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I'm Tim Steneveeck in for Caroline Hyde. This is Bloomberg Technology coming up. Cloud nine. Broadcom up around twenty percent, soaring the most going all the way back to twenty twenty and topping one trillion dollars in valuation after posting
it better than expected results. Plus Jeff Bezos looks to President Elect Trump to help with his space ambitions against yes Elon Musk and San Francisco's incoming mayor Daniel Lurie certainly wants to take advantage of the AI boom for the revival of the city, but for him it's more than just AI. More on that later this hour. First off, though, let's get a check on it Broadcom with Bloomberg's abigailty Do a little Hey I we.
Go, Hey Tim, Yeah, this is a really impressive rally. Take a look at the shares of Broadcom, up about nineteen percent on the day right near session hives. This is a two day chart so that you can really see today's spike HIRER. That tells you that investors were surprised by the degree of the positivity.
Coming out of the quarter.
Now, the quarter they reported was sort of mixed, but what investors love it's all about AI. They are saying that they can grow AI, their AI part of the business in the first quarter by sixty five percent. They're also saying by twenty twenty seven, they see that the AI components market could be ninety billion dollars. So investors absolutely loving this. But this is not the only positive
day for Broadcom this year. Let's put Broadcom in context of one of the most well known AI chip companies, and that of course is in Vidia, and then the SMP five hundred, excuse me, the socks that chips over all index just to see, and here's Broadcom's big spike record high today. I think tim based on my work in the Bloomberg, I think it may actually be the best day ever going back to two thousand and nine, and it is trading at a record high. There's NVIDI
and there's the SMT five hundred. Not so shabby for Broadcom this year at all. Today a big piece of the rally.
Yeah, you're right, most since going all the way back to two thousand and nine. Thanks so much, Av Gail do a little appreciate that. Let's get a deeper dive into Broadcom with Kun John Sabani of Bloomberg Intelligence. Kuonjohn, you joined us live on a Bloomberg BusinessWeek just yesterday. As Broadcom's numbers broke, shares bounced around up two percent
even when negative. What happened on the earnings call that gave investors the conviction to send shares hired by twenty percent, giving Broadcom a market cap of a trillion dollars for the first time ever.
Yeah, it was really that massive sixty to ninety billion sam by twenty twenty seven, just across three of its largest hyper sale customers. That's about three to four times fold growth in over the three years. So what it did is give investors there is a clear, quantifiable target to focus on over the next three years instead of constantly worrying about the near term. How's the next water going to look like? How's the next year going to look like?
Kunjohn. Ai revenue grew two hundred and twenty percent during the year. It was fueled by demand for processors and networking components. Hottan said that on the call, demand for non AI chips, though we'll be down in the first quarter, our investors should investors just kind of right off non AI chips at this point.
At this point they should, especially given the growth rates he is given for the AI business. I mean, look, the AI business is going to grow to be the majority of portion. I think the non AI business right now sort of twenty percent of that will continue even shrinking down. So if we didn't have those massive temps, yes, people would have looked at what's happened in wireless, what's happening with software, what's happening in one que slowing down?
But at this point all of those worries are out the window.
Kun John Sabani of Bloomberg Intelligence out there in San Francisco, thanks so much from more on broad in the company's nearly one hundred percent rallies so far this year. We're joined by Bloomberg's Ian King Ian. One of the ways that hog ten has been able to build Broadcom into one of the most valuable companies in the chip industry is through acquisitions. Does this trend continue? I mean, he was asked about that.
He said he was asked, look, hey, Hawk, you've got a lot of cash. Does that mean you're getting ready to do another big one? And they said no, no, we're going to focus on bringing down our debt. But then later on in Nicoll he was asked, well, does this mean your your strategy of making acquisitions is the thing of the past, that you're going to focus on organic growth in AI And he was like, oh no, we're still looking so kind of beast message there.
Okay, So what kind of companies have they acquired in the past and what kind of companies could potentially be on their radar?
Yeah, I mean they've they've gone through the whole Panoplio that they started off in semiconduct has he acquires what he calls franchises. These are really sort of long standing, important parts of the industry that he believes are kind of undervalued, and then he kind of strips out, makes them sort of lean and mean again, and that's been a really successful policy. And then he took that strategy and spun it into software and most recently he went
for VMware. And what he's going to do next, who knows. He said he's open to software and semiconductor. Obviously, all eyes are on Intel right now and whether this is something which might figure into his calculations.
Okay, well that's a perfect segue. Let's go to Intel right now, because CFO Dave Disner said that a formal separation of the company's factory and product development divisions is an open question. It'll be decided by the next leader of the company. Ian I thought that this had been kind of put to bed and Intel was going to stay the type of company that it's been for over the last couple of years. What's the latest time in it.
