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Live from New York. This is Bloombag Technology. Coming up.
TikTok still faces an austing in the United States after a DC appeals caught upholds the divest or ban law. Plus more VC voices in the new administration. As Donald Trump selects venture capitalist David Sachs to serve as his AI and cryptos are and Hpe, which is a record high after posting earnings, we talk AI servers with the company's CEO. First, we check in on the markets and other record highs than just Hpe. We have the Nazak one hundred and a new record up seven tens of percent.
The macro picture being that of a resilient jobs market and even though there's sort some infrationery pressure, the market almost pricing in some sort of rate cup for later this month coming from the Fed.
So we see stocks move high.
The SMP at a new record two fifty seventh that we'd see have almost thirty percent year to date in terms of points contributors. You're looking at Broadcom doing well also met her as well, which we'll dig into in a moment. And that's all because of TikTok's Chinese parent company, Byte Dance, still facing that ban here in the United States if it doesn't meet the January nineteenth deadline to divest TikTok. This after a federal appeals court just came
out with its decision to uphold the ban. Blouembgs Alexandra Levine joins us now, who covers all things social, all things TikTok, and you are surprised, ultimately by this ruling.
This is what we expected, but it still is very surprising in the sense that we've never seen this happen in the United States before. So if this band comes to pass late in January, it will be the first time that any foreign owned social media app has ever been banned in this country. And again, it's not just any social media app. This is a social media app used by more than half the American population.
I'm backed by some very powerful people potentially close to the next administration, benure capitalists, pe funds. But what's interesting is what's the effect this is happening on the company itself.
Yeah, inside the company, I think the sentiment has been fascinating.
It's sort of been twofold.
I think there's a lot of folks inside the company who had been more actually scared the first time that this happened with Trump's first administration, when Trump was originally the one who tried to ban it back in twenty twenty unsuccessfully, So that then when all of this has been transpiring this year, you had a lot of people who were like, we've seen this movie before. This is
sort of boy who cried wealth. They didn't actually believe it would come to this, But I think the court upholding the legitimacy of the law today could well change people's tune.
Just for our audience, we have a little live far drill going on here in Lexington Avenue, New York, So bear with us when we have some of these particular announcements coming through the camera. At Alexander Levine, we thank you so much on all things TikTok. Let's go to Blue Meg Intelligence analyst Matthew Schunhelm for more. Who I'm pleased to say, isn't that in New York so wouldn't get the sort of interference from a noise perspective, Matthew. From
the legal perspective here, what was the ruling from the judges? Ultimately, they think that national security out trumps upon the pun.
What's happening from a freedom of speech perspective.
That's exactly right, Carolina. Looking quickly at the sixty five page opinion, this looks like a sweeping loss for TikTok, where the court completely rejected its its First Amendment argument and said that national security concerns trump all of those complaints. The court said that this fails both intermediate scrutiny and even strict scrutiny, which almost never works.
But the court said, look, the.
Government's interest in national security trumps the First Amendment concerns no matter what the test is. This is a tough loss for TikTok, and I think it's going to be difficult for TikTok to overturn it.
To that point, you had what a seventy percent chance that TikTok would lose on this particular DC court. They're only inning here now is to go to the Supreme Court. What are your probabilities on that or is it too early to tell?
No, I think that is going to be the option. In theory, they could ask for rehearing at this Appeals Court, but this decision leaves little hope of that. So I think you're right that the next move is an emergency petition to the Supreme Court to say justices hit pause on this January nineteenth date. This is an important First Amendment case. As Alexandra said, this is sort of novel in American law, and so trying to entice the Justices to at least look at it before the date take
comes up. It's the thing is, it's difficult to do that though. It takes five justices to vote in support of that, and with this sweeping decision, two of the three judges who wrote this decision are Republican appointed. One of them's President Trump appointed, and this Supreme Court tends to agree with with those judges. I think there's a real possibility the Supreme Court looks at this and says, you know what, the d C. Circuit got it right.
We might not even need to take this up. So there's a chance of that that they hit pause and the Supreme Court has to rule on it. But there's also I think a better chance the Supreme Court says no, they got it right. This case is over let the band take effect.
