From Mahard.
We're Innovation, Money and Power Collie in Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Ahmed Ludlow in San Francisco. Caroline hides off today. This is Bloomberg Technology coming up on the program. ARM prepares for its IPO with a roadshow slated for next week. We'll discuss with our team, and we also speak to Ross Gerber of Gerber Kawasaki Plus full earnings coverage ahead. Dell saurs to a record high on a PC recovery,
while broadcons slumps amid a disappointing forecast. We talk AI in earnings, and Tesla ravamps the Model three and slashes pricing for its premium vehicles in an all out push to boost sales. Will bring you those details one future company that they end up in public markets ARM. It's one of the most anticipated stock listings of the year and now ARMS looking to set a date for its IPO with a roadshow kicking off after the Labor Day
holiday in the US. With the latest details, Bloomberg's Leanna Blaker, who leads M and A coverage for US. Okay, so I think we have a date for pricing and the roadshow.
What do we know?
So the date is going to be September thirteenth for the pricing of the ipeo, that's the actual IPO, but trading isn't expected to start until the next day, which is September fourteenth. So this is right around the corner. And while ARM is aiming to list on those dates, it could always move. The timeline for IPOs is always uncertain and it really depends on how meetings with investors go. Those meetings will start next week when the road show launches.
The first signal of the roadshow launching will be early Tuesday. We're expecting a filing to come out for ARMED to update its perspectives, and it'll publish for the first time a price range of where they'll be marketing shares.
We talk on Blue Bow Technology about ARM is kind of the starting gun for a series of technology IPOs that we're anticipating. But also the size and scope of this is important. What are the numbers that we think in terms of money being raised in valuation?
We reported yesterday for the first time that Soft Bank is sort of scaling back how much they're going to raise this isn't because of the prospects of the company. In fact, they're very bullish on the company. And Matt sayoshis the SoftBank CEO, does not want to part with more than ten percent of ARM. They one hundred percent of ARM. And originally the Vision Fund, which you might remember is that vicious fund that lost a lot of money through the startupfents. They had owned twenty five percent
stake in ARM. Recently that steak was sold back to Saftbank. So because the Vision Fund is no longer a seller in this IPO, they were expected to be a seller, but they no longer are, soft Bank to hold on score shares. So for that reason, ARM is going to raise potentially between five and seven billion, which is lower than the amount we originally published, which was eight to
ten billion. So it's a bit complicated, but the main point is that SoftBank is going to cash out here with a lot of proceeds, but not as much as we originally thought.
It is complicated, but it is the one that we are watching in the world of technology. Bloombos Leanna Baker giving us all of the latest details and after this long weekend here in the US, we are waiting for some movement on arm right. Joining us next Ross GERBA, President, CEO and co founder of Gerber Kawasaki. Ross is you and I were talking off camera an astonishingly busy week. I want to start on that job's data, and we
always frame it as such, jobs data. What will the FED do and how does that impact the technology sector?
Was your reaction to the numbers this morning?
Well, you know, I still I've been saying this for so long. The FED is done. I mean, all they're going to do is create more imbalances in our economy by really attacking just a few industries That's all rates do. And when you look at what's happening with housing in the banking sector and the risks of the FED continuing to raise rates and the tremendous losses the FED is now taking on its own portfolio that the taxpayers are paying, you know, it really doesn't make sense. All the numbers
are trending in the right direction. We have completely restrictive rates right now. Businesses can't borrow, individuals can't buy houses. They're having kids that can't move up. You know, it's certainly affecting the economy, and many companies are done hiring. You know, they're just done hiring for now, and so we're seeing a.
Very good environment.
If the FED just lays off right here and lets things work itself out, I think the next move is lower for the FED next year.
You know, Russ.
The story of twenty twenty three has been artificial intelligence driving this equity market higher. And there are specific names you and I will get into, but the Fed's always been there in the background. When you're assessing your investment priorities and investment thesis, which are you focused on more the opportunity and all the impacts of higher rates on valuations.
Well, you've got two really competing forces here, with rates being super attractive. Like clients coming in to our firm, you know, it's very easy for me to make them five six seven eight percent by buying bonds, and from any clients, that's the return they're shooting for.
So it's kind of.
Great if you're conservative and older and we haven't seen rates like this in over twenty years. But on the other hand, the maximum return I see making on these bonds is let's say five six seven eight percent right where equity is over the long term of average ten percent a year in the s and P five hundred, where if we own the NASTAC small caps or things like my fund GK, which are really growth oriented and concentrated funds, we can expect much higher rates to return.
