From Marhart where Innovation, Money and power Collie in Silicon Vallet NBN.

From Marhart where Innovation, Money and power Collie in Silicon Vallet NBN.

This is Bloomberg Technology with Caroline Hyde.

This is Bloomberg Technology with Caroline Hyde.

And Ed Loved Love.

And Ed Loved Love.

Live from New York and San Francisco. This is Bloomberg Technology coming up in videop is the Price of lofty expectations. CEO Jensen One tries to boost confidence in a Bloomberg exclusive.

Live from New York and San Francisco. This is Bloomberg Technology coming up in videop is the Price of lofty expectations. CEO Jensen One tries to boost confidence in a Bloomberg exclusive.

Past the Telegram. CEO is charged and out on bail in France. So the crimes committed on the app. We go live to Paris.

Past the Telegram. CEO is charged and out on bail in France. So the crimes committed on the app. We go live to Paris.

And California advances.

And California advances.

It's controversial AI safety bill that has divided tech leaders.

It's controversial AI safety bill that has divided tech leaders.

We'll discuss the law as it heads to the state Senate.

We'll discuss the law as it heads to the state Senate.

That is so much more coming up, but first which I can on the key name that we are all watching today in video of by two point eight percent, the three trillion dollar company not living up to the hype in terms of its forecasts and particularly Blackwell, which will dig into ed but it's not dragging down the rest of the indices.

That is so much more coming up, but first which I can on the key name that we are all watching today in video of by two point eight percent, the three trillion dollar company not living up to the hype in terms of its forecasts and particularly Blackwell, which will dig into ed but it's not dragging down the rest of the indices.

Mark it up in vidio down. I caught up with Nvidia CEO Jensen Wang after the results. He addressed concerns about the company's latest generation Blackwell chips.

Mark it up in vidio down. I caught up with Nvidia CEO Jensen Wang after the results. He addressed concerns about the company's latest generation Blackwell chips.

We're expecting Q three to have more supply than Q two, We're expecting Q four to have more supplier than Q three, and we're expecting Q one to have more supply than Q four, And so I think our supply, our supply condition going into next year will be in will be a large improvement over this last year.

We're expecting Q three to have more supply than Q two, We're expecting Q four to have more supplier than Q three, and we're expecting Q one to have more supply than Q four, And so I think our supply, our supply condition going into next year will be in will be a large improvement over this last year.

Congensabani of Bloomberg Intelligence joins us now in San Francisco. You said it in Vidio's strong expectations stronger.

Congensabani of Bloomberg Intelligence joins us now in San Francisco. You said it in Vidio's strong expectations stronger.

What's your thesis this morning.

What's your thesis this morning.

When they've fallen victim to their own strength and on realistic expectations. When we look about the top concerns going into the prink blackwell, the several billion in Q four put a lid on uncertainties in twenty twenty five.

When they've fallen victim to their own strength and on realistic expectations. When we look about the top concerns going into the prink blackwell, the several billion in Q four put a lid on uncertainties in twenty twenty five.

Demand sustainability, just real quick, because several billion doesn't mean anything.

Demand sustainability, just real quick, because several billion doesn't mean anything.

Well, it still is solid in terms of what we expected or given the last four weeks of what we've been hearing the issues. So that's still impressive that they are able to pull it off so soon. Second, demand sustainability, we saw demand broadening and in fact getting stronger beyond.

Well, it still is solid in terms of what we expected or given the last four weeks of what we've been hearing the issues. So that's still impressive that they are able to pull it off so soon. Second, demand sustainability, we saw demand broadening and in fact getting stronger beyond.

Just the large cloud guys.

Just the large cloud guys.

And finally, when we put it all together our estimates, and I believe most of the street estimates are actually going up after this earnings than they were before.

And finally, when we put it all together our estimates, and I believe most of the street estimates are actually going up after this earnings than they were before.

Quin John, Yes, perhaps it's a victim of its own success and analyst investors' exuberance around the name. But is it also a victim of its own ambitions setting itself terms of time that just aren't able to be hit When we see that people aren't disappointed by a Q four and later ramp up for Q one Q two of next year.

Quin John, Yes, perhaps it's a victim of its own success and analyst investors' exuberance around the name. But is it also a victim of its own ambitions setting itself terms of time that just aren't able to be hit When we see that people aren't disappointed by a Q four and later ramp up for Q one Q two of next year.

Fiscally, I mean definitely, it's part of two things. The execution they have performed over the last two years have been nothing but phenomenal. It's very hard to continue with this annual cadence reiterating the new chip designs at time, bringing in the supply not just at scale but at new technology module. So it's definitely a high bar.

Fiscally, I mean definitely, it's part of two things. The execution they have performed over the last two years have been nothing but phenomenal. It's very hard to continue with this annual cadence reiterating the new chip designs at time, bringing in the supply not just at scale but at new technology module. So it's definitely a high bar.

They have said, I actually want to talk about new technology model. There was a question on the Analyst score which I also try to get into a Jensen Wang about generational upgrades. Right now, H two hundred is ramping being deployed in the real world, and before we know it, Blackwell's here. So if you're a data center operator, you have the option of both potentially at the same time.

They have said, I actually want to talk about new technology model. There was a question on the Analyst score which I also try to get into a Jensen Wang about generational upgrades. Right now, H two hundred is ramping being deployed in the real world, and before we know it, Blackwell's here. So if you're a data center operator, you have the option of both potentially at the same time.

How do you model for that?

How do you model for that?

I mean, each data center operator is at a different technology stack and a different phase in this journey, right, so there has been a pent up demand. So I think right now this sort of tier two and low enterprises and the new up and comers who are installing this base would choose to go for the H two hundred and Blackwell is not really for everyone.

I mean, each data center operator is at a different technology stack and a different phase in this journey, right, so there has been a pent up demand. So I think right now this sort of tier two and low enterprises and the new up and comers who are installing this base would choose to go for the H two hundred and Blackwell is not really for everyone.

You really need a.

You really need a.

Significant ROI, significant investment to implement Blackwell.

Significant ROI, significant investment to implement Blackwell.

What about geographic reach here? Were you worried in any way about the China pullback?

What about geographic reach here? Were you worried in any way about the China pullback?

No, I mean there was.

No, I mean there was.

This is the first time we saw the US decline sequentially. We don't think there's a lot to read into it, but it definitely outlines that the demand is broadening outside of the US. When we look at rest of the world other than US over the last few years, the growth there has been significantly faster, and that leads to that sort of low double digit so and billion dollars that Jensen outlined.

This is the first time we saw the US decline sequentially. We don't think there's a lot to read into it, but it definitely outlines that the demand is broadening outside of the US. When we look at rest of the world other than US over the last few years, the growth there has been significantly faster, and that leads to that sort of low double digit so and billion dollars that Jensen outlined.

Congen Shavani and has been a busy twenty four hours for you.

Congen Shavani and has been a busy twenty four hours for you.

We appreciate you pre meg intelligence.

We appreciate you pre meg intelligence.

Meanwhile, let's get a broader market reaction Anthony Singramany is with US chief Market stretches that Ameral Price Financial.