What then, legally speaking, does TikTok do? What does Bite Dance do?
Yes?
So, so the question then is will it Will it do a divestiture? You know, the law gives it a path around an effective van by by by by selling the service to someone who's not located in China. The problem is that China has said it won't approve a sale with of the algorithm, So so TikTok's in a bit of a tough spot in that sense. The other big question is what will President Trump do with this?
Will he enforce this law? The enforcement mechanism is the Department of Justice here, and President Trump in theory could direct his Department of Justice say don't worry about enforcing that one. That would be highly unusual and the companies that host TikTok would be taking enormous risk. He wouldn't change his mind, But it's at least a possibility.
We don't rule out anything, of course, for the future, and I'm i am interested as to whether you know from behind the scenes ultimately what it could look like if they did divest and legally speaking, how that might have to ultimately.
Look, yeah, I mean there's a big question. I think the biggest question around the divestiture is whether TikTok would or potential buyers would look at a transaction that doesn't involve the algorithm. And if China won't approve a sale of the Algori Rhythm, maybe you're looking at selling you just the users and the platform, but without the secret sauce that makes it work and so well, I think you could see the company exploring those sorts of alternatives in the near term.
We will wait to see whether indeed it does get pushed onto the Supreme Court.
But can you give us a feeling of timing him?
I think January the nineteenth feels incredibly close. Now it is one day before the new administration is sworn in.
Here we go with the fire alarms again.
But what are you thinking in terms of just an extension past January nineteenth exactly?
So, what I expect we'll see here in maybe today, maybe in a matter of days, is this emergency petition to the Supreme Court asking the justices to hit pause on that January nineteenth date. And I think the Supreme Court will take that petition. It will ask for briefs on that leading into January, and then the the Supreme Court is either going to say yes or no, probably in mid January, about whether it will grant this case, take the case and hit pause on that January nineteenth date.
So that's where the legal action is likely to be in this pushing the justices to hit pause on that January nineteenth date. And as I said, I kind of think that the justices might say, no, we don't need to step in here. Let's let the law take effects.
The DC Circuit got it right, and then it's over to Trump and then your administration. Matthew Shettenham fascinating you called it right this time. We'll check in with you later. Meanwhile, here's another Trump pick, David Sachs as White House, AI and cryptos are Trump posting on truth Social that the venture capitalist will quote guide policy for the administration in artificial intelligence and cryptocurrency. Two areas critical to the future
of American competitiveness. Romost Katie Ruff helps cover all things venture and once again we have another venture capitalist. Then of course we have who's the deputy the Vice president elect as well being one.
David Sachs has been close to Trump. Of late. Can you just tell us how we got here, sir?
He was a big fundraiser, you know, for the presidential campaign, and he's also quite close to Daily Vance. The vice president elect, David Sachs was hosting fundraisers and also getting other Silicon Valley supporters to come on board and support Trump. So it's not surprising that there's some sort of role or partnership here.
And indeed not a full at the seat role in politics that means he has to step away from Craft ventures. We know that he has sort of ultimately focused there because he's got a key man risk. His venture capital history is extraordinary. He's been in the angel rounds of Facebook now Meta, in Pan and Teer in some of the most successful exits that we've seen coming out of
Silicon Valley. He built his own company that was exited Microsoft, earning him one point two billion dollars, well earning at least the sale price of one point two billion dollars. How intimately is he interweaved within AI and crypto because he has Bitgo bit Wise Lightning Labs for example, within his portfolio.
Sure, there's already questions where people are asking does he have a conflict of interest here, but given that this is a less formal role, it's unclear if there's any roadblocks there. He's you know, certainly, you know, very much a part of the ecosystem. He has a popular all in podcast that many people in Silicon Valley and beyond listen to, where he airs controversial opinions. But I would see this as a sign of deregulation. He is definitely
very tech friendly, you know, with crypto and AI. He is going to want to move to make moves to prevent anything that is obstructing the growth of these technology companies.
kJ Ruth, we thank you, HPE.
We're wanting strong fourth quarter results and we're seeing shares at a new record high. It's all around the sales strength that we're seeing for service to power AI workloads. How resilient is that, Let's ask Antonio and airing HPE CEO. So what's interesting about the AI server business was that it's still growing fast. But is it cool sequentially, are you feeling confident about the purchases here?