So if the Feds at the top of the rate raising cycle and we've already valued in this effect on you know, the market and valuations and the next really move for rates or to stay the same or lower. We expect, you know, earning will drive the.
Next move in markets. It's not going to be like a Pe expansion.
And I think that's what investors have to understand for the market to move higher, earnings asked to move higher, and same with individual securities as well.
All right, Ross, let's go from the macro to the micro and have a bit of fun. I want to talk to you about in Nvidia. You've had a lot to say about that name and in particular its associational relevance to Tesla and a comparison between the two.
Take it away was your thesis?
So my thesis is that Tesla and Autonomy was where in Nvidia and Tesla originally met. So Tesla used to use video chips and building their autonomy systems and the model less back in the day, and Tesla started making their own chips, are designing their own chips because in Video is like, we're not going to design GPUs specifically for Tesla, so Tesla's like, all right, we'll do it.
So over the years, the two companies have, you know, really not competed, but continued to develop hardware and software for autonomy. And with that, many of the in Vidio GPUs were used in crypto and then cloud and now AI.
So for the first time we see a convergence of actual applications, which is gener of AI, check GPT and then autonomy full self driving, and we have these applications and it's just driven this massive investment from all the major tech companies to upgrade their databases and their systems to being intelligent.
And they have to buy in Vidia chips to do this.
So I think both companies represent the best of American innovation, technology and opportunity over the next decade. So boy, I'm super bullish on these two companies. There are two of my top three holdings in my fun GK, and I think investors, even though these valuations are very high, have to think out over the next five to ten years. Wh's really going to drive growth in our economy And it's always been technology, and AI is a tremendous leap forward in technology.
You know, if you think about specific technology or specific products. We've talked a lot about the H one N one hundred GPU series this year for obvious reasons. They are the chip of choice or the tensacle GPU of choice for AI. Less about Dojo and Tesla's own proprietary silicon. Do you still assign a lot of the potential for Tesla on that competence in silicon?
Absolutely? And I think that's in the valuation of Tesla because obviously if it was an EV maker, you look at Rivian, which is a great EV maker, its valuation is you know, five percent of Teslas. So when you when you think about why is Tesla such a valuable company, it's because of its technology and that does center a lot around AI Dojo chips. They're really machine learning and
ability to now train the cars through AI clusters. They just bought a huge in video, you know, H one hundred cluster of Really they're not really chipped or like these massive machines actually that you add into your database. So when you look at a company like Salesforce, which had a great numbers. And I use Salesforce at my company, and you start adding AI to this platform, it's going to be like a game changer for Salesforce and it's users.
So I think that there's so many companies in Big TAC that can benefit from this, and Nvidia and ultimately Tesla are the roads to get reaching these efficiencies through AI and autonomy.
Yeah, we told in the show to speak about how Salesforce has pricing power as well. Right, they could charge seventy five hundred per years.
That we spend so much. Yeah, we spend so much.
We're short in time, and I want to get to Disney and Charter because Disney's name that you hold and follow closely.
What do you make of that spat?
Well, you know, I feel like being a Disney long term share older, you feel like you're getting kicked in the head over and over again. But this is really about why do I watch cable TV. I actually am a Spectrum user. I was about to tweet them and say pay the damn fee because the only reason I watch Spectrum is for sports, and so it's absurd that you're cutting off sports from your you know, subs when cable's dying, and the only reason people watch cable is
for sports pretty much. So you know, we're in this new period of time between linear TV and cable and this you know, convergence of streaming and this battle for who's paying for what and where and it's just playing out. But any end spectrum will pay because people only want to watch sports, you know, I mean, that's bottom line.
That and Taylor Swift Russ.
You are a private investor in the entity known as X formerly known as Twitter. I reported yesterday that specifically the biometric data policy update only applies to premium subscribers. It involves a government issued ID with a selfie or a double.
Verification through picture.
The response I got on the X platform was astonishing. What do you, as an investor and user of X make of that privacy policy update?
Well, you know, you can argue two sides of this coin with almost every decision X makes. You know, I think part of it is great, you know, like profiles should actually correspond to an actual human and checking the current verification system, in my mind, doesn't really work.
You know, It's kind of good, but not great.
This is very similar to what the bitcoin companies were doing when you were signing up is you'd have to do the same thing and send a picture of yourself with your ID and that would verify you for taxes and all this kind of stuff. So this isn't an uncommon thing for people in the digital world to do.
