speed up settlement time, reduce costs. Other banks, including J.P. morgan and HSBC, have made similar moves. Plus AppLovin, while it's facing a probe over its data collection practices, according to sources. The securities and Exchange Commission is investigating whether Applovin violated service agreements on pushing targeted ads. Have. Lovin declined to comment on the matter. And Elon Musk. Musk named a former Morgan Stanley executive as the chief financial officer of X all according to a report in the Financial Times. Anthony Armstrong worked on Musk's purchase of Twitter. He will oversee the finances of Musk's startup. And the social media platform now called.
- [19:30]
C
X, of course, at Tesla is set to unveil a new, cheaper version of its Model Y as soon as today. That's according to sources. Bloomberg's Craig Trudeau, our global autos are joins us from London. You and I worked on this together. This is what I'm hearing from sources inside Tesla that it is just a more affordable Model Y, fewer features. They engineered cost out of the battery pack and the motor, but also it's kind of been hiding in plain sight because Musk and others discussed this on the most recent earnings call.
- [20:03]
H
Yeah, one of the more colorful moments on that call was, you know, some of the other executives at the company kind of dancing around these questions about what this more affordable Tesla would be. And most just coming right out and saying, let's let the cat out of the bag. It's just a Model Y. So, you know, I think the expectation here, of course, is that this by, by taking some of the content out of the vehicle, maybe, you know, making it a little bit less attractive from, from a range perspective, but more attractive from a price perspective. You know, the hope here is that that some incremental consumers who maybe were going to be priced out of this vehicle now can, can maybe afford it with this $7500 tax credit going away. And I think that's going to be, you know, one of the key questions for the next earnings call from Tesla is, you know, just how, how steep of a cliff are we looking at here now that that incentive has, has been sort of pulled out from under the industry.
- [20:58]
A
I can see that that reacts to the unwinding of the tax credit. But there's been this ongoing call for them to offer a less costly version of the ev largely because of China competition. Is it enough?
- [21:10]
H
I think, you know, that's a really fair question. And Ed's reported on this going back quite a while that, you know, Elon Musk is not particularly interested in expanding the lineup with an altogether new vehicle. When in his mind this is a company that's on the cusp of making vehicles capable of driving themselves. And so, you know, why sort of, you know, bother with, with introducing a more affordable vehicle and competing with the likes of a Corolla or a Civic when you know what you have in the lineup is on the cusp of doing something that you know no other manufacturer is going to be capable of doing. The question, of course is can he make good on that sort of, you know, promise or vision?
- [21:53]
C
You know, Craig and Caroline Tesla did not respond to requests for comment. And you know, there's a lot of speculation out there that it could be a roadster and we're not expecting some big event. You know, Craig, you've been editing this stuff with me. The reality is we just don't know. But Caro, you know, we're waiting to see what happens.
- [22:11]
A
We do. We'll wait for it to drop, even if it's stealth mode. But you're never in stealth with your reporting. And Craig, we thank you for the editor on it. We appreciate your time. Meanwhile, coming up, look, OpenAI's golden touch how companies are benefiting Just the invention of the AI darling. That's next. This is Bloomberg Tech.
- [22:40]
C
Welcome back to Bloomberg Tech. Yesterday afternoon I'm sat in a warehouse in Fort Mason, San Francisco. Sam Altman of Open Air is on stage. Loads of OpenAI execs are on stage. They name check all of these companies and some of the stocks go ballistic. One of them is figma. And figma basically spikes up 16% at one point in yesterday's session, closes up 7%. It's up again for a second day. All because of a name check on stage by OpenAI. Actually, one quick stack, Figment is up for the first time for four straight days since it listed in July. So it's on a bit of a run anyway. But yeah, let's dig into what's happening with the Golden Touch less because the.
- [23:21]
A
Guy'S been writing all about our equities reporter Ryan Vasilica. Been looking at this so called golden touch for many a name that soared yesterday. Figma really holding on to those games. Look, they get name checked but you are seeing a folding in of the software within chat GPT. It's almost a bit of a lifeline when we're worried that some of these companies were going to be made redundant in some way by OpenAI.