Well, good morning, Carol, and thank you for having me today. We have an exceptional quarter and obviously one of the flagship elements of that quarter was AI, but I have to say it was more than AI. It was also a hybrid cloud business performing exceptionally well, and the sort of in general because all the matter we have growth both on the traditional CPU and obviously on the I side, but on the I demand continued to be very, very strong. You know, as of today we have more than three
and a half billion dollars in backlog. That shows the moments that's there in the market. Now we're seeing a significant uptake in the pipeline in enterprise AI, but in total we have a pipeline that's a multiple of the backlogs. So as we go into twenty twenty five, obviously there is a transition to the direct liquid cool set of technologies with Blackwell and Grace Blackwell, and as you know, two months ago we announced a new architecture which is
one hundred percent fund less. Direct liquid cooling is the industry first and one third more than one third of that three and a half been under a backlog is already on black Bell, So we expect continue growth as we go into twenty five.
How are those Blackpole shipments looking how certain.
Well, definitely is all very consistent to what we have seen the number of customers continue to grow. The demand across four different segments continue to be very solid. You know, when I think about THEI I think about four distinct segments. I call it the model builders and the hyperscalers, then the Tier two, Tier three service provider, the sovereign which is growing very rapidly in terms of interest, and the
cell cycles a little bit longer there. But in talking about large scale deployment, and we are in the process to building in the UK the UK Bristol AI Cloud and in Japan the ais T and then the enterprise which obviously the order value is significant lower, but the number transaction is significantly higher.
But the supply side has been the issue with Blackwell in particular. How swiftly are those shipments arriving? How on track do you now feel it is?
Yeah, I will say, you know, the supply will come in due time because of the transition that Jensen and team are driving. I will not say it's problematic, it's just the transition in early parts of twenty twenty five. Today we continue to ship you know H one hundreds
and the H two hundreds. But as I said earlier Carolyn, we already have more than one third of that more than three and a half billion dollars of the Blackwell, and a lot of that has to do with companies that lead with that technology because they want to get better performance, better image density, and ultimately lower the cost per training.
You were really interesting articulating just the breadth of demand coming from there, mentioning sovereign as well as enterprise for example.
How resilient is that demand?
What's interesting about your backlog, which you say is very resilient and strong, but there was a seven hundred.
Million dollar d booking. How confident are you in.
Some of these purchases, in some of these deals that have been signed.
Yeah, so in our current more than three and a half billion dollars, are very very confident. In Q four, we booked one point two billion dollars of new orders, and we decided to book a specific orders because we had specific concerns about the risk associated with that order, and we have very very strong controls in place, and we felt that because of the risk associated with even the finance inside, we felt this not worth the headache, and honestly, we decided to focus on the number of
growing customers we have and allocated supply to the right customers, So that's why we decided to debook the specific order.
Caroline, you're also doing deals, of course, we are hearing confidence on June and Pan Networks acquisition for the early twenty twenty five. Is that just going to sell through DOJ? Do you expect with the next administration?
Yeah, Well, first of all, we have received pretty much all the approvals around the world with you know what
I call unconditional support. Basically, it tells you that the rest of the world sees this pro competitive and with the DOJ, we have had a very collaborative process through throughout the last several months, and we expect the transaction to close in the early part of twenty twenty five, which still is within the original timelines we stated when I announced the deal on January tenth, which was end of calendar twenty twenty four or early part of calendar
twenty twenty five. And so nothing gives me post that will not be the case. And then in addition, for the United States, this is good not just pro competitive, but also for US national security because ultimately the combination and Juniper HP provides a better ability for US to compete outside the United States, particularly when you have Chinese competitor around the globe, and remember a part of that.
For the United States, we provide the largest supercomputers that are doing also AI and that requires a lot of networking. And today i Qula pack and Enterprise owns seven of the top ten supercomputers. Number one, number two, and number three are HP Systems.