I think, for a social media platform and one that's building an AI platform, it's a little bit big brotherish and scary that now I'm trusting Elon with all my biometric data and I can totally get the pushback as well. So you know, there's a plus and the minus to this thing. I don't know how quick I am to upload my driver's license to Twitter yet, you know, so I get it, you know. So I think some of these things that's really meant to make the purity of
the platform better. But at the same respect, people aren't that excited to give away biometric data to Twitter, either, you.
Know or ex Ross Gerber, president, CEO and co founder of I Think. I threw a dozen different names and stories at you. What a fast start to the show. Thank you very much. Much more ahead. This is Bloomberg Technology. The big news is we go back to the technology sector overnight being Tesla. Tesla revamping the Model three sedan with sleeker looks and longer range while slashing prices of its premium vehicles in an all out push to boost
its own sales. For more, I'm delighted to be joined on set by Bloomberg Stan a whole now that refresh Model three we start there, but that's only in China and I think Europe, not yet here in the US.
Yeah.
What was funny was last night I kept like refreshing the Tesla you know, web page to see if it was in the US. But no, it's just China and Europe, which makes sense. They retooled the China factory first.
Okay, we've been waiting on that one.
I think more of a surprise, potentially was the continuing downward price of Model ESNX, the most expensive a Tesla's offering.
What do we know about that?
So the sn X are really like a tiny share of Tesla's overall sales, but by slashing the prices, they now qualify for the seventy five hundred dollars text credit under the Inflation Reduction Act this country in the United States. So this isn't all out pushed by Elon to chase volume, which he forecasts. You know, he telecast to everyone.
That that's what he was going to do. Yeah.
Well, reminder, audience, I think the line from Elon Musk has always been that they're willing to sacrifice profit to protect growth.
Just to explain that to us.
Yeah, so they are willing to sacrifice profit margins or gross margins to maintain their market share.
And it's really put the.
Other automakers sort of on the back heel, because how do you compete with tessel on price?
Now, I think you and I quickly reflect on the kind of big breaking news of this week that we.
Worked on together.
That is, Federal process cuts are looking into this procurement order we reported a year ago.
The subpoenas have been issued.
You know, this is the latest twist and term, but it centers around Omi daf Shah. Just explain who Omi daf Shar is and why are we talking about him?
So.
Omid is one of Elon's top lieutenants, and he's an interesting character in that he seems to work at all of Elon's companies. He appears to be working at X, he worked at Tesla for a long time. He's really kind of the architect of Gigafactory Texas. He also at one point had a VP role at SpaceX. And even though he's at the center of this probe because he apparently ordered people at Tesla to order this special glass for a house that Elon was thinking of building.
He is still employed.
And you know where this feral probe is headed?
Headed is a big question?
Yeah, we replied it reported according to sources that these subpoenas are issued and one of the issues centered on communications to and from Omi daf Shah and other TESTA executives, and we will continue to report on that. Bloomberg, Dana Hole, thank you very much. The other top story in the tech sector is Dell. Shares of Dell hitting a record high today after reporting better than expected sales of personal computers and data center hardware, is fueling hopes of a
recovery in the market for corporate technology. Who's with us? Who else? Bloomberg's Brody Ford out in New York. This is an astonishing share reaction, Brody, let's start with it. What a sell side is at least saying about this.
We hear that phrase better than feared, and I cannot think of a better example than this. I mean, you know, sales are down thirteen percent, but we thought.
It was going to be eighteen.
This is pretty good, so let's buy the stock, right. So, yeah, it's up twenty five percent. And what we're really seeing here is that the demand for PCs, particularly business PCs, are stabilizing quicker than we thought. As well as getting a little up whift on the server. Business companies set us do to AI could be doing a better macro environment. We all want to tell an AI story, but that's part of it as well. So the board.
Sales were just a little better than we expected.
You know, we saw HP a couple of days ago saying that the recovery is going to take longer than we thought, and Dell really took the other side of the coin, which I think is surprising a.
Lot of folks.
Is often the two results track each other pretty closely.
Yes, it is not surprising that there is an AI discussion in the context of Dell, But you know, what they said was, this is a long term tailwind.
What is the AI story for Dell?
What is it that Dell does that is relevant to ours official intelligence?
We talk about clouds so much that we forget. Some big companies still use servers. They still need servers, and Bell sells them, and they sell them with a bunch of those nice and video GPUs in there, and they say, hey, you want to run some on premise generative AI solutions, this is the one for you. And so they said that they have two billion dollars in backlocked orders for a specific type of server which is marketed to be good for AI.
