Loading summary
Transcript1 lines
- [00:01]
A
For every six Chinese people, there's a Ping an customer. We have accumulated a massive amount of the customer data, not just on the financial side, but end to end across channels thanks to our AI advancements. This is the Technology Empowered Growth at Ping An Podcast. In our latest episode, Ping an is utilizing technology to provide integrated and personalized 24. 7 support for China's rapidly growing elderly population. Now available on Spotify, Apple Podcast and Ping An's website. Did you know you can opt out of winter with VRBO? Save up to $1,500 for booking a month long stay with thousands of sunny homes. Why subject yourself to the cold? Just filter your search by monthly stays and save up to $1500. Book now at vrbo.com introducing the all new Adobe Acrobat Studio now with AI powered PDF spaces do more with PDFs than you ever thought possible. Need AI to turn 100 pages of market research into 5 insights with a click. Do that with Acrobat. Need templates for a sales proposal that'll close that deal. Do that with Acrobat. Need an AI specialist to tailor the tone of your market report to sound real smart in real time. Do that with the all new Adobe Acrobat Studio. Learn more@adobe.com do that with Acrobat Bloomberg Audio Studios Podcasts Radio News. Bloomberg Tech is live from coast to coast with Caroline Hyde in New York and Ed Ludlow in San Francisco. This is Bloomberg Tech. Coming up, we zero in on tech earnings with dell raising its AI server shipment outlook while HP announces job cuts plus Warner Brothers discovery asking bidders for sweetened offers by December 1st as it explores options for a sale and Nvidia Info Focus as doubts over the company's AI chip dominance are growing. I'm Jim Sandback in New York in for Caroline Hyde and Ed Ludlow. Let's get a check on markets right now. US Stocks advancing its expectations for an interest rate cut at the Fed's next meeting are helping to fuel gains before the Thanksgiving break. Nasdaq 100 up right now and look at the last three days up 4%. This after both the S&P 500 and Nasdaq 100 moved away from their last record highs in late October. The NASDAQ 100 down about, let's say 3.66% from that all time high. The S&P 500 though, down just a little over 1%. We're also looking at tech earnings with Dell and HP. Dell raising its annual projections for the server market thanks to sustained demand for machines needed in the current Data boom. Meanwhile, HP stock under pressure, down 2.2% right now. The company announced 4,000 to 6,000 job cuts over the next couple of years by using more AI tools. For more on HP and Dell, let's bring in Bloomberg's Dina Bass. Dina joins us here in New York. I want to start with HP. 4000 to 6000 jobs sounds like a lot. And indeed if we go to the 6,000, it's like a 10% of the company's workforce, but that's through 2028 fiscal year. So we're a few years away from that. And if it's AI that they're going to replace these people with, I can change a lot between now and then. Sure. And to be clear, HP did a similar magnitude job cut over the last three years. They just finished it. They have these kind of periodic efficiency plans. I guess what's new about this one is the idea is that they, they are going to use AI tools and models to like product development, customer customer service, sales. And that's where you're getting these, these job cuts. And at the same time, even though they're, they're going to be saving money that way. They said they actually took, they actually came in below on their guide for next year, for fiscal, fiscal year profit. And that was because of a completely different issue around memory price increases. So you had both, you had these job cuts and it's not, you know, making the bottom line look where people expected it would come in. Well, speaking of those price increases hitting Dell, so let's, let's talk a little bit about Dell. Dell is contending with, despite strong demand, how is it going to make its AI server business more profitable? So the server business, and it's basically said, I know you're going to be talking about GPUs in a minute. Those are the servers that are, that have GPUs that go into these AI data centers. And the demand for them has been very high for Dell and other makers of them. The problem is that in order to get some of these deals and in order to deploy some of those servers, Dell was basically incurring more significant costs. What they're trying to do, trying to do now is pull back from that a little bit to widen the profit margin in that business. They've, they succeeded in the last quarter, they told me, because they were able to serve a more diverse group of customers. So some of those were a better, more profitable sets of deals. Yeah, I think these rising costs are going to be a theme throughout the next year as well. Dina, always good to see you. Welcome back to New York. Happy Thanksgiving as well. Well, let's bring in now and talk on video because Nvidia shares over the last five days taking a hit, down more than 3%. The stock facing pressures as AI chip rivals ground, leaving investors wondering if its dominance can be sustained. Bloomberg's Ryan Basilica joins us for more. So, Ryan, I think the big question that investors have after seeing what happened with Alphabet in this report in the information earlier this week is can Google's GPUs actually compete with with the GPUs from Nvidia? What are you hearing? Hey, good morning. Thanks for having me. So I would say that while there are a lot of differences between Nvidia's chips and Alphabet's, alphabets are designed for one specific purpose, which is working with AI workloads in the cloud, which is really the dominant use case for a lot of the AI infrastructure that's being done right now. So there is certainly a very big market for the TPU chips, as we saw with the anthropic deal that was announced a couple of weeks ago and with this report with Meta. So that opens up potentially a huge new market for Alphabet and it does put Nvidia's market share under a little bit of pressure. Now, this is still very early days and it's not like Alphabet is out there selling chips to people in the same way that Nvidia is. But certainly people are reassessing what our market share is going to look like over the coming years. And if Nvidia's is a lot smaller than previously expected, what does that mean for the stock? What does that mean for the valuation? What does that