Well being reflected in a new record high on the share price and augustanding sounding very upbeat about eventually what Juniper does in terms of accretion. We thank you Antonio and ery c Hpeco today. I meanwhile coming up us Haring picked up in November, adding two hundred and twenty seven thousand jobs. We've discussed the resilience in the tech sector, what it means in terms of impact. We are just reflecting on a couple of stories out of France today.
Ubersoft up twelve let's call it thirteen percent this as we get an articulation and potentially what some sort of management buyout could be looking like the Gilamott family holding talks with ten cent as of room reported by Reuters and other investors. We're up thirty percent there, and boy are we down on Athos. Look, we're basically nil nil point ninety eight percent lower that you're seeing for a
price point on at ours stock. This as we are expecting a subscription price of its recent rights offering sinking, you know, ultimately coming to a very low number stocking trading as you see at zero. This is blombog technology time now for talking tech. First up, NASA hasn't landed on the Moon in fifty years. The next one now won't happen until at least twenty twenty seven. The newly announced delays come as engineers raised the crucial safety issue
related to hardware now. The agency also announced it will delay a moonfly by until twenty twenty six. The scheduling setbacks are the latest in the program plagued by spacecraft cost overruns and technical hurdles. Meanwhile, Uber launching its first robo taxi service in Abadami, making good on a partnership
struck with Chinese vehicle partner we Ride. Customers are able to request autonomous vehicles around key tourist areas in the UAE, and Uber expects to fully launch its driveraler's service.
In twenty twenty five.
And the dramatic events in South Korea this week has catapulted a year old movie to the top of the Netflix charts. The film twelve twelve The Day, became at the number one Korean film streamed since South Korean President unsub yul stunned the nation by imposing Marshall Law. The twenty twenty three blockbuster depicts the events surrounding.
A coup in nineteen seventy nine.
Now, there have been some big market moves today and in large part is on the back of US job Stata November payrolls coming in strong two hundred and twenty seven thousand added.
But we want to get the ten perspective.
Sarah frankpin Let, us CEO, joins US now and Sarah, we are fascinated by ultimately how resilient this US job's data looks, and how that resilience is.
Potentially being born out in tech. Is it so what you're saying is true.
We're seeing this resilience, we're seeing predictability, and we're seeing balance in the data, and we're seeing incredible time and tech not just with the jobs report and the two hundred twenty seven thousand jobs, but also with a new entrant to the labor force, with digital labor.
Let's just talk about how augmenting digital labor is or not. It's interesting your Alma Mater salesforce coming out saying they're going to be reallocating a thousand workers to be going out and selling their agent force. How much are we having to see people work in tandem with the growth of generative AI.
You're definitely seeing this new world where AI is working together with humans and where people are successful working together with AI technology. And every CEO is looking to the future in saying, how do I reshape my workforce? How do I bring AI in to help us be more productive, more efficient from the public to the private sector.
Okay, so where are some of the worries that are still overhanging in CEOs? That it does seem to be this disconnect that we've got all of these generative AI tools fit for use to buoy our productivity, but actually a lot of the workforce are either scared to use it because they think they'll be deemed lazy or do you just don't getting the training?
Is that something to change?
So AI literacy and AI proficiency are more important than ever, And yes, every CEO is saying, how do I bring my workforce along my people along, to skill them, to train them, to make them proficient, not just literate, but proficient in these technologies. It's critical for every job function, whether you're doing customer service, sales, accounting, data operations. AI is a part of everyone's jobs and so the skilling and the training is hand in hand with the implementation of the technology.
I ask it short each time you'll run, but I ask it again, is it affecting the number of people that companies can have?
So there's definitely efficiency gains that we'll see, and companies are looking to have a way to scale their workforce in ways that meets their needs. And so we're going to see shifts in the labor and jobs will change, some jobs will be created, some jobs may go away. But the future is one where AI and digital labor
is here. The reports coming out of Deloitte say that a quarter of enterprises next year are going to be deploying digital agents and so it's important that everybody learned this technology and every CEO is looking how they shape their workforce with both people and with the new digital labor entrance LATICS.