So essentially they say.
That long term, more AI workflows, more need for servers, more Bell winning.
All right, Bloomberg's Brady for this week for you here on the show, and with plenty of earnings, Thank you very much. The other big earning story is in the chip sector. Investors were initially kind of underwhelmed with Broadcomms results out yesterday. Some analysts weighed in why that might be. Have a listen.
It's not a bad result.
I do think people were hoping for more, just given all of the recent hype around AI. That was Stacy Raskon, Bernstein's senior analyst on Bloomberg TV's The Close yesterday evening. Let's turn to one of our internal experts on the chip sect of Bloomberg's Eaan King. You and I talked a lot about Broadcom going into it, what the AI story would be.
What was the AI story in the end.
I mean, the AI story was as promised. The unfortunate thing, though, was the how that reflected on the overall company Basically hoptown. The CEO said, look, you know, all of our upside is coming from this large language model build out that we're seeing else kind of flat at best. He described it as a soft landing, But obviously the market took that as like the overall demand for semiconductors not fantastic.
Well, what I enjoyed talking to you about, genuinely is the technology story, like understanding what each chip maker does in the AI supply chain. So explain Broadcom's offering in the data center context.
Yeah, I mean they have two big main plays here. The one is that they really dominate the market for what are called switches. These are chips that decide where the traffic goes. Basically, one computer's got some information needs to get to another. The switch chip is going to be what makes those incredibly fast decisions to send that.
Data around to switch it.
The other play that they have, and that's quite a big play as well is Google.
We've heard about.
The TPUs, Yes, they're own in house.
Who makes them?
Who designs the broad Com.
The legacy of Broadcom? Well, an important part of his business is Apple. Frankly, it makes short distance communications at aaka Wi Fi and Bluetooth. If AI is doing well, but sales growth is kind of low single digits, what does that tell us about the smartphone business?
Yeah, I mean Hat made an interesting comment yesterday he said, look, our wireless division is basically defying gravity. What he was meant by that was overall things are just not great. As we know, we've seen you know, the numbers. But demand is kind of okay for that division. They're going to see some growth into this quarter. Where as you know, as Mark Gooman has told us, we're going to see a new iPhone, We're going to see new products and
that features some Broadcom chips. But overall, not fantastic, was the bottom line?
All right?
Bloomberg Zy and King another very busy person this earning season in the chip sector. And let's move from what's happening in the public equity markets the tech space and move to one of our other favorite risksket risk assets, which is Bitcoin joining us now to get the pulse on the VC crypto space after all of the Bitcoin ETF decisions earlier this week is at least clean still
Mark found and managing partner. The firm has about eighty five million dollars in assets under management that focuses on bitcoin companies. So I guess the news, which is not surprising. We discussed it twenty four hours ago on this program. Is the SEC kind of punting a decision on ETF applications for many names. But what have you made of everything that's happened in the last seven to ten days.
Well, BTC bitcoin matures along two distinct but very closely related path that's Bitcoin the asset and then Bitcoin protocol and technologies, including bitcoin's likening network, it's payment protocol. The Grayscale victory over the SEC earlier this week is a significant advancement for the maturation and the adoption of BTC the asset because it makes a spot ETF much more likely.
It also limited the arguments that the SEC can advance in the future in denying spot ETF, and particularly what the court found to be challenging or problematic was the approval of future of a bitcoin futures ETF, while the SEC continued to reject Bitcoin spot ETFs with the argument of course that surveillance sharing agreements were insufficient or that there was potential for the practice of manipulation in those markets.
And so what that means is that for the SEC to continue rejecting or denying a Bitcoin spot ETF, they'll have to form a new argument, and one that would be distinct in its properties from future ETFs.
And that really shows up.
The timeline for which we expect to see spy ETF.
We consider the basics of why this is happening. You know, the argument from those that have filed applications is that the ETF would give retail and institutional investors just a mechanism to exposure. You are a VC that invests in bitcoin companies, So how do you play this longer term story? Where do you invest to benefit in the longer run if you know a Bitcoin spot ETF does become authorized, well, so.
The expectation that a spot ETF will become authorized exists in a sort of ecosystem of activity in which we see BTC the asset further financializing and maturing, and so we're investing there an example of this is that we recently made an investment in a company called Meanwhile, which is the first company to offer a BTC denominated whole life insurance policy, which has the effect of further financializing
bitcoin as an asset. At the same time, there's advancement happening in bitcoin payments technologies, including to facilitate introduction of bitcoin payment technologies lightning networks, specifically to match the needs of under other trends that we've seen in the tech field and in particular AI.
