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Apple holds exploratory talks with Intel and Samsung to build their processes for its US devices plus alphabet. Microsoft and Xai have agreed to give the US government early access to their models for review before a public release, joining Open Ai and Anthropic and Pinterest shares jumping after posting strong results and revenue forecast. We speak exclusively with the CEO, Bill Ready, let's come in and have a look at what's happening in terms of these markets.
A little bit of a tech issue and the start.
Of this tech show, but we dig into what's happening in terms of really the key story that was a huge scoop overnight the fact that Apple is starting to have conversations with getting production closer to home when it means for their own in house chips.
They designed them, then who fabricates them?
Maybe less so TSMC, Maybe it's a move more to Intel up thirteen percent on this news, looking at Samsung Electronics also up eight percent as we understand Apple executives have started to look at their production out of Texas. Let's get to the man who helps break down all these sorts of bits of news, Mark Goverman's with us. Mark talk to us about how Apple is rethinking its supply chain.
Well, we've known for the last few years now that Apple is increasingly looking to do more in the United States. They've put out multiple announcements. They did a six hundred billion dollar investment alongside the Trump administration into the US, and now they're looking for secondary suppliers to its work on manufacturing its main processors. These are the SoCs, the engines that powered them back, the iPhone, the iPad, you
name it. As you know, for well over a decade they've designed those processors in house, and they've relied on CSMC to produce them in Taiwan. They've been shifting some of that manufacturing to a TSMC fab in Phoenix, but additional fabs have been slow to come online, even though Apple says they'll have one hundred million chips out of the area by the end of this year. But they
also need additional suppliers. Obviously, there's geopolitical tensions there's supply chain issues, and there's just the idea that it's not smart to have all your eggs in one basket, in one geography and in one supplier. So they've had early discussions with both Intel and Samsung about using new fabs that they're opening the United States to potentially down the road produce these A series and M series chips for Apple.
Does it have to make sense that it's the AI hardware that the US SORRY hardware that this goes into, because is there going to be margin pressure here by making them in the United States.
This is also sort of more of a political gamut.
I mean, in some cases there are politics involved here, right Working with Intel will give Apple a better relationship or even better relationship they have already with the Trump administration, given they've sort of taken ownership through the US government of a stake of Intel, and obviously, you know Donald Trump has been touting Intel significantly in recent weeks, including its stock price and their investment growth given their recent
market cap. So definitely there's a political factor here. But I think the biggest thing is concerns over what happened in Taiwan. If there's a situation with China. Obviously geopolitically it's not great. Many months ago there were concerns for Apple related to tariffs and needing to do more chips in the US to avoid those tariffs.
But I think the.
Bigger picture overall is wanting additional suppliers for perhaps the most critical component in the entire supply chain, even for things like displays or speakers. You see Apple using several different suppliers to offset supply chain issues. To not have all of their eggs in one geo or one basket. You never know what could happen. So it's really for
Apple only smart business to have a backup here. If they're not able to get the chips they need out of Taiwan, they're not going to have a very good year. It's actually probably the biggest risk factor for Apple right now is getting all their chips out of Taiwan. So expansion from the silicon front is necessary because without the silicon the Apple products don't work.
And it's not just Apple, the entire world relies upon Taiwan. About ninety percent of all chips made out of that extraordinary reporting As always, thank you Mark German. Now away from chips AI heavyweights including Alphabet, Microsoft, and Xai, have agreed to give the US government.
Early access to their models before public release.
Now, the deal allows the Commerce Department to conduct pre release reviews in advance.
Let's get more with Bloomberg's Maggie Eastland and Adam Washington.
Now this builds on where we were already going with open AI and Anthropic, right.
Exactly.
So open ai and Anthropic have already had agreements since twenty twenty four with specifically the Center for AI Standards and Innovation. That's an office within the Commerce Department that knows how to evaluate models. So now you see three more firms agree to allow the US to access their models early. Now, this does signal that there is at the very least appetite from US officials to know what these models are capable of before they reach a wider audience.
We have seen more relationships, well more formalizing, more updated relationships being signed between the likes of Alphabet and the US government. We know XAI has been working within it, and we're starting to see it really being deployed in the departments of War or Defense, which, of a way, termit Maggie, well, broadly, how different is this from the
way that they operated before. Is this just a formalization, Well, it's certainly an expansion of the firms that have agreed to allow this center to evaluate their models.
