Bloomberg Audio Studios, podcasts, radio news from the heart of where innovation, money and power collide in Silicon Valley and beyond. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

Bloomberg Audio Studios, podcasts, radio news from the heart of where innovation, money and power collide in Silicon Valley and beyond. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

Live from New York. This is Blueberg Technology Coming up.

Live from New York. This is Blueberg Technology Coming up.

Four of the Magnificent Seven are set to report earnings this week. The giants make up nearly twenty percent waiting in the S and P five hundred.

Four of the Magnificent Seven are set to report earnings this week. The giants make up nearly twenty percent waiting in the S and P five hundred.

So what's priced in?

So what's priced in?

Plus?

Plus?

IBM plans to invest one hundred and fifty billion dollars in the US over the next five years with Quantumer mainframes made in America.

IBM plans to invest one hundred and fifty billion dollars in the US over the next five years with Quantumer mainframes made in America.

And we will be joined by the CEO of Palo Alto Networks.

And we will be joined by the CEO of Palo Alto Networks.

He announces a new deal to leverage the AI security opportunity. But first we have Meta Microsoft come Wednesday. We then have Apple Amazon.

He announces a new deal to leverage the AI security opportunity. But first we have Meta Microsoft come Wednesday. We then have Apple Amazon.

What is priced in? Where have it? Investors in?

What is priced in? Where have it? Investors in?

Analysts already started to think about the pull forward for their fiscal quarter they report because of Taris and what of the macro economic environment going into the full year earnings expectations. Ran Vastella can can dig in because Ryan, what's so interesting about these numbers the fact that many analysts just in the lack of clarity, haven't been really able to downgrade their expectations.

Analysts already started to think about the pull forward for their fiscal quarter they report because of Taris and what of the macro economic environment going into the full year earnings expectations. Ran Vastella can can dig in because Ryan, what's so interesting about these numbers the fact that many analysts just in the lack of clarity, haven't been really able to downgrade their expectations.

Yeah.

Yeah.

Absolutely, we're starting to see this in some names, especially for twenty twenty six, But for the moment, people are sort of holding firm with their expectations. We really do not know what to expect out of results this quarter. We really do not know what any company is going to say about really anything about the economic environment, about their outlooks for the rest of the year. That makes it extremely difficult for analysts to know how to sort of, you know, peg their expectations their estimates, and in turn that means that valuations right now are sort of up in the air.

Absolutely, we're starting to see this in some names, especially for twenty twenty six, But for the moment, people are sort of holding firm with their expectations. We really do not know what to expect out of results this quarter. We really do not know what any company is going to say about really anything about the economic environment, about their outlooks for the rest of the year. That makes it extremely difficult for analysts to know how to sort of, you know, peg their expectations their estimates, and in turn that means that valuations right now are sort of up in the air.

We really do not know what fair value.

We really do not know what fair value.

Looks like because it is hard to evaluate these companies on a price to earnings basis if there is so much uncertainty about the earnings.

Looks like because it is hard to evaluate these companies on a price to earnings basis if there is so much uncertainty about the earnings.

I mean, look, we're looking currently at analysts being very slow to cut profit estimates on the twelve month earnings projections for a Meta for example. But Ryan Meta is going to feel the effects of Chinese companies like Timu like Shean no longer advertising with them. Potentially we're going to see a downdraft there. And also they've got hardware that they have to import from China. Are we going to get any signal of what that does to the bottom line?

I mean, look, we're looking currently at analysts being very slow to cut profit estimates on the twelve month earnings projections for a Meta for example. But Ryan Meta is going to feel the effects of Chinese companies like Timu like Shean no longer advertising with them. Potentially we're going to see a downdraft there. And also they've got hardware that they have to import from China. Are we going to get any signal of what that does to the bottom line?

Yeah, I mean, I think these kinds of questions are really what is paramount for investors right now. Obviously, these companies have their own sort of individual impacts related to tariffs and so forth. A company like Meta, which is so heavily reliant on online advertising, it's not going to be as direct for them as it will be for a company like Apple, which is hardware based. So I mean, obviously we're going to see different kinds of impacts, different levels of impact. But I think overall, there's still so much uncertainty about what the economy is going to look like, not even a year from now, but even a few quarters from now. We are a couple of months from now, So again, any kind of clarity investors will get will be certainly welcome, But it's hard to know how any company can even be too confident about anything right now.

Yeah, I mean, I think these kinds of questions are really what is paramount for investors right now. Obviously, these companies have their own sort of individual impacts related to tariffs and so forth. A company like Meta, which is so heavily reliant on online advertising, it's not going to be as direct for them as it will be for a company like Apple, which is hardware based. So I mean, obviously we're going to see different kinds of impacts, different levels of impact. But I think overall, there's still so much uncertainty about what the economy is going to look like, not even a year from now, but even a few quarters from now. We are a couple of months from now, So again, any kind of clarity investors will get will be certainly welcome, But it's hard to know how any company can even be too confident about anything right now.

Alphabet beat last week, and all of these stocks swored the previous week as well. Raan Vas Fleastelica pushes us forward. We thank you now President Trump's tarrorf announcements. They've roiled Washington to Wall Street for nearly a month now. And Chinese retail apps you just mentioned them, tea machine, they've already started actually passing on the new import taxes onto US consumers, onto you and me by hiking up prices. Now, China bus far has denied having any trade talks for the United States, though President Trump is still hopeful China will make a deal eventually.

Alphabet beat last week, and all of these stocks swored the previous week as well. Raan Vas Fleastelica pushes us forward. We thank you now President Trump's tarrorf announcements. They've roiled Washington to Wall Street for nearly a month now. And Chinese retail apps you just mentioned them, tea machine, they've already started actually passing on the new import taxes onto US consumers, onto you and me by hiking up prices. Now, China bus far has denied having any trade talks for the United States, though President Trump is still hopeful China will make a deal eventually.

They want to make it deal obviously right now they're not doing business.

They want to make it deal obviously right now they're not doing business.

Well, you know, people talk about going cold Turkey with China and.

Well, you know, people talk about going cold Turkey with China and.

Then they just forget about it.

Then they just forget about it.

And we were losing hundreds of billions of dollars a year with China.

And we were losing hundreds of billions of dollars a year with China.

And now they're not doing any business with us, you know, because not because of them, because of me.

And now they're not doing any business with us, you know, because not because of them, because of me.

Because at one.

Because at one.

Hundred and forty five percent, you can't do business.

Hundred and forty five percent, you can't do business.

But something's gonna happen.

But something's gonna happen.

That's gonna be possible.

That's gonna be possible.

It begs Mike Shepherd standing by, and look, we all still doing business with China. Many a consumer is still buying from Timu and she In, but they're paying the price for it.

It begs Mike Shepherd standing by, and look, we all still doing business with China. Many a consumer is still buying from Timu and she In, but they're paying the price for it.