Meanwhile, let's get a broader market reaction Anthony Singramany is with US chief Market stretches that Ameral Price Financial.

Who would have thought it with all of the handwringing.

Who would have thought it with all of the handwringing.

In video is so important to the S and P, to the NASDAC of eight percent. Waiting benchmarks are higher even though the name is down.

In video is so important to the S and P, to the NASDAC of eight percent. Waiting benchmarks are higher even though the name is down.

Yeah, you know, at the beginning of the week we kind of said move over power. Here comes Jensen Wong, and you're really kind of seeing the markets just kind of not really react in videos earnings last night. And I think it's because earnings were positive. As Kanja mentioned, you know, the wow factor is starting to come down because the hurdle rates are getting higher.

Yeah, you know, at the beginning of the week we kind of said move over power. Here comes Jensen Wong, and you're really kind of seeing the markets just kind of not really react in videos earnings last night. And I think it's because earnings were positive. As Kanja mentioned, you know, the wow factor is starting to come down because the hurdle rates are getting higher.

It's getting harder to achieve that.

It's getting harder to achieve that.

But overall, the delivery of profits and outlooks last night from in video, we're solid, and so I think the market is starting to kind of look forward and say, hey, everything's okay with big tech. We're going to move over the next couple of quarters. Macro is obviously going to be a concern coming here over the next few weeks and as we get rate cuts from the FED later next month. But I think the story in big tech is less homogeneous trading a little bit more focus on you know where's the payoff or AI what's the supply and demand build for companies like in video moving forward? And I think it will likely provide opportunities when when we get some of these pullbacks for investors to reassess and maybe look at stocks that got away from them earlier this year.

But overall, the delivery of profits and outlooks last night from in video, we're solid, and so I think the market is starting to kind of look forward and say, hey, everything's okay with big tech. We're going to move over the next couple of quarters. Macro is obviously going to be a concern coming here over the next few weeks and as we get rate cuts from the FED later next month. But I think the story in big tech is less homogeneous trading a little bit more focus on you know where's the payoff or AI what's the supply and demand build for companies like in video moving forward? And I think it will likely provide opportunities when when we get some of these pullbacks for investors to reassess and maybe look at stocks that got away from them earlier this year.

Would you say that in video? I don't want to go into individual names.

Would you say that in video? I don't want to go into individual names.

But would you say these sorts of valuations when today Apple, Microsoft, Amazon, Meta, Google, Tesla are all the top performers in terms of points in the S and P five hundred, should you be wrapping up more in technology?

But would you say these sorts of valuations when today Apple, Microsoft, Amazon, Meta, Google, Tesla are all the top performers in terms of points in the S and P five hundred, should you be wrapping up more in technology?

With valuations at these levels, you.

With valuations at these levels, you.

At the top, as you said, like equal weights in these companies, and in technology just holding an equal weight is thirty forty percent of the S and P five hundred. So I don't think you need to get over your skis around you extending psitioning in these areas. But when we do see pullbacks in these big tech leaders, this is the time to start looking at them, at least if you've underweighted the area. Our view is that there is a broader group of stocks that are more attractive. They're particularly more attractive as earnings growth expectations are moving higher for outside for areas outside of the big tech. The economy seems to be on firm footing. The GDP grew by three percent in the second quarter, and the Fed is likely to start their you know, their moves to lower rates over the next few months and a few quarters. So the outlook for the rest of the four hundred and ninety three stocks that aren't the Magnificent seven are starting to look more attractive. And that's what we're seeing this month. Consumer staples, healthcare utilities. They're all at the top of the charts for August, and that might be because September is a pretty poor month for the market.

At the top, as you said, like equal weights in these companies, and in technology just holding an equal weight is thirty forty percent of the S and P five hundred. So I don't think you need to get over your skis around you extending psitioning in these areas. But when we do see pullbacks in these big tech leaders, this is the time to start looking at them, at least if you've underweighted the area. Our view is that there is a broader group of stocks that are more attractive. They're particularly more attractive as earnings growth expectations are moving higher for outside for areas outside of the big tech. The economy seems to be on firm footing. The GDP grew by three percent in the second quarter, and the Fed is likely to start their you know, their moves to lower rates over the next few months and a few quarters. So the outlook for the rest of the four hundred and ninety three stocks that aren't the Magnificent seven are starting to look more attractive. And that's what we're seeing this month. Consumer staples, healthcare utilities. They're all at the top of the charts for August, and that might be because September is a pretty poor month for the market.

And see that's a pretty sweet Bloomberg terminal chot over your left shoulder. What is that that's in video quarterly revenues.

And see that's a pretty sweet Bloomberg terminal chot over your left shoulder. What is that that's in video quarterly revenues.

That's right, that's right.

That's right, that's right.

And as the chart if you can see it in the back, it shows the actuals and the estimates starting to get closer.

And as the chart if you can see it in the back, it shows the actuals and the estimates starting to get closer.

And I think that's why you're seeing A.

And I think that's why you're seeing A.

Get more trouble start moving higher, even though they had great results last night.

Get more trouble start moving higher, even though they had great results last night.

So bear with me. I have a chot of my own. Let's bring it up. This is the beat in the quarter relative to expectations, and I think the point is that it was a It was a four percent beat against consensus, right, four percent upside surprise.

So bear with me. I have a chot of my own. Let's bring it up. This is the beat in the quarter relative to expectations, and I think the point is that it was a It was a four percent beat against consensus, right, four percent upside surprise.

Have you ever experienced a quarter like.

Have you ever experienced a quarter like.

This where everyone has just lost their absolute minds over a single name in a week where we had Central Bank speakers left, right and center and more economic data that we can fit into a one hour program.

This where everyone has just lost their absolute minds over a single name in a week where we had Central Bank speakers left, right and center and more economic data that we can fit into a one hour program.

Yeah, no, I mean I think the last and you started at volatility spike in early August.

Yeah, no, I mean I think the last and you started at volatility spike in early August.

Some of that was the japan Yen Carrie trade.

Some of that was the japan Yen Carrie trade.

But I do think expectations are really high in these big tech, magnificent names, and so not only do they have to surpass and kind of meet the perfection standards that investors put on it, but they actually need to surpass them by even more. That's getting harder and so as as my earlier comments said, I think you're going to see more less homogeneous trading between some of these big tech leaders, and it's really going to come down to fundamentals and capital spending and what's the revenue outlook, how.

But I do think expectations are really high in these big tech, magnificent names, and so not only do they have to surpass and kind of meet the perfection standards that investors put on it, but they actually need to surpass them by even more. That's getting harder and so as as my earlier comments said, I think you're going to see more less homogeneous trading between some of these big tech leaders, and it's really going to come down to fundamentals and capital spending and what's the revenue outlook, how.

Much are you beating?

Much are you beating?

Those things will play a much more dominant role in moving share prices around. But at the same at the same you know, the same brath. You have a lot of stocks that have not kept pace with these big tech companies that remain attractive in an environment where we're growing. And so if the FED is cutting interest rates and they can kind of engineer that soft landing, there's a lot of sectors of the economy that are more attractive today.