mean for its expected growth rates going forward? Yeah, I mean, the analyst community, though at this point even investors may be a little concerned, but the analyst community, they've still got buys on this stock. I mean, there's only one analyst who's tracked by Bloomberg, Jay Goldberg over at Seaport, who has a sell on Nvidia. Is, is he changing his tune? Are these analysts changing their tune? No. In fact, I spoke with him yesterday and he said he is more negative on Nvidia now than he was a couple of weeks ago. I would say that, you know, the new concerns about, you know, custom silicon and new rising compet for Nvidia, this comes at a time when people are increasingly questioning the trade. There is a lot of debate right now about the amount of spending going on. How durable is this going to be, how sustainable? What kind of returns are companies seeing on this and if they're not seeing big returns on this investment, are they going to pull back on their AI spending going forward? Nvidia is really at the heart of a lot of AI debates right now. And then you add in this new one where what does their market share look like? What about competition? That is just another reason for people to be skeptical. Although analysts so far are holding firm and remain pretty positive. Yeah, Nvidia shares up 32% over the last year. Bloomberg's Ryan Vistellike. Happy Thanksgiving Ryan. Thanks for joining us. Well, let's get more on the wider tech markets. Nancy Tanglar, CEO and CIO of Laffer Tangler Investments. She says there's more room to run for stocks writing quote since we are in the early stages of the adoption and investment cycle, we believe the providers of the technology, the picks and shovels will continue to produce enviable earnings growth. Nancy joins us now. What's a more promising pick and or shovel? Is it Alphabet or is it in video? Nancy? Thanks for having me Tim. You know I'm actually going to go we own them both and I'm going to go with Nvidia. And the reason for that is I think analysts are forgetting or investors are not focusing on Cuda, which is the software system that develops around the Nvidia Chips Blackwell and then soon to be Ruben. And I think it's analogous to Apple and the App Store. So you know, it was just a handset company when we were buying it. I was told that every time I talked about it on the air. But it was really the App Store and services that we were buying. And this I think is analogous to that. If they lose, you know, if they go from 80% to 79% market share, I can live with that because I think the earnings growth is going to continue. And let's not forget AMD is in the wings and we also own that and Broadcom which is developing the tpu. So I think there's a lot of ways to make money in this trade. At what point do we move beyond the so called picks and shovels of the trade and start to see the increase in, I don't know, efficiency, the increase in productivity in non technology companies. So we listen to the companies, Tim, and let me give you one great example. We've talked about it before but Wal Mart is our poster child of our investing theme which is an old economy company that has pivoted to the new technologies and is now going to be listed on the NASDAQ let's remember. So they had 6% revenue growth, pretty good for Wal Mart, but 27% in E commerce. That, that was also interesting to me. But what really got my attention was that delivery speeds were up. 35% of digital orders are arriving in under three hours. They're also using automation in the fulfillment center. So 50% of their orders are fulfilled automatically via robot. We own the company that did all that for them, Symbiotic. So that's a second or maybe even third derivative player in, in AI. So I think it's broadening out. We're hearing it from all across. You know Raytheon talked about how they were utilizing AI in order to, to improve supply. Supply log jams, that's, that's a stock we own in tglr. All of these we own there actually. So I think it's important, important to start listening to the companies paying attention to who's seeing margin expansion and we're definitely seeing it at the company level. Nancy, if we were talking a week ago I think we'd have started our conversation focused on the idea of a bubble, maybe concerns about capex spending. The hand wringing that we saw last week over some of these valuations that has seemed to receded, recede just a little bit this week. But you've been through multiple cycles bubbles and I'm wondering how you view the whole AI bubble talk right now compared to let's say the tech boom of the late 90s and bust as well. Well, I wish I was as clever as Ed Yardeni because he coined this phrase too. But I wrote a piece called the bubble and bubble talk and I think it's important to note a couple of things. In the 90s from 96 to 2000, the growth stocks that, that whose valuations were skyrocketing, we're actually experiencing contracting earnings. We're not seeing that now. Growth, the growth stocks in technological revolution are experiencing about 20% growth on average. CapEx was, was also something that was, was healthy and then accelerated through the entire decade. We're just now starting to see that ramp up in the last couple of years. So I think it's important. And then these companies have fortress balance sheets and all this. I don't want to say, I am going to say nonsense around Oracle. I think it's important to remember that they, this is a company that's always had a ton of debt. Debt TO equity was 427% at the end of the quarter. That's down from 780% year over year. This is all before they issued the $18 billion in debt for, for the Open Air data center build out. This company has a history of, of using debt, but the PPE is up 130% year over year while debt is only up 9. So debt to equity will decline. So you're not concerned at all about the price of 5 year CDC for Oracle rising to the highest going back to October 2022? That's not concerning you. It is. It's a par trade though. What concerns me more is the concentration in the market around OpenAI and I think that has to sort itself out Now. Satya Nadella would tell you that data centers are fungible. If we don't use it for this, we'll use it for that. And I think that's certainly true. But I am concerned about the span. I mean, that's a company with a burn rate, right? Open air. Yeah. 10 billion revenues and trillions and in spend. Oracle has other businesses. They can change shift