- [23:41]
B
Yes, absolutely. There's been a lot of concern that Open Air, these other large language models, would really start to eat the lunch of these more established legacy software companies. We saw all kinds of mentions yesterday. Other companies, including HubSpot, Salesforce is really going on down the line. And I think there's a little bit of relief that OpenAI might be working with these companies, integrating them into its service, as opposed to just, you know, offering sort of competing services that might really represent a strong force of competition for them. So, yeah, these kinds of mentions, we really saw some immediate spikes yesterday, really across sectors, across the market, online travel companies. Even Mattel saw a little bit of a pop after it was mentioned in its demonstration of sora, the video generation service.
- [24:27]
C
And you reflect in your piece about how if Open Air has the golden touch in AI, it's really been in video. That's been the golden ticket and had a similar effect on other stocks.
- [24:37]
B
Yeah, absolutely. So this is something that we've been seeing for as long as AI has been a major or major theme in markets. And of course, in addition to all the companies we've been talking about, obviously yesterday we had the huge jump in AMD on the back of the news with OpenAI. We had last month huge gains in Oracle. So certainly this has been the trend. All these companies that are really seen at the cutting edge of AI, anything that sort of like has any kind of connection to them. We do see stock reactions now, in many cases. The stocks pulled back today. I mean, you mentioned figma maybe up still, but I noticed Salesforce was down, some of these other stocks down today. So it's not proving to be a lasting bounce, but certainly just a near excitement. It seems like it's getting a lot of people, at least in the short term, excited.
- [25:17]
C
Bloomberg's Ryan Vlastelica on the moves that matter. Thank you very much. So we've talked about figma. We just shown it just then. One of the names that applies absolutely spiked after the mention on stage from Sam Altman and OpenAI. It's going to be integrated in chat GPT through an API, a third party. It was one of the key pieces of news from OpenAI's Dev Day. We got to sit down with Figma CEO Dylan Field.
- [25:40]
B
There wasn't really like a negotiation of any kind. It was a collaboration in our, you know, me, our engineers, our product people. We're talking with their engineers, their product people. We just have like a Slack channel going. I was literally DMing their engineers up to, I think midnight last night, just Identifying long tail issues that they're checking out to make sure everything's ready for a day. And the team has been amazing to work with and yeah, just in general been very thankful for the partnership and the chance to go build this Figma app on the ChatGPT system.
- [26:13]
C
Dylan, I know that you probably weren't paying attention to this particular point, but during the early part of the keynote, Figma shares went ballistic. Frankly, many other names did as well. When they were going through the list of partners that will be API access through the Chat GPT, what does that signal to you about, you know, when OpenAI communicates, there is that level of response to your from your investors and the technology industry at large.
- [26:42]
B
Yeah, you surprised me with that earlier, before we started talking on the interview and I'll check it later, but I don't know is the honest answer because it's not really something that I'm as tuned into. I told the team before we IPO'd during the IPO, after the IPO, number goes up, number goes down.
- [27:02]
C
Right.
- [27:03]
B
What matters are the inputs. Every day we gotta be driving to make sure that we are making a better user experience, better products for all of our users on the platform. And so I think if it means anything to me, it's people see possibility in how these systems can work together. But now we have to go make sure that we prove it and that it's great and hopefully it's just a start and there's a lot more we can do.
- [27:27]
C
Very quickly before we let you go, you know, you talked about speaking with the slacking, the OpenAI engineering team and till very late last night, just as a moment in time like this dev day where there are thousands of people here in Fort Mason, San Francisco, in your technology career, could you try and summarize what you think is happening in particular with AI and what's happening in this city?
- [27:49]
B
I think it's a moment of excitement. And I mean, look, if you're an engineer, if you're a designer, a product person, what do you love? You love new toys and there are new toys every week or two right now. Toys you can go build with, things that you can go and use to invent the future and create new workflows. That's exciting for a technologist and you know where it all goes. Nobody knows. If they tell you they do, they're lying to you or to themselves. I don't know where everything's headed, but I think that definitely it's a moment of excitement right now. And we're excited about all the change we can make for our users and how we can make their experience using Figma better.