Well, you're right, kra and we are seeing now what economists have been warning about for some time in relation to the president's tariff policy, and that is that consumers would bear the increased costs and economic pain of those import levies. We are seeing that the prices are being passed along now by Timu and by she In. At she In, for instance, some goods, the prices have gone up by as much as three hundred percent. And keep in mind, Carra, it's not just here in the US where the pain is being felt by consumers. The retaliatory programs by some other trading partners, including Candidate, including China, including the EU have increased costs and goods from the US into those countries. And we saw Tesla over the weekend urging consumers to try to tap the pre tariff inventory before prices went up and before it became too late to avoid those increases. So there is a ripple effect and corollary effect, not just here in the US, but elsewhere around the world.

Well, you're right, kra and we are seeing now what economists have been warning about for some time in relation to the president's tariff policy, and that is that consumers would bear the increased costs and economic pain of those import levies. We are seeing that the prices are being passed along now by Timu and by she In. At she In, for instance, some goods, the prices have gone up by as much as three hundred percent. And keep in mind, Carra, it's not just here in the US where the pain is being felt by consumers. The retaliatory programs by some other trading partners, including Candidate, including China, including the EU have increased costs and goods from the US into those countries. And we saw Tesla over the weekend urging consumers to try to tap the pre tariff inventory before prices went up and before it became too late to avoid those increases. So there is a ripple effect and corollary effect, not just here in the US, but elsewhere around the world.

Cara, extraordinary reporting done.

Cara, extraordinary reporting done.

They just highlight you mentioned Tesla having to pass on costs.

They just highlight you mentioned Tesla having to pass on costs.

We've also got here.

We've also got here.

Import tariffs wearing on Tiamo's shopping cart. They look at some of the most popular things that people buy on Team. Apparently it's a fourteen and one power strip with a surge protection and one touch control.

Import tariffs wearing on Tiamo's shopping cart. They look at some of the most popular things that people buy on Team. Apparently it's a fourteen and one power strip with a surge protection and one touch control.

Who knew that's the most popular item.

Who knew that's the most popular item.

But basically it's doubling in price because of tariffs MIC And when we think of an Amazon, for example, Bloomberg Intelligence thinks Amazon has about seventy percent of its products were either offered by Amazon or third party sellers coming from China.

But basically it's doubling in price because of tariffs MIC And when we think of an Amazon, for example, Bloomberg Intelligence thinks Amazon has about seventy percent of its products were either offered by Amazon or third party sellers coming from China.

This is going to have a long term tail.

This is going to have a long term tail.

This is going to have a long tail, and it's not really just going to be sticker shot carro It's going to be supply live shock potentially. We've heard from a number of economists and experts out there, including the chief economists that Apollo who one that we could be seeing a COVID like shock. Remember this is a crucial time of year. You and I were just trying to get through the end of the school year, maybe for our children, but we are all looking ahead. If you're a retailer, you're thinking ahead to Christmas to back to school, because now is when that inventory is actually planned, it's purchased, and it's already shipped. It's usually in the water by April to get here in time for back to school and for the holidays.

This is going to have a long tail, and it's not really just going to be sticker shot carro It's going to be supply live shock potentially. We've heard from a number of economists and experts out there, including the chief economists that Apollo who one that we could be seeing a COVID like shock. Remember this is a crucial time of year. You and I were just trying to get through the end of the school year, maybe for our children, but we are all looking ahead. If you're a retailer, you're thinking ahead to Christmas to back to school, because now is when that inventory is actually planned, it's purchased, and it's already shipped. It's usually in the water by April to get here in time for back to school and for the holidays.

So there won't be a ripple effect.

So there won't be a ripple effect.

And we've already seen a drop in cargo shipments from the world's second largest economy to the US in the wake of these tariffs.

And we've already seen a drop in cargo shipments from the world's second largest economy to the US in the wake of these tariffs.

So there is going to.

So there is going to.

Be a lot of pain felt along the supply chain. It's not just going to be consumers at the end, like you and me looking at prices in our Temu shopping car, or even on the grocery store or other retailers.

Be a lot of pain felt along the supply chain. It's not just going to be consumers at the end, like you and me looking at prices in our Temu shopping car, or even on the grocery store or other retailers.

It's going to be in a lot of different places.

It's going to be in a lot of different places.

And yet many hold out hopes for a deal. But China pushing that once again that no negotiations are happening.

And yet many hold out hopes for a deal. But China pushing that once again that no negotiations are happening.

Well, that's right, and Scott Besson is indicating that, hey, you know, the ball is in China's court. We really want talks to get underway. And the President indicated even at the end of last week during a time when Chinese officials were here in Washington for the World Bank and IMF meetings, where maybe there was some contact between the two sides, but it was informal and if it even took place, And for the Chinese, they really want something much higher level, they want something launched formally. They would like to be speaking regularly with Scott Besson and other officials of his port to be able to get all of those key points for them, not just tariffs, remember, but all the US export restrictions on advanced technology that we've been talking about so much.

Well, that's right, and Scott Besson is indicating that, hey, you know, the ball is in China's court. We really want talks to get underway. And the President indicated even at the end of last week during a time when Chinese officials were here in Washington for the World Bank and IMF meetings, where maybe there was some contact between the two sides, but it was informal and if it even took place, And for the Chinese, they really want something much higher level, they want something launched formally. They would like to be speaking regularly with Scott Besson and other officials of his port to be able to get all of those key points for them, not just tariffs, remember, but all the US export restrictions on advanced technology that we've been talking about so much.

Particularly in the semiconductor space. Mike Sheppard, thank you so much for joining me while coming up. IBM to invest one hundred and fifty billion dollars in the US over the next five years. Why this is blue met technology. IBM just raising its earlier gains as the market turns a little bit lower. It just announced plans to invest one hundred and fifty billion dollars in the United States over the next five years. The latest company, of course, that follows the likes of Apple or Eli Lilly pledging to increase spending in the country following President Trump's election and his teriff threats. Let's bring in brody Ford and starting on IBM. It seems to be about made in America the mainframe quantum compute. How much of an acceleration in spending home in the US space is this?

Particularly in the semiconductor space. Mike Sheppard, thank you so much for joining me while coming up. IBM to invest one hundred and fifty billion dollars in the US over the next five years. Why this is blue met technology. IBM just raising its earlier gains as the market turns a little bit lower. It just announced plans to invest one hundred and fifty billion dollars in the United States over the next five years. The latest company, of course, that follows the likes of Apple or Eli Lilly pledging to increase spending in the country following President Trump's election and his teriff threats. Let's bring in brody Ford and starting on IBM. It seems to be about made in America the mainframe quantum compute. How much of an acceleration in spending home in the US space is this?

That is the big question. It's the one that is so hard to answer looking at a lot of these announcements, right, IBM says we're going to spend their billion in R and D in the US. We look that they've reported about thirty three billion in R and D over the last five years. I believe most of that's in the US. So it's hard to say is this an acceleration. Is this them you know, putting a pretty bow and spending they were going to do anyway? This is the big question when we see these announcements from companies like Apple or Nvidia. What's clear is that as tariffs hit, companies feel a lot of pressure to say, hey, actually we have capabilities in the US and upstate New York. We can build your main frames too, And so I think that's what we're seeing from IBM today.