directions, use data centers for cloud computing. I don't like the pear trade, but I think we were added to it a couple of days ago and I think, I think from here we're going to be talking about fundamentals instead of. It became the post, it became the narrative stock for this. This bubble is, is overdone. We're not in a bubble. Yeah, those September highs that we saw for Oracle, I mean, we're down significantly from those, but still up 7.8% over the last year and about 20% so far this year. Nancy Tangler of Laffer Tangler Investments, always good to see you. Happy Thanksgiving. Well, Uber is going to begin offering driverless trips in. We ride vehicles around parts of Abu Dhabi. The new milestone follows the two companies first launching a ride service with safety operators behind the wheel almost a year ago. They intend to expand their driverless vehicle operating territory in Abu Dhabi and extend their partnership to Dubai soon. Well, coming up, holiday shopping season is here and with it, new online scams. We're going to discuss what to look out for and how to protect yourself next. This is Bloomberg Tech. Holiday Sharp shopping sales seem to start earlier and earlier, but this year's Black Friday and Cyber Monday deals might not be as steep. Bloomberg opinion columnist Andrea Felstead has a piece out and she writes that tariffs will cause retailers to offer smaller discounts in the quest for deals. Shoppers may be tempted to turn to new websites or click ads for deals that turn out to be scams. Theresa Payton is former White House CIO and current CEO of the Cybersecurity firm Borderless Solutions. She joins us for more. Good to have you on the program. You know, I'm always thinking that we're in this day and age where it can easily become victims of fraud or victims of scams. But why does it happen with increased frequency during heavy shopping seasons like Black Friday? Well, we're all busy and many of us are looking for extra deals and extra bargains this year, like you mentioned earlier because of the tariffs. And, and with that, we're getting bombarded on social media with things that look really cool and hot. And we want to make sure we get the deal, we get it quickly before they run out. And don't forget, criminals and fraudsters now have AI as a tool at their fingertips. And so it's making it very cost effective for them to target you and me while we do our holiday shop. Okay. So I want to get to what we can do to protect ourselves. But before we do that, Teresa, how are they using AI to target us? What does that look like? And how could that look differently than the scams that. That we're used to? Yeah, so they're basically reverse engineering websites that you or I might go to that are legitimate websites. And then they're doing things like a play on the name and then setting up imposter social media accounts and basically jumping into your feed. Then you follow this great deal and then the next thing you know, you're buying from a scammer or a fraudster, not from the actual website that you think you're visiting. They're also spinning up businesses using bots to actually give themselves great reviews. So it all looks like it's on the up and up. But just a little bit of diligence and a little bit of research, you'll be able to figure out and spot the scam sites and the fraud sites pretty easily. Okay, you mentioned diligence and research you shared with our team. Reputation checkers for websites. I'd never actually even heard of these or use them before. Should these be part of our, our diet when it comes to healthy shopping? Yeah. I love the fact that you brought this up because I personally use these websites, especially if I'm going to a site I've never ordered from before, even if I have a friend or relative tell me they've used the site. So things like Scam Advisor, URL, Void, trustpilot, and I will post these on my social media accounts. These websites will actually tell you how old the domain name is. It could be legitimately a brand new business or it might be a scammer fraudster taking advantage of holidays. So it'll also tell you whether or not security companies or consumers have reported issues with these sites. And of course, old school still rules. The Better Business Bureau is a great place to check on a domain name as well. Okay. So I think that, you know, for me, at least one area that I always think of as a background stop is the way I pay. And I'm only using credit cards on these websites because I feel like if I have an issue, then I can just call my credit card company and they can protect me. Are people using other payment solutions that might not have that same level of protection? Yeah, this is the tough part, and I agree with you. I only use a credit card when I am shopping online. I do not use my debit card card. I don't use gift cards to shop online. What's happening is a lot of these scam sites and fraud sites will say things like, we only accept Venmo or Zelle. We only accept gift cards. We only accept wire transfers. So they might say, well, for this to work, we're international. We have to have the wire transfer. These are red flags. When a merchant tells you they will only accept those form of payment and they won't accept credit card. And chances are you're dealing with a fraudster because they know the credit card companies will actually come after them and shut them down. So they want you to use these other forms of payment, other red flags. Maybe a price is too good to be true. Yeah. So if you see things like 70 to 90% off during the holiday season, that is typically a red flag. Now, unless you're on sort of a household name website that you navigated to on your own, you didn't follow a link in social media, you didn't follow a link in an email or a text. So if it's too good to be true, also look at that domain name. When in doubt, there's a website called virustotal.com. you can use it for free. Copy and paste that website in there, and it'll actually evaluate the URL and tell you whether or not you might be dealing with a scam site. Okay, Teresa, before we let you go, if you do somehow become a victim of. Of not necessarily a cyber attack, but maybe an attack on your identity or some sort of scam, what should be the first thing you do? Yeah, first thing you do is you want to call your bank. So whatever payment method you use, you need to lock down your life. The next thing to think about is actually you can report it@the FBI.ic3.gov and the ftc.gov but also there is a nonprofit resource that is free to use called the Identity Resource Theft Center. It's a great nonprofit. I've referred people there and they will actually give you a checklist. You can talk to a real human being and work on getting your peace of mind and your identity back. Theresa Payton, CEO of Fortalist Solutions. Thank you so much for joining us. Coming up, the US faces a potential electricity crisis due to a surge in demand to power AI data centers. We've got the details now. This is Bloomberg Tech. For every six Chinese people there's a Ping an customer. We have accumulated a massive amount of the customer data, not just on the financial side but end to end across channels thanks to our AI advancements. This is the Technology Empowered Growth at Ping an podcast in our latest episode, Ping an is utilizing technology to provide integrated and personalized 24. 