>> BLOOMBERG TECH IS LIVE FROM
COAST-TO-COAST WITH CAROLINE HYDE IN NEW YORK AND ED LUDLOW
IN SAN FRANCISCO. CAROLINE: THIS IS BLOOMBERG TECH.
ELON MUSK SAY I START UP X AI IS ROLLING OUT GROK AND SAYS IT
WILL BE COMING TO TESLA SOON. PLUS REID HOFFMAN WEIGHS IN ON
AI TALENT LAWS. AND VARNA SPACE RAISES 187
MILLION IN FUNDING TO PRODUCE MEDICINES IN LOW-EARTH ORBIT.
FIRST WE CHECK IN ON THE MARKETS THAT JUST PULLED BACK
FROM THOSE NEAR-TERM HIGHS. WE ARE BOUNCING OFF OF OUR LOWS.
A BIG BOND SALE TODAY. THAT IS A TEST OF APPETITE ON
THE LONG END OF THE CURVE AND A LOT HAS BEEN DICTATING WHAT IS
HAPPENING IN THE EQUITY MARKETS. A PAUSE AMID THE ONGOING
BARRAGE OF NEWS. BRAZIL THE LATEST IN THE LINE
OF FIRE. CRYPTO STILL CATCHING A BIT.
WE EXCEEDED 112 THOUSANDS YESTERDAY.
RISK AS THAT OF CHOICES UP 20% YEAR TO DATE.
HAVE A LOOK AT INDIVIDUAL MOVES THAT DICTATE THE TRAVEL AND THE
NASDAQ. NVIDIA IS UP .3% COMING OFF THE
ALL-TIME HIGH WE HAD YESTERDAY WITH $4 TRILLION.
THE NASDAQ 100 BROADLY LOWER. TSMC, ADR IS IN THE RED.
THE ANALYST IS SAYING THE LATEST JUNE NUMBERS ON SALES
ARE BEING HIT MORE BY FX WOES. THIS IS A STRONG SET OF NUMBERS
COMING FROM AI DEMAND AND APPLE AND NVIDIA DEMAND FOR THE
CHIPMAKING JUGGERNAUT THAT IS TSMC. TESLA UP IN EXCESS OF 3%. THIS AS WE GET HINTS FROM ELON
MUSK WE WILL SEE ROBOTAXI IN CALIFORNIA AND SAN FRANCISCO
SOON, BUT ALSO GROK 4. THE ANNOUNCEMENT OF THE CHATBOT
SHOWN OFF YESTERDAY. LET’S DIG INTO THAT WITH JACKIE
DAVALOS. THIS IS PEOPLE INTO SUBMITTING
WHAT GROK 4 CAN DO WHEN YOU’RE IN THE CAR. JACKIEE: WITH GROK 4 MUSK PRESENTED
THESE NEW MODELS AS A BREAKDOWN OF THE RELEASE. THERE WAS GROK 4 AND GROK HEAVY.
ELON MUSK SAID GROK HEAVY DEPLOY MULTIPLE AGENTS TO WORK
ON A PROBLEM LIKE A STUDY GROUP. IT SAID GROK 4 SHOWS FRONTIER
LEVEL PERFORMANCE ON SEVERAL BENCHMARKS.
THIS IS AN EXCITING MOMENT FOR THE COMPANY WHEN YOU THINK
ABOUT WHAT A TUMULTUOUS WEEK IT HAS BEEN FOR X AND X AI.
FOR TESLA DRIVERS THIS IS HAS BEEN SOMETHING TEASED AND
ANTICIPATED GIVEN HOW INTENSE THESE AI WARS ARE COMING IN THE
MORE APPLICATIONS WE CAN FIND FOR THEM, COMPANIES ARE EAGER
TO FIND WAYS TO MONETIZE THAT. CAROLINE:
MANY OF SEEN THE INTERTWINING OF X AND X AI AND ELON MUSK
SAYING TESLA SHOULD INVEST IN X MORE BROADLY.
REMIND US OF THE TUMULTUOUS NATURE OF THIS WEEK. WE HAVE GROK 4’S UNVEILING HOT
ON THE HEELS OF DIFFICULT CONTENT IT WAS SPEWING OUT
ACROSS THE PLATFORM. JACKIE: IT WAS RELATED TO SOME REPLIES
TO USER POSTS THAT THOSE REPLIES HAD ANTI-SEMITIC TROPES.
IT WAS GLORIFYING ADOLF HITLER IN SOME OTHERS AND X AI WAS
FORCED TO REMOVE THESE INAPPROPRIATE POSTS IN THE
COMPANY ACKNOWLEDGED THEY SHOULD NOT HAVE BEEN UP THERE.
ELON MUSK HIMSELF ALMOST AVOIDED EXPLICITLY REFERRING TO
THEM, BUT JUST SAID “WE NEED TO MAKE SURE THAT AI IS GOOD AI.”
HE SAID THAT ON WEDNESDAY NIGHT. PROBABLY REFERRING TO SOME OF
THOSE POSTS IN ADVANCE OF THIS RELEASE.
AS HE IS ABOUT TO RELEASE THE LATEST AND GREATEST MODEL THE
TOP QUESTION FOR USERS IS HOW DO WE KNOW THIS IS NOT JUST
GOING TO SPEW SIMILAR CONTENT? AND LINDA YACCARINO STEPPING
DOWN AS CEO OF X. THERE IS A LOT GOING ON AT X
AND X AI, BUT THIS LATEST NEWS THAT TESLA MIGHT HAVE THIS
LATEST MODEL IS PRETTY EXCITING FOR PEOPLE OUT THERE. CAROLINE:
AND HELPS INCH BACK ON SOME OF THE LOSSES EXPERIENCED EARLIER
THIS WEEK BECAUSE OF THE FEUD BETWEEN ELON MUSK AND PRESIDENT
TRUMP. JACKIE DAVALOS WITH ALL OF THE
LATEST ON GROK 4. MINUS WHILE WEIGHT IS TRYING TO
EXPORT ITS — CHINA’S HUAWEI IS STARTED TO EXPORT ITS CHIPS TO
THE MIDDLE EAST AND SOUTH ASIA DESPITE ONGOING MANUFACTURING
CHALLENGES. ED LUDLOW IS TENDING BY IN SUN
VALLEY AND I WANT TO DIG INTO THIS WITH YOU.
IT IS JUST A SMALL QUANTITY OF THE CHIPS THUS FAR TENTATIVELY
GOING TO THESE PLACES. ED: LOW VOLUMES TARGETING SAUDI
ARABIA AND UAE. THE CALL FROM MALAYSIA AND
THAILAND IN SOUTHEAST ASIA. WHAT OUR REPORTING TELLS US IS THAT WHILE WEIGHT WANT — IS
HUAWEI WANTS TO GIVE ACCESS TO AN OLDER GENERATION PART SO
CUSTOMERS CAN EXPERIENCE THE TECHNOLOGY AND LOOK MORE DEEPLY
AT WHAT HUAWEI HAS TO OFFER. COMPLETELY RIGHT THAT IT IS LOW
VOLUMES IN THE THOUSANDS. HUAWEI IS SUPPLY CONSTRAINED.