Now I should note this center it.
Doesn't do any sort of regulation. So separately, there have been reports from the New York Times and the Wall Street Journal that the White House is weighing a cybersecurity executive order that would include some sort of oversight mechanism.
Now this news, these agreements could be part of the evaluation piece, but it's unlikely to be part of any sort of oversight mechanism, even though, of course more evaluation of models could pave the way for, at the very least new enforcement of existing laws.
Even most Maggie Eastland always with the latest, Ala Washington for us, we appreciate it. Let's look as wels as moving in the tech markets. We hire more broadly, and that's not one hundred and one point three percent. Guess what, yet another record high. But look at the socks. This is all about semiconductors continuing to fly higher. We're up three point seven percent, yet another record high. We want to dig into just the insatiable demand. It feels like
for tech stock and the bounce back. Lauren Webster's with us managing director of Investment Banking focused on technology at pypersanla and just break down what is amid geopolitical tensions, amid concerns over Iran and the conflict, we're still seeing tech managing to catch.
A bid today.
Yeah, it's a real turnaround from what we saw to start the year in terms of the massive sell off driven in part by uncertainty from the introduction of AI what that would do to traditional software companies, traditional software stocks. In April we really saw the first constructive tape for the software indices and moving higher, still lower than the
broader market, but performing quite nicely. I think this is really where we're going to start to see a shift from kind of AI panic and uncertainty into AI execution and more discernment among investors around who's really going to be the winners the beneficiaries from AI and who may struggle to perform as we go into this new era.
It's interesting we have earnings still coming thick and fast, and when we're thinking about Paneteer has been the EI of the storm in many ways of whether or not it's a software exposed stock and AI is going to manage to upset it in terms of competition coming from the front end model makers or if they're able to pass and look, the numbers were again extraordinary, but the earnings of down was seeing shopify also LOA. How are you discerning who is able to retain a mote?
Yeah, So there's there's a few things that I look for.
First is.
Enterprise adoption, So are you selling more to the SMB are you selling more to the enterprise? And enterprise software rip and replace is hard to do. These are projects that have been budgeted, budgeted years in advance. Implementation timelines take a long time. You have a lot of services
wrapped around that, so you can't rip that overnight. Things that are easier to deploy, you may be able to turn on a dime a bit more adopt some of the newer technology that's coming out of the foundational labs.
So that's one.
The second is you mentioned palent Heer, and there's a real rotation into the defense tech sector, particularly those names that have a software angle to them. So what is you know defense tech hardware now software getting a lot of focus and I expect will continue to see a lot of tailwinds there, given where you start in kind of the geopolitical landscape and the money that is pouring international security and particularly a new way of doing business in defense technology.
Let's talk about the other theme about as we see more efficiency being sought by these companies, Unfortunately that often means job cuts. Some of it comes with the view that it's because of AI that we're disrupting the labor force. Do you believe when we're hearing the latest out of coinbase fourteen percent of workers to go, PayPal going to be letting go thousands of workers?
Is this AI washing?
Is this just a different kind of focus from fintech for example.
You know, there's a couple interesting trends going on there. One, you definitely see investors pushing more towards profitability. The ratio of growth the profitability has changed over the past year, with a focus on profitability matter mattering more than ever and certainly looking for ways to make cuts that drive that profitability. Businesses are going to do that regardless of AI.
But yes, AI is also.
Going to displace certain types of tech workers. But there is going to be a new opportunity that opens up. One area that I'm really bullish on is the services sector that is going to emerge around AI adoption implementation projects. Again, some of these are hard to figure out. How do I want to put those in place? What are the security measures I need to have when I'm implementing AI? And that's where you're going to see a big services push and that requires some labor to do as well.
On Webster, PYPASANLA, maybe some music to some of us in laborers out there, we appreciate it.
Now, let's talk about Anthropic.
It's unveiling new AI agents designed to handle a broader mikes of financial services tasks. It's part of the company's push to win over wool Street. Now CEO Daria Amide will join Jamie din of JP Morgan and an Anthropic
event in New York today to discuss the move. As part of the new offerings, Anthropics says it also is enabling claud to work better across third party software like Excel or PowerPoint or Outlook from Microsoft, and integrate data from partners in the financial services industry such as Dunham, Bradstreet or Moody's Coming up. We're here from the CFO of GRABS Southeast Asia's leading right hailing and delivery app.