7 support for China's rapidly growing elderly population. Now available on Spotify, Apple podcast and Ping AD's website. Support for the show comes from public.com you're thoughtful about where your money goes. You've got your core holdings, some recurring crypto buys, maybe even a few strategic option 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 stocks, bonds, options, crypto. It's all there plus an industry leading 3.6% APY high yield cash account. Switch to the platform built for those who take investing seriously. Go to public.com market 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 ZeroHash Complete disclosures available@public.com Disclosures when you own your own business, you own every decision. Now own the card that rewards you for it. The Chase Sapphire Reserve for Business card brings the best Sapphire Reserve benefits to business owners who expect hardworking rewards designed to meet the needs of business owners at scale. This painful card elevates your travel experience and offers premium benefits and value toward business services that can take your business to the next level. Sapphire Reserve for business provides over $2,500 in annual value Fuel your business and maximize rewards with 8x points on all purchases through Chase Travel, 3x points on social media and search engine advertising, annual partnership credits and more. Make every journey more rewarding with a $300 annual travel credit and access to a network of airport lounges. Whether you're looking for pre flight productivity or time to rest and recharge. Chase Sapphire Reserve for business with over $2,500 in annual value, it's the card that gives back all you put in. Learn more@chase.com ReserveBusiness Chase for Business Make More of what's Yours Accounts subject to credit approval restrictions and limitations apply. Cards are issued by JPMorgan Chase Bank NA member FDIC. Well, today we take a look at America's power system. It was already under stress even before the boom. Now with AI data centers coming online, a new Schneider Electric analysis foresees the US Facing a potential electricity crisis. This as the surge in demand comes at odds with the reality of aged and vulnerable grids. Bloomberg's ES ESG reporter Alastair Marsh joins us from more. Alastair, how does electricity crisis manifest in the United States? Certainly higher bills as part of that, but are we talking rolling blackouts here for many Americans? Well, essentially the Schneider Electric data shows that the massive amount of power demand so power demand in the US has basically been flat for about two decades and all of a sudden with the advent of AI or the kind of the vast acceleration that we're seeing in the US with the billions of dollars of capex being put to work and the mass build out of data centers, you suddenly have this surge in demand. Add to that increased electrification, add to that onshoring of manufacturing and you suddenly have this sort of crisis moment where the energy infrastructure in the US has not been invested in and not being built out particularly aggressively for a period of meets a very aggressive build out of AI. And so we're going to reach, according to the Schneider data, we're going to reach a crunch point in about three years in 2028. That's the moment they say that the supply available on the system will not be will no longer be able to meet demand unless we start eating into emergency reserves of power which are safe for moments of extreme weather or cyber attacks and so so forth. All of which means that the grid is basically going to to come under increased strain and going to be increasingly vulnerable. You cover ESG for Bloomberg News. You're joining us from London. I'm not going to make you weigh in on the politics of infrastructure spending here in the United States. But it's very political like so much spending is. Is there foreseeably a way that even if the US had the money, they could reliably upgrade the grid's weak points with enough in enough time to be ready for this surge? The short answer is no. I mean you're kind to let me not weigh into US Politics. But there is both a political issue here. I mean you see it with recently power prices are on the ballot in New Jersey and they'll be increasingly on the ballot and that could turn against the build out if there's a sort of political groundswell against that. But also there's a geopolitical element here where the US Is in a race with China to be kind of the superpower. And China has, well you could argue that US the US has the advantage in terms of tech and chips. Actually China has a structural advantage with cheaper abundant power. And that might be according to some analysts, something that wins out in the long run. And so what Schneider is saying here to go back to actually answer your question is that no, you can't fix this in the three year period because you can't build enough generation and enough transmission in that period because most of those projects would take 10 years to build. Therefore you need to find ways at the margin what are sometimes called grid enhancing technologies, battery storage, micro grids, other things that can kind of build out extra capacity to that don't require kind of those large long infrastructure buildouts that just won't be ready in time. Bloomberg's Alistair Marsh joining us from London. Alice Alastair mentioned the political implications of this do check out Bloomberg Opinion and Connor Sen had an interesting story just in the last few days about what happened in Georgia. Hey coming up next we're