IT HAS A MANUFACTURING CAP OF WHAT IT IS ABLE TO PRODUCE.
THIS IS POLITICALLY DIFFICULT. IT LOOKS LIKE THIS IS WHILE
WEIGHT GOING UP TO THE MARKET AND THERE IS NOT THAT MUCH MORE
RECIPROCAL INTEREST. SAUDI ARABIA SEEMS THE MOST LIKELY TO
LOOK AT THOSE CHIPS. SAUDI HAS A LONG-STANDING
RELATIONSHIP WITH HUAWEI. IF AMERICA TURNED AROUND AND
WAS LIKE YOU’RE NOT DOING BUSINESS THERE THEN SAUDI
COOPERATES. HUAWEI FLEXING ITS MUSCLES A
LITTLE BIT. CAROLINE: DYNAMIC CONVERSATIONS IN SUN
VALLEY. HOW MUCH HAS EVERYONE BEEN
FOCUSED ON CHINA U.S. RELATIONS AT THE BIG NUMBER HIT
BY NVIDIA YESTERDAY? ED: GEOPOLITICS AND TRADE ARE
COMMON CONVERSATIONS. YOU EXPECT THAT, YOU HAVE SOME
OF THE CEOS OF THE WORLD’S LARGEST TECHNOLOGY COMPANIES
WHO DO A LOT OF BUSINESS ACROSS BORDERS. SCOTT BESSENT MADE A
PRESENTATION, THERE WAS A MODERATED Q&A LATE YESTERDAY
MORNING WHERE HE TOOK QUESTIONS FROM THE AUDIENCE.
SOME OF THE QUESTIONS RELATED TO TARIFFS.
HE GAVE HIS LONGER-TERM VIEW ON THE GLOBAL ECONOMY.
ON NVIDIA, IT IS KIND OF LIKE A MARKET MOMENT IN HISTORY.
WHAT IS IT INTERESTING PART OF THE CONVERSATION I HAD WITH
REID HOFFMAN WHICH I THINK WE WILL PLAY LATER IN THE SHOW IS
IS $4 TRILLION JUST THE BEGINNING?
EVEN THOUGH THE COST OF INFERENCE IS COMING DOWN, IT IS
THE VIDEO THAT STILL HAS A HOLD ON THAT MARKET.
THERE IS MORE ROOM TO RUN BECAUSE YOU HAVE FRONTIER
MODELS LIKE YOU JUST DISCUSSED ON GROK 4, BUT THERE ARE OTHER
VERTICAL MODELS WHERE WE ARE JUST GETTING STARTED IN THE
DEVELOPING PROCESS. I FOUND THAT REALLY INTERESTING.
ED: WILL BE GOING BACK — CAROLINE:
WE WILL BE GOING BACK TO YOU AND SOME OF YOUR CONVERSATIONS
AT THE EVENT. LET’S STICK WITH TECH CHIPS AND
AI AND NVIDIA BEING THE WINNING FORMULA.
IT FEELS AS THOUGH YOU’LL PROBABLY ECHO WHAT REID HOFFMAN
OR ED HAS JUST BEEN SAYING THAT WE ARE JUST AT THE BEGINNING
WITH THIS FOR TRILLION DOLLAR NUMBER. >> DEFINITELY.
THE NUMBERS ARE NOT SURPRISING. WHEN YOU ARE LOOKING AT THEM ON
A VALUATION BASIS NVIDIA IS NOT MUCH MORE EXPENSIVE TODAY THAN
IT WAS A YEAR AGO. THE PE IS TOTALLY ACCEPTABLE.
WITH THE UPCOMING EARNINGS THAT WILL BE FULL BACK TO LOW 40’S
AND THE 4 TRILLION NUMBER INCORPORATES NOT ONLY WHAT WAS
ACHIEVED SO FAR. OTHER SECTORS LIKE ROBOTICS IS
VERY INTERESTING. WE ARE JUST AT THE BEGINNING OF
THIS AI REVOLUTION THAT IS JUST SO EXCITING. CAROLINE:
TSMC IS THE CHIPMAKER OF CHOICE FOR NVIDIA.
THEIR NUMBERS OCCLUDING TO BLOOMBERG MATHEMATICS IS 39%
INCREASE IN REVENUE IN THE PREVIOUS QUARTER.
HOW MUCH ARE YOU LIKELY TO SEE OTHER CHIPMAKERS FUELED HIGHER?
AMD DOING BETTER ON THE BACK OF IT? >> WE HAVE BEEN QUITE POSITIVE
ON AMD. IT HAS NOT DONE PERFECTLY WELL.
NOW IT IS BACK TO THE BULLISH CONSOLIDATION.
WE THINK AMD WILL BE QUITE INTERESTING. SOME COMPANIES WILL BE LOOKING
FOR CHEAPER ALTERNATIVES. THEY ARE NOT OFFERING CHIPS,
THEY ARE OFFERING ECOSYSTEM. THIS IS WHY WE SEE THE GROWTH
IN AMD AND INVESTOR INTEREST IN AMD REMAIN QUITE LOW.
WE THINK AMD’S TIME WILL,. CAROLINE:
BOTH AMD AND NVIDIA WANT TO HAVE A PRESENCE IN CHINA AND
THERE IS REPORTING THAT JENSEN HUANG IS GOING OUT TO CHINA
VERY SOON BECAUSE HE WANTS TO BE MAKING ANOTHER SPECIFIC CHIP
THAT IS ALLOWED TO BE EXPORTED. HOW MUCH OF THAT IS A HEADWIND
FOR YOU OR A LONG-TERM TAILWIND WHETHER OR NOT THEY WILL HAVE
ACCESS TO THIS MARKET? >> CHINA IS SENSITIVE
POLITICALLY AND GEOPOLITICALLY. WHEN NVIDIA GOES INTO THAT
MARKET WE KNOW THE RISK ON THAT SPECIFIC SEGMENT IS HIGHER.
THE COMPANY’S EFFORTS INTO EXPANDING BEYOND CHINA AND THE
U.S. MARKETS LIKE EUROPE AND THE MIDDLE EAST WHICH DO HAVE DEEP
POCKETS AND VERY BIG POTENTIAL DILUTES THE RISK OF DOING
BUSINESS IN CHINA. WE THINK CHINA IS STILL WORTH
TRYING. AS JENSEN HUANG SAYS IT IS NOT
A GOOD IDEA TO COMPLETELY BAN CHIPS FROM CHINA BECAUSE IT
WILL ONLY PUSH THEM TO DO BETTER. I THINK CHINA IS STILL
INTERESTED IN MARKET BUT IF THE RISK TO BE DILUTED LIKE NVIDIA
IS DOING TODAY IT WILL BE ONLY A TAIL WIND RATHER THAN A
HEADWIND. CAROLINE: JUST PUTTING IT IN CONTEXT, AND
YOUR NOTE DOES THIS SO WELL, THAT BASICALLY NVIDIA IS UP
1000% SINCE CHATGPT CAME TO ALL OF US AND GENERATIVE AI WAS PUT
INTO YOURS IN MY HANDS, HOW MUCH OF YOUR CLIENTS BALKING AT
THE FACT THAT WE HAVE SEEN THIS RUN-UP?