That is the big question. It's the one that is so hard to answer looking at a lot of these announcements, right, IBM says we're going to spend their billion in R and D in the US. We look that they've reported about thirty three billion in R and D over the last five years. I believe most of that's in the US. So it's hard to say is this an acceleration. Is this them you know, putting a pretty bow and spending they were going to do anyway? This is the big question when we see these announcements from companies like Apple or Nvidia. What's clear is that as tariffs hit, companies feel a lot of pressure to say, hey, actually we have capabilities in the US and upstate New York. We can build your main frames too, And so I think that's what we're seeing from IBM today.

Alvin Krishna, the CEO, saying IBM remains the epicenter of the world's most advanced computing and AI capabilities.

Alvin Krishna, the CEO, saying IBM remains the epicenter of the world's most advanced computing and AI capabilities.

Now I want to get to AI capabilities.

Now I want to get to AI capabilities.

Because I'm an interesting story you've been reporting on for over in the UK. Nscale, which seems to be a startup that is once again a Bitcoin minor turn compute offerer, trying to raise money and they're talking about a deal with bike Dugs.

Because I'm an interesting story you've been reporting on for over in the UK. Nscale, which seems to be a startup that is once again a Bitcoin minor turn compute offerer, trying to raise money and they're talking about a deal with bike Dugs.

Yeah.

Yeah.

Nscale is kind of like a or weave where they are focused on building these AI specific data centers and so they've been fundraised. They looking for a billion or two in debt, telling everybody, hey, we are how we have this deal with Byteedance for about assign the paper. It's gonna be worth two billion dollars. We're gonna give them all these great GPUs and Bye Dance told us that's overstating things. We don't have that much business with them, and so these situations are hard, right because GPUs are a pretty geopolitically sensitive thing. Maybe byte Dance doesn't want it out there. Maybe in scale is overstating things. I mean, it's an interesting instance that shows us how much the financing around AI data centers has become very interesting in the last year.

Nscale is kind of like a or weave where they are focused on building these AI specific data centers and so they've been fundraised. They looking for a billion or two in debt, telling everybody, hey, we are how we have this deal with Byteedance for about assign the paper. It's gonna be worth two billion dollars. We're gonna give them all these great GPUs and Bye Dance told us that's overstating things. We don't have that much business with them, and so these situations are hard, right because GPUs are a pretty geopolitically sensitive thing. Maybe byte Dance doesn't want it out there. Maybe in scale is overstating things. I mean, it's an interesting instance that shows us how much the financing around AI data centers has become very interesting in the last year.

And of course they're rather home to in video chips. Berdie Ford breaks that down. We thank you, and let's talk more about in video chips and competition to them, because over in China Huawei apparently the company is set to test a new AI processor then it hopes can rival those of Nvidia. Now it's all according to reports on the Wall Street Journal in video trading, the as you can see on the day now accelerating losses in King talks about this about what's happening over at Intel. But first Yan, what is the long term picture of Huawei trying to help China become more self sufficient here?

And of course they're rather home to in video chips. Berdie Ford breaks that down. We thank you, and let's talk more about in video chips and competition to them, because over in China Huawei apparently the company is set to test a new AI processor then it hopes can rival those of Nvidia. Now it's all according to reports on the Wall Street Journal in video trading, the as you can see on the day now accelerating losses in King talks about this about what's happening over at Intel. But first Yan, what is the long term picture of Huawei trying to help China become more self sufficient here?

Yeah, I think what we have to do is because it's very difficult to get a clear picture of what is going on there and the capabilities of those chips, what it is important to do is to take it back to what Invidia has said, which is, look, if we're not allowed to do business there, if we are restricted from exporting chips to China, they will find a way to do their own over time. It's just a matter of time. And I think this report is another example of efforts being made out there to do that. Are they competitive with what Invidia can do? Probably not at this point. Are they going to be wonderful? Are they going to be good enough?

Yeah, I think what we have to do is because it's very difficult to get a clear picture of what is going on there and the capabilities of those chips, what it is important to do is to take it back to what Invidia has said, which is, look, if we're not allowed to do business there, if we are restricted from exporting chips to China, they will find a way to do their own over time. It's just a matter of time. And I think this report is another example of efforts being made out there to do that. Are they competitive with what Invidia can do? Probably not at this point. Are they going to be wonderful? Are they going to be good enough?

Though?

Though?

Is really the key question, And the answer is we'll see. But they're probably another step on a path towards that.

Is really the key question, And the answer is we'll see. But they're probably another step on a path towards that.

Well.

Well.

In there's a more local competitor who hasn't been much of a competitor to in video of late, and that's Intel. Lit Bhutan written a great Tech Daily report really on how is trying to nuance culture over an Intel.

In there's a more local competitor who hasn't been much of a competitor to in video of late, and that's Intel. Lit Bhutan written a great Tech Daily report really on how is trying to nuance culture over an Intel.

How has it gone down?

How has it gone down?

Yeah, I mean he really didn't give any of the concrete answers that Wall Street wanted in terms of when are the new products going to arrive, when you're going to have outside customers for your factories. What he did focus on, and what he did give a very specifics on, was like, Intel's culture is not in a good position, and these are some of the shocking things that we're seeing going on. Frankly, it was pretty brutal. That clearly is something that he believes needs to be fixed. But as we know, fixing a company culture and getting everybody moving in the right direction is important, takes time, and what is arguably more important is that you're getting them moving in the right direction towards products, towards customer relationships that will turn this company around.

Yeah, I mean he really didn't give any of the concrete answers that Wall Street wanted in terms of when are the new products going to arrive, when you're going to have outside customers for your factories. What he did focus on, and what he did give a very specifics on, was like, Intel's culture is not in a good position, and these are some of the shocking things that we're seeing going on. Frankly, it was pretty brutal. That clearly is something that he believes needs to be fixed. But as we know, fixing a company culture and getting everybody moving in the right direction is important, takes time, and what is arguably more important is that you're getting them moving in the right direction towards products, towards customer relationships that will turn this company around.

We have seen the response to the earnings in King Tech in Depth, the newsletter out today.

We have seen the response to the earnings in King Tech in Depth, the newsletter out today.

Go read it.

Go read it.

Thanks so much. Now, as shakeup is underway for Apple's AI and machine learning divisions, the company has begun to break up would have been a pretty unified approach for more.

Thanks so much. Now, as shakeup is underway for Apple's AI and machine learning divisions, the company has begun to break up would have been a pretty unified approach for more.

Blue Meg's Mark German has more.

Blue Meg's Mark German has more.

You've been writing over the weekend about one particular executive they lured away from Google in twenty eighteen, and now he's getting some things pulled away from him.

You've been writing over the weekend about one particular executive they lured away from Google in twenty eighteen, and now he's getting some things pulled away from him.

That's right. So here's the story with Apple. AI serie launched in twenty eleven, and by twenty fifteen, twenty sixteen, a little bit after that, they really fell behind Google. Assistant came online. You had a lot of competitors, including Alexa from Amazon, and it felt like Apple had squandered a three four year lead. And at the time, Apple felt that part of that is because the AI work at Apple was scattered across the company, right They worked in silos across different divisions, hardware, software services. So they hired John gen Andrea, who was running AI in search at Google at the time in twenty eighteen. They believe putting everything in his group with skyrocket their approach to AI and make them a true player in artificial intelligence and machine learning.