It's a super app. Sublue Magtech Southeast Asian super ad grab top first quarter estimates and shares a jumping after a quick dip. This morning, Cfop de Uey joins us from Singapore to paint the full picture. What we have seen is we're twenty four percent growth in GMV, that sort of record. You just seeing that similar sort of run rate from revenue growth as well. You've got record high users, Peter. What drives that both.
A lot of very exciting things Caroline. There was what usually is Q one a very soft quarter for us, just because of Ramadan, the lunar New Year. We saw the opposite. It was a very strong quarter. And this is despite some of the ad macro economic fuel prices that you're seeing towards the March period. But overall it was very strong on food, very strong on mobility, and also our financial services also where we've clipped over a billion dollars in loan dispersal. It was a very just
strong quarter. And a lot of that Caroline comes to just a product that we've been rolling out and affordability has been really a critical piece that's really opened up the funnel for us that continues to grow the MTUs, the users on our platform. We have fifty two million monthly transacting users. One in thirteen Southeast Asians are using our product now, which is great to see. And this has really helped for us to really penetrate the market more and more.
Let's talk about trying to penetrate the market more and more when you're also seeing some pressure coming from say fuel prices. At the moment, you are a very hard a mobility company. How is that going to impact longer terms? You think can you do to offset?
Yeah?
If you look at the markets that we're operating, we operated eight markets in Southeast Asia, not all of them are equal. Where certain markets, say the Philippine has been the hardest hit where fuel prices has been up two x, three x in some cases, when you have the other extreme, say Malaysia, Indonesia, where the increase has been very nominal, hardly any because just the way the structural macro has worked there from a fuel subsidy perspective. So it's very
different markets to markets. But overall, we're pitching in, we're leaning in, and we're helping the drivers. How are we doing that we've been In March, we activated a number of initiatives where the it's fuel fuel voluchers helping them getting discounts at the pump, working with the oil refineries, the oil companies. We've also deployed multiple lending programs for drivers if they needed. But also at the same time,
we're continuing to accelerate ev adoption. Actually, it's a great opportunity for us to accelerate ev adoption in two wheels and four wheels in our markets, and this is now an opportunity is to continue to pick up the pace.
Talking about well picking up the pace, what's been interesting is the pace of regulatory change keeps shifting and we're seeing that over in Indonesia.
Could you seem to soothe the.
Market a lot about what has been a very recent change to basically the maximum amount of commission you're able to take over in Indonesia to just eight percent. How are you able to upset that and still drive for ultimate profitability?
Yeah, So it's putting the perspective our Indonesia, which is where the government announced over the weekend the commission structural changes. It's roughly about less than six percent of our mobility GMB business. Overall, this is for the two Wheels Indonesian business and with the changes which we understand where it's coming from unexpected. Also at the same time we'll work
with the government to roll it out. We're still getting clarity of what the mechanics are and working with our industry. PEE is also across the platform. But if you look at what we've been doing with our drivers there, we've always been giving benefits. We have medical insurance. We've also have incentives for our drivers, so we have a number of levers that we could use to actually help neutralize some of that. Now it does mean that we need to recalibrate some of the business model of two Wheels
in Indonesia or worth of fair structure. But we want to make sure also that we're not just passing on to the consumers. That's the last thing we want to do. We want to make sure the marketplace can choose to be very healthy, but the drivers also benefiting. So we have enough leavers in the business Caroline to be able to upset this.
We need to remember your big and fintech. How is the consumer feeling right now?
Briefly, so far, the credit quality in the first quarter has been very strong. We haven't seen any impact.
Now.
Having said that, we're also very cautious with this macroeconomic situation, so we're doing a lot of stress testing. We're putting a lot of new variables into the input into the model itself, where there it's fuel prices increase, potential inflation, also the pot unemployment. All those factors are putting in so that we are a little bit more cautious and careful. But so far, actually we haven't seen any from the stress testing anything that's actually detrimental to the loan quality
of our book. If anything, the loane disperson continues to be very healthy. But also we're very cautious also in certain countries where we might tie up the funnel a little bit more also just to make sure that our risk appetite continues to be very balanced.
We alwaso balanced with us.
It's very light late or say early in the morning for you that we appreciate you live from Singapore.
CFO of GRAB coming up.
We speak with the Pinterest CEO Bill Ready after the company beats quarterly sales estimates.
To this is bring back tack.