WE TALK ABOUT THE PES BEING RELATIVELY APPETIZING.
WE ARE AT A TECHNICALLY OVERBOUGHT LEVEL IF YOU LOOK AT
THE RSI. >> IN THE SHORT TERM WE ARE AT
OVERBOUGHT MARKET CONDITIONS MEETING NVIDIA STOCKS MAY HAVE
GONE UP TOO QUICKLY IN TOO SHORT A TIME.
IF IT IS NOT NECESSARILY THE SHORT-TERM DYNAMICS AND
SHORT-TERM INDICATORS. THEY HAVE A LONG-TERM
PERSPECTIVE ON WHAT NVIDIA WILL BE INVOLVED IN IN THE NEXT
DECADE. NVIDIA IS A COMPANY THAT WILL
BE AT THE HEART OF AI AND ROBOTICS FOR THE NEXT DECADE.
IF THE PRICE IS OVERBOUGHT TODAY IT IS NOT NECESSARILY A MAJOR SIGNIFICANT DOWNSIDE
CORRECTION POTENTIAL FOR THE LONG-TERM.
INVESTORS ARE LOOKING AT WHAT NVIDIA WILL MEAN IN TWO OR
THREE OR FIVE OR 10 YEARS. WHEN YOU LOOK AT THAT
PERSPECTIVE THE COMPANY HAS SO MUCH TO OFFER. ED:
WE HAVE TALKED ABOUT — CAROLINE:
WE HAVE TALKED ABOUT ASIAN COMPANIES.
WE HAVE EUROPEAN TECH SHOW RECENTLY LAUNCHED.
A MUCH ARE YOU THINKING ABOUT THE EUROPEAN OPPORTUNITY.
ARE THERE ANY NAMES OTHER THAN ASML THAT HAVE BEEN COMING TO
LIGHT WHEN IT COMES TO AI? >> WE HAVE A COUPLE OF NAMES.
WE DO NOT HAVE NAMES LIKE YOU DO LIKE FACEBOOK, AMAZON.
WHAT WILL BE INTERESTING IN EUROPE IN TERMS OF AI WILL BE
MORE SPECIFIC MODELS, SECTOR SPECIFIC MODELS, BUSINESS
SPECIFIC MODELS SO THEY CAN FIND THE DATA THEY NEED TO
TRAIN THESE MODELS. WE DO NOT HAVE THESE HUGE AI
LABS, THESE HUGE PLATFORMS THAT COULD HELP BUILDING THESE
MODELS. IT WILL BE A VERY DIFFERENT
PLAY IN EUROPE AND EUROPEAN COMPANIES WILL BE GOING
CASE-BY-CASE AND THEY WILL BE BUILDING SMALLER AND MORE
SPECIFIC MODELS IN ORDER TO BENEFIT FROM AI.
IT WILL BE VERY DIFFERENT LANDSCAPE OF AI WHEN YOU’RE
LOOKING AT EUROPE RATHER THAN WHAT WE SEE IN THE U.S., THE
WORLDWIDE COMPANIES IS REACHING OUT TO EVERYONE.
IT IS GOING TO BE MUCH MORE BUSINESS BASED. CAROLINE:
GREAT TO HAVE SOME TIME WITH YOU. WE APPRECIATE IT.
COMING UP, PRIME DAY ENTERS ITS THIRD DAY OF DEALS.
WE WILL TAKE A LOOK AT WHETHER IT IS MANAGING TO ENTICE
SHOPPERS. THIS IS BLOOMBERG TECH. ♪ >> WE ARE PLEASED BY THE
ENGAGEMENT WE ARE GETTING FROM OUR CUSTOMERS AND OUR MEMBERS.
NOT ONLY IS IT TWICE AS LONG, WE ARE OFFERING MORE THAN
DOUBLE THE NUMBER OF DEALS THAT ARE 50% OFF OR MORE AND THAT IS
DRIVING ENGAGEMENT ACROSS THE MILLIONS OF DEALS WE HAVE.
WE ARE PLEASED BUT IT IS VERY EARLY. CAROLINE:
AMAZON PRIME VICE PRESIDENT WEIGHING IN ON THE EARLY
NUMBERS TRICKLING IN YESTERDAY. LET’S GET AN UPDATE WITH
BLOOMBERG SPENCER SOPER ON DAY THREE OF PRIME DAY.
HOW HARD IS IT TO DISCERN WHETHER THIS IS GOING WELL OR
NOT? SPENCER: IT IS VERY TRICKY. YOU’RE COMPARING A TWO DATE
EVENT LAST YEAR TO A FOUR DAY EVENT THIS YEAR.
AMAZON’S EXPERIMENT IS WHAT IF WE SLOW THE SALES CADENCE DOWN
A LITTLE BIT BUT SPREAD IT OVER A LONGER PERIOD OF DAYS, WOULD
THAT BE BETTER FOR US? THAT IS WHERE THE NEXT TWO DAYS
WILL BE CRITICAL. CAN AMAZON SUSTAIN THIS MORE
MUTED MOMENTUM OVER FOUR DAYS OR DO PEOPLE JUST TRAIL OFF?
THAT IS WHAT WE ARE LOOKING TO SEE ON DAYS THREE AND FOUR.
CAROLINE: MOMENTUM COMMERCE WAS AN
ADVISOR YOU WENT TO OR A DATA ANALYSIS SERVICE THAT SEEMS TO
BE SHOWING THE NUMBERS ARE PRETTY POOR AT THE START OF
THINGS. SPENCER: LET’S EMPHASIZE THAT WAS THE
FIRST DAY OF WHAT IS NOW A FOUR DAY EVENT AS OPPOSED TO THE
FIRST DAY LAST YEAR WHEN IT WAS TWO DAYS.
WHEN YOU PROLONG AN EVENT YOU YOU LOSE URGENCY.
PEOPLE ARE NOT NECESSARILY COMPELLED TO ACT IMMEDIATELY.
WHEN YOU HAD THE AMAZON EXECUTIVE ON YESTERDAY, THE
KEYWORD WAS ENGAGEMENT. THAT MEANS PEOPLE ARE POKING
AROUND BUT THEY ARE NOT BUYING. EVERYTHING TRACKS.
IT IS A QUESTION OF OUR PEOPLE GOING TO KEEP BUYING THROUGH
DAYS THREE AND FOUR? IF THEY DO THE EVENT SHOULD
YIELD A LIFT COMPARED TO THE EVENT LAST YEAR.
THAT IS THE BIG QUESTION. WE WILL SEE OF AMAZON’S
EXPERIMENT IS WORKING TODAY AND TOMORROW. CAROLINE: A BIG BET.
SPENCER SOPER, STAY ON IT. ? ROBOTICS SAYS 2025 IS THE YEAR
OF THE ROBOT. WE SPEAK WITH THE CEO OF LIVE
FROM SUN VALLEY, IDAHO. THIS IS BLOOMBERG TECH. ♪ CAROLINE:
LET’S GET BACK OUT TO SUN VALLEY, IDAHO WHERE ED LUDLOW
IS STANDING BY WITH A SPECIAL GUEST. ED:
LET’S TALK ABOUT ROBOTICS. GECKO ROBOTICS AND ITS
COFOUNDER AND CEO. ONE OF THE REASONS THERE IS
INTEREST IS THIS SUPER INTERESTING BUSINESS MODEL.