going to speak with CFR a senior equity analyst Angela Zeno as investors begin to question longevity of the trade. This is Bloomberg Tech. Welcome back to Bloomberg Tech. I'm Tim Den of back in New York in for Caroline Hyde and at Ludlow. Let's take a look at the markets. Checking out the NASDAQ 100 slightly up on the day today. Hopes of a Fed rate cut in the December meeting. Meanwhile also taking a look at Alphabet and Nvidia. Nvidia facing concerns that its market share in semis used in AI computing is slipping following a report suggesting Google's AI processors are gaining ground. Google down on the day 1.2% Nvidia higher by 1.8%. This comes as Nvidia celebrated Google's achievement earlier Today, but also saying the chip maker is still, quote, a generation ahead of the industry. It's the only platform that runs every AI model and does it everywhere computing is done. This is a tweet from the Nvidia newsroom or a post on X, I should say, from the Nvidia newsroom. Let's get more with Bloomberg equities reporter Carmen Reinecke. Carmen, does seem like investors are starting to feel like Alphabet's Google could be gaining when it comes to market share in what Nvidia has absolutely ruled. But still the analyst commit community at this point is not really convinced. What are your sources telling you? Yeah, that's really true. I mean, I think Nvidia is really still so dominant. And that's what we're seeing from analysts. You know, even though there's been sort of these questions about the AI trade and you know, Google's chips coming in being more competition, analysts have actually raised their estimates for Nvidia going forward. You know, its last quarter was so good, this huge revenue forecast and you know, we're seeing a little bit of a relief rally in the shares today. It's gotten pretty beaten down. But dip buyers are starting to come back in. And then on the flip side, we're seeing, you know, Google actually dip a little bit today. Now of course it was, it's been at a record high. So that's, that's no surprise. But really, you know, Nvidia does seem to still remain on top. And it's one that we're going to continue watching as really the dominant player in the space. Dominant player in the AI space. But in terms of stock performance this year, Alphabet has just been remarkable. Close to 70% increase so far this year. Nvidia up about 35%. That's nothing to shake a stick at. Also Alphabet approaching a $4 trillion market cap where Nvidia is, you know, above for $4 trillion. Are analysts more bullish on Nvidia? Are they more bullish when it comes to comes to Alphabet? You know, I think analysts are really bullish across the board on both companies. You know, they're so big and they do so many things so well. But, you know, the market cap thing is really interesting. We're watching all of those companies very closely. You know, it's always been sort of Apple and Nvidia jockeying for the top spot, you know, the biggest company in the world. But you know, Google is really in the mix now. So it'll be really interesting to see sort of where we end up this year. You're right, Google's stock has done so well. I think it's still the top performing Stock in the Mag 7 really kind of taking over Nvidia's place there. But yeah, overall, you know, Wall street is very bullish on these, on these stocks. And I think Nvidia still only really has one bear on Wall street who just boosted his estimates for the company's earnings going forward. Yeah, Jay Goldberg over at Seaport Research, that lonely in video bear, but he's sticking by his call. Bloomberg's Carmen Reineke joining us. Happy holidays, Carmen. Appreciate you joining us today. Hey, let's get more on the market movements with Angelo Zeno, Senior Equity Analyst at CFR Research. Angela, what do you, what do you make of this sort of race between Alphabet and Nvidia that we've seen play out over the last couple of days? The narrative shift that hey, wait a second, Alphabet with a 10 year old product might actually have something that could compete with Nvidia's GPUs. Do you buy, buy it? Yeah, and thanks for having me, Tim. The way I look at this is listen, Nvidia has had the 90% plus market share on the compute side, right, with their GPUs. Our view the whole time was that they were going to lose share anyway and that custom silicon chips were going to gain, you know, a bigger piece of the pie and eventually was going to have its share as a second alternative to the GPU market. So this is kind of playing out the way we anticipated. It's going to be a slow roll. But ultimately, listen, I do think there is a place for TPU's as well as other custom silicon chips. I don't think you can necessarily sleep on a company like Amazon. But you know, it's interesting the strategic pivot that potentially Alphabet is looking at, potentially, you know, looking to sell those TPU to matter. And you know, to the extent that that's true and how quickly some of that scales up, I think is, is a risk to the Nvidia story. But again, I mean Nvidia will continue to be the dominant player out there and I think investors maybe shouldn't look be looking too deep into the share fight and kind of can also consider the upside in terms of the total addressable market opportunity here over the next couple of years. Well, it makes me think of the incredible and enviable margins that Nvidia has in its data center business. And I'm wondering, okay, well even if Nvidia still becomes and remains the clear market leader, does it put margin pressure on the company. Does the company have to come out and say, okay, well we're not going to charge as much for these GPUs because they're potentially, at least for some customers, there may be another option out there. Does it put margin pressure on him? I think that's an interesting point. The way we look at this actually is a little bit differently. I mean, when we think about kind of these next gen offerings that Nvidia is set to roll out and we're big believers that listen, Nvidia is a generation ahead. They will continue to be, you know, leaders in terms of technology advancements. But as you roll out, Rubin and Ruben doesn't really have kind of the step up function, you know, to Blackwell the way Blackwell had relative to Hopper. But you get to Rubin and then Rubin Ultra, you're going to see some significant content growth here over the next couple of years from Nvidia in the data center. So that should continue to hold up their revenue trajectory