Those things will play a much more dominant role in moving share prices around. But at the same at the same you know, the same brath. You have a lot of stocks that have not kept pace with these big tech companies that remain attractive in an environment where we're growing. And so if the FED is cutting interest rates and they can kind of engineer that soft landing, there's a lot of sectors of the economy that are more attractive today.

So let's finish here in aggregate Nvidia and everything else.

So let's finish here in aggregate Nvidia and everything else.

That you've outlined.

That you've outlined.

Do you believe that this cycle, the investment cycle around AI is intact and it continues.

Do you believe that this cycle, the investment cycle around AI is intact and it continues.

Yeah, I think you know, and from your interview with Jensen Wong, I think it's very clear the AI infrastructure build and the architecture around that is in the very early innings. Some of these companies like Microsoft, Amazon, Meta Alphabet, they spent almost sixty billion dollars in the prior quarter on AI investment. They said they were going to continue that over the next several quarters. And so as these companies and as sovereign AI that Nvidia mentioned last night, as these countries start to build that infrastructure, there is a lot of opportunities still left in AI. However, like the like the tech boom in their early late nineties early two thousand we go through periods where expectations get really high, they need to reset, and then maybe stocks can move higher from there. And I think we're starting to see that now with big tech and the AI theme.

Yeah, I think you know, and from your interview with Jensen Wong, I think it's very clear the AI infrastructure build and the architecture around that is in the very early innings. Some of these companies like Microsoft, Amazon, Meta Alphabet, they spent almost sixty billion dollars in the prior quarter on AI investment. They said they were going to continue that over the next several quarters. And so as these companies and as sovereign AI that Nvidia mentioned last night, as these countries start to build that infrastructure, there is a lot of opportunities still left in AI. However, like the like the tech boom in their early late nineties early two thousand we go through periods where expectations get really high, they need to reset, and then maybe stocks can move higher from there. And I think we're starting to see that now with big tech and the AI theme.

Ansney sagem Bene, chief market strategist in Americaprise Financially you believe thank you now, coming out of a conversation with Max Levchin, CEO of a firm following yesterday's pretty strong earnings report, car you're looking at another name.

Ansney sagem Bene, chief market strategist in Americaprise Financially you believe thank you now, coming out of a conversation with Max Levchin, CEO of a firm following yesterday's pretty strong earnings report, car you're looking at another name.

I AM firms up, CrowdStrike up as well, more than five percent. This isn't reporting second quarter sales that basically top tenas estimates. Remember we were all worrying about the global IT outage back in July, but it doesn't seem to have had an immediate, as bad a result impact.

I AM firms up, CrowdStrike up as well, more than five percent. This isn't reporting second quarter sales that basically top tenas estimates. Remember we were all worrying about the global IT outage back in July, but it doesn't seem to have had an immediate, as bad a result impact.

We're currently higher.

We're currently higher.

Sublombo Technology, a firm delivering better than expected earning, sending shares upwards. The company's fourth quarter revenue and first quarter revenue forecast both coming in ahead of estimate, CEO Max Levchin saying the company had quote a killer quarter.

Sublombo Technology, a firm delivering better than expected earning, sending shares upwards. The company's fourth quarter revenue and first quarter revenue forecast both coming in ahead of estimate, CEO Max Levchin saying the company had quote a killer quarter.

Max joins us now here in San Francisco.

Max joins us now here in San Francisco.

I spent enough time with you to know that when you say something like that, you mean it. I wouldn't say that you're prone to superlatives like that. Why why a killer quarter?

I spent enough time with you to know that when you say something like that, you mean it. I wouldn't say that you're prone to superlatives like that. Why why a killer quarter?

Numbers speak for themselves.

Numbers speak for themselves.

I'll go beyond that.

I'll go beyond that.

Come on, tell me the story of what's happening behind your platform and your user base.

Come on, tell me the story of what's happening behind your platform and your user base.

I think there's a real momentum.

I think there's a real momentum.

You can tell by looking at our metrics and the qualitative measures that we take, and just the fact that we've outperformed the credit card industry, which is our direct competitor in terms of managing credit, and just the sheer number of launchers and merchant signings. Every metric that I could cast my eye on, say, wow, that is a really good quarter.

You can tell by looking at our metrics and the qualitative measures that we take, and just the fact that we've outperformed the credit card industry, which is our direct competitor in terms of managing credit, and just the sheer number of launchers and merchant signings. Every metric that I could cast my eye on, say, wow, that is a really good quarter.

So you know, sometimes we got to take a bath.

So you know, sometimes we got to take a bath.

Let's say the buy now pay Lata space is let's say more competitive since last year on the program. Maybe in that time. Caroline and I spoke with the Klan, the CEO, for example. They seem very optimistic, particularly about the United States. Yet you continue to grow. I don't have the data for market share, but could you just contextualize your performance in that sense?

Let's say the buy now pay Lata space is let's say more competitive since last year on the program. Maybe in that time. Caroline and I spoke with the Klan, the CEO, for example. They seem very optimistic, particularly about the United States. Yet you continue to grow. I don't have the data for market share, but could you just contextualize your performance in that sense?

Well, I think we are outpacing them reasonably well in terms of our growth relative to there is at least according to the stated numbers, not that I am competitive, but I'm very competitive, let's be honest. But the reality is it's a giant market and all of us together at up to less than ten percent of e commerce, and all of us are now looking at offline and so just the real share taking that's taking place is happening against cash, against credit cards, against debit cards, all the other payment types, and so there's just an incredible amount of road available to all of us.

Well, I think we are outpacing them reasonably well in terms of our growth relative to there is at least according to the stated numbers, not that I am competitive, but I'm very competitive, let's be honest. But the reality is it's a giant market and all of us together at up to less than ten percent of e commerce, and all of us are now looking at offline and so just the real share taking that's taking place is happening against cash, against credit cards, against debit cards, all the other payment types, and so there's just an incredible amount of road available to all of us.

And a firm in particular, what.

And a firm in particular, what.

Does that mean in terms of the macro context? Then, Max, how confident are you of the US consumer the global consumer right now?

Does that mean in terms of the macro context? Then, Max, how confident are you of the US consumer the global consumer right now?

Well, we're about to launch in the UK, so we'll find out exactly how confident I should be about the UK consumer. But the US consumer again, look at our investor supplement. Credit card companies have built and built and built up their delinquencies, and ours remained very firmly in control. Our consumer is borrowing and shopping and paying back, which is really important for our credit business.

Well, we're about to launch in the UK, so we'll find out exactly how confident I should be about the UK consumer. But the US consumer again, look at our investor supplement. Credit card companies have built and built and built up their delinquencies, and ours remained very firmly in control. Our consumer is borrowing and shopping and paying back, which is really important for our credit business.

But so far, so good. We do not see a major slowdown.

But so far, so good. We do not see a major slowdown.

We do not see a significant pullback and demand there's always new industries. A quarter or two ago, I was lamenting the loss of interest and electronics. It came back roaring through the last quarter, travels a little bit softer.