Yeah, No, it had been put to bed by Pat Gelsinger. Unfortunately for him, he's not in that job anymore. Right, he's not in a position to say he said, stronger together, better together. One of the co CEO replacements, Michelle Johnson hold House, who was on stage as well, said yeah, no, yeah, we think we're matched together. But both her and Dave's instner, the CFO and COCO said yeah, but you know, it's
not our call. We'll see what happens, And that, really, I guess in Wall Street's minds kind of opened the door to this being a much more firm possibility.
Okay, So what part of the company could be spun off? Where could that company go? Would it be a public company, would Broadcom be interested in part of the company? What do you see? Yeah?
I mean, the focus was on what happens to the product side of the company and the manufacturing side of the company, that perhaps these two entities become something separate. Frankly, the manufacturing side right now is piling on the losses. It's really not in a financial position that would make an IPO even a vague possibility right now and probably not for you know, a matter of years while it tries to build up its presence with outside customers. That's
not really an option. That would have to be new ownership, new ownership with very deep pockets. Whether that's Broadcom or anybody else, we don't know. The product side is arguably a bit more healthy, particularly in PCs. It might be something that somebody like Qualcom or Broadcom might.
See a useful Okay, well, certainly, busy days ahead for Ian King and for all of us. Ian King certainly appreciate you joining us. Thanks so much. Let's continue the conversation with epac Oscar Deshkai, a senior analyst over at Swiss Code. It's a banking group specializing in providing online financial and trading services. EPEC record highs for Broadcom, our Bel Technology, and this week for meta platforms, Apple, Alphabet, Tesla,
the names continue. What inning are we in in your view when it comes to this megacap tech bull.
Run, Well, absolutely well, good news keep coming in and they actually fund this rally and extend. Really they do justify the extension of the rally for Broadcom, for example, Well, they actually announce a revenue growth for the AI business of two hundred and twenty percent. They are looking for sixty five percent growth in their revenue in the first quartum. Those are the big, big numbers that we are used to that we like, especially in the AI and technology stock.
So that's actually giving a boost to the companies and to Com today.
Well, we are also.
Very much impressed by cooms projection of a boom in their AI business, especially the custom AI chips in the next few years. That actually fits exactly right in the middle of this narrative that's unfolding right now that the big technology companies are actually building their own chips, so that means that they are going to be users and they're going to be winners. So we expect to see still a little change of the scenery when twenty twenty five begins.
Okay, you mentioned there will be winners and there will be losers. Let's start with the losers. Who are they going to be?
I mean, I don't want to say losers. Nvidia is not smiling today, and they are right because we are now in this narrative of big technology companies, which actually made up to fifty percent of its revenue last quarter, trying to build their own chips. So we're talking about Amazon with their Trainium chips. Google came out with his own I mean, everybody is up now building their own chips in order to well cost efficient for cost efficiency reason.
So this means that Nvidia will have to replace these big technology companies by other customers. Now, we know that Jensen one didn't look worried at all up until now, but that's still a fly.
So are you saying that that folks who have ridden this high for Nvidia should be thinking about getting out at some point soon.
Well, I want to say that right now, because these worries of big technology companies that will start slowing their spending has not materialized just yet, because earlier this week we had TSM sales numbers for November and they actually announced a thirty four percent growth in their sales in November, which actually continues to back this narrative of robust AI
demand for Nvidia's chips. But it is a certainty that this high concentration of big technology companies in their client book is something to be watched.
Okay, we know you've mentioned in video and not a company that should be smiling today Broadcom certainly one that is, what are the other names that you're bullish on going into twenty twenty five.
Well, AMD is not smiling today, But we actually like AMD for one particular reason, and is the fact that AMD proposes cost efficient and more affordable but as efficient as efficient, very efficient chips and that could actually be interesting for those sectors and companies who do not necessarily want the most premium chips out there, but who want good chips sale for you know, doing their day to day task with AI. And that's going to be very interesting.
We think that there is an opportune to window for AMD to get into this race more seriously and well, question the the NVIDIAs or eat a part of mvda's cake in the coming years.
A lot of the exuberance around AI has certainly focused on the chip companies, but what if we move beyond those chip companies. Who else do you see as winners when it comes to this boom and AI.
Well, actually we see, for example, well we see all the clients as winners because they are going to get an important part of their important efficiency and cost efficiencies in this process. So this is obviously one thing, and
this is why this whole thing is happening. But we're also looking very closely to what's happening in the energy sector, and we think that the nuclear power providers are going to be in a good position to benefit from the ar really, given that it is clear right now that the alternative energy sources like wind and solar are not going to offer the enough scalability actually for satisfying all these exponentially arising energy demands.