as well as, you know, the margins here for the company. So we're not necessarily concerned about margins here. But that said, listen, if we get to a point where, you know, the whole debate between supply, demand starts to even out and those competitive pressures do start to intensify, then you have an issue. It's not something we're really kind of concerned about here over the next 18 to 24 months. Okay. So, you know, in terms of not being concerned in the near term, that makes sense. What about the other side of the coin, which is the opportunity that it presents for, for Alphabet? Can they ramp up production of these? Can they, can they actually get these to customers quickly who may want them? Yeah, I mean, and to the extent that they, you know, they're looking at this strategic pivot, I think remains to be seen. But yeah, I mean, listen, it's an opportunity for them. Again, I don't think they take up a huge chunk of the market. I think it's actually a bigger play, an opportunity for Broadcom, to be honest with you, and you kind of go into 26 and 27. The accelerating growth that you're going to see in their semiconductor business, I think is kind of a nice intriguing play alongside their, their software offering where if you have any concerns about share loss from Nvidia, take a look at Broadcom, because that becomes a nice interesting play on a company that will be taking market share here on that customer silicon growth as they also continue to broaden out their customer base outside of just, you know, Alphabet's TPUS to other custom silicon vendors. Angela, if we were having a conversation last week, we'd probably be talking about. We probably started the conversation with equity valuations and I'm just wondering how you're looking at valuations right now where there's been some talk about, okay, things are, are looking a little bit bubbly right now. You know, I actually feel much better about valuations today than I did three, four weeks ago and it almost kind of self corrected itself out. Right. So when you look ahead of just late October look at valuations, they were essentially where we were at the June 24th tech highs and essentially at 20 year highs. So you kind of look at what the market has done here. We've actually had a better than expected Q3 earnings season on top of that. Also a pullback here on the tech side that's really kind of compressed multiples to now where you would expect multiples on a forward basis basis to be here over the last five years. So when you look at valuations, especially given the earnings growth that we see over the next 18 to 24 months, we actually think this is actually an enticing opportunity, especially with some of those larger cap tech names. You look at maybe some of the most reasonable valuations out there. Metta and Nvidia really kind of stand out at this point in time where I think they could be kind of nice rebound plays on the sharp pullback they've had. Hey, just, just 20 seconds, Angelo, before we let you go, we just had an interesting conversation with Alastair Marsh about data centers and what could happen in the United States to the electric grid and China actually taking a lead as a result of infrastructure issues here. Just very briefly, how could that rein in datacenter growth and development here in the US if that were and is some sort of boundary or barrier yet it's one of the biggest risks going into into 2026, the energy bottlenecks and more so into 27 and 28. Right. As we start transforming and changing the narrative from the bookings growth expectations to one where it's also all about execution of the data center buildups. Zeno, senior equity analyst at CFR Research. Happy Thanksgiving. Thanks so much for joining us. Well, McKinsey cut about 200 global tech jobs in the past week as the consulting firm joins rise rivals in using AI to automate some positions. And sources say the company is closely assessing what tasks can be carried out by AI and isn't ruling out additional reductions across different functions over the next two years. This is a ramps up use of the tech. Coming up, Warner Music settles a copyright lawsuit against AI startup Suno. More on that next. This is Bloomberg Tech. Support for the show comes from public.com you're thoughtful about where your money goes. You've got your core holdings, some recurring crypto buys, maybe even a few strategic option 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 3.6% APY high yield cash account. Switch to the platform built for those who take investing seriously. Go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com market 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 providers by ZeroHash Complete disclosures available@public.com Disclosures when you own your own business, you own every decision. Now own the card that rewards you for it. The Chase Sapphire Reserve for Business card brings the best Sapphire Reserve benefits to business owners who expect hard working rewards. Designed to meet the needs of business owners at scale, this painful card elevates your travel experience and offers premium benefits and value toward business services that can take your business to the next level. Sapphire Reserve for business provides over $2,500 in annual value. Fuel your business and maximize rewards with 8x points on all purchases through Chase Travel, 3x points on social media and search engine advertising, annual partnership credits and more. Make every journey more rewarding with a $300 annual travel credit and access to a network of airport lounges. Whether you're looking for pre flight productivity or time to rest and recharge, Chase Sapphire Reserve for business with over $2,500 in annual value, it's the card that gives back all you put in. Learn more@chase.com ReserveBusiness Chase for Business make more of what's yours. Accounts subject to credit approval restrictions and limitations apply. Cards are issued by JPMorgan Chase Bank NA member FDIC. Did my card go through? Oh no. Your small business depends on its Internet, so switch to Verizon business and you could get LTE Business Internet starting at $39 a month when paired with select business mobile plans. That's unlimited data for unlimited business. There we go. Get the Internet you need at the price you want. Verizon business Starting Price for LTE Business Internet 25 Mbps Unlimited Data Plan with select Verizon business smartphone plan. Savings terms apply. Warner Music Group and AI Music