We do not see a significant pullback and demand there's always new industries. A quarter or two ago, I was lamenting the loss of interest and electronics. It came back roaring through the last quarter, travels a little bit softer.

I think people got their COVID post COVID fix.

I think people got their COVID post COVID fix.

But all in all, consumer is effectively shopping and buying and paying back and I don't see problems.

But all in all, consumer is effectively shopping and buying and paying back and I don't see problems.

Meanwhile, you're taking a bow and the market in particular likes the focus on profitability. Now I hate to bring them up again, but Karner actually did post a profit, even though they're still a private company that eying a twenty billion dollar valuation and they're cunning costs by leaning into AI. Is that something that you look at, Max, something that you feel you have to compete into.

Meanwhile, you're taking a bow and the market in particular likes the focus on profitability. Now I hate to bring them up again, but Karner actually did post a profit, even though they're still a private company that eying a twenty billion dollar valuation and they're cunning costs by leaning into AI. Is that something that you look at, Max, something that you feel you have to compete into.

Well, good news is that we've been in the AI business since inception. So one percent of our loans are underwritten individually. Every single time I'm entirely buying machines, and so we've been on the machine learning and AI training since base Eero.

Well, good news is that we've been in the AI business since inception. So one percent of our loans are underwritten individually. Every single time I'm entirely buying machines, and so we've been on the machine learning and AI training since base Eero.

And we don't think of.

And we don't think of.

It as a way to replace humans or to get rid of humans. We think of it as a great tool for increasing productivity, to give us an edge in underwriting customer service, et cetera.

It as a way to replace humans or to get rid of humans. We think of it as a great tool for increasing productivity, to give us an edge in underwriting customer service, et cetera.

And so yes, we're very, very active in AI.

And so yes, we're very, very active in AI.

We have lots of really fun things happening, both visible and not to the investor eye. But it's a huge part of what we do in terms of profitability. You know, I said it last night on the Earning Skull, and I just want to make sure I repeated this was not a contortionist thing we just did when we said, hey, profitability is on the horizon.

We have lots of really fun things happening, both visible and not to the investor eye. But it's a huge part of what we do in terms of profitability. You know, I said it last night on the Earning Skull, and I just want to make sure I repeated this was not a contortionist thing we just did when we said, hey, profitability is on the horizon.

It is very much part of the plan. It's always been part of the plan.

It is very much part of the plan. It's always been part of the plan.

It's just now close enough where I can say, here's a date with history. We're going to get Gap profitable and move right past it and do more.

It's just now close enough where I can say, here's a date with history. We're going to get Gap profitable and move right past it and do more.

Max and Carol also bear with me that I am a firm customer in the sense that you know, I used the firm to finance a specific thing for what it's worth. It was the Peloton tread. But the reason I did it is actually emphsis some point of sale. So when you go through the audience issubmitted, if you go and try buy something from Peloton, it's kind of a weird transaction, but you're presented with the firm as an option almost straight away. Do you negotiate that aggressively for those kind of bigger ticket items, I'm.

Max and Carol also bear with me that I am a firm customer in the sense that you know, I used the firm to finance a specific thing for what it's worth. It was the Peloton tread. But the reason I did it is actually emphsis some point of sale. So when you go through the audience issubmitted, if you go and try buy something from Peloton, it's kind of a weird transaction, but you're presented with the firm as an option almost straight away. Do you negotiate that aggressively for those kind of bigger ticket items, I'm.

Not sure individual deals are worth commenting on. But every deal where we are presented at the point of sale, and every deal where you see it up funnel as what might call it before you even get into the checkouts, are absolutely directly integrated. So we go to the merchant, we spend a lot of time with them making sure that we are as helpful as possible to their ability to sell, be it a Pelton tread or a mattress or.

Not sure individual deals are worth commenting on. But every deal where we are presented at the point of sale, and every deal where you see it up funnel as what might call it before you even get into the checkouts, are absolutely directly integrated. So we go to the merchant, we spend a lot of time with them making sure that we are as helpful as possible to their ability to sell, be it a Pelton tread or a mattress or.

Anything in between. And that is what gives us a huge advantage.

Anything in between. And that is what gives us a huge advantage.

The consumer has the confidence and the clarity of what it might cost them to borrow money to buy something.

The consumer has the confidence and the clarity of what it might cost them to borrow money to buy something.

Max.

Max.

While you're here, could I please ask you, as a story out from Blomberg Law about a firm face sing a class action suit after the Evolved bank breach situation, comment on that please.

While you're here, could I please ask you, as a story out from Blomberg Law about a firm face sing a class action suit after the Evolved bank breach situation, comment on that please.

Probably a very bad idea to comment and ongoing or potential future litigation, so I'm not sure I have anything to say on that. You know, I said it the day of Evolved news, which is certainly unfortunate that the firm card numbers were all safe. We did not need to rotate them and give people new cards. That is now confirmed no card numbers have been leaked and our consumers are safe. If you have your firm card, please continue using it.

Probably a very bad idea to comment and ongoing or potential future litigation, so I'm not sure I have anything to say on that. You know, I said it the day of Evolved news, which is certainly unfortunate that the firm card numbers were all safe. We did not need to rotate them and give people new cards. That is now confirmed no card numbers have been leaked and our consumers are safe. If you have your firm card, please continue using it.

It works just fine.

It works just fine.

Thank you.

Thank you.

Thanks Love Chin, It's always great to have you on the show. We appreciate it. It's taking about the CEO of a firm today.

Thanks Love Chin, It's always great to have you on the show. We appreciate it. It's taking about the CEO of a firm today.

Telegram ceo Pavel durov was charged in France for complicity in the spread of sexual images of children and other crimes.

Telegram ceo Pavel durov was charged in France for complicity in the spread of sexual images of children and other crimes.

It's a rare example of.

It's a rare example of.

A tech leader being held liable for the way their platform is used. I want to get right to the details with Bloomberg's Allan Katz or Paris bureau chief, and I think fill in the details. My understanding is Duroff is out on a significant bail and there is a process to come.

A tech leader being held liable for the way their platform is used. I want to get right to the details with Bloomberg's Allan Katz or Paris bureau chief, and I think fill in the details. My understanding is Duroff is out on a significant bail and there is a process to come.

So he is out of the sort of a holding cells the way they do it in France. From that four day interrogation that he had before being presented to the judge, he had to post a five million euro bond for that, so that's about five and a half million dollars, so it's a lot of money. That said, he's according to Bloomberg's you know, wealth ranking, he's quite a wealthy fellow, and so he could certainly afford it. And from here on out, at least according to the initial ruling from what's called a jugually liberte, he has to check in twice a week with authorities to make sure that he's still in France and he's not allowed to leave the country.

So he is out of the sort of a holding cells the way they do it in France. From that four day interrogation that he had before being presented to the judge, he had to post a five million euro bond for that, so that's about five and a half million dollars, so it's a lot of money. That said, he's according to Bloomberg's you know, wealth ranking, he's quite a wealthy fellow, and so he could certainly afford it. And from here on out, at least according to the initial ruling from what's called a jugually liberte, he has to check in twice a week with authorities to make sure that he's still in France and he's not allowed to leave the country.