Nuclear power so little intensive to develop, especially here in the United States, We've only had a couple new generators come online over the last couple of decades. Who do you think can pull this off in the next few years or are we talking like a generational shift here.
Well, yes, you're right. It has been controversial as well, so it's here in Europe as well. We have been
closing the nuclear plans and not to the contrary. But this year we have started seeing the mentality change a little bit, especially when big technology companies started announcing that they are going to be interested in using nuclear power instead of while using fossil fuel or fossil well, actually, excell as, it was saying that they are going to offer gas for gas powered plans to big technology companies that's going to be built in half time, like in
five years, and they're going to offer these companies and after good energy source. But at the end of the day, when we are talking about tackling climate change and offering an alternative and clean energy source, well, today nuclear looks like the only plausable option that could satisfy our increasing and exponentially increasing needs.
May pec Oscar Deshkaia, senior analyst at Swiss Quote joining us from Geneva, thanks for standing up late for us. Do appreciate that Jeff Bezos is expected to meet with President elect Tromp to discuss Amazon's Project Kuiper. It's a satellite Internet service that is facing delays and cost overruns. Bezos look into the new administration for help in the space race against fellow cent a billionaire Elon Musk. Bloomberg's Bruce Einhorn joins US now Bruce. Project Kuiper supposed to
be this competitor to SpaceX's Starlink. Is it fair at this point to even call it a competitor.
Well, it aspires to be, but at the moment it's not there yet. So Starlink has more than six thousand satellites operating, providing high speed Internet service around the world. Amazon wants Project hyper to do something similar. The original goal was to have the first batch of operational satellites launch first half of this year, and by this time they would have beta service starting. They've encountered delays though
in launching the satellites. They're now looking to launch the first batch of satellites early next year and then have service starting later in the year. The big problem for them is, well, one big problem is that they do have a deadline that they received from the Federal Communications Commission when they first got the license for this back in twenty twenty. They need to have half of their satellites.
It's over sixteen hundred satellites up and operating by the middle of July, I mean by middle of twenty twenty six, July twenty twenty six. They don't get that, then they're going to need the FCC to give them an extension, to give them a waiver.
One challenge is get those satellites into orbit. Blue Origin is certainly a possibility, but if they can't pull it off, can they rely on SpaceX to do this? Would that ever happen?
While they do have a contract with SpaceX to launch on I think three SpaceX rockets, but that's just a tiny part of their total launch needs. So for the most part, Amazon is looking to new rockets from Blue Origin, which is Jeff Bezos founded company, as well as europe Arian Spots and United Launch Alliance, which is joint venture between Boeing and Lockheed Martin. The challenge though, is that
those three companies all have new rockets. Among the three of them, those rockets have launched a total of three times, so they don't really have a huge track record, and it takes a while to get rockets up and going to a frequent, frequent launch schedule. So it's a big challenge that they face. On the other Cant of course, has its own rockets. They don't have to worry about it exactly. And it seems like, speaking of SpaceX, Elon
Musk and President elect Trump are extremely tight. After what happened over the last few months and the more than two hundred million dollars Musk spent to help get Trump elected. How bad is that for Jeff Bezos. Well, of course, Musk and the President elect are very close. President Trump during his first term did have some run ins with Jeff Bezos. There was some criticism from the president of
Jeff Bezos, who of course owns the Washington Post. Amazon did go to court in the first Trump administration alleging unfair treatment of the company, saying that they had been cut out of a contract with the Defense Department. So there is history there. More recently, we have seen pretty upby comments from Jeff Bezos about the President elect and the new administration.
Bruse ein Horn, thanks so much for joining us. Do appreciate that today. Well, speaking of another story that we are watching, Elon Musk looking to transform his SpaceX Star based site into a new city. The site in Boca Chica, Texas currently the primary location for building and launching SpaceX's Starship Rockets, and it's created over three thousand jobs. Several steps need to occur before Starbase can be created as
a new city, including permission from local authorities. Coming up, we'll discuss the intersection of AI and sports with the CEO of VM. That's next. This is Bloomberg. A new partnership could change the way millions of fans experience live sports around the world. New York Islanders and Ubs Arena have teamed up with VM to develop quick Q. It's a tool that directs fans to the shortest lines so then can get back to their seats as soon as possible.
The company putting AI into action and other industries too, including marine manufacturing, robotics, as well as food and beverage. Here with us is Elliott Horow, a CEO and founder at VM. Elliott, good to see you. I want to get to the Ubs are in a partnership in a minute. But you co founded Mango dB. Before that, you co founded shop Wiki. This is not your first rodeo. What's the problem that you identified that VM would solve?