Number one AIPAD people platform. Someone to listen to your serf, thank you so much, Lattice CEO the on jobs in tandem with AI, Welcome back to Blue Meg Technology. I'm Caroline Hide in New York and in New York markets are training in a new record high and as that one hundred continues to grind higher, up three percent over
the course of the last five training days. Today, the moon music continues to the upside because of jobs data looking resilient but not too hot to cause unnerve to any fulfilling of a fed rate cut Outlook, we're currently up, as you see, three point one percent on the five days. Where has crypto gone over the last five days, It has been a volatile ride at one point eclipsing one hundred and three thousand dollars. We're still up one point
four percent for the last five training days. We're currently back at ninety nine thy one hundred and seventy eight, as we call it, just inching higher on the day. We're basically stabilizing after what had been a bit of a pullback after reaching that psychologically important number. Let's dig into that number and into what else is riding behind it Isabelle Lee joins us, what's interesting, of course, we get that new cryptos are crypto in AIS.
Are David Sachs coming in?
That's going to be yet more positive moon muse around crypto. It was the SEC announcement we'll not use quote your attention.
That everything is aligning, The stars are aligning for the crypto space. Everything is just nothing can beat it. It's like the perfect holiday for them. We have bitcoin soaring, but we have various wagers actually taking up. Of course, investors are taking back their profits. I mean who wouldn't, especially if you put in a lot of it. But I want to bring our attention to the Bitcoin ETF. Black Rocks ie bit is the fifth most active ETF option underlying when it approved options just less than a
month ago. It now is the fifth most active according to ASIM. So that's really impressive because it's only behind the biggest ETFs from SPY to QQQ to TLT, and it's the most successful ETF so far. It officially hit fifty billion, so you really see institutional demand going into that. We have Wall Street investors are not scared anymore of bitcoin ETF.
Well, they're not scared of really quite leverage plays as well. People getting into micro strategy playing the volatility around it, we dug into that where are we starting to see other areas growth from institutional and retail, So that's what we're not seeing yet for the out coin et So we have Ether ETF.
It debuted mid this year and it really saw kind of lamb inflows, but when Trump was elected as president, that's when it's all massive inflow. So now we have a lot of pending ETFs from XRP to Solana, fourth and fifth largest odd coins, So it remains to be seen whether we will see inflows for them.
But judging by Ether, it's.
Not such a promising start. But with the Trump presidency and to your point, David Sachs and the new SEC pick, maybe investors will pil into those ETFs.
And what's interesting is, of course this is becoming so much more of a macro picture now. This is an asset class that people do feel that they almost ought to have exposure to, not should do as a risky propensity, at.
Least for a bitcoin.
Because if you talk to my mother or anyone who is like gen Z or whatever label generation you have digital goal, they get find that supply, they get inflation heads they get But how do you sell eather XRP Solana. So those are a bit more complex, but you're right, Bitcoin at least now is becoming a little bit more mainstream. It's easier to accept, easier to digest. Black Og Investment Institute, in fact, in their twenty twenty five outlook included bitcoin
for the first time. They said it's a great diversifier because of the erratic stock one relationship. So it's getting their conversation is moving into crypto for now.
I literally was at the station yesterday and two police officers were telling each other how they were in bitcoin and how it was going to go higher.
So there we have it.
Everyone's talking is bully, Thank you so much on all things crypto. Let's turn from crypto to data security now. Because data security software firm Rubrics come out with its numbers and the company beat earning expectations, boosted its full year revenue guidance. You can see the market reaction extraordinary, up thirty four percent on the day, and of course that's a record high. Let's talk to Rubrics CEO and Cofanna Bevolsina.
I mean, congrats on the numbers.
Analysts really liking what you've been able to show in terms of cross selling here that many saying, look, you're the only game in town when it comes to cyber and data security.
How are you seeing in your client's pick up?
Thanks Carlin, we had another outstanding quartern. We are very pleased to not only have a strong growth at a scale top line, but we also improved the profitability and generated free cas flow. So exciting time, exciting time for us. What is fueling Rubik's demand is really this realization that folks have spent a lot of dollars in stopping attacks across network, endpoint, cloud, but you can't stop the unstoppable.
You need to have a resiliency strategy to ensure that when the inevitable breach happens, you can still run your business. The kids can go to school because your schools are open, hospitals can admit patients, and that's what we are focused on. And we are helping businesses make sure they are a continuing operation even when they're confronted with cyber attack. And that's what is fueling our demand.