Chess Pinterest best day in a year. We're currently up eleven percent. The company reporting first quarter sales the top down assessments and forecast revenue exceeding all street expectations too. Already, pinterest CEO joins us now exclusively.
It's great to speak with you, Bill. What's driving the growth?
Thanks for having me on, So you know, we're really
encouraged by the growth on the platform. It's eleven straight quarters of record high users, ten straight quarters of double disser growth in users, and at the core of that is that we've really turned Pinterest into an AI powered shopping assistant that is really really winning with users, especially gen Z that's now more than half our platform and our fastest growing demographic pinteresses where gen Z goes to shop, and that's been really great for users, and increasingly advertisers
are leaning into that and you see that reflecting our results.
So ad targeting improves, we can see more efficiency. But look at getting eighty billion monthly searches, as you say, record hive users. What is the AI strategy here longer term? Because already you're seeing the efficiency in a flywheel.
That's right. So we've shared that we have more than eighty billion searches per month on the platform, which would have been unbelievable to say even a few years ago. And we've done that by really making it a visual first platform. So much of shopping is a visual journey, and so we are really focused on that. And I think in the world of AI, you've had a lot of discussion around general purpose winners, but you're also seeing specialization play out, and you're seeing that play out and
sort of consumer versus enterprise. But even within consumer, there are a lot of different use cases and we've been really focused on shopping and visual search and discovery, and we're using AI to power that really based off the curation signal on our platform, and we're seeing that really
really resonate with users. And O those eighty billion searches per month, more than half of them are commercial, which is a much more significant skew towards commerciality than most chatbots would have and that you would see in sort of historical general purpose search. So it really has become a great shopping destination for our users.
It's interesting those chatbots had been sort of some of the investor anxiety that this is where competition.
Is coming from in visual search. It is Google, It is opening on the others. But how dependent are you on are the frenemies?
Shall we say, for the large language models, you're training your own, but how much you're using underlying models.
Of others, that's right, So we primarily run our own
compact fit for purpose models. I think this is one of the things that you will see over time is there's been so much discussion around AGI and general purpose models, but they can be really expensive to run, and we've demonstrated it through our own compact fit for purpose models as well as leveraging open source and retraining that off of our unique data set that we're able to see comparable or better results at oftentimes less than ten percent
of the cost. And in terms of shopping, we've shared that we're able to get to thirty percent better relevancy of recommendations on shopping for our users than what we'd see from leading off the shelf proprietary model, which just really gets to the uniqueness of pinterest as a shopping destination. And it's important to note that what makes our models so powerful, it's not just the models themselves. The AI
doesn't have taste or style. Humans have tastes in style, and so people come to Pinterest to figure out their taste, to figure out how they want to put outfits together, and we're able to learn from that and make better and better recommendations that are aligned.
To a user's taste.
And the result of that, as usually say things like well, Pinterest just gets me. And that's something that we think we're doing really uniquely here at pinterest and where we just have totally different signal based on what our users do on the platform, and that's what lets us take much smaller but really fit for purpose models and deliver better results for users.
It's not just a signal on your platform.
Though you've been doing M and A talk to us about TV scientific and while you're going into performance driven sort of TV ads.
Yes, so you know we now objectively it's six hundred and thirty million plus users, you know, in eighty billion searches a month, more than half of them being commercial, have one of the highest commercial intent plots forms anywhere in the world. And so far we've been making that a really great platform for advertisers to connect with users here on Pinterest, but we're also looking at how we can make it so that we can help those advertisers
meet those users in other places. Connected TV being one of the fastest growing areas of a of ad demand. It's projected to surpass linear TV in twenty twenty eight, and we're able to help advertisers show more relevant ads that deliver better returns for advertisers on TV and users get to see things that are actually helpful and useful
to them. And we showed on this most recent call that when we add Pinterest audience data to TV scientifics capabilities, the company that we acquired in Q one, we see a sixty five percent improvement in the purchases that result from the ads that are shown, which is great for advertisers, but also just means as a user, when you're watching connected TV, you've actually seen more with THESA to say, oh, that's actually a product that would be useful for me, and so it's a great thing for users too.
Thanks.
It's interesting, it's almost it feels like divestification should briefly build, but there's also this moment of gen z and teen bands. How do you see that as your role in social media right now?
Briefly, yes.