Well, thanks for having us, Tim So the problem that I was focused on after I thus Mango dB, it was all about physical.
Devices in the real world. Right.
We all live in the real world. We all want to have the real world be better for us in whatever way, and so we built VM to be an engineering platform for physical devices.
Right.
And that's from air conditioners in your house to robots on a factory floor.
Right.
It's all about making it easier to build these products.
Right.
You need a lot of different engineering counts to make that happen, from software engineers to mechanical engineers to AI engineers. So how do you make a platform that makes it ten times easier to bring these products to life?
Okay, so let's get to this UBS partnership. The idea is you're watching an Islanders game, You've got to use the restroom. You can tell by opening the Islanders app where to go and how long it'll take exactly right.
The Islanders, the Islanders ownership and you know John the Decky who we partnered with, are all about fan experience, Right. How do you have the experience of going to an Islanders game, going to any event at UBS arena be as great as possible? And so the biggest problem with one of the biggest problems with going to a game is when do I go to the bathroom? How do
I have to wait in line? And so you can open up the Islanders app and see immediately which bathrooms have the shortest line, if there's a line right now, and so you can know when to go, where to go and make that part of the experience much better.
What's the hardware that has to be installed at ubs arena in order to make this happen.
So one of the great things we were able to do was actually add almost no hardware. Right, We're able to add this to the existing security cameras that they already had in place, you know, just monitoring for security and safety around the arena, and so to tap into the existing cameras and just look at those cameras and determine what the line was for the bathrooms.
So what's the tech layer there?
So the entire tech layer is the existing security cameras and then just VM outside of that, Right, So VM is tapping into those existing cameras, looking at those feeds in real time, doing AI actually in the arena itself, and then pushing that data to the Islanders up.
Okay, let's talk fundraising here. You've raised just shy of ninety million dollars at this point. How long does that runway give you? When do you need to raise more money?
We're always talking to investors about raising more money.
You know.
One of the things about VM is we're not a lacking ambition company, right. We're thinking about everything from in your house again to arenas, lots of things we want to do about fan experience and lots of arenas, but then also everything to cleaning oceans, and so we will be raising more money and we're doing a lot of interesting projects all over the place.
Are you actively raising money at this point? Like, are you out there talking to investors right now? I mean I talk to investors probably every week. Are they give you are you getting incoming though? Are they saying, hey, we want to give you money? Is that the environment out there? There's a lot of you You have a strong track record too, right, And there's a.
Lot of interest in physical devices, physical world and AI right. And we're taking a pretty unique approach, and we're really focused on short term wins and how do people make practical things better on an everyday basis?
What do you envision for the home. That really intrigues me. What's in your perfect world do you imagine happening with VM in the home.
I think a lot of people have something in their house that is somewhat smart, right, Maybe it's an air conditioning system that's supposed to adjust the temperatures, or lights that are supposed to be smart, or even just devices that aren't smart, like an old air conditioner. Most of those aren't very smart and really aren't great user experiences. Or the number of people who've come to me and said, yeah, my air conditioner broke down in August, I'm like, why did that happen?
Why don't you know that it's going to break down?
When an air conditioner breaks, someone usually come to your house, look at it, and then maybe go and get another part. Why can't they have a computer that's always attached to the air conditioner, always monitoring the air conditioner, so they know exactly what part they need, and we can tell you ahead of time, like, Hey, it's getting noisier, it's starting to rattle, it's probably going to break in two weeks.
Should we become fixed it before you're stuck with no AC and it's one hundred degrees outside, right, those sort of very practical, real world things that just get in the way of day to day life.
We had to get a new washing machine in dry and it's supposed to connect to the internet. It doesn't even connect to the internet, right.
And this is what we hear over and over again is that building devices right now is just simply too hard. Right, It's too hard to connect these devices in your house and in the real world to AI.
Elliott Horowitz, CEO and founder at VM joining us here in New York. Welcome back to Bloomberg Technology. I'm Tim Stenevek in New York. Let's get a check on the markets. Taking a look at what's going on on a with Broadcom. Look at that shares up right now, close to twenty percent. Two hundred and fifteen dollars is where it's trading at right now. WISES High is twenty two percent a little earlier in the session, surging today to a one trillion
dollar market cap for the first time ever. After predicting a boom in demand for its AI chip. Sales of AI products are going to gain sixty five percent in the fiscal first quarter. That's far faster than its overall semiconductor growth of about ten percent. The chip maker also predicting that the dressful market for AI components that it designs for those data centers, those hyperscalers would reach as
high as ninety billion dollars by fiscal twenty twenty seven. Also, let's take a look at what shares of Tesla not just doing today, which yes, they're at a new record, but over the last couple of months, they've almost doubled in value since the election. Today's news is that the Trump administration transition team could scrap an order that requires car makers to report crashes involving self driving systems that
coming from Reuter's a little earlier in the day. Certainly, those who've bet on Tesla over the last couple of months and even before that, have gotten big payoffs. Well, let's keep digging into the Musk trade now, because as I mentioned, those who've bet on Elon Musk's business empire are closing out in the year with some hefty payoffs.