THE ROBOTS CAN ASSESS THE STRUCTURAL INTEGRITY OF VARIOUS
FACILITIES. A BIG PART OF YOUR BUSINESS IS
AI AND DATA. GIVE US THE BASICS ON GECKO
ROBOTICS AND WE WILL GO FROM THERE. >> THE COMPANY WAS STARTED WITH
THE MISSION OF DIAGNOSING THE HEALTH OF THE BUILT WORLD AND
WHAT WE WERE ABLE TO UNDERSTANDING IS IF YOU START
WITH THE FOUNDATION OF UNDERSTANDING THE HEALTH OF
BUILT STRUCTURES, WHETHER A DAM OR A BRIDGE OR AN OIL AND GAS
REFINERY, WHATEVER THE PHYSICAL STRUCTURE IS IF YOU UNDERSTAND
THE PHYSICAL STRUCTURE OF THAT YOU GET A GOOD IDEA OF
UNDERSTANDING HOW THESE FACILITIES FUNCTION.
WE HAVE USED ALL OF THAT INFORMATION IN THE PROCESS DATA
FROM THE FACILITIES AND THE CENTERS WE HAVE BUILT TO CREATE
AN OPERATING PLATFORM TO HELP THOSE FACILITIES RUN 20% LESS
COST FOR CAP EX AND ALSO OPERATE 5% TO 15% MORE
EFFICIENT. THE APPLICATIONS ARE ENABLED
BECAUSE WE HAVE AN UNFAIR DATA ADVANTAGE. ED:
FOR SOMEONE WHO HAS NEVER SEEN A GECKO ROBOTICS ROBOT SCALING
A WALL, EXPLAIN WHAT IT LOOKS LIKE, HOW MANY ARE IN THE
WORLD, AND WHAT KIND OF COMMERCIAL BUSINESSES ARE USING
THEM? >> THE ROBOTS FEED INTO A
SOFTWARE OPERATING PLATFORM AND THE ROBOTS CAN LOOK LIKE THE
SIZE OF A BRIEFCASE CLIMBING UP THE WALL, CLIMBING AROUND.
WE ALSO HAVE DRONES OR WALKING ROBOTS OR SMART SENSORS.
ALL OF THESE TOOLS ARE GATHERING INFORMATION AND
PLUGGING IT INTO THAT CENTRAL SOFTWARE.
CUSTOMERS ARE ASKING CAN WE PUT OUR OPERATIONAL WERE IOT
CENSORED DATA INTO THAT PLATFORM AS WELL TO DRIVE
BETTER RESULTS OR DECISIONS ON THE GROUND.
WHAT WE HAVE DONE IS BEGUN TO ENABLE FOLKS ON THE GROUND TO
BECOME NOT JUST BLUE-COLLAR WORKERS BUT ENGINEERS BECAUSE
THEY CAN USE THE LLM WE HAVE TO FIGURE OUT WHAT SORT OF
DECISIONS TO MAKE BECAUSE THEY HAVE THE DATA THAT ALLOWS THEM
TO BE SUPERPOWERED IN THAT WAY. ED:
THE ENERGY SECTOR IS WHERE YOU ARE VERY FOCUSED.
NEXT WEEK THERE IS A POLITICAL GATHERING WITH THE ENERGY
INDUSTRY. YOU WORK WITH LEGACY ENERGY TO
BASICALLY SAY HERE IS HOW YOU CAN BE BETTER.
EXPLAIN HOW THE TECH WORKS. >> IN PITTSBURGH NEXT WEEK THE
PRESIDENT AND PUT ON BY SENATOR MCCORMICK IS BRINGING SOME OF
THE BIGGEST NAMES IN ENERGY AND AI TO THE CITY OF PITTSBURGH
WHERE GECKO IS BASED. WHAT IT WILL BE ABOUT IS NOT
JUST THE STATE OF THINGS AND WHAT DOES THE INFRASTRUCTURE
FOR AI LOOK LIKE? THE MESSAGE I AM DELIVERING AND
I AM SPEAKING ON WITH SOME OF THOSE LEADERS IS HOW WE SHOULD
BEGIN TO JUDGE AI’S IMPACT IN ENERGY BY HOW MUCH AI CAN
CREATE ENERGY. ONE OF THE BIGGEST CUSTOMERS WE
HAVE THAT HELPS TO RUN 5% OF THE POWER IN THE U.S., THE FIVE
FACILITIES WE HAVE BEEN ABLE TO DEPLOY OUR TECHNOLOGY STACK AND
OPERATING PLATFORM AT HAVE BEEN ABLE TO SHOW A HUGE INCREASE TO
THE HEAT RATE OF THESE NATURAL GAS POWER PLANTS. THE EXTRAPOLATED IMPACT IS 10
GIGAWATTS OF POWER WITHOUT HAVING TO CREATE A SINGLE NEW
POWER PLANT. THIS IS A HUGE OUTCOME OF HOW
DO WE COMBAT THIS ISSUE WITHOUT ENOUGH ENERGY TO POWER THE U.S.
IN PARTICULAR TO BE THE LEADER IN ARTIFICIAL INTELLIGENCE.
ENERGY IS A CONSTRAINT AND SO AI SHOULD BE ABLE TO UNLOCK
ENERGY, NOT THE OTHER WAY AROUND. CAROLINE:
WE ARE TALKING ABOUT — ED: WE ARE TALKING ABOUT
CARBON-BASED ENERGY SOURCE OF ENERGY. YOU HIT A $1.25 BILLION
EVALUATION. YOU WANT TO SCALE. YOU ARE FOCUSED ON CONTINUING
GROWING. WILL WE SEE A FOLLOW-ON ROUND
TO KEEP THAT ON THE HARDWARE SIDE GOING? >> THE WAY CUSTOMERS WORK WITH?
AS THEY BY THE OPERATING PLATFORM.
IT FEEDS INTO THE OPERATING PLATFORM.
THE BIGGEST OIL AND GAS COMPANIES IN THE WORLD WILL BE
UNVEILING THINGS THE NEXT COUPLE OF QUARTERS, THE SAME
WITH MANUFACTURING FACILITIES MAKING STEEL AND COPPER.
WE GOING TO THESE OLD SECTORS THAT SILICON VALLEY HAS
FORGOTTEN ABOUT AND WHAT THAT MEANS FOR US IS THE SCALE AND
THE IMPACT OF PRAGMATIC ARTIFICIAL INTELLIGENCE
ROBOTICS IS HITTING THIS INFLECTION POINT.
YOU THINK ABOUT PHYSICAL INTELLIGENCE.