- [28:33]
A
Such a great conversation with Figma CEO Dylan Field. Meanwhile, NYSE owner Intercontinental Exchange it plans to invest as much as $2 billion in cash into polymarket following the crypto based betting platform at roughly $8 billion from all Bloomberg's Catherine Doherty here with the news. And it's interesting there betting on the future growth of this company but also using its data within NYSE's offering.
- [28:57]
I
That's right. The data is really the value that polymarket can provide to ICE and its client base. So these are large institutions used to trading on the New York Stock Exchange options exchanges that ICE operates and now those users are going to be having the ability to pull from Polymarkets data. Data is an incredibly valuable part of exchange operators how they're growing their own business. And at the same time this announcement this morning there was another part about tokenization that's another path forward for these exchanges as they're looking to innovate. And if you're a storied institution like ice, you might not be able to do that without these new incumbents. The crypto native firms that have already started to build and to tokenize themselves now they can come forward with their own ideas and partner with ICE in this way.
- [29:56]
C
Betting on prediction markets was a story around the 2024 US presidential election. So I don't know, like give us your reporting on the deal itself to invest. This is something that moved very quickly. It's something that you know, they've been talking about for a while.
- [30:10]
I
So the prediction market is a competitive space. It's been growing. You have the likes of kalshee and crypto.com these are all companies that have started to put forth predictions in the form of in many cases it's a binary yes or no. And you can apply this to markets and I believe that is where this deal itself is going to start. It's going to be a simple will the value of gold for example or another asset class cross a certain benchmark and it's going to be a yes or no and go from there. But you can also extend that to as you mentioned, politics. Eventually sports will be another very big potential asset class that can expand. There's questions around regulation of how that might work. But if you have companies like I price earlier we saw cme, the largest derivatives exchange based in Chicago. They're partnering with FanDuel. Everyone is racing to partner up. So I expect to see many more Deals like this that will indicate where the future of exchange operators are going.
- [31:17]
A
What a difference a year or so makes. Because you mentioned regulation and there is a much more favorable regulatory environment. I mean look, polymarkets coming back to the US US and previously not been allowed to be here.
- [31:28]
I
That's right. In 2022 this was a company that was shunned away from the US marketplace. They kept many of their users but they couldn't embrace us in the way that they wanted to. And now flash forward to today they've bought their derivatives operator. That was very, it was not well known but it basically was a path forward to them to re enter the U.S. u.S. Marketplace. They have regulators that they're working with. Just a few days ago we had companies like ICE and Polymarket. You had the executives going to D.C. and speaking with the SEC and the CFTC. These are the, the regulators of the main, the largest marketplaces when you think about equities options. And now we're going to see prediction markets potentially come under those some same regulators. So we see a lot of partnering up. We see a path forward of innovation and really an embrace of the crypto native firms like a polymarket.
- [32:30]
C
Bloomberg's Catherine Doherty, thank you very much. Okay, more to come next on OpenAI. We'll be right back. This is Bloomberg Tech.
- [32:42]
J
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 FINRA and SIPC. Crypto trading provided by Backed Crypto Solutions LLC. Complete disclosures available@public.com disclosures so have you.
- [33:44]
H
Heard the story about the prescription plan?
- [33:46]
G
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.
- [33:55]
H
Go to CMK Co stories to learn.
- [33:58]
G
How CVS Caremark helps members save just by being members.
- [34:02]
H
That's CMK Co Stories Introducing the all.
- [34:08]
A
New Adobe Acrobat studio now with AI powered PDF spaces.
- [34:13]
I
Do more with PDFs than you ever thought possible.
- [34:15]
A
Need AI to turn 100 pages of.
- [34:17]
I
Market research into 5 insights with a click.
- [34:20]
A
Do that with Acrobat.
- [34:21]
I
Need templates for a sales proposal that'll close that deal.
- [34:24]
A
Do that with Acrobat.
- [34:26]
I
Need an AI specialist to tailor the tone of your market report to sound real smart in real time.
- [34:31]
A
Do that with the all new Adobe Acrobat Studio.
- [34:34]
C
Learn more@adobe.com do that with Acrobat. Open Air has announced blockbuster deals with AMD and Nvidia to build out data centers that combined would have more than enough electricity to power New York City at peak demand. Open Air Chief Operating Officer Brad Lightcap Explain why the company is going so big on infrastructure.