So that's sort of.

So that's sort of.

The process in the immediate future. And now it goes to an investigation where the investigating magistrate will continue to look into the case, and that could take months, could take a year longer, Like, it's really unclear how long the rest of this process might take beyond that.

The process in the immediate future. And now it goes to an investigation where the investigating magistrate will continue to look into the case, and that could take months, could take a year longer, Like, it's really unclear how long the rest of this process might take beyond that.

And really the case here is that dura off Telegram, which is CEO of basically in no way helps when it comes to investigations. They refuse, it said, to run legal wire taps on suspects, particularly when it comes to organized criminals and particularly sexual exploitation of children. Is that really wants at heart here, the fact that he doesn't want to take any movement, any action as a leader of a social media platform.

And really the case here is that dura off Telegram, which is CEO of basically in no way helps when it comes to investigations. They refuse, it said, to run legal wire taps on suspects, particularly when it comes to organized criminals and particularly sexual exploitation of children. Is that really wants at heart here, the fact that he doesn't want to take any movement, any action as a leader of a social media platform.

Well, yes, The action though that you're talking about is he doesn't he deliberately, according to French officials, he deliberately did not respond to or applied to what they call legitimate requests for informational for help in other investigations that were running in criminal activities that they saw on the Telegram network. And that's different than the way that most other messaging services operate, and that's really why they issued the arrest warrant for him in the first place. And the prosecutor made a point of that in the statement last night, saying that was really what was particular about Telegram as a platform, and not just in France, but she specifically mentioned Belgium as well as having the same issues with Telegram.

Well, yes, The action though that you're talking about is he doesn't he deliberately, according to French officials, he deliberately did not respond to or applied to what they call legitimate requests for informational for help in other investigations that were running in criminal activities that they saw on the Telegram network. And that's different than the way that most other messaging services operate, and that's really why they issued the arrest warrant for him in the first place. And the prosecutor made a point of that in the statement last night, saying that was really what was particular about Telegram as a platform, and not just in France, but she specifically mentioned Belgium as well as having the same issues with Telegram.

A near complete lack of response, as pass prosecutor put it, we appreciate it. Alan Katz, thank you, Welcome back to Blue meg Technology. And Caroline Hide in New York and.

A near complete lack of response, as pass prosecutor put it, we appreciate it. Alan Katz, thank you, Welcome back to Blue meg Technology. And Caroline Hide in New York and.

I met Ludlow in San Francisco, and I.

I met Ludlow in San Francisco, and I.

Just want to point out what is happening on the markets today because we've had so much anxiety around this one name, all around Nvidia, the fact that it was the most crucial that it had ever been to the market. It's eight percent waiting in the NASDAC, it's six percent waiting in the SMP would mean that the direction of travel after earnings would dictate that for the benchmark, not so we're currently up one point one percent, but then has that one hundred despite it's fourteen percent waiting in the socks. We're up one point four percent and it is lower by three point six percent. The reason is lower, of course, d is what you poured over yesterday was the fact that, yes, it's still beat in its quarter that was just announced, and the fact that its forecast looked pretty decent. But it was some of the issues that ramp up in Blackwell in particular that caused a little bit of uncertainty.

Just want to point out what is happening on the markets today because we've had so much anxiety around this one name, all around Nvidia, the fact that it was the most crucial that it had ever been to the market. It's eight percent waiting in the NASDAC, it's six percent waiting in the SMP would mean that the direction of travel after earnings would dictate that for the benchmark, not so we're currently up one point one percent, but then has that one hundred despite it's fourteen percent waiting in the socks. We're up one point four percent and it is lower by three point six percent. The reason is lower, of course, d is what you poured over yesterday was the fact that, yes, it's still beat in its quarter that was just announced, and the fact that its forecast looked pretty decent. But it was some of the issues that ramp up in Blackwell in particular that caused a little bit of uncertainty.

And you spoke to the CEO just about that.

And you spoke to the CEO just about that.

I did.

I did.

I did speak with Nvidia CEO Jensen Wang following what was kind of seen as a disappointing earnings report, so bizarre to say that out loud. He laid out his and the company's expectations for next year surrounding the production of Blackwell chips.

I did speak with Nvidia CEO Jensen Wang following what was kind of seen as a disappointing earnings report, so bizarre to say that out loud. He laid out his and the company's expectations for next year surrounding the production of Blackwell chips.

Listen to this.

Listen to this.

We made a mass change to improve the yield. Functionality of Blackwell is wonderful. We're sampling Blackwell all over the world today. We show people giving tours to people of the Blackwall systems we have up and running. You could find pictures of Blackwell systems all over the web. We have started volume production volume. Production will ship in Q four. Q four, we will have billions of dollars.

We made a mass change to improve the yield. Functionality of Blackwell is wonderful. We're sampling Blackwell all over the world today. We show people giving tours to people of the Blackwall systems we have up and running. You could find pictures of Blackwell systems all over the web. We have started volume production volume. Production will ship in Q four. Q four, we will have billions of dollars.

Of Blackwell revenues and.

Of Blackwell revenues and.

We will ramp from there. We will ramp from there.

We will ramp from there. We will ramp from there.

The demand for Blackwell far exceeds its supply, of course in the beginning, because the demand is so great. But we're going to have lots and lots of supply and we will be able to ramp. Starting in Q four we have billions of dollars of revenues, and we will ramp from there into Q one, into Q two and two next year.

The demand for Blackwell far exceeds its supply, of course in the beginning, because the demand is so great. But we're going to have lots and lots of supply and we will be able to ramp. Starting in Q four we have billions of dollars of revenues, and we will ramp from there into Q one, into Q two and two next year.

We're going to have a great next year as well.

We're going to have a great next year as well.

Jensen, what is the demand for accelerated computing beyond the hyperscalers and meta.

Jensen, what is the demand for accelerated computing beyond the hyperscalers and meta.

Hyperscalers represent about forty five percent of our total data center business. We're relatively diversified today. We have hyperscalers, we have Internet service providers, we have sovereign ais, we have industries enterprises, so it's fairly fairly diversified a site outside of hyperscalers.

Hyperscalers represent about forty five percent of our total data center business. We're relatively diversified today. We have hyperscalers, we have Internet service providers, we have sovereign ais, we have industries enterprises, so it's fairly fairly diversified a site outside of hyperscalers.

The other fifty five percent.

The other fifty five percent.

Now, the application use across all of that, all of that data center starts with accelerated computing. Accelerated computing does everything, of course, from Well the models the things that we know about, which is generative AI, and that gets most of the attention. But at the core we also do database processing, pre and post processing of data before you use it for generative AI, trans coding, scientific simulations, computer graph of course, image processing of course, and so there's tons of applications that people use are accelerated computing for, and one of them is generative AI.