That's right. So here's the story with Apple. AI serie launched in twenty eleven, and by twenty fifteen, twenty sixteen, a little bit after that, they really fell behind Google. Assistant came online. You had a lot of competitors, including Alexa from Amazon, and it felt like Apple had squandered a three four year lead. And at the time, Apple felt that part of that is because the AI work at Apple was scattered across the company, right They worked in silos across different divisions, hardware, software services. So they hired John gen Andrea, who was running AI in search at Google at the time in twenty eighteen. They believe putting everything in his group with skyrocket their approach to AI and make them a true player in artificial intelligence and machine learning.

So far, it hasn't worked out.

So far, it hasn't worked out.

We saw how far they've fallen behind compared to Chad Shipt, Google.

We saw how far they've fallen behind compared to Chad Shipt, Google.

Gemini Copilot.

Gemini Copilot.

So now what they're trying is breaking it up, going back to their roots, going back to that Apple functional organization and taking pieces of the AI group and re scattering them around the company, and that started a few weeks ago with Siri. They move Siri from their AI division to their software engineering division, which makes sense to some extent because Siri is well software. And now what they're doing is they're taking the robotics division, which was also in the AI organization, and moving that to hardware engineering. Robotics that is a hardware play at heart, and so it makes sense to put that in the hardware engineering division. So we'll see how that works out. But to me and to many people at Apple, it feels like they're preparing for a world without a true AI chief, a world where apples back to being completely functionally organized.

So now what they're trying is breaking it up, going back to their roots, going back to that Apple functional organization and taking pieces of the AI group and re scattering them around the company, and that started a few weeks ago with Siri. They move Siri from their AI division to their software engineering division, which makes sense to some extent because Siri is well software. And now what they're doing is they're taking the robotics division, which was also in the AI organization, and moving that to hardware engineering. Robotics that is a hardware play at heart, and so it makes sense to put that in the hardware engineering division. So we'll see how that works out. But to me and to many people at Apple, it feels like they're preparing for a world without a true AI chief, a world where apples back to being completely functionally organized.

And mark a world where they're about to report earnings this week, they're trying to tackle China supply chain, move it more to India. Just brace us for what we expect on Thursday.

And mark a world where they're about to report earnings this week, they're trying to tackle China supply chain, move it more to India. Just brace us for what we expect on Thursday.

I think that Apple this is going to be one of the more interesting Apple earnings results presentations in a while, not because of the numbers that they're going to share, not because of the data they're going to be given the prepared remarks, but because they have a lot more questions they're going to have to answer than usual. Things when it comes to AI, of course is going to be big on the minds of analysts on the call, but also tariffs, also dealing with the Trump administration, dealing with innovation questions. So that's going to be really important earnings TOOLL to listen to, not because of what they're going to come out and say, but because of what they're going to be asked and how they're going to respond. So I'm actually very much looking forward to that, and everyone should stay tuned for our coverage there.

I think that Apple this is going to be one of the more interesting Apple earnings results presentations in a while, not because of the numbers that they're going to share, not because of the data they're going to be given the prepared remarks, but because they have a lot more questions they're going to have to answer than usual. Things when it comes to AI, of course is going to be big on the minds of analysts on the call, but also tariffs, also dealing with the Trump administration, dealing with innovation questions. So that's going to be really important earnings TOOLL to listen to, not because of what they're going to come out and say, but because of what they're going to be asked and how they're going to respond. So I'm actually very much looking forward to that, and everyone should stay tuned for our coverage there.

Well, we're excited for your reporting on it, Mark German. We appreciate all things Apple. And now.

Well, we're excited for your reporting on it, Mark German. We appreciate all things Apple. And now.

Meanwhile, in other AI.

Meanwhile, in other AI.

News, enterprise AI platform Writer is launching a new adaptive reasoning model that it says is cheaper faster than competing lllms. It eaches a one million token context window to create more comprehensive responses. Mayhabi write as CEO joins us for now and tell me about the new model and what makes it different.

News, enterprise AI platform Writer is launching a new adaptive reasoning model that it says is cheaper faster than competing lllms. It eaches a one million token context window to create more comprehensive responses. Mayhabi write as CEO joins us for now and tell me about the new model and what makes it different.

Oh hi Caroline, so good to see you. Well that's the headline.

Oh hi Caroline, so good to see you. Well that's the headline.

Palmyra x five is out and it is the first enterprise grade, enterprise ready model built for agentic AI.

Palmyra x five is out and it is the first enterprise grade, enterprise ready model built for agentic AI.

So you got it.

So you got it.

This is an LM with performance on par with other frontier models, but it's radically three x faster, and it's four times cheaper, and as of today it's available on AWS Bedrock.

This is an LM with performance on par with other frontier models, but it's radically three x faster, and it's four times cheaper, and as of today it's available on AWS Bedrock.

Okay, So tell us about how you get that sort of cost efficiency. You're offering what sixty cents per one million input tokens, you're doing six dollars per million output tokens. How do you get to that price point?

Okay, So tell us about how you get that sort of cost efficiency. You're offering what sixty cents per one million input tokens, you're doing six dollars per million output tokens. How do you get to that price point?

Way?

Way?

So it's really important for folks to understand what's required to get enterprise grade agentic AI. When we launched our AI HQ a few weeks ago, we had one hundred plus pre built agents built for the enterprise, and folks were asking me, how are you getting this kind of efficiency and accuracy with really complex workflows Agents at a Uber, at a Franklin Templeton, things that were capable of taking multiple systems, data from third party and internal research, and able to generate really complex work We are able to take that full million token prompt and process that context window in twenty two seconds, firing off multi turn function calls in three hundred milliseconds, all while getting this price efficiency.

So it's really important for folks to understand what's required to get enterprise grade agentic AI. When we launched our AI HQ a few weeks ago, we had one hundred plus pre built agents built for the enterprise, and folks were asking me, how are you getting this kind of efficiency and accuracy with really complex workflows Agents at a Uber, at a Franklin Templeton, things that were capable of taking multiple systems, data from third party and internal research, and able to generate really complex work We are able to take that full million token prompt and process that context window in twenty two seconds, firing off multi turn function calls in three hundred milliseconds, all while getting this price efficiency.

It is a.

It is a.

Combination of breakthrough both algorithmic and data we train this model on about a million dollars of GPUs, so also incredibly efficient on the training and we passed.

Combination of breakthrough both algorithmic and data we train this model on about a million dollars of GPUs, so also incredibly efficient on the training and we passed.

How how is this occurring?

How how is this occurring?

Way?

Way?

Is this the new deep seek trend that we're seeing that you just do more and more with this. It's more about turning to open source. I mean, how have you managed to be so efficient?

Is this the new deep seek trend that we're seeing that you just do more and more with this. It's more about turning to open source. I mean, how have you managed to be so efficient?

Yeah?

Yeah?

I mean we deep seeked before deep seek.

I mean we deep seeked before deep seek.

So this is a one hundred percent synthetic data based approach which has the IP friendliness that the enterprise really requires. Algorithmically, we are doing a very interesting set of techniques around a hybrid attention mechanism, blending linear and other approaches, and we're doing a mixture of experts set of techniques, so we're only activating the most relevant subnetworks and resulting in much lower latency, much more efficiency.