So we've talked about this before, and I've been very out spoken on this publicly when I came into pinterests CEO nearly four years ago. I wanted to prove that there was a more positive business model possible in social media, and so youth online safety has been very out in front for us. We made pinterest private only for users
under sixteen approximately three years ago. We're the first and still the only platform to do that, and so I have publicly advocated for the fact that social media as currently configured, it is not safe for users under sixteen. So we turned off social features three years ago, and we actually think it's quite an encouraging thing to see regulators around the world starting to really pay attention to that.
We have to leave it there.
Thank you so much for talking to us through your numbers and your focus. WI already Pinterest CEO. Up next, talenteer as a Bloombag Tech. Welcome back to Bloomberg Tech, and let's take a look at today's big number.
It's nine billion euros.
That is a record amount that Alphabet is issuing in euros in debt. They're also seeking up to three to five billion dollars in Canadian dollar denominated debt too. The proceeds of course, you know why. It's general corporate purposes, but it's AI. This is a company that's got planned capital expenditure bock to one hundred and ninety billion dollars. Now they sell debt, but the shares power to a new record high. We're up another one point four percent.
We are inching closer to the Nvidia market cap. They're at four point sixty nine trillion for Alphabet and videos at four point seven nine trillion. We'll see if one starts to eclipse the other. Let's look elsewhere in the earning spectrum, though, because Palete is actually down some five percent, even though they posted numbers that were better than anticipated on most of the lines, whether it's revenue, whether it's
what they're posting in terms of earnings. But there was perhaps a little bit of commercial weakness in the US that's drilled down into it. With bloembat Lizette Chapman, who covers this stop, which I might add, trades at an extraordinary level. I mean, I think it's more than eighty times future earnings.
Did it need to be even more perfect?
He nailed it it, absolutely did they again, you know, be even the raised revenue guidance that they provided, and they raised it again for twenty twenty seven, but they didn't raise it quite as much as they had the previous you know, previous earnings, and so it was good, but it wasn't as great as they had done in
the past. That said, you know, carp kind of ended the conversation or it was, you know, at the end of the analyst call, and he was asked about hiring and about about some of the some of the other political wins that some bears say that is one of the factors here, and he said, Hey, nine tenths of the world love us, one tenth professionally hate us. So that might be what we're seeing right here as a lot of the bears, including the short sellers coming in to drive it down.
Often a controversial stock off and controversial statement's coming the CEOs. But interesting to CTO using this ton of frame, it's a no slop zone. Now, what people have had anxiety around is that anthropic open AI they're using for deployed engineers, just as Palenteer has. They're starting to get into the space and maybe prove competitive. How is Paler trying to set itself apart?
That's all right, and so that is a concern that some have raised. The way that Pallenteers executives explain it is that they've got something different, something special that they've worked on for several decades. It's called an ontology, which is a real time mapping of all of an organization's data within the enterprise, across apps, across different siloed information
that they bring together in one real world view. They do this for defense purposes or you know, in wartime to find out where IEDs are and you know, improvised explosive devices. And they also do it to find out where supply chain hiccups are in things like airbus and
things like that. So that's the way they would explain it would be that, you know, they've got something that is a layer that goes between you know, the the enterprise and the AI large language model that the Anthropic and some of the other ones have developed.
There's always been this idea that they do very well in the United States.
They've built a lot of business.
I think of the NHS the United Kingdom, for example, is that but how are they showing foreign deployment and growth at the same paces of seeing in the US.
Yeah, it's it is strong in some areas and not as strong as others, you know, definitely United, the US has been there their bright spot that has been called out, especially for commercial sales and previous quarters this year, this
quarter as well. US concentration was a concerned because so much their business does come from the US, and I think that we talked about this yesterday and you even flagged that, you know, a lack of international growth going to be a worry, and it appears that that was something that you know, could be dragging it down today with the stock, you really never know because as you mentioned at the top of this, it's already been trading at such a large multiple tur forward earnings that a
lot of the growth is already baked in.
Twenty one buys on the stock though only two cells blom Buglazett Chapman. Great to get the breakdown, Thank you. Look, let's head actually over to the Milkene conferences on in California, where a Paleteer executive vice president's Josh Harris is.
I'm on the CEOs.
Speaking well, some of the company leaders speaking, and a panel focused on how builders and investors are shaping the future seamless.
Not constantly having to re represent yourself and At this point, we've onboarded twenty six million people in the United States to cellbate these seamless experiences, and someone signs up on our platform every one to two seconds, twenty four hours a day this week.