Now, the application use across all of that, all of that data center starts with accelerated computing. Accelerated computing does everything, of course, from Well the models the things that we know about, which is generative AI, and that gets most of the attention. But at the core we also do database processing, pre and post processing of data before you use it for generative AI, trans coding, scientific simulations, computer graph of course, image processing of course, and so there's tons of applications that people use are accelerated computing for, and one of them is generative AI.

That was in Vidia c Jensen one speaking mate with me last night, Cara, and yeah, I mean body language, what he's wearing.

That was in Vidia c Jensen one speaking mate with me last night, Cara, and yeah, I mean body language, what he's wearing.

There's a lot to talk about.

There's a lot to talk about.

No lever ed no lever who wore a vomber jacket. But look, there is a lot of deep diving on the numbers in particular, and let's get some of that reaction from our guests on Bloomberg TV.

No lever ed no lever who wore a vomber jacket. But look, there is a lot of deep diving on the numbers in particular, and let's get some of that reaction from our guests on Bloomberg TV.

I'm not concerned.

I'm not concerned.

I think if you look at Nvidia, they still control this market and will continue to I would say, dominate this space over the next three to five years.

I think if you look at Nvidia, they still control this market and will continue to I would say, dominate this space over the next three to five years.

Delivering chips at this rate, at this scale is fantastic and unprecedented. I don't think there's much of a revenue issue here, of a growth issue here. I think a little bit of a pushback is probably more around the margin situation, that type.

Delivering chips at this rate, at this scale is fantastic and unprecedented. I don't think there's much of a revenue issue here, of a growth issue here. I think a little bit of a pushback is probably more around the margin situation, that type.

Of growth isn't necessarily re realistic or sustainable in the long term. Two it's not necessary the long term either.

Of growth isn't necessarily re realistic or sustainable in the long term. Two it's not necessary the long term either.

At the end of the day, we still sense enormous an urgent demand across the board, and that really mitigates, in order of you, the risk of opposed in shipments as customers wait for the next generation of chips to be available in volumes.

At the end of the day, we still sense enormous an urgent demand across the board, and that really mitigates, in order of you, the risk of opposed in shipments as customers wait for the next generation of chips to be available in volumes.

Not enough, we need more reaction, I coo Yoshioka joins us now senior portfolio manager at Wealth Enhancement Group the market seemingly thinking it's a disappointment.

Not enough, we need more reaction, I coo Yoshioka joins us now senior portfolio manager at Wealth Enhancement Group the market seemingly thinking it's a disappointment.

Did you think it was.

Did you think it was.

A disappointment, Hi, Kroly, You know I was not disappointed with the actual numbers here.

A disappointment, Hi, Kroly, You know I was not disappointed with the actual numbers here.

I think, you know, expectations were.

I think, you know, expectations were.

Very high going into this particular print, and you know, especially when you're here, things like events in New York in which you know, bars were being rented out to see what the earnings report was going to be.

Very high going into this particular print, and you know, especially when you're here, things like events in New York in which you know, bars were being rented out to see what the earnings report was going to be.

You know, it gets to do and more. I was not in one. I was at my desk looking at the numbers.

You know, it gets to do and more. I was not in one. I was at my desk looking at the numbers.

Joe Wisenthal, I saw open reporter was indeed out.

Joe Wisenthal, I saw open reporter was indeed out.

There in the bars.

There in the bars.

But I'm interested, I co and even though you did see this overall disappointment in very high expectations, was there any cause for concern? Do you still think is ed put to our previous guest, Anthony, that the AI trade is intact.

But I'm interested, I co and even though you did see this overall disappointment in very high expectations, was there any cause for concern? Do you still think is ed put to our previous guest, Anthony, that the AI trade is intact.

The AI trade is intact. I think we have to put this in the longer term context. You know, in Video was generating revenues of about twenty seven billion about two years ago. They're on pace to generate revenues of over one hundred and twenty five billion this year. That's just enormous. Is that growth rates sustainable?

The AI trade is intact. I think we have to put this in the longer term context. You know, in Video was generating revenues of about twenty seven billion about two years ago. They're on pace to generate revenues of over one hundred and twenty five billion this year. That's just enormous. Is that growth rates sustainable?

You know, it clearly is not.

You know, it clearly is not.

But they're continuing to grow and the expectations are for growth of over forty percent in revenues for next year. And Blackwell is just going to be another step up in allowing that to happen.

But they're continuing to grow and the expectations are for growth of over forty percent in revenues for next year. And Blackwell is just going to be another step up in allowing that to happen.

Oko Wealth Enhancement Group has like what seven point eight million in video shares, like a billion dollars worth of stock. I know that you were part of our kind of watch party last night watching the interview.

Oko Wealth Enhancement Group has like what seven point eight million in video shares, like a billion dollars worth of stock. I know that you were part of our kind of watch party last night watching the interview.

You lead research, right, you use.

You lead research, right, you use.

Your expertise to try and work out what's going on. What did you work out during the course of that conversation?

Your expertise to try and work out what's going on. What did you work out during the course of that conversation?

You know, I think this is a long game.

You know, I think this is a long game.

I think we're still in the early innings of AI deployment, the hyperscalers, meta, there's so much use from all of these It is table stakes for these large cloud providers, and they're seeing productivity gains from the use of AI.

I think we're still in the early innings of AI deployment, the hyperscalers, meta, there's so much use from all of these It is table stakes for these large cloud providers, and they're seeing productivity gains from the use of AI.

So I think that's going to continue. It's going to proliferate.

So I think that's going to continue. It's going to proliferate.

It is going to take time, but you know, the Internet took time as well, and twenty years later, it's still evolving.

It is going to take time, but you know, the Internet took time as well, and twenty years later, it's still evolving.

Were you convinced by what Jensen Wong just said we played in that clip just then that their business has broadened out beyond the hyperscalers.

Were you convinced by what Jensen Wong just said we played in that clip just then that their business has broadened out beyond the hyperscalers.

Yes, I mean they mentioned about, you know, sovereign entities purchasing and being in that low double digit billions of dollars in terms of revenues.

Yes, I mean they mentioned about, you know, sovereign entities purchasing and being in that low double digit billions of dollars in terms of revenues.

You know, that was exciting to see.

You know, that was exciting to see.

And you know, hyper scalers were forty five percent, which means fifty five percent is other revenues.

And you know, hyper scalers were forty five percent, which means fifty five percent is other revenues.

So that is a nice diversification as well.

So that is a nice diversification as well.

But that consistency from the hyper spit scalers is likely to continue.

But that consistency from the hyper spit scalers is likely to continue.

It's just going to be choppy year to year.

It's just going to be choppy year to year.

You know, many of these companies, Apple, Microsoft, Amazon, Google, they're all going to be evaluating their cap X budgets for next year and each year it's not going to be the same and so we have to be diligent about that. But for the most part, they will be spending in order to get that productivity enhancement going forward.

You know, many of these companies, Apple, Microsoft, Amazon, Google, they're all going to be evaluating their cap X budgets for next year and each year it's not going to be the same and so we have to be diligent about that. But for the most part, they will be spending in order to get that productivity enhancement going forward.

What about competition?

What about competition?