PHYSICAL INTELLIGENCE IN THESE ENVIRONMENTS, WHETHER IT BE THE
DEFENSE SECTOR OR THE INDUSTRIAL , THERE IS VERY
LITTLE PHYSICAL INTELLIGENCE. WE ARE THE LEADING COMPANY AS
IT RELATES TO CREATING THAT WHICH ENABLES OUR ARTIFICIAL
INTELLIGENCE TO BE EXCEPTIONALLY BETTER THAN THOSE
COMING IN WITH A SOFTWARE-ONLY SOLUTION.
TO ANSWER YOUR QUESTION, SCALING AND INCREASING THE
AMOUNT OF FUEL TO THAT FIRE IS SOMETHING WE WILL DO. ED:
YOUR RELATIONSHIP WITH NVIDIA. ARE YOU HAPPY WITH THEM? >> I AM REALLY HAPPY WITH THEM.
THEY HAVE BEEN GREAT. LOOKING AT PHYSICAL
INTELLIGENCE FOR THESE INDUSTRIAL SECTORS IS A LOT
MORE TO GO SO HOPEFULLY WE CAN HELP OUT. CAROLINE: — ED: GECKO ROBOTICS COFOUNDER AND
CEO. A LOT OF PEOPLE INTERESTING AND
TALKING TO THIS GUY. CAROLINE: IT REALLY DOES FEEL LIKE THE
YEAR OF THE ROBOT. ANALYSTS SAY APPLE SHOULD
CONSIDER REPLACING TIM COOK. MORE ON THAT NOTE NEXT.
THIS IS BLOOMBERG TECH. ♪ >> Support for lack of
technology. Let’s check the markets. Open for trade the NASDAQ 100
between gains and losses, earlier in the red.
When you have Nvidia in to red it pulls us lower.
Generally waiting on a big bond auction.
The old movement has been detected in what is happening
in the stock market, still near all-time highs.
Let’s think about what is close to an all-time high.
In excess of $112,000 on big Gwen yesterday up .6 percent
intraday, 111,395. Amid trait anxiety there is an
atmosphere of choice. Next week is crypto week
according to the house. In Washington we will see how
the changes are rules and regulations continue to
transpire. Google’s Gemini ARI gets a new
feature. The company’s latest AI update
can produce eight VIDEO OUT OF ORDINARY STILL PICTURES IF YOU
ARE A PAID USER. IT IS REALLY AI ULTRA, AI PRO
USERS OF GOOGLE BEING ABLE TO KEEP UP WITH OPENAI OR RUNWAY.
DANA: THIS FEATURE WILL BE AVAILABLE
TO PAID GEMINI USERS AND IT IS A FEATURE GOOGLE FIRST LAUNCHED EDITS — AT ITS DEVELOPER
CONFERENCE IN MAY. CAROLINE: IT DOES HAVE RIVALS AND IT HAS
A STOP AND START FEELING. MANY WOULD SAY THAT THEY ARE
THE REASON THEIR UNDERLYING RESEARCH IS WHY WE HAVE
GENERATIVE AI IN THE FIRST PLACE. THEY HAVE THIS INEVITABLE
FEELING THEY WERE LOSING PACE WITH RIVALS.
THEY HAVE THE ISSUE OF WHETHER OR NOT THERE WAS SOME
GENERATIVE AI IMAGE FEATURES THAT CHANGED PEOPLE’S RACE. THERE WAS A CONCERN THERE.
THIS IS BEING REPLICATED AGAIN IN THE VIDEO OR, NO? DANA: GOOGLE PAUSE TO CERTAIN
GENERATIVE AI FEATURES FOR THAT REASON.
HERE THERE ARE SOME GUARDRAILS. WE TESTED IT OURSELVES.
THE RESULTS WERE FASCINATING AND SOMEWHAT MIXED. REPORTER NATALIE MONK, WHO IS
ASIAN, INCLUDED A PHOTO OF HERSELF.
THE AI DID CHANGE HER RACE IN ONE OF THE VIDEOS WITHOUT HER
ASKING. WE ASKED FOR A VIDEO OF SOMEBODY BREAKDANCING.
WE DID NOT SEE ANY BREAKDANCING, SADLY.
THE AI DID FOLLOW OTHER INSTRUCTIONS WE GAVE
FAITHFULLY, BUT DIDN’T — BUT NOT THAT ONE.
THE RESULTS WERE MIXED. WE EXPECT OF THE TECHNOLOGY TO
CAROLINE: IMPROVE. PEOPLE LOVE IMAGE GENERATION
FROM GOOGLE AND A GEMINI WRIT LARGE.
EVERYONE THANKS APPLE IS BEHIND THE CURVE WITH AI.
WE GOT A NOTE OUT TODAY WITH ANALYSTS TALKING ABOUT HOW IT
IS MAY BE TIME TO REPLACE TIM COOK, EVEN. WE HEARD THAT THE AI FOCUS
NEEDS TO WIN FROM A PRODUCT PERSPECTIVE RATHER THAN HAVING
SOMEBODY IN CHARGE THAT IS THE SUPPLY CHAIN.
THE FIERCEST TALENT FOR AI, THE WAR GOING ON IS AN AMAZING
STUDENT MARK GARMAN HAS BEEN RINGING US ALL WE CAN FULLY
UNDERSTAND $200 MILLION MIGHT HAVE BEEN PARTED WITH TWO NOW
THE HEAD OF AI. A PAY PACKAGE WAS MORE THAN 200
MILLION DOLLARS INCLUDING NOT JUST A BASE SALARY AND SIGNING
BONUS, BUT STOCK OPTIONS. THERE ARE A FEW THINGS TIED TO
THAT. ONE, SOMEBODY WOULD HAVE TO
STAY WITH THE COMPANY FOR A CERTAIN PERIOD OF TIME.
THEY WOULD NOT GET ALL THE MONEY IF THEY LEFT EARLY.
IT IS TIED TO THE PERFORMANCE OF THE STOCK.
IT ASSUMES THE STOCK WOULD REACH CERTAIN LEVELS. CAROLINE: IT IS AS WE SEE THE TRANSFER OF
TALENT FROM APPLE TO META, EVERYBODY TO META COME UP WITH
MARK ZUCKERBERG SUPER ALL IN ON WINNING THE SUPER INTELLIGENCE
RACE. WHERE ARE WE WITH APPLE AND
ULTIMATELY WHETHER IT’S BUSINESS MODEL IS NECESSARY TO
BE THE GENERATIVE AI DEVELOPER OF CHOICE OR KICKED — OR IF IT
CAN BE JUST FOR GENERATIVE AI USER OF CHOICE DANA:
GIVEN ITS OVERALL STOCK PERFORMANCE AND MARKET CAP I
HATE — HESITATE TO CALL IT STRUGGLING.
STRUGGLES IN AI SPECIFICALLY HAVE BEEN WELL DOCUMENTED.
ITS EFFORTS TO HAVE A NEW BLOCKBUSTER HARDWARE HIT HAVE
BEEN WELL DOCUMENTED. THE VISION PRO HAS NOT BEEN A
STRAIGHT SHELL OR EVEN THE REVIEWERS AND TECH ENTHUSIASTS
HAVE PRAISED FOR BEING INNOVATIVE. THE COMPANY HAS A WAY TO GO IN
ARI. CERTAINLY, THE POACHING IS ANOTHER SETBACK IN THAT SPACE. CAROLINE:
MAYBE THAT IS WHITE HARD FOCUSING, WHY IT APPLE’S SENIOR
VP OF HARDWARE IS BEING SINGLED OUT TO BE THE REPLACEMENT FOR
TEMPO. CASH FOR TIM COOK.