creation creator Suno have settled a copyright lawsuit and agreed on a new partnership in creating music. Suno was accused by Warner Music and other major record labels for using copyrighted material without compensating artists or their companies. For the latest Bloomberg Music and podcast reporter Ashley Carmen joins us now. Suno, for people who aren't. People understand Warner Music in the music industry and where publishers and labels fall in, but where does Suno fall into this? Well, that's the big question. So Suno and its competitor Udo have really found a business in allowing people to type in prompts and get songs in return. And so now the big question is, is this competition for the traditional record labels? Probably. Is this a tool for artists, human artists? Probably. And what does this actually mean for the business? And so this deal is kind of a landmark moment in that entire dialogue. Is there like a historical correlate, corollary or parallel we can draw here? Is this like when Steve Jobs unbundled that album and let us download one song for 99 cents? Is it a bigger deal than that? People like to compare it to the Napster moment where this could really be a paradigm shift, how people create music, how they consume music, where they consume music, where they create music. So it gets a lot of comparisons. And I think unlike that moment where the record labels and Napster were really at odds for years and it basically cratered the entire music business, they want to start making partnerships and actually have hand in this business. What do artists think of this? Because in that moment, and I live through the Napster moment, I mean, guilty as charged. Don't, don't get me in trouble for that. But artists were, were understandably really upset. And you know, you had Lars Ulrich on one side from Metallica. It was a really big deal. Where do artists fall in this debate? Artists are using these tools in the studios. I go to the studios and I say, do you use AI? And they're like, yeah, we do. But at the same time, I think they don't, we don't want wholly AI generated songs to come in and take market share away from human created works. But is there also this understanding that there wasn't then, that for an artist to make money, they need to do more than just create the music? I mean, this is, this is the thing is that business is shifting so much. Streaming brought the industry back from piracy, but it also meant that now so many people can upload their music, they don't need to go through a distributor to be in retail stores. That means they have to tour. It means they need to create merch. It means they need to build these super fans to keep that business going. Bloomberg's Ashley Carmen joining us. Thanks so much, Ashley. Happy Thanksgiving. Let's turn now to Warner Brothers Discovery. Stay on media, the company asking bidders for sweetened offers by December, this December 1st, actually, as it explores options for a sale. Bloomberg's media reporter Hannah Miller has been reporting on the saga and she joins us now. So, Hannah, who are the companies that are at play right now for these apps? Assets? Yeah. So we have Paramount, Comcast and Netflix. They all have some differences with their bids, with the obstacles facing them here. But those are the players going for Warner Brothers Discovery's assets. Do they all want the same assets or do they want different assets? So Comcast and Netflix, they're going for streaming and studios, they want, you know, those big profit sectors for Warner Brothers Discovery. Paramount wants the whole thing. They'll take the cable networks, too. Even though we've seen so many people cut the cord and shift from cable to streaming, from a regulatory perspective, is that a harder, is that a harder barrier? Does it kind of not matter, given what we've seen from this administration and the way that media has changed in recent years? Because there could, you know, CNN is part of that and CNN and CBS living side by side, a network and cable, when it comes to comes to news, that could be a challenge now. Yeah, it's a great question. It's something a lot of investors are thinking about with Paramount. We know that the CEO, David Ellison, he's spoken about the positive relationship that he has with President Trump. So that could help smooth things over on a regulatory front. The thing with Netflix is that there are questions about if both streaming services were under Netflix. At hbo Max, Max got added to Netflix, would they dominate and have too much market, market share? Wow. I can't believe we're talking about streamers and antitrust. That's kind of where we are in this world. Hannah, before we let you go, David Ellison is one David we're thinking about David Zaslav is another David that we're thinking about over at Warner Brothers Discovery. What happens to him after this? Yeah, so the role he plays with whatever shakes out, that is a big factor here. We know he's someone who still wants to stay in the mix. And I think a lot of the investors, the shareholders, they're all thinking about what role Zaza will play after a deal. Bloomberg's Hannah Miller, hopefully she's not too busy during the holidays staying on top of this deal. Appreciate you taking the time. Well, coming up, we're going to talk to the startup that's using AI to help restaurants identify ingredients that could be allergens or restricted under some diets. It's an issue restaurant chains in California, US soon won't be able to ignore. This is Bloomberg Tech. Well, if any part of your Thanksgiving dinner is being ordered or coming from a restaurant, you might have had to ask about the ingredient list to check any allergens for your guests. It's an issue that goes goes far beyond Thanksgiving. With millions of Americans with allergies or dietary restrictions struggling when they go out to eat, startup Foodini is aiming to solve this problem with an AI tool to help restaurants thoroughly and clearly label ingredients. Foodini CEO Dylan McDonnell joins us now. Dylan, you've got a really interesting story. I think like so many startups, it comes from a place of necessity for the founder. Talk to us a little bit about what you've dealt with. Yeah, firstly, Tim, thanks very much for having me. Great to be here. And yeah, like you mentioned, I diagnosed celiac when I was 10 years old and so have a lot of personal experience navigating, dining out of home and ordering online while needing to know what's