A lot of people feeling that if there is just a slight blip in this annual cadence of innovation, maybe AMD can start to work its way in a little bit more.

A lot of people feeling that if there is just a slight blip in this annual cadence of innovation, maybe AMD can start to work its way in a little bit more.

Do you agree?

Do you agree?

Sure?

Sure?

You know, I think from a high per scaler perspective or from the cloud providers, the Internet service providers, you always want to have more than just one provider of your chips, so you know, there is room for competition, I think, you know, that's always something that we have to keep in mind. You know, let's not forget that Intel had the majority of data center server share for many, many years, and here we are with Nvidia really coming out and taking share AMD as well. So competition is always something that we look for and watch out for.

You know, I think from a high per scaler perspective or from the cloud providers, the Internet service providers, you always want to have more than just one provider of your chips, so you know, there is room for competition, I think, you know, that's always something that we have to keep in mind. You know, let's not forget that Intel had the majority of data center server share for many, many years, and here we are with Nvidia really coming out and taking share AMD as well. So competition is always something that we look for and watch out for.

Cautionary tail.

Cautionary tail.

What's interesting is you have holds on Texas instruments on Broadcom what many of thought perhaps hasn't moved.

What's interesting is you have holds on Texas instruments on Broadcom what many of thought perhaps hasn't moved.

At the pace that we're expecting.

At the pace that we're expecting.

Was that these hyperscalers would make their own chips to compete in quite the same way, using a Texas instruments, using CSMC for example. I'm interested in if ever you see that really coming in as a competition.

Was that these hyperscalers would make their own chips to compete in quite the same way, using a Texas instruments, using CSMC for example. I'm interested in if ever you see that really coming in as a competition.

You know, it's tough.

You know, it's tough.

You know, the design part of those chips is you know where Nvidia has the advantage along with the software associated with AI.

You know, the design part of those chips is you know where Nvidia has the advantage along with the software associated with AI.

So you know they're Kuda.

So you know they're Kuda.

You know, all the chips are built off of Kuda, and that really provides them with the benefit that many other chip providers and chip manufacturers just don't have.

You know, all the chips are built off of Kuda, and that really provides them with the benefit that many other chip providers and chip manufacturers just don't have.

Can you define what Nvidia is, what it actually is.

Can you define what Nvidia is, what it actually is.

You know, Nvidia is a chip maker at the end of the day, right, but it is a chip maker and is a primary beneficiary for artificial intelligence and how computing will go forward in the coming decade.

You know, Nvidia is a chip maker at the end of the day, right, but it is a chip maker and is a primary beneficiary for artificial intelligence and how computing will go forward in the coming decade.

Good attempt.

Good attempt.

I think Jensen one might disagree with you and say it's more than that.

I think Jensen one might disagree with you and say it's more than that.

We'll get another stab at it incoming.

We'll get another stab at it incoming.

Call is Ayoka yoshiok, senior port Lafolio manager, a wealth enhancement group.

Call is Ayoka yoshiok, senior port Lafolio manager, a wealth enhancement group.

Thank you.

Thank you.

Another story we've been watching is May twan stock jumping the most in about six months after China's meal delivery leader posted strong earnings ununveiled a one billion dollar buyback. It's a positive signal for investors who are increasingly worried about domestic consumer malaise in China. It signals may Twan is beating rivals like byte Dance, which joined Ali Barber in its main market character.

Another story we've been watching is May twan stock jumping the most in about six months after China's meal delivery leader posted strong earnings ununveiled a one billion dollar buyback. It's a positive signal for investors who are increasingly worried about domestic consumer malaise in China. It signals may Twan is beating rivals like byte Dance, which joined Ali Barber in its main market character.

Coming up, we've got more of a conversation on AI about the regulation. Russell Wold, deputy director of Stanford's Institute for Humans Centered AI, joins US. Let's get a quick check on AI. Another area meta at one point six percent. They have an announcement. LAMA foundational model was downloaded over twenty million times in the past month, approaching three hundred and fifty million total downloads. Basically, it shows traction, so as Bloomberg Intelligence says, maybe some new licensing.

Coming up, we've got more of a conversation on AI about the regulation. Russell Wold, deputy director of Stanford's Institute for Humans Centered AI, joins US. Let's get a quick check on AI. Another area meta at one point six percent. They have an announcement. LAMA foundational model was downloaded over twenty million times in the past month, approaching three hundred and fifty million total downloads. Basically, it shows traction, so as Bloomberg Intelligence says, maybe some new licensing.

Revenue stream in the horizon. This is Blomberg Technology.

Revenue stream in the horizon. This is Blomberg Technology.

Sources telling Bloomberg Open Ai is getting closer to raising funding at evaluation of more than one hundred billion dollars in a round led by Frive Capital, Bloomberg Sharene Gafari joins us now for more and kind of you about this. Back in December, you and I reported about the idea of like a primary more secondaries by some pretty big number.

Sources telling Bloomberg Open Ai is getting closer to raising funding at evaluation of more than one hundred billion dollars in a round led by Frive Capital, Bloomberg Sharene Gafari joins us now for more and kind of you about this. Back in December, you and I reported about the idea of like a primary more secondaries by some pretty big number.

More details please, that's right.

More details please, that's right.

So open ai is advancing talks to raise a new round of financing that would value it at one hundred billion dollars, and that round of financing would be for one billion led by Thrive Capital.

So open ai is advancing talks to raise a new round of financing that would value it at one hundred billion dollars, and that round of financing would be for one billion led by Thrive Capital.

Do we know why they're raising funding?

Do we know why they're raising funding?

Developing AI is incredibly expensive?

Developing AI is incredibly expensive?

Right?

Right?

So, according to an employee memo written by obeniic Foe yesterday, you know the company is doing this because they need to cover their operating and computing costs, right, the incredible costs of GPUs that they need to keep scaling up their large language models to reach their goal of achieving some kind of artificial general intelligence. That is a project that just demands sort of an endless pile of cash.

So, according to an employee memo written by obeniic Foe yesterday, you know the company is doing this because they need to cover their operating and computing costs, right, the incredible costs of GPUs that they need to keep scaling up their large language models to reach their goal of achieving some kind of artificial general intelligence. That is a project that just demands sort of an endless pile of cash.

With all of Microsoft backing Sharhan KAfari, they still need more.

With all of Microsoft backing Sharhan KAfari, they still need more.

We thank you.

We thank you.

Meanwhile, California's state Assembly approved a controversial AI safety bill that requires companies to make sure their technology doesn't cause major harm. Now, the bill SB ten forty seven would require companies to take precautions such as implementing a kill switch that can turn off their technology at any time. Russell Wold as deputy director of the Stanford HI and you're discussing the bill and larger AI landscape with us because Russell many would say, well, that's a good thing, being able to control technology that perhaps some are fearful of. Why is this a threat to your academic Wesse such.

Meanwhile, California's state Assembly approved a controversial AI safety bill that requires companies to make sure their technology doesn't cause major harm. Now, the bill SB ten forty seven would require companies to take precautions such as implementing a kill switch that can turn off their technology at any time. Russell Wold as deputy director of the Stanford HI and you're discussing the bill and larger AI landscape with us because Russell many would say, well, that's a good thing, being able to control technology that perhaps some are fearful of. Why is this a threat to your academic Wesse such.