— FOR TIM COOK. REID HOFFMAN CALLED
MULTIMILLION DOLLARS FOR AR TALENT NOT CRAZY WHEN SUCH
INVESTMENTS ARE EXPECTED TO GENERATE BILLIONS.
HE WEIGHS IN ON THE TALENT WAR BETWEEN APPLE AND META. REID:
ONE THING THAT IS GOOD ABOUT AN OPEN MARKETPLACE IS YOU GET
MULTIPLE MARKET — BIDDERS AND IT SETS THE PRICE.
SOMEBODY GOES I AM WINNING — WILLING TO SPEND 100 MILLION
DOLLARS TO GET THIS TALENT. YOU GO, THAT’S CRAZY.
IF THAT IS HIGHER THAN THE VAST MAJORITY OF CEOS.
YOU ARE JUDGING ONE TALENT. THAT IT WILL POTENTIALLY CREATE
BILLIONS OF DOLLARS OF VALUE FOR YOU.
WHETHER IT IS IN A SOCIAL NETWORK.
WHETHER IT IS IN A SEARCH ENGINE OR ANYTHING ELSE.
IF YOU THINK THAT, THAT IS JUST A BOLD BET. 2 — ADD: SAM ALTMAN SAID THAT
PARTICULAR FIGURE HE ACCUSED META OF OFFERING SOME OPENAI
STAFF, HE CLAIMED IT WAS CRAZY. IT SOUNDS LIKE IT’S NOT. REID:
I DON’T THINK IT’S CRAZY WHEN WE KNOW THAT AI WILL TRANSFORM
THE ENTIRE TECH INDUSTRY FROM TRILLION DOLLAR COMPANIES AT
THE HIGH-END. A WHOLE STACK. ALL THE WAY THROUGH TO THE
BILLIONS. ED: TODAY FOR A BRIEF MOMENT ONE OF
THEM WAS A $4 TRILLION COMPANY. REID: YES, NVIDIA.
SO SAYING THIS PIECE OF TALENT IS THE RISK-ADJUSTED VET, THAT
THAT MAKES A DIFFERENCE IN THE, THAT IS JUST A RISK BET.
YOU COULD SAY IT’S A DUMB RIKS BET BUT IT’S NOT DUMB TO DO IF
THOSE ARE THE STAKES YOUR PLAN FOR. CAROLINE: COMING UP, WE SPEAK TO THE CEO
AND COFOUNDER OF VATER SPACE. CAROLINE:
WELCOME BACK TO BLOOMBERG TECH. VATER SPACE INDUSTRIES ANNOUNCED IT RAISED 100 — $187
MILLION IN FUNDING AIMING TO PRODUCE MEDICINE IN LOW ORTH —
LOW EARTH ORBIT. ED LOCO’S STANDBY WITH THE
COFOUNDER AND CEO. WILL, I WILL START WITH YOU.
THE MONEY. WHAT WILL YOU USE IT FOR? WILL:
WE HAVE BIG PLANS. IT ALLOWS US TO OPEN OUR
BIOLOGIC SLABS DOWN THE STREET. THE ENTIRE PURPOSE IS TO
PREPARE BIOLOGIC FORMULATIONS. SO, MEDICINES FOR FLIGHT IN
OUTER SPACE. THE PURPOSE IS MICROGRAVITY
ALLOWS US TO CREATE NEW DRUG FORMATIONS THAT WOULD BE
OTHERWISE IMPOSSIBLE TO CREATE ON EARTH.
WITH THE FUNDING WE ARE ABLE TO BUILD A LARGE LAB SPACE TO VET
DRUG FORMULATIONS BEFORE FLYING THEM AND CREATE AN ENTIRE
PIPELINE ON THE WAY TO SPACE. ED: I WANT TO POINT OUT YOU ARE
ALSO A PARTNER AT FOUNDERS FUND. THIS WORKS THE SAME WAY IT
ALWAYS WORKS. YOU RECUSE YOURSELF FROM THE
ROUND AND REPRESENT VARDA, , BUT THEY PARTICIPATED, AS DID
PETER TEAL AS AN INDIVIDUAL — PETER THIEL AS AN INDIVIDUAL.
YOU STARTED MARKETING YOURSELF AWAY FROM ROCKET LAB, WHO USED
TO BE THE THIRD PARTY FOR YOU. HOW IS THAT SIGNIFICANT AND HOW
DOES IT LOOK? >> THEY ARE A PHENOMENAL
PARTNER AND WE ARE GRATEFUL THAT THEY GOT3 US OFF THE
GROUND VERY QUICKLY. RAS WE LOPED TO GAIL, WE HAD TO
GO MORE FULL STACK. AEROSPACE COMPANIES, AS THEY
SCALE UP THEY TEND TO GO MORE FULL STACK OVERTIME.
IT WILL ALLOW US TO FLY FOUR TIMES NEXT YEAR AND THEN
IDEALLY START DUBLIN EVERY YEAR. AND BE ABLE TO CONTROL THE
DOUBLING ENTIRELY IN HOUSE AND EXPANSIVE CAPABILITIES ON THE
SPACECRAFT, BIOPHARMACEUTICAL PRODUCTION.
BY OWNING MORE OF IT WE CAN EXPAND THE CAPABILITIES ON
BOARD. ED:DELL IS TALKING ABOUT THE RAMP ON IT
LAUNCHED, GETTING TO ORBIT, THE BIG BEAUTIFUL BENEFIT IS ZERO
GRAVITY IN THE PHARMACEUTICAL CONTEXT BUT THEN YOU HAVE TO
GET BACK TO EARTH AND THAT HAS BEEN AN EXCITING PART TO TRACK
WITH VARDA, THE VIDEO IN PARTICULAR.
EXPLAIN HOW THE PROCESS WORKED ON TABLET WILL GO GOING FORWARD?
DELIAN: THE ENTIRE REASON FOR GOING TO
SPACES FOR MICROGRAVITY. IT IS A FUNDAMENTAL FORCE OF
PHYSICS YOU CANNOT CHANGE ON EARTH.
WE DON’T WANT TO HAVE TO GO TO SPACE TO MAKE THE NEW DRUGS.
BUT YOU HAVE TO BECAUSE OF THE LAWS OF PHYSICS.
OUR SPACECRAFT ALLOWS US TO DO THAT QUICKLY AND CHEAPLY.
A BIG PART OF THAT IS WHEN WE MAKE THE DRUGS IN ORBIT IN
MICROGRAVITY SO THEY ARE DIFFERENT THAN THEY WOULD BE
MADE ON EARTH WE HAVE TO BRING THEM BACK AND THAT IS THE MOST
EXCITING PART FOR THE AEROSPACE ENGINEERS HERE.
MY BACKGROUND IS ALSO AEROSPACE ENGINEERING.