So this is a one hundred percent synthetic data based approach which has the IP friendliness that the enterprise really requires. Algorithmically, we are doing a very interesting set of techniques around a hybrid attention mechanism, blending linear and other approaches, and we're doing a mixture of experts set of techniques, so we're only activating the most relevant subnetworks and resulting in much lower latency, much more efficiency.

Mate, you talked about some of the very well known companies that you currently serve. But to get these sort of investors and the vanguards of this world to be coming on board, how are you making yourself known? I mean, are you having to offer this sort of price efficiency?

Mate, you talked about some of the very well known companies that you currently serve. But to get these sort of investors and the vanguards of this world to be coming on board, how are you making yourself known? I mean, are you having to offer this sort of price efficiency?

Is that how you arrives above the noise?

Is that how you arrives above the noise?

Because it just feels like there are so many offerings, enterprise suited offerings out.

Because it just feels like there are so many offerings, enterprise suited offerings out.

There right now.

There right now.

It's absolutely so noisy.

It's absolutely so noisy.

But what we're seeing is folks who don't have results are understanding that they can't build everything themselves. So in addition to enterprise grade frontier lms, we've got an end to end platform for building, activating, supervising these agents. And that's how we stand out, Caroline. That entire package is what results in the incredible roy Forster just reported three hundred and thirty three percent ROY on implementing writer for building and using agents and it's one of the highest that they've ever seen. So you're right, right, it's incredibly noisy for these enterprises, but CEOs are seeing that their CEOs are demanding results. And I think this is AI's COVID moment, and COVID, you know, you had this explosion of collaboration tools because forks, folks had to do it. And I think we're going into, you know, the kind of economic uncertainty that just demands results and writers providing that.

But what we're seeing is folks who don't have results are understanding that they can't build everything themselves. So in addition to enterprise grade frontier lms, we've got an end to end platform for building, activating, supervising these agents. And that's how we stand out, Caroline. That entire package is what results in the incredible roy Forster just reported three hundred and thirty three percent ROY on implementing writer for building and using agents and it's one of the highest that they've ever seen. So you're right, right, it's incredibly noisy for these enterprises, but CEOs are seeing that their CEOs are demanding results. And I think this is AI's COVID moment, and COVID, you know, you had this explosion of collaboration tools because forks, folks had to do it. And I think we're going into, you know, the kind of economic uncertainty that just demands results and writers providing that.

Okay, so really interesting.

Okay, so really interesting.

You think that in this potential downturn from a global GDP perspective, people could be more drawn to your products, not less.

You think that in this potential downturn from a global GDP perspective, people could be more drawn to your products, not less.

Oh one hundred percent.

Oh one hundred percent.

I mean, we're AI software that builds software, and we're already seeing it in our customer base executives CEOs who say, look, before you ask for more headcount, before you ask for more software, I want to see that AI couldn't do it better.

I mean, we're AI software that builds software, and we're already seeing it in our customer base executives CEOs who say, look, before you ask for more headcount, before you ask for more software, I want to see that AI couldn't do it better.

So what about that for your opportunities as we get more nervousness, more economic uncertainty. I know that prior to all of this you were getting other tech startups coming to you saying, look, I can't keep on doing this, my expenses are too high. Would you mind buying me? Are there still the M and A opportunities out there for you?

So what about that for your opportunities as we get more nervousness, more economic uncertainty. I know that prior to all of this you were getting other tech startups coming to you saying, look, I can't keep on doing this, my expenses are too high. Would you mind buying me? Are there still the M and A opportunities out there for you?

Right now, we're trying to grow organically as fast as possible, Caroline, we can't keep up with the demand.

Right now, we're trying to grow organically as fast as possible, Caroline, we can't keep up with the demand.

I'm with you from our London office.

I'm with you from our London office.

We're almost one hundred people here, more than four hundred globally, trying to be eight hundred globally as soon as possible. Folks really need results, and you know they're coming to us to be able to really bring AI, especially agen kic AI to the business.

We're almost one hundred people here, more than four hundred globally, trying to be eight hundred globally as soon as possible. Folks really need results, and you know they're coming to us to be able to really bring AI, especially agen kic AI to the business.

Mahavieve, it's always great catching up with you. Thanks for joining us in London.

Mahavieve, it's always great catching up with you. Thanks for joining us in London.

Pano Also our networks.

Pano Also our networks.

Manages to fight the narrative of a downward.

Manages to fight the narrative of a downward.

Draft in the markets. We're up a quarter percent.

Draft in the markets. We're up a quarter percent.

And look, we're seeing the cybersecurity Leader announced it's intent to acquire protect AI is expanding the company's capabilities in security basically combating new threats, I mean an explosion in artificial intelligence. All of this as we get the CSRSA conference underway, joining us now Nikesha or a power auto network CEO, You've got a lot to announce new security platform, but let's just go to.

And look, we're seeing the cybersecurity Leader announced it's intent to acquire protect AI is expanding the company's capabilities in security basically combating new threats, I mean an explosion in artificial intelligence. All of this as we get the CSRSA conference underway, joining us now Nikesha or a power auto network CEO, You've got a lot to announce new security platform, but let's just go to.

The new announcement. In terms of M and A.

The new announcement. In terms of M and A.

You're going to get us an amount that you paid. I was hearing about up to six hundred and fifty million dollars.

You're going to get us an amount that you paid. I was hearing about up to six hundred and fifty million dollars.

We're not going to talk about what we paid. Caroline. Nice to see you.

We're not going to talk about what we paid. Caroline. Nice to see you.

Like we're again at a technology inflection point. We're all talking about AI. You had people talking about AAI earlier. And every time you have a technology inflection point, it becomes very important that we are able to come forward and provide solutions to our customers so they can securely deploy technology. And in that context, we're very exertively and aggressively working on both a build and buy strategy to build perhaps what will be the most important thing over the next few years, which is a platform that allows you to deploy AI securely.

Like we're again at a technology inflection point. We're all talking about AI. You had people talking about AAI earlier. And every time you have a technology inflection point, it becomes very important that we are able to come forward and provide solutions to our customers so they can securely deploy technology. And in that context, we're very exertively and aggressively working on both a build and buy strategy to build perhaps what will be the most important thing over the next few years, which is a platform that allows you to deploy AI securely.

Okay, so let's talk about build versus by and why was this asset protect AI so necessary to go inorganic at this moment?

Okay, so let's talk about build versus by and why was this asset protect AI so necessary to go inorganic at this moment?

Well, kind of like if you look at what's going on in AI you were on before, people talk about LMS, people talking about deploying AI based applications, People trying to figure out how to deploy infrastructure, whether it's on prem or in the public cloud, with chips set to use, which model to use. All these are very important technological decisions which are going to underpin the platform forms of the future. Now, when you put them together and you deploy them, you have to make sure that you're looking at the security aspect of every one of these things. Protector AI, after an extensive look around the market, we found was working on some very interesting topics which are complementary to what we've been building. We've been building a great run time platform to if we protect our customers as the DEPLOYI. Protector I was working on something similar where they're looking at all the model in the world, scanning them to make sure there wasn't bad stuff lurking in them. So the combination of the two, which we will integrate into one platform, actually allows us to be more comprehensive and we will offer our customers.