I want to go there.
You know, the Bitcoin Lightning network was something we discussed heavily, you know, not in twenty twenty three or the end of twenty twenty two, but in prior years. Now, with all of the momentum in AI, how do you see AI putting momentum back into a focus on the underlying technology for bitcoin.
What's really exciting is that Bitcoin developed slowly and purposely. So Bitcoin technologies and Lightening Network in particular was developed to solve global scale problems. It wasn't developed to introduce a quick trend or to serve as speculative behavior or gambling, but really it was meant to serve as a payment infrastructure that was pecure and scalable, and this is what
AI needs. So we know, as AI has become commercialized and we're seeing products like Chatchipt and others, flouris should become popular, that fraud and payment and chargebacks would become a problem for those companies which curtails are addressable market and one of the advantages of Bitcoin's Lightning Network as a payment solution is that settlement is instant, So if you're instantly transmitting value or a product, you can instantly
settle that transaction and mitigate or completely assuage the risk of chargebacks.
And that sort of fraud.
And in addition to that, because Lightning Network was purpose built, it scales without the constraint of the underlying blockchain, which means that activity in the underlying Bitcoin blockchain doesn't curtail the amount of transactions per seconds that are possible on the Lightning network, and for AI that's absolutely necessary. You need to hit scale of millions of transactions per second or more in order to service the needs of AI companies, and Likening Network can uniquely do that.
Elise Colleen Stillmark, founder and managing partner. You know, we really appreciate the explanation of how you play this as a VC, but such a firm grasp on the underlying technology as well. Thank you have a good long weekend, all right. Coming up here on Bloomberg Technology, we'll look at the latest health tech trends with founder's fun Partner delian Asparuhoff and Sword Health CEO V.
Bentu. That's coming up.
We're also seeing some breaking news crossing the Bloomberg terminal, the New York Times reporting that Meta, the parent company of Facebook, may allow Facebook and Instagram users in the European Union the EU, to pay to avoid advertising. To avoid ads that coming from the New York Times, it did briefly push the shares highed they've been negative, pushed it into positive territory. As those headlines broke, we are now flat as a pancake on Meta platforms. This Friday,
This is Bloomberg Technology, Okay. On today's VC Spotlight, we're taking a look at the latest trends in health tech investments.
And for this let's bring in Virgilio V.
Benu, founder and CEO of Sword Health, along with founders Fun Partner and Varda Space Industry's President delian Asparov V I'll start with you. This is really interesting. The technology that you are trying to grow and commercialize is sensor and software approach to pain management. Just explain sword to us broadly speaking.
Okay, So basically, we believe that if you have physical pain, right, if you have low back pain as an example, and the best solution to your problem, it's not feels, it's not penk killers, it's not surgeries or injections, should be high quality, high intensity physical therapy, right, that's the solution. The problem with that is that the way we do live a physical therapy, it's still one hundred percent labor intensive, which really limits and is a bottleneck in terms of
access to care. And so what we've done was we developed this AI solution that we call our digital therapist that basically replicates what the human physical therapist will do in a pretty clinic. But then you can do your sessions independently at home at seven am in your PGMs after breakfast without digital therapist, right with our AI solution, and then everything that you do is remotely supervised by
a member of our clinical team. And so we have this human plus AI model to how we are changing how we treat physical pain, which is a bigger problem in healthcare.
This is an interesting case study because we have one of your biggest, biggest investors with us as well, So Delian, you know, why did Sword fit within your investment thesis when you consider how to play health tech.
Yeah, we were originally thinking about this as an investment thesis at my prior firm, Coastal Aventures. Back in summer of twenty eighteen, we were analyzing the general healthcare landscape and surprisingly stumbled across the fact that muscle skeletal care generally what you think of as physical therapy, but can have either a wide range of everything from you know,
net lower back, knee surgery, et cetera. In the care after that was the largest spend in healthcare, and it was one of the areas where there was very limited you know, sort of applications of technology. For sure, you had individual tools that you'd see in brick and mortar physical therapy clinics, but there wasn't really much technology being applied to the actual delivery of that care.
There had been a.