Now, each of you, I mean, have not.
Only built businesses, but you've actually done things that.
Took a long time to do.
I mean, these weren't really sort of overnight successes. And I think about Palenteer, which is kind of you know, the overnight success. It took you know, you know, more than a decade to sort of get there, and the patient capital that was required, but more importantly really the idea, Josh of kind of staying the course when you know you have a good idea even if the initial traction wasn't necessarily there.
Absolutely, I think, first all, thank you very much for having me.
Sorry I was late, that's okay.
The yeah, staying the course, And I think also it does require a huge amount of sort of internal self confidence to know that what you're working on is important, even if you're not necessarily hearing that. In like the broader tech echo chamber, which was very much our experience and just for to sort of sort of coming out with it early in the session. The only reason I know anything about what we do pound here is because of Aaron Preswright, who is a former colleague of mine.
I was a little too late to the game and understanding I been of Pounds for fourteen years, but exactly what we do, so she very kindly explained it to me in the bottom room of a bar in Paris.
I think it was like two am.
Yeah, about ten years ago, and that is pretty much the pitch. I still use so much creditor and for anything I say correctly here incorrectly on this panel, but yes, staying the course and understanding that what you're doing is right and helpful, even if it's not what it looks like everyone else around you is doing. So it's very interesting for all of us, I'm sure, and feels the same way like Pounds here in this moment has a huge amount of attention on it. It's become an example.
People are sort of taking things like FDEs, which were concepts that you know, we used and came up with, you know, decades ago that are now sort of commonplace in the vernacular, the techminnacular and ecosystem, but at the time, you know, we would go into meetings and people would be like, you know, what do you do? This doesn't fit into a certain box. You know this company can
do this, so this company can do that. And while you know, talking about data integration and talking about Foundry didn't necessarily check a box that a CTO or a COO or a CEO was looking for when they were talking about business transformation, we had strong conviction because we went through the process ourselves, as you mentioned, over a decade much longer to say this is actually what's fundamental to allow things like a gentta gai and anything else
you want to do on top of it. You need to have a reliable data asset that basically, you know, you need to have a single source of.
Truth, right, which has been our thing for a long time.
But that's a very hard concept to explain, and you know, we had everyone and anyone against us saying that it didn't work, it was consulting, it wasn't software, it wasn't necessary, and now you know, people are starting to be proven wrong. But it was very much saying the course and also making.
Sure that our was palented.
Executive vice president Josh Harris speaking at Milkine alongside my colleague Romain Bostic, who's helping orchestrate that. Wilso have Erin Price Wright, general partner of Andrews and Horowitz. You've got Bombardier there along with Metropolis. So more of that conversation you can go and check out on live go on the terminal.
Coming up.
We're actually going back to Milkan with a conversation with Seth Burrows, Tom Bravo managing partner.
This is BlueBag Tech.
Let's get back to the milkone conference serving in California where bloommeg of an Interest anchor Danny Berger standing by with a special guests.
Hi, Kerlein, thank you so much. I am here with Seth Burrow, managing partner at Toma Bravo, so thank you so much for joining.
Great to see you, Danny, thanks for having me.
And I'm really I'm always excited to talk to you. But you oversee a lot of cybersecurity investments for Tom brav and I feel like now is kind of your moment to get peppered with questions about what in the world is going on. It feels like the peace of change is so rapid. Can you just contextualize your portfolio companies, the industry writ large just how fast things are moving right now.
Incredibly fast.
And you know, our portfolio companies, like you mentioned, have a deep expertise in cyber really across every facet of the cyber industry, which is a complex, very technical market to operate in. There's a lot of deep domain expertise there and they have been reacting over the last several years to what we have seen coming now. The latest model releases have expedited.
All those and.
Every other model that's going to come next, and there's going to be a lot of them. And we're talking about Mythos today mainly because that's the one that people have been talking about it in the news in terms of big cyber risk, but we see a lot more coming and our companies are preparing for that. You have to operate today at a speed that is different than
we've ever seen before. Companies are going to be exposed to threats faster than they've ever seen before, and so you need a layered security approach that our portfolio companies, which in combination produce about eight billion of revenue, are providing to the market. But it's a really exciting time, but it's also one where our companies are needing to move very quickly to put the defenses up there for the industry and for our enterprise customers that really trust us to protect them.
It seems like.
Moving quickly is and even enough.
Though.