Well, kind of like if you look at what's going on in AI you were on before, people talk about LMS, people talking about deploying AI based applications, People trying to figure out how to deploy infrastructure, whether it's on prem or in the public cloud, with chips set to use, which model to use. All these are very important technological decisions which are going to underpin the platform forms of the future. Now, when you put them together and you deploy them, you have to make sure that you're looking at the security aspect of every one of these things. Protector AI, after an extensive look around the market, we found was working on some very interesting topics which are complementary to what we've been building. We've been building a great run time platform to if we protect our customers as the DEPLOYI. Protector I was working on something similar where they're looking at all the model in the world, scanning them to make sure there wasn't bad stuff lurking in them. So the combination of the two, which we will integrate into one platform, actually allows us to be more comprehensive and we will offer our customers.

I just want to get your birds eye perspective here in a kesh, because no one can push us forward as much as you can in many ways to the future of agenic KI.

I just want to get your birds eye perspective here in a kesh, because no one can push us forward as much as you can in many ways to the future of agenic KI.

And the fact that where are we to ultimately be protecting ourselves.

And the fact that where are we to ultimately be protecting ourselves.

There's demand for traditional, basically farwall endpoint products of security. How does that shift if you're going from a user level to an agent level in this moment, that's going to.

There's demand for traditional, basically farwall endpoint products of security. How does that shift if you're going from a user level to an agent level in this moment, that's going to.

The buzzword for RSA Carol, and people are going to talk a lot about how do.

The buzzword for RSA Carol, and people are going to talk a lot about how do.

You make agents work? I think it's still unclear.

You make agents work? I think it's still unclear.

There's a lot of innovation being put out in the market, whether as the A to A model that an MCP Model's all wonderful buzzwords.

There's a lot of innovation being put out in the market, whether as the A to A model that an MCP Model's all wonderful buzzwords.

We create in our industry.

We create in our industry.

But as Agendica I've said before to me, Agendici becomes real when you start giving AI arms and legs, whether robotic arms and robotic legs or real arms and legs in terms of replacing human beings, and I think that's where the question becomes, can I rely on AI to accomplish the task without supervision? And that's where things will get very interesting and very hairy in certain cases. There it becomes important only to make sure that the agent you're giving autonomy to is something that you're very comfortable will act within the guardrails that you put out there for that agent. And then you got to make sure nobody can take over your agent and hijack it in a way that can make them do things you don't want them to do.

But as Agendica I've said before to me, Agendici becomes real when you start giving AI arms and legs, whether robotic arms and robotic legs or real arms and legs in terms of replacing human beings, and I think that's where the question becomes, can I rely on AI to accomplish the task without supervision? And that's where things will get very interesting and very hairy in certain cases. There it becomes important only to make sure that the agent you're giving autonomy to is something that you're very comfortable will act within the guardrails that you put out there for that agent. And then you got to make sure nobody can take over your agent and hijack it in a way that can make them do things you don't want them to do.

So I think that's going to be the next.

So I think that's going to be the next.

Frontier of cybersecurity as we get AI deployed in multiple places, is how do we give autonomous control to these agents? How do we give them agency effectively? And can't wait for that world to happen, But it's going to be a whole new sort of set of opportunities that are open up for us.

Frontier of cybersecurity as we get AI deployed in multiple places, is how do we give autonomous control to these agents? How do we give them agency effectively? And can't wait for that world to happen, But it's going to be a whole new sort of set of opportunities that are open up for us.

There are a lot of names trying to make the most of this opportunity. A lot of them are the hyperscalers. A lot of them in many ways become your competitors as they add their own security offerings. Where do you sit in this whole FRENEMI environment, Well, you know.

There are a lot of names trying to make the most of this opportunity. A lot of them are the hyperscalers. A lot of them in many ways become your competitors as they add their own security offerings. Where do you sit in this whole FRENEMI environment, Well, you know.

As we fascinating Caroline.

As we fascinating Caroline.

Logically, the cloud providers should have been our competitors and cloud security. They should have our competitors and endpoints secure, but they're not. They're focused on making sure technology gets deployed as quickly as possible, which is good perhaps for their business, not all of their customers. Our job is to make sure that we stay in lockstep with them and work with our customers to make sure they can deploy technology in a secure fashion. Let's be fair if our customers have comfort that when they deploy AI, when they give autonomous control to AI to do some repetitive tasks or interesting time, it can be done securely. The moment we can provide the underpinning of trusts, the underprinting of reliability, the fact that if you deploy with Pollo Auto Networks, there is a very high probability that it's going to be much safer than anything else.

Logically, the cloud providers should have been our competitors and cloud security. They should have our competitors and endpoints secure, but they're not. They're focused on making sure technology gets deployed as quickly as possible, which is good perhaps for their business, not all of their customers. Our job is to make sure that we stay in lockstep with them and work with our customers to make sure they can deploy technology in a secure fashion. Let's be fair if our customers have comfort that when they deploy AI, when they give autonomous control to AI to do some repetitive tasks or interesting time, it can be done securely. The moment we can provide the underpinning of trusts, the underprinting of reliability, the fact that if you deploy with Pollo Auto Networks, there is a very high probability that it's going to be much safer than anything else.

I think that's where the winning combination happens.

I think that's where the winning combination happens.

So I don't see this as sort of a competitor environment for now with the hyperscalers. I see it as an opportunity for us to work together and make sure we accelerate the adoption of the technology, as opposed to have our customers be confused.

So I don't see this as sort of a competitor environment for now with the hyperscalers. I see it as an opportunity for us to work together and make sure we accelerate the adoption of the technology, as opposed to have our customers be confused.

Which way to go.

Which way to go.

I mean used to work out Google. You host your products on Google Cloud. How do you feel about their big splashy deal for wiz.

I mean used to work out Google. You host your products on Google Cloud. How do you feel about their big splashy deal for wiz.

It'll be interesting to watch.

It'll be interesting to watch.

I have lots of conversations with people at Google about it, and we don't intend to change how we deploy our products. We buy infrastructure from them, and sometimes we see them in the market.

I have lots of conversations with people at Google about it, and we don't intend to change how we deploy our products. We buy infrastructure from them, and sometimes we see them in the market.

Our hope is that our.

Our hope is that our.

Customers will understand that you want an unbiased product that can operate effectively on every cloud provider, as opposed to something that is beholden to a particular cloud provider.

Customers will understand that you want an unbiased product that can operate effectively on every cloud provider, as opposed to something that is beholden to a particular cloud provider.

We still need to solve for everybody else.

We still need to solve for everybody else.

Out there, so I think that's our sort of athos. We want to be independent. We want to be somebody that can deliver the same level and capability or security across every platform there is out there, so our customers don't have to spend time trying to integrate all this stuff together, which is our entire philosophy around platformization.

Out there, so I think that's our sort of athos. We want to be independent. We want to be somebody that can deliver the same level and capability or security across every platform there is out there, so our customers don't have to spend time trying to integrate all this stuff together, which is our entire philosophy around platformization.

I love following what you're doing in terms of platform offerings, products, what you're doing in terms of well the latest MNA, but I also love following on social and perhaps whether you wanted to or not, you involved in the AI debate about whether we're going to get as much CAPEX spend, whether infrastructure is reality versus hype.