It's interesting today a really well lend story on bloombog by Ryan Gallagher is all about ransomware gangs really targeting not just really big institutions, but smaller medium sized enterprises. And when you've got ransomware attacks up seventy twenty twenty three, what is the outlook for everyone having to adopt some sort of protection Hendry.
Brit Ransomware continues to be a huge problem because there's some monetizable way for cybergangs and criminals to actually make use of cyber attack. So the issue is like who are they targeting? And they are targeting the weakest link, which is our local government's local schools. They are targeting the hospitals and other healthcare institutions because these organisms are
not protected properly. If you just think about healthcare, there is so much sensitive data in healthcare, three times more sensitive data than average enterprise, and the amount of digital transformation that is happening in the healthcare space to reduce the cost of healthcare, to deliver better services. It it's creating more surface area of attack and as a result, we are focused on really protecting the unprotected.
We're just going to break some news.
Hold on for a minute, people, what we have news out of our own Mark Gum and regarding Apple with a breaking news that Apple is preparing in fact to finally bring one of its most ambitious projects to market, basically the cellular modem chips that we've been hearing about that's going to replace components for its partner, but also basically let's call its adversary Qualcom call come off by a percentage point, Apple up three tenths of a percent,
more than half a decade, more than five years. They've really been focused on this in house modem system and it's going to be debuting next spring, according to people familiar.
We will bring you more in that story.
But let's just get back to a people of rubric because we're just talking about how the expans expansionary nature of these attacks, ransomware attacks.
Unfortunately, can you paint the picture.
Of what it looks like going into a next administration twenty twenty five. Are we likely to see in any way the narrative their change around data protection, data security, cybersecurity.
The next administration will be America first administration, and that will actually spur more industrial espionage, more cyber warfare, more cyber activities, both insider attacks, cyber attack and so we believe that as we are digitizing faster and the next
administration will be quite business focused administration. So we believe that the outlook for cybersecurity is obviously grim, and we are ready and prepared to help businesses protect themselves as they expand internationally, as they expand their business, as they create more digital transformation. Our goal is to help every business confidently transform themselves digitally without worrying about how they can keep their services up and running.
We haven't mentioned Jenai yet. How much are you having to reference it to your clients?
Look, Geni is a big driver to our business because Genai applications actually data hungry and they are pulling data from all the nooks and crannies of business applications into a centralized place and ensuring that that data doesn't fall
into the wrong hand who uses the Genai applications. You don't want sale people in a hospital to have access to the patient record, and this is where we are focused on really delivering data security, ensuring that the Genai applications are trusted and responsible.
Rubric soaring thirty four percent on the back of your numbers today, great to has some time with you before Seena Rubric, CEO, Now more earnings coming up. Docu signed CEO and Tigerson is going to be joining US as next after the firm also beats expectations on its earnings. This is BlueBag Technology, electronic signature software company DocuSign.
It's third quarter numbers really did beat expectations.
The company is boosting its revenue forecast for the full year as well. We're up again twenty five percent on this particular company. Let's have a talk about it with the docu signed CEO and antiquson who ultimately is displaying what seems to be a growth here that is not just coming from early contract renewal but also new products that you're offering. How much are they to be said for the galvanization and growth.
Yeah, well, first of all, it was a very positive quarter for us. I think we beat on all the metrics and we're able to raise for the full year and that was really a reflection of strength across the board. So in our existing business and signature of business, everyone knows well, we significant improve retention and reduced churn. We've grown our channels from being predominantly direct sales to now also having a very strong digital channel and building out
our partner channel. And then, as you mentioned, our new products which we launched at the end of May to a limited distribution to the mid sized customers in North America started contributing in this quarter as well, So it's still early, but I think Doug Sun's on a very positive trajectory of rejuvenation.
Rejuvenation, let's talk about that, because the acceleration of billings are basically coming from a very depressed level, and everyone is saying that this is really encouraging. But when I look at Pypasuna and in particular, they're sort of waiting for really the new solutions and new offerings to make meaningful difference to your revenue.
When will that happen? Will that happen?