First handful of attempts. They were doing this very thin technological layer. Think of it as effectively, you know, interface on top of zoom, but no real technology that was showing an improved sort of you know, clinical outcome. And when we met you know, Virgilio and his team in late twenty eighteen, there are two things that really stood out to us. One, they had true scientific proof of their clinical methodology being more effective than going to a
brick and mortar clinic. Everybody else was trying to replicate brick and mortar, they were actually improving it. And this paper was published in Nature, so a very pre eminent scientific journal. And then two, the actual solution was not just basically put physical therapists behind a zoom screen and instead was this AI combined with sensor technology that allowed you to while you're watching your evening.
TV, actually be doing your niche.
Therapy, your lower back therapy, which just makes it more convenient and actually significantly improves the clinical outcomes then having to go in person to a clinic.
The I want to know what it's like you growing the business, commercializing in your latest round, I think at the end of twenty twenty one November twenty twenty one, you've got a two billion dollar valuation, big jump in valuation, and then you had a lot of momentum, So what does that look like? Explain how you've grown.
So the reason why we are still going very very fast since twenty twenty one in spite of these economic challenges that everyone is facing is because one of our key value propositions is that we drive cost efficiencies. If you are a large employer in the US right now and you want to drive financial efficiency, of course you can reduce your headcount. That's one way to do it. But in terms of healthcare, it's not like you can deny a surgery to one of your employees, right you
are still on the hook for that. And so what we allow you to do is that instead of a surgery for your low back pain as an example, you can use swords and we are able to treat the passion much more efficiently with higher levels of passion experience, and of course willly reduce in costs. And the way we tie all of these up is that we contractually guarantee to our clients that we save them many so then it becomes a no brainer why they should adopt.
Surce Delian quick final to you, you know, one consideration when you invest in a healthcare startup is its exposure or risk with the US healthcare system insurance where it fits in with how the system works. Just explain quickly how you thought about that.
Yeah, I think in this particular situation, because it's such a large bucket of spend, you can actually go after individual self insured employers, right think of like the Fortune five hundreds, the Walmarts of the world. Internally they have super sophisticated medical teams. When you're talking about hundreds of thousands, millions of employees, they may as well be their own
individual healthcare network. And so relative to swords early commercialization in Europe and Australia where they had to send and sell to national healthcare systems in the United States, you can chip off basically the individual employers one at a time that are very both clinically focused, so they will appreciate the nature papers that Virgilia is publishing and very cost conscientious relatives to somebody that's redding a Medicare plan.
Walmart ultimately is delivering their bottom line every single quarter to public investors rether than being funded by you to public dollars. And so the combination of the two led sort to go from effectively having no US commercialization at the end of twenty nineteen to now being over one hundred million dollar revenue run rate, largely based in the United States.
Fascinating global conversation Videlio Vbentu, founder and CEO, Sword Held founder's fun partner delian Asparov, Thank you both. This is bloombog technology. Okay, So for most artificial intelligence companies, adding dot AI is a pretty important part of indicating that you are a player in that field. However, dot AI just happens to be the Internet country code for the Caribbean island of Anguilla, and that is bringing in tens
of millions of dollars for that island. Beautiful joining me now on set Bloomboat's Rachel Metz.
This is a crazy story.
So there are AI companies all over the world cutting checks to this tiny little island.
Yes, in a.
Manner speaking, Yeah, So in Guila's country code top level domain, that's the two letters at the very end dot AI. A lot of different countries and well all pretty much all different countries and territories have these two letters that were assigned to them decades ago, back in the nineties as the Internet was first getting its leg so to speak.
And Guila has had this for a long time. At a certain point, I think it was around two thousand and nine, they opened dot ai domain registration up to people outside of the country, so it could be people who didn't live there or have a business there. And it is the revenue from that has risen steadily. But this past year, once chat GBT was released, it took off like a hobby stick.
You have been speaking to some of the officials in this tiny island nation who are dealing with this.
What are the numbers? What's life like for them? That's a good question.
So the person that I spoke to, his name is Vince Kate.
He actually moved from the US.
To Anguila in the nineties and not to be in charge of the domain registration, but sort of happened to land in that spot. So basically, when people register dot Ai domains with companies like name Cheap or go Daddy, money goes from those companies to this man, Vince Cape, and he sends it on to the Aquila government. So he's been watching this.
He has a front seat to all this.
He thinks that the country is going sorry, the territory is going to see twenty five to perhaps thirty million dollars in revenue this year, which.
Is gone huge bloombergs rachel Mates. Check out her story on Bloomberg dot com.
That does it.
Sadly for the edition of Bloomberg Technology Recap on our podcast, it has been a massive week for earnings for AI and everything in between. From San Francisco. This is Bloomberg Technology