THE VIDEO IS PHENOMENAL. WE HIT THE ATMOSPHERE GOING 25
TIMES THE SPEED OF SOUND. 27 TIMES THE SPEED YOU GO ON A
COMMERCIAL AIRLINER. YOU RIPPED APART THE ATMOSPHERE
AND CREATE A BEAUTIFUL PLASMA OF A SHOOTING STAR FOR OVER A
MINUTE ACROSS THE SKY. IT’S BEAUTIFUL ON THE WAY BACK.
CAROLINE: THE PASSION IS REAL AND THE
DEMAND IS AS WELL. I AM INTERESTED IN THE DOD AND
GOVERNMENT PERSPECTIVE. WE HAVE SEEN SO MUCH FOCUS ON
SPACE AND DEFENSE MORE BROADLY. DELIAN:
THE NEW SECRETARY OF DEFENSE IN THE EARLY DAYS OF THE TRUMP
ADMINISTRATION CAME OUT WITH HIS NATIONAL SECURITY PRIORITY
SENT OUT AT THE TOP THREE WERE NUCLEAR WEAPONS MODERNIZATION,
THE DEVELOPMENT OF NEXT-GENERATION HYPERSONIC
CAPABILITIES, AND SHIPBUILDING. WHILE VARDA DOES NOT BUILD
SHIPS, WE HELP THE DOD WITH THE OTHER TWO.
WE HAVE COLLABORATION ACROSS GROUPS FROM THE AIR FORCE, THE
NAVY, NASA. THEY ARE PRIMARILY INTERESTED
IN, AS WE COME INTO THE ATMOSPHERE WE ARE: 25.
IT IS A REGIME THAT IS TYPICALLY VERY DIFFICULT TO
STUDY ON THE GROUND TO UNDERSTAND WHAT THE FLIGHT
DYNAMICS WILL BE. YOU CAN THINK ABOUT THE VALUE
PROPOSITION FOR VARDA FOR THE DEFENSE DEPARTMENT AS A
HYPERSONIC WIND TUNNEL. THEY CAN ATTACH WIND SHAPES,
SENSORS ON THE VEHICLE AS WE ARE COMING IN TO VALIDATE THE
SUBSYSTEM’S PERFORMANCE BEFORE THEY TAKE THAT AND INTEGRATE
THAT INTO THE ULTIMATE PRODUCTION SYSTEM.
BY ENABLING FASTER TESTING, MORE FREQUENT TESTING, CHEAPER
TESTING, IT ALLOWS US TO EXPAND ON OUR CAPABILITIES AND CATCH
UP TO YOU AND SURPASS PURE ADVERSARIES LIKE CHINA AND
RUSSIA WHO HAVE DEMONSTRATED SUPERIOR HYPERSONIC BOOST AND
GLIDE CAPABILITIES. CAROLINE: I THINK THE COMPETITION IS
CLOSER TO HOME OR A FRENEMY SITUATION.
YOU HAVE TAKEN ON SUCH A BROAD EXPERIENCE.
YOU HAVE BEEN FLYING THE DRAGON YOURSELF WORKING AT SPACEX.
YOU WORKED IN A BANKING BRIT YOU YOUR OWN VENTURE FUND.
WHAT IS YOUR BIGGEST HEADACHE? TALENT? THE RACE FOR TALENT?
HOW DO YOU EXPAND? WILL:
BELIEVE IT OR NOT THERE IS NOT MUCH COMPETITION IN REENTRY
BECAUSE WE ARE DIFFERENT THAN OTHER COMMERCIAL REENTRY
VEHICLES LIKE SPACEX DRAGON OR BOEING STAR LINER.
WE ARE OFF AXIS ON AN ALMOST EVERYWHERE.
SMALLER, HIGHER CADENCE, NOT HUMAN RATED AND LOWER COST. IT
IS MORE OF A COMPLEMENTARY SITUATION.
AS FAR AS HEADACHES GO, A LOT OF THEM ARE GONE AND NOW THANKS
TO A WORKING SPACECRAFT AND FUNDING TO GROW.
IT IS MORE ABOUT ENTHUSIASM AND EXCITEMENT.
I WOULD SAY THE CHALLENGE OF THE NEXT COUPLE YEARS IS TO
SCALE UP THE CADENCE. AS WE SCALE CADENCE, WE LOOK
MORE AND MORE LIKE A ZERO GRAVITY OVEN TO THE
PHARMACEUTICAL INDUSTRY. THEY FRANKLY DON’T CARE WE ARE
GOING TO OUTER SPACE. THEY ONLY CARE WE CAN DELIVER
NEW DRUG FORMATIONS. WE JUST HAPPENED TO HAVE TO DO
THAT BY GOING TO SPACE AND BACK. THE MORE OFTEN AND IN A MORE
FREQUENT WE CAN DO THAT, THE MORE EASY IT IS FOR US TO
INTEGRATE INTO THE PHARMACEUTICAL SUPPLY CHAIN.
THAT IS THE BIG CHALLENGE OVER THE NEXT COUPLE YEARS.
INCREASED CADENCE. FLY MORE SPACECRAFT AND DEVELOP
MORE DRUGS ON BOARD. ED:
THE MISCONCEPTIONS MAY BE ABOUT WHAT WILL IS TALKING ABOUT IS
RAMPING THE CADENCE. SPACEX ON TRANSPORTER MISSIONS,
MY UNDERSTANDING IS IT IS NOT THAT GREAT A COST. CAN YOU
EXPLAIN THE RELATIONSHIP AND HOW IT WORKS KITCHEN A RIDE —
HITCHING A RIDE ON FALCON NINE? DELIAN:
THE SPACEX LAUNCH COSTS IS NOT THE MAJORITY.
IT IS ONE OF THE LARGER LINE ITEMS. A LOT OF OTHER THINGS GO
INTO THE OPERATING USE OF OUR BUSINESS.
OUR BUSINESS COULDN’T EXIST WITHOUT FALCON NINE BEING
REUSABLE. AND THE USE OF OUR TRANSPORTER
PROGRAM. THINK ABOUT FIVE OR SIX YEARS
AGO. YOUR ONLY OPTION TO GET TO ORBIT WAS TO BUY A FULL
DEDICATED ROCKET OR FIND A WAY TO SQUEEZE YOURSELF ONTO A
LARGE LAUNCH AND TO BE ON BOARD BUT FIND YOUR OWN WAY TO ORBIT.
NOW THE TRANSPORTER MISSIONS, I THINK THEY ARE DOING THEM THREE
TIMES A YEAR. THEY HAVE ADDED DIFFERENT
INCLINATIONS IN ORBIT. THEY HAVE BANDWAGON MISSIONS
THAT GO TO PULL ORBIT. IT HAS BEEN A CRITICAL PART OF
OUR ABILITY TO SUCCEED AS A BUSINESS.