Yeah, Well, it's a journey and we're working on that. Our goal is to return to double digit growth. We're not putting this particular timeline on that, but as we roll out these new products across more geographies and segments. We just launched around the world here about a month ago and just started shipping to enterprise rollouts and departmental level rollots and enterprises, so we're still adding customer segments and geographies and as that impacts more and more of
our book, we can drive more growth. And of course any continued improvement in our core business also helps, and so you're starting to see some early signs of that. We got more work to do, but it's very encouraging the progress that we're making.
You've got some more convincing to do, because when I'm looking at the Bloomberg terminal, it points out what the revenue expectations are for your business going out to twenty twenty seven. I'm afraid we're staying in single digits for all of those expectations. As far as we go, what do you think really catalyzes back to I'm not saying the forty percent increase in revenue we used to be having in twenty twenty one twenty two, but at least the double digit What gets you there?
Alan, Yeah, I think I think we get there through that through the combination of continued improvement and retention to our core and then the full rollout and adoption of our new products. We can call it intelligent agreement management. It's a much broader value proposition the Dockshine has had historically. It's a true C suite cell. It's across the entire enterprise, and we have I think tremendous green field opportunity are in the best position to really help transform how agreements
get done. That's our opportunity. As we execute on that, then we can deliver on that growth opportunity.
You've got about a billion news is one and a half million customers. What sort of numbers do you end up getting to do you think?
Well, so we already have, as you mentioned, over a billion signers. I'm sure we will add more signers, but we've got a lot of people who are already used to sign Docusigne documents. And from a customer perspective, we're adding about ten percent, growing our customer base ten percent year every year, every quarter. But those tend to be smaller customers. We are already present in most large companies in the world. I believe over eighty five percent of
the Fortune five hundred are already docks signed customers. So our opportunity is more adding breath, basically cross selling and up selling our new broader solutions into clients that are already generally happy customers are docusigned. So fantastic starting point.
Where is the competition for you? Who do you put yourself most often up against?
Yeah, Historically we've had some competition in the electronic signature space, where by far the market leader I think the preferred branded solution, but we have some lower price competition there. I think increasingly, as we move into this broader agreement management space, those competitive dynamics changed, and as I mentioned, we believe that's mostly open field running and we're the first to I think, articulate this broader vision and execute
on it. So if we can keep that going, I think we're in a We're in a very good position competitively.
And just give us a bird side perspective.
When you're in one hundred and eighty countries where is growing most geographically, how resilient does the US look when we're entering a new administration.
Yeah, well, the year's economy has been the strongest of the major development markets, and so we're certainly benefiting from that. On the other hand, the US is also the furthest along in the adoption of electronic signature, which still remains the bulk of our revenue, whereas some other major markets, for example Germany and Japan are a much earlier state of adopting various forms of electronic contract so we have
a lot of growth opportunity there. We're growing faster, namefully faster outside the US than we are in the US, and I think that will continue to be the case for years to come.
Dokus signed CEO al An Tikison. It's great to having some time with the congratulations on the share pop on the numbers. We appreciate your time Meta AI using it, probably because six hundred million people are using it every single month Meta platforms and a new record high. Also on the back of the TikTok news. Of course, that TikTok span or divest will continue to January the nineteenth and maybe gets pushed over to the Supreme Court, but
the Washington Court upholds it. But also happening with Meta now is the CEO Mark Luckberg saying in a post on Threads the company is releasing its Lama three point three seventy billion text model, saying it perform similarly to previous models, and the CEO is also noting that Meta
ai has nearly six hundred million monthly active users. As an inter leaves Generative AI across its entire product range, will delve into Generative AI in the competition there right now because Elil muks Xai has raised six billion dollars in new capital, wrapping up a funding round that has been in the works for basically months now. It was said to value the AI startup at about forty billion dollars.
This is all according to a regulatory filing which indicates the equity financing came from some ninety seven investors who were not named. Noma's Kirk Wagner has been going through those details and Xai is more about the generative AI models being built, large language.
Models, and plenty more. What is he using the money for.
