Bloomberg Tech – March 20, 2025

Episode: SoftBank’s Purchase of Ampere, Future of Ed-Tech

Overview

This episode of Bloomberg Tech spotlights the intersection of artificial intelligence, semiconductor industry developments, monopoly dynamics in tech, and the evolving education technology (ed-tech) landscape. Highlights include Nvidia’s GTC “Quantum Day” buzz, SoftBank’s $6.5 billion acquisition of chipmaker Ampere, a deep dive into China's AI boom with DeepSeek, the consolidated power of leading chip suppliers, and a conversation with ed-tech disruptor Campus and its investors on the future of affordable, skills-focused higher education.

Key Discussion Points & Insights

Nvidia GTC and Quantum Computing

[03:55] Ed Ludlow (C) – Reporting from Nvidia GTC

• Nvidia’s Strategic Position:
  Nvidia CEO Jensen Huang projects that the company will procure $500 billion in electronics over 4-5 years, referencing the cost to build and upgrade data centers with AI accelerators, not direct company capital expenditures:

  "He sees Nvidia as foundational to all companies. In other words, companies are being created because of what Nvidia is doing..."
  (C, 04:25)

• AI and Quantum Distinctions:
  Nvidia focuses on providing AI accelerators (GPUs) for quantum computing calibration and research but does not build quantum computers:

  "Nvidia does not make quantum computers. What it does is sell its existing technology to the quantum computing industry to help them make their own machines better."
  (C, 05:17)

• Market Dynamics & Investor Sentiment:
  Sylvia Jablonski (Defiance ETFs CEO) argues Nvidia remains undervalued given the massive growth in AI and quantum markets:

  "You're talking about potentially, you know, a fourth industrial revolution, compounded annual growth rate, themes of AI and quantum and things like this of 35 to 40% per year."
  (A, 07:22)

  She also sees Broadcom as another likely AI winner alongside Nvidia.

SoftBank’s Acquisition of Ampere

[12:24] Tim Stanweck (B) with Rene James (G), CEO & Founder of Ampere

• Acquisition Details:
  SoftBank will acquire Ampere for $6.5 billion; Ampere will continue operating as a wholly owned subsidiary, maintaining its roadmap and product line.

• Ampere’s Role:
  Provider of power-efficient, high-performance ARM-based CPUs for data centers—synergy with SoftBank’s vision for “super chips” and AI infrastructure:

  "We are the leading supplier of high performance, very power efficient processors for data centers on the ARM architecture. So it's very synergistic for us to join into the Softbank family and continue working on the silicon roadmap…"
  (G, 13:35)

• Long-Term Vision:
  Focus on integrating compute and AI, especially in the inference layer, to maximize efficiency as demand surges:

  "We're going to see COMPUTE and AI start to come together…especially as inference becomes a larger part of the market."
  (G, 14:31)

• Power Efficiency as a Differentiator:

  "One of the things…we should go pioneer is this efficiency. ARM architecture is very efficient and we preserve that efficiency. But we used our experience in high performance and building high performance microprocessors…"
  (G, 15:25)

• The Future of Ubiquitous AI:
  The next phase of computing will make AI an ambient, background force across all devices and experiences (appliances, homes, cars, etc.):

  "…the experience of computing that used to be isolated to your computer…is now integrated into your life."
  (G, 17:16)

China's DeepSeek and AI Supply Chain Monopolies

[19:18] David Ingles (D) with Kai-Fu Lee (D), CEO of Innovation Ventures/01AI

• China's “DeepSeek Moment”:
  DeepSeek’s model gained instant traction, but required middleware/UI for enterprise utility. 01AI developed this integration layer.

  "DeepSeek is a fantastic model, amazing AI, but it doesn't have the middleware and the user interface…it takes to connect to corporate databases…"
  (D, 19:18)

• Monopolies in AI Hardware:
  Peter Ahlstrom (I) explores the dominance of Nvidia, TSMC, SK Hynix, and ASML:

  "What we've seen is this really consolidation of power in the supply chain with these four companies where they wield tremendous power over how companies are able to get these technologies…"
  (I, 22:00)

• Barriers to Entry:
  These companies’ moats arise from deep technical expertise, scale, and highly specialized manufacturing, making disruption unlikely without significant government intervention.

  "When it comes to Nvidia, they have lots of competition. TSMC and ASML have quite a bit less."
  (I, 24:15)

Compute Demand, Agentic AI, and Nvidia’s Enterprise Play

[25:38] Ed Ludlow (C) with Vlad Gallab (H), Research Director, India

• Exponentially Rising “Token” Compute:
  Compute demand for next-generation, reasoning-based, “agentic” AI is 100x higher than last year:

  "That compute demand, particularly from agentic and reasoning, is 100x today, 100x what it was one year ago."
  (C, 25:38)

• Enterprise’s Need for Roadmaps:
  Nvidia’s transparent hardware roadmap (four years ahead) offers predictability for enterprise clients—a unique strategic commitment.