I love following what you're doing in terms of platform offerings, products, what you're doing in terms of well the latest MNA, but I also love following on social and perhaps whether you wanted to or not, you involved in the AI debate about whether we're going to get as much CAPEX spend, whether infrastructure is reality versus hype.

Where do you stand on it right now?

Where do you stand on it right now?

Nikesh?

Nikesh?

I think if you look around you, everybody is getting ready for a very large adoption of AI scenario because you see tens of billions of dollars being committed by people in terms of building infrastructure.

I think if you look around you, everybody is getting ready for a very large adoption of AI scenario because you see tens of billions of dollars being committed by people in terms of building infrastructure.

I think that's right.

I think that's right.

I think we may get the sort of the timing not perfect. You know, you may build too much before it's all consumed.

I think we may get the sort of the timing not perfect. You know, you may build too much before it's all consumed.

But I think it's headed in the direction. I think.

But I think it's headed in the direction. I think.

Short term, in this twelve to twenty four month timeframe, you could see that a lot of the investment that's going is going towards innovation. I say, make a smarter model, make robotics work.

Short term, in this twelve to twenty four month timeframe, you could see that a lot of the investment that's going is going towards innovation. I say, make a smarter model, make robotics work.

So you need a lot of power.

So you need a lot of power.

You need a lot of compute to get to a place where these models become extremely useful. Once you get to a point where these models are extremely useful, the question becomes how do I deploy them in my business? How do I, as a regular company, regular customer, deploy these things effectively securely. I think that could take a little longer than people think because everybody's experimenting and we're not all experts yet.

You need a lot of compute to get to a place where these models become extremely useful. Once you get to a point where these models are extremely useful, the question becomes how do I deploy them in my business? How do I, as a regular company, regular customer, deploy these things effectively securely. I think that could take a little longer than people think because everybody's experimenting and we're not all experts yet.

Now this is something that came about.

Now this is something that came about.

Less than twenty four months ago, so we all have to get our muscle understand how this affects our business. How do I build robotic things that can do stuff for me around my enterprise? How do I build AI agents that can do stuff for me?

Less than twenty four months ago, so we all have to get our muscle understand how this affects our business. How do I build robotic things that can do stuff for me around my enterprise? How do I build AI agents that can do stuff for me?

I'm a enterprise.

I'm a enterprise.

Do I build or do I buy from somebody? So all that stuff will take a little longer to pan out. But when it happens, we're going to need all that capacity that's being built, and unfortunately, you can't wait to build capacity, you have to build it ahead of demands. I think I think it's the right direction. Timing's still to be figured out.

Do I build or do I buy from somebody? So all that stuff will take a little longer to pan out. But when it happens, we're going to need all that capacity that's being built, and unfortunately, you can't wait to build capacity, you have to build it ahead of demands. I think I think it's the right direction. Timing's still to be figured out.

Well, thanks for sharing your expertise across all the subjects and the deal news aqusha Ura go enjoy RSA. We thank you, Palo Alta Networks CEO. Now next up, talking tech first stuff, I'm talking about UAE data center developer Kasna. Well, it's planning a major expansion into Saudi Arabia.

Well, thanks for sharing your expertise across all the subjects and the deal news aqusha Ura go enjoy RSA. We thank you, Palo Alta Networks CEO. Now next up, talking tech first stuff, I'm talking about UAE data center developer Kasna. Well, it's planning a major expansion into Saudi Arabia.

Now.

Now.

The company is looking to take.

The company is looking to take.

Twenty five percent of the market share already identified two locations for its data centers, directly competing with smaller local and specialized firms, plus German defense startup Arx Robotics. Let's raised thirty five million dollars in its latest VC funding round, and it's the second time in the past year as the company aims to expand in the United Kingdom. Aarx Robotics declined to share this new valuation and alphabet after its earning is now set to be offering about four million dollars in US high grade corporate debt today.

Twenty five percent of the market share already identified two locations for its data centers, directly competing with smaller local and specialized firms, plus German defense startup Arx Robotics. Let's raised thirty five million dollars in its latest VC funding round, and it's the second time in the past year as the company aims to expand in the United Kingdom. Aarx Robotics declined to share this new valuation and alphabet after its earning is now set to be offering about four million dollars in US high grade corporate debt today.

It's according to sources.

It's according to sources.

The company is said to be looking to sell the bonds in as many as four parts and could mark the company's first bond sale. This is the way back in twenty twenty are coming up. We'll talk to the managing partners of FPV about finding product led AI startups for their latest fund you will.

The company is said to be looking to sell the bonds in as many as four parts and could mark the company's first bond sale. This is the way back in twenty twenty are coming up. We'll talk to the managing partners of FPV about finding product led AI startups for their latest fund you will.

There's some news out on Sony.

There's some news out on Sony.

Could they be spinning out their semiconductor part of the business. The shares have actually risen on the back of the news that as the company tries to get more focused. Of course it's all about PlayStation and gaming, but they're also trying to be selling off some of the assets that don't mean quite so much to the core business anymore. Semiconductor has been One of them is Bloombag Technology, EUIL masks XAI. Well, it's in talks to raise roughly twenty billion dollars in funding for its newly combined AI and social media business. According to sources, the deal would value the company in over one hundred and twenty billion dollars, according to one of the people briefed on the matter. Now, if completed, it will be the second largest startup funning round of all time behind guess who Open ai And they're forty billion dollar financing earlier this year, according to data from Pitchbook. Now, we've got so much when it comes to VC. And there's more fundraising news from a fund perspective. The venture firm fpv's raised five hundred twenty five million dollars to fund target product driven startups. Fpv's co founders have back companies such as Canva and Flexport and Peace to Welcome to the show, Pega Abraham and Wesley Chan join us. Now, congratulations on the funding round.

Could they be spinning out their semiconductor part of the business. The shares have actually risen on the back of the news that as the company tries to get more focused. Of course it's all about PlayStation and gaming, but they're also trying to be selling off some of the assets that don't mean quite so much to the core business anymore. Semiconductor has been One of them is Bloombag Technology, EUIL masks XAI. Well, it's in talks to raise roughly twenty billion dollars in funding for its newly combined AI and social media business. According to sources, the deal would value the company in over one hundred and twenty billion dollars, according to one of the people briefed on the matter. Now, if completed, it will be the second largest startup funning round of all time behind guess who Open ai And they're forty billion dollar financing earlier this year, according to data from Pitchbook. Now, we've got so much when it comes to VC. And there's more fundraising news from a fund perspective. The venture firm fpv's raised five hundred twenty five million dollars to fund target product driven startups. Fpv's co founders have back companies such as Canva and Flexport and Peace to Welcome to the show, Pega Abraham and Wesley Chan join us. Now, congratulations on the funding round.

Now we're excited, So tell.

Now we're excited, So tell.

Me Pega first and foremost, how hard how easy was it to get the LP's excited in.

Me Pega first and foremost, how hard how easy was it to get the LP's excited in.

This current environment.

This current environment.

I mean, you know you have we last time around we raised I think when we announced it was the seventy five basis points that the FED just raised.