Yeah, a big portion of this money is expected to go towards this supercomputer that Xai has been building in Memphis, Tennessee. You may remember, I believe they announced it over the summer, the idea that this would be possibly the largest supercomputer in the world, with tens of thousands of Nvidia chips all sort of running at the same time. So that's obviously a very expensive project. It's a very you know,
ambitious project. And that sort of explains why Elon Musk not only raised or six billion dollars here for Xai in the filing that we just saw yesterday, but also six billion additional dollars in funding back in May right. So this is twelve billion that has been raised just in the last six months or so.
And we know who previous investors have been. I mean one of them is now the Ai and cryptos are to the next administration. David Sachs has been putting money into Xai and every other mask business really, but who else has previously wanted to write checks for this company?
Yeah, we see a similar roster almost every time Elon goes out to raise money. You know, Andrees and Horowitz, Sequoia, Capital valor Equity. These are the sort of you know, the continuous or regular investors in Elon's businesses, not just XAI, but also x formerly Twitter, SpaceX Tesla. Right, so we see the same names kind of crop up every time. We don't know exactly who's in this latest round, but you can bet that's it's most likely the same names we see regularly with him.
And what's been so interesting to understand what XAI means the rest of the businesses because we have at one point concerns that some of the GPUs or at least spending that was heading towards Tesla was being pinched over to Xai. But then you have perhaps how much Ai is going to help Tesla's business model, how much it's going to continue to innovate on Grock for example.
Yeah, this is sort of the thorny world in which Elon operates with all of his businesses, right where he tends to borrow resources from one company to help another company. In this case, he's talked about you know, obviously x and all the posts that are showing up on x as being the data that's powering Xai and the chatbot groc that they built. He's talked about using Xai with Tesla and maybe even investing in Xai via Tesla. So you know his universe, as you know, Caroline, it's just
everything kind of blurs together. And so we're seeing this as sort of the AI layer for I think a bunch of his companies, and I think the more funding they get, especially from investors who are already invested in the other businesses, you'll see this continue, this kind of connection between Xai and everything else in Musk's empire.
And meanwhile, let's just talk about the ecosystem that surrounds it. Because we've had Sam Altman on stage at the deal Book conference this week talking about how he's not too worried or perturbed about el Musk hitting in on open AI's future success. But what about you know, we've got Meta just announcing how many people are using their generative AI products across the whole gamut of their product offering. Where are people going at the moment from genera offerings more broadly.
Yeah, I mean, I think Chat GPT from open ai still sort of is maybe the first thing that comes to mind when people think about this. It's probably the most well known. But Meta, as you point out, they just had announcement literally a few minutes ago, six hundred million monthly users of their Meta AI bot. Now they benefit from the fact that they put that bot into Instagram and Facebook and WhatsApp, so they're reaching you know, billions of people just by putting the product in something
that they are already using. But I do think that, you know, we're getting to this place where there's going to be a couple or winners or a couple you know, companies kind of coming out in front. I think Chat GBT, Meta AI, and then GROCK obviously is built into X. So those are the three that come to mind for me when I when I think of these generative AI bots.
Co Wagner across the space.
We appreciate it, and look, let's just dig a little bit more into these models. Because of the tech industry has kind of been hitting a bit of a wall when it comes to building better generative AI modelsmost Sharon Gafari has been writing about this your latest newsletter Q and AI.
And what's interesting is Mark.
Zuckerberg just released Lama releases LAMA three point three, and he's, you know, seeing it as the next base model. How have people been heading up against improvements here though?
So here's the thing.
AI is certainly getting better, but we have to think about the kind of bold bets and predictions that the leaders of these AA companies are making, which is that we are going to reach some kind of all knowing, you know, very powerful, matching or surpassing human intelligence level
AI in the next few years. And so that is the kind of intense race that these companies are going against right now, and that is why there are some kind of missed expectation around the pace of which they'll be able to actually deliver on that.
But some am in this week just briefly saying twenty twenty five, right.
That's right, and you know, again we are seeing progress, but by now some people were hoping. You know, we haven't yet seen a GPT five level model. We haven't yet seen the next big model from anthropics. So that's what sort of the end goal is.
Go read your newsletter, Sharon KAfari, thanks for joining us today. That does it for this edition of Blue Meg Technology. Don't forget to check out our podcast. Find it on the terminal as well as online on Apple, Spotify, and iHeart