  "Enterprises need predictability and they like it. So actually they've been looking…to give them a roadmap to explain things and to then deliver."
  (H, 30:18)

• Quantum Computing Timeline:
  Gallab compares quantum’s current position to ARM CPUs in 2011:

  "So we're now in the place where arm was in 2011. So I think that we need at least another five years for the hardware to get to a place where it's highly reliable…"
  (H, 32:20)

Future of Ed-Tech: Campus and Higher Education Reform

[35:23] Tim Stanweck (B) with Tadeea “Taddy” Rendez (E), CEO, Campus & Joe Lonsdale (F), Investor (8VC, University of Austin Founder)

• Campus’s Model:
  An affordable two-year college experience, taught by elite professors, enabling transfer and degree completion with zero debt.

  "We're building a new kind of two year college where students get to learn from…the best professors from the top schools…then they transfer to the four year school of their dreams to complete their bachelor's with no debt."
  (E, 36:22)

• Addressing Broken Community Colleges:
  Lonsdale: High dropout rates, ideological agendas, and misaligned incentives plague current community colleges.

  "Unfortunately, just like our community colleges, a lot of vocational programs, low graduation rates, wrong skills, not helpful."
  (F, 40:27)

• Economic Model Tied to Completion & Skills:
  Campus’s sustainability depends on higher completion rates and real-world skill development.

  "If you actually keep students longer because you help them graduate, then…you earn more tuition revenue, which makes the economics more healthy."
  (E, 39:22)

• Government Funding and Policy Uncertainty:
  Pell Grants are crucial; even potential dissolutions of the Department of Education (via executive action) would only re-allocate responsibilities.

  "Pell Grant is not going away. Even if the Department of Education is dismantled…some of these key programs…are going to be split across maybe treasury or the IRS or other organizations."
  (E, 41:38)

• Outcome-Tied Spend:
  Lonsdale advocates tying public funding to student outcomes (graduation, post-graduate salaries) to drive accountability.

  "If you say this money is going to be tied to results, for example, when you tie the money to the salaries of students…Those are types of policies that I think should be popular on both the left and the right."
  (F, 40:27)

Notable Quotes & Memorable Moments

• On Nvidia’s Market Role:

  "Nvidia sees itself as foundational to all companies… in the context of being an AI infrastructure company, an AI factory company."
  (C, 04:25)

• On Power Efficiency Limiting Compute:

  "Power has always been a variable in semiconductors…[and] the biggest limiter to growth long term. There wouldn't be enough of it."
  (G, 15:25)

• On the Next Phase of Computing:

  "…all of your appliances are smart now. All of your homes have become smart, your car is smart…the experience of computing…is now integrated into your life."
  (G, 17:16)

• On AI Hardware Monopolies:

  "When you look at monopolies over time, especially monopolies in tech, they tend to last for quite a while."
  (I, 23:29)

• On AI Compute Explosion:

  "Compute demand, particularly from agentic and reasoning, is 100x today what it was one year ago."
  (C, 25:38)

• On Education's Broken Incentives:

  "If you actually keep students longer because you help them graduate, then…you earn more tuition revenue…"
  (E, 39:22)

Timestamps for Key Segments

| Timestamp | Segment | |-----------|-----------------------------------------------------------------------------------| | 03:55 | Nvidia GTC recap & AI infrastructure discussion | | 05:17 | Clarification: Nvidia’s role in AI vs. quantum computing | | 07:07 | Sylvia Jablonski on AI, Nvidia value, and broader technology investment | | 12:24 | SoftBank’s $6.5B Ampere acquisition, interview with CEO Rene James | | 15:25 | AI compute, power constraints, and the future from Ampere’s perspective | | 19:18 | China’s DeepSeek AI, middleware needs, and the “DeepSeek moment” | | 22:00 | Peter Ahlstrom on monopoly dynamics in AI hardware supply chain | | 25:38 | Vlad Gallab: AI compute explosion, Nvidia enterprise focus, quantum timelines | | 32:20 | Quantum hardware/programming development timelines analyzed | | 35:23 | Campus & Ed-tech: Affordability, completion, and investor views with Joe Lonsdale | | 41:38 | Pell Grants, federal policy impact, Campus’s strategy for navigating change |

Tone and Language

The episode’s tone is dynamic and informed, reflecting market urgency and the high stakes in tech industries. Guests speak candidly and are occasionally optimistic but pragmatic—especially regarding long-term trends in AI, semiconductors, and education reform.

For Those Who Haven’t Listened

This episode deftly weaves together real-time tech market news, strategic conversations with major industry players, and poignant analysis of both technology supply chains and the future of education. Whether you’re following the chip wars, eyeing AI's disruptive impact, or tracking next-gen education models, this episode arms you with context and expert perspective.