If you have these models that can find zero day vulnerabilities in minutes and see things that have been overlooked for twenty years of human history combing through it, I mean, how prepared are we in this world for that type of technology to be released?
It's so true, and we're sitting in a place today that you know, companies have not had to operate this way before, and so we have companies like Proofpoint, for example, they have a massive network of fourteen thousand customers that every day they see all of the malicious emails that you know that are inbounded into those enterprises, and all of the behavior the way that their employees interact with
those malicious emails. Those sorts of network effects give proof Point and their customers the ability to see zero day threats, which is what we call them, very very quickly and then respond very quickly.
Truly, not as quickly as like a mythos though.
Right the way that we see the threats is very quick and so of course mythos hasn't hit the market yet, true, but now we should all expect that it is out.
There and that perhaps people are already using it.
Oh, do you think any of it is just marketing ahead of IPOs? Do you think some of it is just whipping up excitement and obviously fear alongside of it.
I've heard that, But I'm going to take the optimistic view that this is much more about protecting everybody who might be interacting with it in the future. But I also think it's been a really good heads up for the world, for enterprises, for consumers to see what else is coming right, because again, it might be the anthropic model today, but it's going to be someone else's model.
You know.
The big thing that comes out of all of this also is that as these agents get deployed, and today obviously we're in a world where it's very minimal agentic deployment, although we're starting to see it pick up quite a bit, the governance around that is going to become critical. So what are the agents doing, what information do they have, where's the data coming from?
What are they doing after they get the information?
Operating in the world, And that's what companies in our portfolio like sale Point and ping proof plant in dark trace are monitoring that environment to make sure that there's nothing malicious going on. And then you know, acting very quickly, and you're right that this is all new.
It's happening very fast.
But that's where you need incredible technologists, you know, behind the products that are in the market to react quickly.
By the way, you've been one of the first to announce a partnership with one of the big llms.
In your case, it was Google.
We learned yesterday that Anthropics doing a partnership with Goldman, Sachs, H and F. Before that, there was this like Baine open ai JV going on. What is going on in this industry right now? It feels like every single day we're getting some sort of announcement of some sort of partnership.
Yeah, I mean I can speak to our partnership with Google, which is, you know, we they approached us to engage with us in our portfolio in terms of deploying their full stack technologies. We have a great relationship, but then we moved really quickly to take the portfolio there. And then on the cyber side, we're going to work with him to identify early any threats through our portfolio. You know, I can't speak to the other jvs that might be going on in the industry. I'm sure everybody has their
own reason. We are model agnostics. So we have great relationships with Open AI, with Anthropic, We know those companies
very well. We you know, we have ongoing discussions all the time, and certainly our portfolio companies are big consumers of theirs also, And I think it's really just our industry, you know, trying to understand and figure out more where this is going, how to deploy the technology, working with experts to help us do that, and then also again on the cyberside, making sure that we can get as far ahead as we can of these next models as they get out into the market.
So I was having conversation yesterday that was talking about how inference costs are really really high for you know, anthropic Googles of the world, but right now they're not passing that on that led by Google, They're trying to offer something more cheap.
Are you preparing for a world in.
Which these you know, Google what have you start to make their product more expensive and start to eat into more margins how are you thinking about where the pricing world heads for AI, which is a really expensive project that we're undertaking.
Yeah, it's a great question.
I think today people don't quite understand the cost of rolling out a lot of these solutions. And there's some, you know, pretty interesting research out there today that says currently, for most higher functioning roles, it's much more expensive to bring tokens into your organization to do it agentically than it is through a human.
That's not true for everything, and of course it's not.
Always going to be there, but I think it's unclear today how much this will all cost. I think the reality is, especially as you sit in the enterprise and you have to budget for these costs, and you have to re engineer process, all of this takes longer actually than people realize, and that's before really absorbing you know, what might be the true cost of deploying inference on a daily basis. Now, what you're seeing in reaction to
that is very specific model use cases. So you see in our companies and both in our portfolio and their customers, they're deploying specific use case models that are much more efficient. I think we're going to end up in a place also where efficiency and power consumption end up being the focus, and there's going to be a lot of innovation around that, right, so you don't need to use for every function a
general purpose model. That's where we are today, and you're right the true cost of what this ultimately will be on a marginal basis for enterprise customer, it's kind of unknown right now.
True, Seth, this has been so fascinating. Thank you so much for winning. Appreciate your time here at the Milk in conference.