I mean, you know you have we last time around we raised I think when we announced it was the seventy five basis points that the FED just raised.

So we're used to this.

So we're used to this.

And our investors are back really long term founders and that's what we're focused on. So it wasn't the environment stuff, and we're privileged to have raised. But you know, we had just exceptional bluetrip founders who are really investing for the long term, so they're not as distracted by the short term stuff.

And our investors are back really long term founders and that's what we're focused on. So it wasn't the environment stuff, and we're privileged to have raised. But you know, we had just exceptional bluetrip founders who are really investing for the long term, so they're not as distracted by the short term stuff.

I mean, Wesley, we think about how much Canva, for example, has managed to be an iconic company you found not on the West coast of America on any US A tool, but over in Australia.

I mean, Wesley, we think about how much Canva, for example, has managed to be an iconic company you found not on the West coast of America on any US A tool, but over in Australia.

How do you find teams like that? How do you replicate the success?

How do you find teams like that? How do you replicate the success?

Yes, so our founders are amazing product driven founders, right, so they see other amazing product driven founders.

Yes, so our founders are amazing product driven founders, right, so they see other amazing product driven founders.

That's the secret.

That's the secret.

Like I spent over fifteen years at Google, of which ten of them I help build the ad system, launch Google Analytics, I helped launch Google Voice, I help bring Android and help them grow. Like It's one of those things that when you've worked on these products that are hundreds, if not billions of people use worldwide, you have a reputation for building great products that founders gravitate towards. And so I got the opportunity to meet the Canva founders more than a decade ago. They were very excited about some of the product work that I did. I help them build and prioritize some of their features, and they said, let's work together. And that's what I love doing, is spending time with founders that want to build products that change the world, that do better whether there's a recession or not a recession, and that just stand the test of time. And so that's what we do here at.

Like I spent over fifteen years at Google, of which ten of them I help build the ad system, launch Google Analytics, I helped launch Google Voice, I help bring Android and help them grow. Like It's one of those things that when you've worked on these products that are hundreds, if not billions of people use worldwide, you have a reputation for building great products that founders gravitate towards. And so I got the opportunity to meet the Canva founders more than a decade ago. They were very excited about some of the product work that I did. I help them build and prioritize some of their features, and they said, let's work together. And that's what I love doing, is spending time with founders that want to build products that change the world, that do better whether there's a recession or not a recession, and that just stand the test of time. And so that's what we do here at.

FPV, and it's about kind of being the operators alongside them. People come to your experience from Google, your experience from Cisco, experience from August Stanley and the technology area there pego, and I'm I'm interested as to what advice you're giving to found us right now when none of us really having any idea with a clarityism.

FPV, and it's about kind of being the operators alongside them. People come to your experience from Google, your experience from Cisco, experience from August Stanley and the technology area there pego, and I'm I'm interested as to what advice you're giving to found us right now when none of us really having any idea with a clarityism.

No. Look, so one thing is clear, and everyone's like, what's happening to the market, and one thing it's clear it's gonna be whiplash. I mean, we're gonna have a few years up, up and down. But we both started out during the tech bubble burst, and I was CIO at Morgan Stanley during the financial crisis. There's gonna you can't go up to the right all the time. And if you're really building for the wrong term, you shouldn't get you have to go with the waves, but you can't really be building for the next year or the next two years. And for the founders that are really looking for those ten year plus horizons, it's actually a great time because you have to focus. You can't get as much distraction, you don't have as much competition.

No. Look, so one thing is clear, and everyone's like, what's happening to the market, and one thing it's clear it's gonna be whiplash. I mean, we're gonna have a few years up, up and down. But we both started out during the tech bubble burst, and I was CIO at Morgan Stanley during the financial crisis. There's gonna you can't go up to the right all the time. And if you're really building for the wrong term, you shouldn't get you have to go with the waves, but you can't really be building for the next year or the next two years. And for the founders that are really looking for those ten year plus horizons, it's actually a great time because you have to focus. You can't get as much distraction, you don't have as much competition.

Because not everyone can raise.

Because not everyone can raise.

So if you're a mission driven founder who's really focused on really changing the future, this is actually a great time to just say laser focus on those big missions. And if you're not a mission driven founder, look, it's gonna be hard. If you're depending on the hype and the short term stuff. It might not the hype might not last on certain things. And so that's what we say, stay focus. If you have a really big vision and you know, work with the times.

So if you're a mission driven founder who's really focused on really changing the future, this is actually a great time to just say laser focus on those big missions. And if you're not a mission driven founder, look, it's gonna be hard. If you're depending on the hype and the short term stuff. It might not the hype might not last on certain things. And so that's what we say, stay focus. If you have a really big vision and you know, work with the times.

I mean, you have been the anti hype apostles in many ways just saying cut through that noise.

I mean, you have been the anti hype apostles in many ways just saying cut through that noise.

But Wesley, a lot of LPs.

But Wesley, a lot of LPs.

At this moment thought there'd be a little bit of hyper our exits around IPOs, but.

At this moment thought there'd be a little bit of hyper our exits around IPOs, but.

That's not happening now.

That's not happening now.

How are you helping your current your previous fund bets be able to give liquidity to that talent.

How are you helping your current your previous fund bets be able to give liquidity to that talent.

How are you helping them sort of march through this?

How are you helping them sort of march through this?

Well.

Well.

One of the wonderful things about the LPs we found is that they're long term thinkers. Right like we have blue chip lpiece, most of them are charitable endowments and foundations that think, you know, decades, if not like fifty years out into the future, and they know in investing us, we're not placing the bet for today. We're doing it for ten years in the future. That's the liquidity time horizon for venture capital. So we're not worried about like if things exit tomorrow, ORF things exit next year, obviously our LPs would like it, but we worry about if things are going to be big in ten years. Right, they have the option to exit, but if they hold on, the add more value and our LPs are okay with it because there's such long term thinkers, and we have deep pools of capital.

One of the wonderful things about the LPs we found is that they're long term thinkers. Right like we have blue chip lpiece, most of them are charitable endowments and foundations that think, you know, decades, if not like fifty years out into the future, and they know in investing us, we're not placing the bet for today. We're doing it for ten years in the future. That's the liquidity time horizon for venture capital. So we're not worried about like if things exit tomorrow, ORF things exit next year, obviously our LPs would like it, but we worry about if things are going to be big in ten years. Right, they have the option to exit, but if they hold on, the add more value and our LPs are okay with it because there's such long term thinkers, and we have deep pools of capital.

We want to return.

We want to return.

Money to them, but we want to do it at the right time, and we want to do it when things are great. And so the help the companies that survived the recessions, the companies that survived the market turmoil, whether it's tariffs or whether it's crazy world war or whatever else, Like they are left and they are the winners, and then they have these wonderful exits. Google in two thousand and four was dot com crash, right, and then like they exited and they became a big market winner.

Money to them, but we want to do it at the right time, and we want to do it when things are great. And so the help the companies that survived the recessions, the companies that survived the market turmoil, whether it's tariffs or whether it's crazy world war or whatever else, Like they are left and they are the winners, and then they have these wonderful exits. Google in two thousand and four was dot com crash, right, and then like they exited and they became a big market winner.