- [35:02]
J
We are tremendously compute constrained. It feels like we're in this kind of recurring theme of being compute constrained. And I think the reason for that is the answer to the question you ask, which is demand, right? We see there are multiples of demand that are latent and untapped from what we, we have today. And even today, obviously by any standard, demand and revenue growth has been torrid in its, in its pace. And so really we have to invest ahead of that. And I think that's going to be the rate limiter for us to be able to go capture it demand, whether it's consumer or enterprise, and for us to be able to build new models, parallelize more experiences, more product experiences, and then enable users specifically to be able to use those products more actively in their daily life at work and at home. And so, you know, even things like Sora, the app we just launched, we wish we could invite more people onto it now, but we just need more compute. So the AMD deal we're excited about being, you know, directionally a way for us to do that.
- [35:58]
C
I've got to ask about the report that Open Air closed secondary or the ability for employees to sell shares at a $500 billion valuation. I already asked you this question, but what is the metric we're supposed to judge your success by? The $500 billion valuation, the 6 billion tokens per minute to you, Brad, what is it?
- [36:18]
J
For me it's, it's actually kind of a method trick that we, we talked about is, is tokens. It's, you mentioned 6 billion tokens per minute on our API. That is the purest for me, the kind of essence of, of utility is that consumption metric. And, and so we actively track that metric to see how people's consumption of AI is growing over time. And you see this happen in amazing ways. So things like Codex, for example, we've seen grow 10x since August cost purely on consumption of tokens around coding. And you start to see that same pattern emerge across multiple lanes of use and across multiple areas of work. And that's the metric I look at because if that number is going up, it means people are using us for more things. And that's the ultimate goal.
- [37:02]
A
Open Air CEO Brad Lightcap there, and it is all about use. And we got a lot of that news out of Open Air Dev Day. Let's turn our attention to Bloomberg's Rachel Metz. And look, there is a lot of, lot of crossover here of other technologies being intertwined really with the Chat CBT offering.
- [37:19]
F
Yeah, exactly. I mean, just yesterday at the company's developer event, we saw the company trying to bring in lots of different companies applications like Zillow for instance, and you would use it within Chat GBT and a number of other companies as well have been building these apps. And OpenAI wants all kinds of people, people to build these apps and they want to make chatbots more of a, I guess like more of a starting point, more of an operating system almost for a lot of different kinds of computing things that you would normally do perhaps on your other apps, on your phone, or would go straight to a website for things like that. And like Brad said, that will take a lot of computing power.
- [38:03]
C
Rachel, Sam Altman and other executives took about an hour of questions from us. You and I were hanging out in the afternoon of Dev Day. There was like lots of other news. You know, it could be the 800 million weekly users. What jumped out to you? What is it you think moved the needle, if anything?
- [38:19]
F
I thought that this, that 800 million weekly user, I mean, it was almost kind of just like mentioned as, you know, like one of a number of things. I feel like that's a really significant milestone and it seems to have been achieved really quickly. And I think it's just a really putting a big signpost on the idea that Chat CBT has just kept going as such. It's a machine that's really gone faster and faster and faster since it was launched in late 2022. This is, as Nick Turley, who's the head of Chad GPT said, about almost a tenth of the world's population. I mean, that is a huge amount of adoption to have. And I think it's really important to think about everything the company does through that lens.
- [39:01]
A
Bloomberg Rachel Metz Fantastic to have you. There are two kinds of people in the world. People who think about climate change and.
- [39:07]
J
People who are doing something about it.
- [39:09]
A
On the Zero podcast we talk to both kinds of people.
- [39:12]
J
People you've heard of, like Bill Gates. I'm looking at what the world has.
- [39:16]
H
To do to get to zero, not.
- [39:18]
J
Using climate as a moral crusade and the creative minds you haven't heard of yet.
- [39:23]
E
It is serious stuff, but never doom and gloom.
- [39:26]
J
I am Akshat Ratty. Listen to Zero every Thursday from Bloomberg Podcasts on Apple, Spotify or anywhere else.
- [39:32]
A
You get your podcasts.