Caroline. With that, I'll throw back to you. That is, of course Seth Borough.
Of Tom Bravo.
Fascinating discussions throughout. We so appreciate it. Danny Berge live from Milk and coming up markets well, they are braced for more tech earnings. I'll discuss what to expect from AMD and Disney.
This is bloomet Tech checking in on Paramount's guideance shares. We're lower by four point six percent, even though.
Many were impressed that the company had beaten certain expectations in their fiscal first quarter of results. But investors are really looking at how the company executes its acquisition and Warner Brothers Bloomberg. Hannah Miller is here with us, so we're all waiting on WBD, but there was real signs of strength in terms of streaming in particular.
Yes, you know, Paramount's really happy with the momentum. It's weigh it's made since the murder with s guidance, and you know, we did see some an earning speech for the and also a strong outlook for this year. They think things are going really well.
Why the stop pussure?
I mean, were there any flies in the ointment? Is it more just about uncertainty looking forward?
Yeah, there was a little bit of weakness on streaming. They lost some subscribers due to the end of an international streaming agreement, so they didn't see a ton of growth there. But they're expecting, you know, that to just be sort.
Of a blimp, even though they saw a gain and average revenue for user and domestic subscribers.
We look as to what the streaming pitch.
For Paramount Skuydance means maybe for Disney, but Disney has just got so much exposure to the consumer right now.
Is that what we're all watching?
Yeah, we know with Disney that you know, they said that it was a tepid quarter for them in February.
You know that they weren't.
Expecting, you know, big results for what we're gonna hear about tomorrow. But all eyes are going to be on parks and cruises and streaming.
And all eyes are gonna be on the new CEA exactly just tomorrow. We'll keep on how he reports in the morning. Hannah Miller with the latest on how Paramount performs after, of course, their numbers came out yesterday. Who else's numbers came out yesterday? Was AMD delivering its earnings and we're expecting that after bell today. Stock has had its biggest one month gain two thousand and one, but the company is facing some headwinds. Bloemgs Ian King is here to tell us all on how much the stock
moved in April and how much it can price to perfection. Now, if the earnings are coming out tonight.
Yeah, I mean that's the numbers are going to be good. It'll just be a case of are they good enough. You'll remember three months ago, Caroline, we had exactly the same scenario. Tremendous run up in the stark, A lot of strong reports around AMDA and d came in were bullish, but just not bullish enough and that's really the challenge that this company is facing right now. Thirty percent growth on a quarterly basis is fantastic, but maybe not fantastic enough for some.
I mean, how does AMD basically signal that they can capture as much total addressable market on the shift to AI and the new trillions of dollars that are being invested.
Yeah, I mean, this is it. The management team, Lisa Sue, who obviously has spoken to you know, she is innately conservative. She's not a kind of cheerleader. She's more of a sort of hey, we'll execute and them we'll show you how well we executed type person, rather than a shout about it person.
But that's not the.
Times we're living in, right. The times we're living in is everybody talks about multiple billion dollar agreements. Everybody makes very bullish forecasts, and that's what kind of investors are signing up for and acht that's kind of the frequency that they're tuned to. So if you're not saying that, if you're not doing that, then maybe you're missing out is a concern. But so far AMD has not missed out.
They certainly haven't. How have we seen anyone miss out? Because ultimately the Semiconductor Index again and a new record high in Yeah.
No, I mean we're seeing Intel shares up very strongly today. And if materially they had missed out their innings haven't yet caught up with the overall sort of cavalry charge up and to the right. But even they just on signs of promise, on signs that they're doing better, are being rewarded in the stock market.
So that's really the environment that AMD is in.
Expectations couldn't be any higher.
And is there, more broadly a signal that more deal we were all worrying about circular financing in is that kind of like past tense now?
Well.
Jenson Lyne, the CEO of in Video, was at the Milk and Institute yesterday and he said, look, I've put a lot of money to work to help get this going. Hopefully I've done enough and hopefully we don't need this going forward. Hopefully these companies are now sort of on the gross margin bases doing much better and it kind of become self sustaining, then hopefully it won't be necessary. If that's a signal, then perhaps not as many deals going forward.
Amagazine king always across those deals always across these earnings you'll be bracing after the bell tonight.
We appreciate it. That does it for this edition at Blue Bag Tech. Do not forget to check out.
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Heeart from New York, This is Bloomberg Tech.
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