IT IS AN INTERESTING PATTERN IN TECHNOLOGICAL HISTORY WHEN
CERTAIN INFRASTRUCTURE LIARS GET BUILT IT ENABLES BUSINESS
OPPORTUNITIES. IN SOME WAYS FOR A BUSINESS
LIKE UBER OR AIR B&B TO BE BOAT YOU NEEDED MOBILE TO BE
DISTRIBUTED AND HAVE THE APP STORE. THAT ENABLED THE BUSINESS
MODELS. WE THINK ABOUT WHAT SPACEX
PROVIDES AS THE SAME. IT IS A FUNDAMENTAL
INFRASTRUCTURE LATER THAT ENABLES OUR BUSINESS AND WOULD
NOT HAVE BEEN POSSIBLE WITHOUT THEM.
WE ARE THRILLED TO HAVE THEM AS PARTNERS.
AND HAVE LOTS AND LOTS OF ROCKETS.
WE HAVE BOOKED ALL THE WAY THROUGH Q3 2027 OR SOMETHING.
ED: WE RECOGNIZE ON BLOOMBERG
TECHNOLOGY THAT MANY IN THE SPACE INDUSTRY HAVE LOOKED TO
THE DEFENSE APPARATUS OF THIS COUNTRY AND IN THE DEFENSE USE
CASE TO KIND OF START TO GET OFF THE GROUND BECAUSE OF
GRANTS AND THE AVAILABILITY OF FREEDOM TO MOVE.
LONG TERM WHAT’S THE BUSINESS MODEL?
WHO WILL YOUR CUSTOMERS BE WHEN YOU ARE ABLE TO BRING PAYLOAD
BACK DOWN TO EARTH, AND GET PHARMACEUTICALS DEVELOPED IN
THE ZERO GRAVITY ENVIRONMENT? WILL: IT IS A NEW TECHNOLOGY.
WHAT IS COOL, GOING TOWARDS THE DEFENSE ASPECT IS BECAUSE IT IS
A UNIQUE KHMER — AMERICAN ASSET, VARDA
IS A UNIQUE AMERICAN ASSET ON TOP OF THAT, ALMOST EIGHT
LEAPFROG ABOVE EVERYBODY ELSE. WE HAVE AN ARMADA OF SMALL LOW
COST HIGH CADENCE REENTRY VEHICLES THAT CAN PROVIDE A
SERVICE CONTINUOUSLY FOR THE DEPARTMENT OF DEFENSE AS A
HYPERSONIC WIND TUNNEL. THAT MEANS NOW THE DEPARTMENT
OF DEFENSE CONTESTS THINGS LIKE SENSORS, NEW MATERIALS FOR HEAT
SHIELDS. THEY CAN TEST FLIGHT COMPUTERS
AND RADIOFREQUENCY SYSTEMS, NAVIGATION SYSTEMS. SIMILAR TO
A WIND TUNNEL WHERE IT IS ACTING AS INFRASTRUCTURE SO THE
DEPARTMENT OF DEFENSE CAN ADVANCE NEW TECHNOLOGIES FASTER
AND CHEAPER. CAROLINE:
FASCINATING CONVERSATION. THANK YOU ALL FOR JOINING US.
STAY WITH US. WE THANK YOU. COMING UP, WE HEAR FROM STEVE
UECKER OF BAIN CAPITAL ON HIS OUTLOOK FOR THE AI SECTOR.
THIS IS NUMBER TECHNOLOGY. CAROLINE:
IN SUN VALLEY THE FUTURE OF AI IS A HOT TOPIC AMONG TECHNOLOGY
LEADERS. STEVE PAGLIUCCA SET DOWN WITH
ED LUDLOW TO TELL — TALK ABOUT WHY AI REMINDS HIM OF THE EARLY
DAYS OF THE INTERNET AND THE POTENTIAL FOR AI TO TRANSFORM
PRODUCTIVITY. STEVE: IT REMINDS ME A LOT OF 98, 99,
2000, 2 THOUSAND ONE, AND THE INTERNET.
THEIR WORK FITS AND STARTS AND THERE WILL BE FITS AND STARTS
IN AI. BUT I THINK WE ARE ALMOST PASSED THE FITS AND STARTS
STAGE. YOU CAN — YOU HAVE KIND OF
NINE GLOBAL FOUNDATION MODEL COMPANIES OUT THERE. PERPLEXITY.
OPENAI. WE FUNDED A STARTUP FOR ML I.T.
DEBT — M.I.T. THAT MODELED A NEW AI SYSTEM ON
A WARM SPRAIN. DO YOU KNOW HOW MANY NEURONS A
WORM HAS? 105. A HUMAN BRAIN HAS 86 BILLION. THESE WONDERFUL SCIENTISTS AT
M.I.T. CAME UP WITH A MODEL CALLED THE
NEURAL NETWORK MODEL. THEY ARE ONE OF NINE COMPANIES
THAT ARE STATE OF THE ART. BECAUSE THEY USED THE NEURAL
NETWORK MODEL THEY USE 80% LESS GPU TO BUILD THE MODEL.
THEREFORE, THEY WILL BE PURPOSED — PERFECT FOR DEVICES
LIKE PHONES BECAUSE YOU DON’T NEED THE POWER.
A CHATGPT MODEL COST ABOUT $500 MILLION OF GPU TO LOAD IT AND
YOU CAN DO THAT FOR 80% OR 90% LESS.
THEY ARE SIGNING DEALS WITH DEVICE COMPANIES AS WE SPEAK
AND IT’S VERY EXCITING. ALL THE COSTS ARE GOING DOWN
FOR CHIPS, FOR THE MODEL LOADING.
AS OPPOSED TO THE INTERNET, FOR THEY WERE VERY FEW BIG WINNERS,
THERE WILL BE A LOT OF WINNERS HERE.
THERE WILL BE VERTICAL MODELS AND FOUNDATIONAL MODELS ON THE
VERTICAL MODELS WILL BE CHOCKED FULL OF EXPERTISE.
FOR EXAMPLE, A MEDICAL DIAGNOSIS MODEL THAT FOCUSES ON
DISEASE STATES AND GIVING YOU A DIAGNOSIS.
SOME OF THE MODELS PROVE BETTER THAN HUMANS BECAUSE IT’S A GAME
OF ELIMINATION. WHEN YOU PUT THE RIGHT DATA IN
IT GIVES YOU THE RIGHT DIAGNOSIS.
THE SAME THING READING X-RAYS. AI MODELS READING X-RAYS ARE
NOW BEATING THE TOP HUMANS IN THE FIELD.
SO, WE ARE STILL ONLY IN THE EARLY STAGES.
IT WILL REVOLUTIONIZE PRODUCTIVITY AND HAVE THE SAME
IMPACT THE INTERNET HAD 20 YEARS AGO.
IT WILL BE A 20 YEAR RUN. THAT IS WHY NVIDIA’S VALUE IS
SO HIGH. THEY ARE IN THE CATBIRD SEAT OF
THE CHIPS NEEDED TO POWER THE REVOLUTION. CAROLINE: STEVE PAGLIUCCA. NEXT WEEK, BLOOMBERG TECH WILL
BE LIVE FROM PANASONIC’S NEW EV BATTERY PLANT.
MEANWHILE, DON’T FORGET TO CHECK OUT OUR PODCAST ON THE TERMINAL AT ONLINE ON APPLE,
SPAR OTIFY AND NEW YORK. THIS IS BLOOMBERG TECH.