Well, good morning, Caroline, and thank you for having me. I think what's really important about good policy is it should solve for the harm that it's trying to solve for in the case of SB ten forty seven, and unfortunately does not do that. However, what is most concerning from my perspective is that harms academia.

Well, good morning, Caroline, and thank you for having me. I think what's really important about good policy is it should solve for the harm that it's trying to solve for in the case of SB ten forty seven, and unfortunately does not do that. However, what is most concerning from my perspective is that harms academia.

Harms academia because it hurts.

Harms academia because it hurts.

The open source community and makes it very difficult for the open source community, startups or other industry or large players like Meta who puts out the Lama model for us to be able to dissect understand how that works, what its impact will be for society. And we need to be able to train the next generation to be AI leaders. And if we can't be able to have access to this because this could hurt this entire community, then I think SB ten forty seven is actually counterproductive.

The open source community and makes it very difficult for the open source community, startups or other industry or large players like Meta who puts out the Lama model for us to be able to dissect understand how that works, what its impact will be for society. And we need to be able to train the next generation to be AI leaders. And if we can't be able to have access to this because this could hurt this entire community, then I think SB ten forty seven is actually counterproductive.

Now, what those who have written SB ten and would come back with and indeed we did have Scott Wiener on the show previously is saying, look, we're not taxing, we're not asking those that are running smaller models. We're spending less than ten million or so. We are only after the big players. Why is it such a crucial impact? For example, when Lama seems to be going great, we just had numbers out of Meta that there's twenty million times downloads in the past month.

Now, what those who have written SB ten and would come back with and indeed we did have Scott Wiener on the show previously is saying, look, we're not taxing, we're not asking those that are running smaller models. We're spending less than ten million or so. We are only after the big players. Why is it such a crucial impact? For example, when Lama seems to be going great, we just had numbers out of Meta that there's twenty million times downloads in the past month.

Alone, right, And that's precisely the point.

Alone, right, And that's precisely the point.

Meta alone right now is looking at maybe restricting Lama's use in the EU because of the overly stringent areas.

Meta alone right now is looking at maybe restricting Lama's use in the EU because of the overly stringent areas.

SB ten forty seven is by.

SB ten forty seven is by.

Far more far reaching than this when it comes to the liability issues related to that, and the problem with that is is companies like Meta won't be releasing this if there are such strong liability that can come against them for this, and without that, we won't be able to understand and interrogate these models and see how they work the way academia does and how we do that very well, so that will off an entire choke point to us. For second, I would also add that academia itself well resourced universities do want to look into how to build these, and so there's consortiums of universities that might want to spend more money in building these so we can train the next generation on how this works.

Far more far reaching than this when it comes to the liability issues related to that, and the problem with that is is companies like Meta won't be releasing this if there are such strong liability that can come against them for this, and without that, we won't be able to understand and interrogate these models and see how they work the way academia does and how we do that very well, so that will off an entire choke point to us. For second, I would also add that academia itself well resourced universities do want to look into how to build these, and so there's consortiums of universities that might want to spend more money in building these so we can train the next generation on how this works.

And we won't be able to do that because we won't.

And we won't be able to do that because we won't.

Be able to afford all of the lawyers and the legal fees that will be required to be able to stay in compliance.

Be able to afford all of the lawyers and the legal fees that will be required to be able to stay in compliance.

Something that you just said, Russell about sort of academic access to technology. You know, we had Nvidia's earnings last night and a discussion with Jensen Wong I had was about the broadening out of the use of AI accelerators beyond the hyperscalas can Stamford Institute for Human Centered AI get access to a cluster like is this a situation that works for you?

Something that you just said, Russell about sort of academic access to technology. You know, we had Nvidia's earnings last night and a discussion with Jensen Wong I had was about the broadening out of the use of AI accelerators beyond the hyperscalas can Stamford Institute for Human Centered AI get access to a cluster like is this a situation that works for you?

It's actually a significant challenge for us.

It's actually a significant challenge for us.

We actually just were able to secure thirty h one hundreds, and that sounds one, but it's unfortunate because the reality is is if you look at what Meta has tried to secure, they're trying to secure three hundred thousand.

We actually just were able to secure thirty h one hundreds, and that sounds one, but it's unfortunate because the reality is is if you look at what Meta has tried to secure, they're trying to secure three hundred thousand.

So the reality is.

So the reality is.

Is academia is constrained as to what it can do in this particular space, and we are very limited, and what we need to do is have.

Is academia is constrained as to what it can do in this particular space, and we are very limited, and what we need to do is have.

Congress past the Create AI Act.

Congress past the Create AI Act.

That is a government a subsidizing compute and data for academic research, and it's desperately needed.

That is a government a subsidizing compute and data for academic research, and it's desperately needed.

And academia also needs to.

And academia also needs to.

Consider how to reform here and put greater degree of investment in this so that we can be able to train students so that they can be the next DAI leaders.

Consider how to reform here and put greater degree of investment in this so that we can be able to train students so that they can be the next DAI leaders.

SB ten forty seven. Sorry to go back to it. Is this the end of the story or do you think you'll continue to be consulted as this moves forward.

SB ten forty seven. Sorry to go back to it. Is this the end of the story or do you think you'll continue to be consulted as this moves forward.

We are being continually consulted on this.

We are being continually consulted on this.

But the reality is is there's a chorus of people who are deeply concerned about this. It's not just academia. It is deed, small businesses that are startups that are afraid of what this will mean for them.

But the reality is is there's a chorus of people who are deeply concerned about this. It's not just academia. It is deed, small businesses that are startups that are afraid of what this will mean for them.

And there's this ironic side of this.

And there's this ironic side of this.

It bizarrely will entranch er make the most powerful companies even more secure in this space because they can afford the legal fees, they can afford all the compliance fees and things that come from this. Startups in academia cannot.

It bizarrely will entranch er make the most powerful companies even more secure in this space because they can afford the legal fees, they can afford all the compliance fees and things that come from this. Startups in academia cannot.

Russell Wald of Stanford Institute for Human Centered Artificial Intelligence, thank.

Russell Wald of Stanford Institute for Human Centered Artificial Intelligence, thank.

You just check in on shares of Salesforce arising after the company delivered in earnings forecus look that top estimates and announced some changes at the c suite.

You just check in on shares of Salesforce arising after the company delivered in earnings forecus look that top estimates and announced some changes at the c suite.

Amy Weaver stepping down a CFO.

Amy Weaver stepping down a CFO.

After four years in the job, numerks Brady Ford across it. What else do we hear other than executive shake up?

After four years in the job, numerks Brady Ford across it. What else do we hear other than executive shake up?

What we really learned is that software companies and cumbents are not sure where they fit in the AI moment. Last night, Salesforce rebranded it's AI tools not as assistants, but as agents. And we heard this word over one hundred times. They kept saying, we are making agents.