in my food. And just over a long period of time got more and more frustrated with how difficult it was to get that information and mistakes and inaccuracies and decided to try and do something about it. So how can AI actually help restaurants do this? Because, you know, when you do look at a menu, when you do talk to a server, I feel like in this day and age, they have a good understanding of at least some of the most common common allergies, like gluten, for example, in people who have celiac. So, so what does allow them to take a step further? How does it do that? Yeah, it's a fair point. I think you're right. I think a lot of restaurants have got on top of gluten free, vegan, vegetarian, the main ones. But, but there's 173 million Americans who have some form of food allergy or dietary requirement. And the allergens go far beyond just gluten and vegan. And so what we do is we help restaurants by ingesting their menu information, their Recipe information and the product information. And we have trained large language models to break those down to the ingredient level, tag them with the correct allergen and dietary requirements and then we're able to to power a personalized menu solution whereby consumers can see exactly what they can and can't eat on the menu depending on their personal requirements. You have a background in law, you're a former corporate attorney and you know, I wonder about the liability element here. You know, mistakes happen, mistakes get made. I hallucinate. Well, how do you protect around that and how do you make sure that even if a food says it doesn't have something, it doesn't become contaminated somewhere with that ingredient process? Yeah, it's a great question. Firstly, on hallucinations, our technology never guesses if there is, you know, it's based on structured ingredient and supplier data. If there's ever a scenario where it isn't sure it will tag in the back end for us that it's, there's a uncertainty and our dietitian team will come in over the top and do QA and manually intervene. And as you know, they make inputs into the system. The LLM learns again, get smarter and smarter over time. From a legal liability standpoint, we would argue that not having any documentation on allergens is a much higher risk because right now you have a member of staff who's likely not trained on all the ingredients and all the allergens and all the menu items and they're the line of protection for the restaurant between the consumer and a potentially life threatening, a life threatening incident. And 54,4% of all allergic reactions in restaurants occur after the staff have been notified. And so that tells us that the current system of dealing with this by word of mouth isn't working. So Dylan, how does it work? Is it a two sided market where you have to get the restaurant or the restaurant chain to add your technology but then also get people who have these allergies to use it? Yeah, so we partner with the restaurant chain, food service operators, we ingest their menu recipe, product technology from various tech stacks. And then how it works typically is they put a QR code in venue on physical menus and menu boards and a digital link on their website. This is the most basic integration. And then when consumers come into the physical environment or digital environment, they scan the qr. It prompts them to create their dietary profile where they can choose from over 150 different allergens and dietary requirements. And then instantly it will show them, here's exactly what you can eat. Here's what you can eat with a modifier and what that modifier is and here's what you can't eat and why. So it's completely personalized based on their requirements and the consumer discovers this in the restaurant's environment. Senate Bill 68 in the state of California, this is effective next week. It's going to require major chains to provide detailed allergen info. Though many people argue this is a major step toward toward transparency. How has that increased adoption of your product? Yes. So just on that it was signed by Gavin Newsom a month ago. It becomes effective the 1st of July 26th. And so what it in essence requires is every restaurant chain and food service facility with 20 plus locations nationwide where at least one of those is in California to label all of their physical and digital menus for the major non food allergens. So this is obviously a major step change for restaurants. They can do it one of two ways. They can either physically annotate every one of their menu items with those allergens or they can use a digital like a QR code that links out to digital allergen menu. And that's obviously what we do. And from speaking to a lot of the bigger chains recently, as you might imagine there are strong preferences to use additional mechanism. And so we're getting a lot more inbound than we certainly were a few months ago, which is fantastic. But we continue to work with, like I said, independence chains, food service facilities of all types. Dylan McDonnell, he's founder and CEO of Foodini, joining us from Santa Monica, California. Well, that is gonna do it for this edition of Bloomberg Tech. Do not forget to check out our podcast. You can find it on the terminal as well as online at Apple, Spotify and Iheart. This is Bloomberg. Hiscock. Small Business Insurance knows there is no business like your business. Across America, over 600,000 small businesses, from accountants and architects to photographers and yoga instructors, look to Hiscox Insurance for protection. Find flexible coverage that adapts to the needs of your small business with a fast, easy online'@hiscox.com that's his c o x.com there's no business like small business. Hiscox Small Business Insurance. So have you heard the story about the prescription plan? 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. Go to CMK Co Stories to learn how CVS Caremark helps members save just by being members. That's CMK Co Stories in business A thoughtful gift does more than say thank you. It recognizes achievement, builds loyalty and shows someone they are genuinely valued. With four Imprint, you can choose from thousands of high quality products, apparel, drinkware, tech and more. Designed to leave a lasting impression and with expert support, dependable Service and their 360 degree guarantee, your gift will arrive exactly as intended, on time and on brand. Explore gifting with purpose@4imprint.com for Imprint for certain.