Bloomberg's Nitsa Soakova looks into this for usdnitsa good to see you give us an understanding of we've stuck by Elon Musk over the past few years and how their payoff looks at the end of this year.
Yeah, for sure. We have quite a few funds who had placed big bets on in one Musk, which I can imagine for the start of the year it wasn't really a great performance, but now we're seeing really rapid shifting fortituns. We of course love to talk about Destney Tech one hundred, which is one of the few funds who has so much exposure to SpaceX. That fund has sold more than five hundred percent since the election. Just
incredible rally. This is both due to the price of the underlying growing, but more importantly it's due to the very big demand we're seeing from retail traders, and they're paying ten times more than the actual price of the underlying assets, so there is definitely a chase to do that. We also have a few big names like traditional stock
pickers like Ron Barron, which famously bets on Tessa. He invests in SpaceX, and he was actually flat on the year, and just in a couple of weeks now he's up forty percent on the year, So really massive change for everyone who placed the boat bet on anything New and Musk.
I wonder to what extent. This depends on a close relationship with the president elect and what happens if this relationship sours given the increase that we've seen in such a short time, for sure.
Yeah, a lot of the speculation, a lot of the rally we have seen lately, it is based on the new cycle we've seen. We've seen obviously SpaceX get a lot of its contracts, our government contracts, so you can imagine.
People are quite happy with that. Even the elimination of the tax credits for electric vehicles, which came as news, a lot of people are thinking that's going to be favorable for tests. So a lot of the incoming administration news cycles we have seen has been perceived to be quite favorable for those companies. And you can imagine, like more broadly, the rally, we're seeing a little bit of a stop in the moment. We're seeing a lot of the big company struggle. But Teslo continues to score gains,
and the gains have been incredible. Tesso has added more than five hundred billions. Is the election just incredible rallity?
Yeah, it's pretty remarkable. And Elon Musk of course remains the world's wealthiest person. But sur past four hundred billion dollars in net Worth just this week, Dniita Sikova. Always appreciate you joining us, Thanks so much well. Elon Musk's influence looms large on the next administration, even heading the newly created Department of Government Efficiency. Yes, we know what's
called DOGE. With the incoming Trump administration showing strong support for crypto, let's bring in Aya Kantarovich, co CEO and co founder of the digital assets management platform August for her read on crypto markets in at twenty twenty five. So the amazing run up that we've seen in many different cryptocurrencies, but namely Bitcoin, over the last few months has been on hopes of a Trump administration that is more lenient when it comes to regulations. So that's the hope.
Now the administration has to deliver. What do you want to say, Yeah, you're absolutely right.
You know.
We even saw it yesterday with Trump at the New York Stock Exchange. He mentioned that he wants the United States to be the number one leader in cryptocurrency in the world. That's a very different narrative than what we've seen in the last four years. We've also seen the Trump administration anchor on this one hundred and fifty k bitcoin price, and so we've seen, you know, markets respond
to that. We've seen a lot of option call buyers with March twenty twenty five expirees, and so really a lot of people, as you mentioned, are kind of basing their expectation on a much more favorable administration. Now that can be you know, many subsets. We see Paul Atkins coming in as the SEC Chairman and commissioner, and that is going to be very positive for crypto companies that
are centralized. We still need to see what that means for decentralized finance as well, especially as it pertains to KISEE sanctions. But overall, it really does mean that the narrative is front and center, and you're seeing that momentum in ETF inflows.
Does it seem like the wild like it could become the wild West? To you?
We're very much hoping that we're actually going to get very clear guidelines and I think that's one of the main pieces of also having a role within the White House that is focused on crypto. You know, you have David Zachs who's going to be spearheading a lot of that and what we're actually looking to get from that, I mean, he's invested in a bunch of these companies, is actually rules and regulations on what we need to do.
Do you see that as a conflict of interest that he's invested in a lot of these companies, but he's going to help advise the President and at least people in the White House on making rules around these I.
Think you could probably say that about you know, a couple people that you know are advising in the administration. But that said, you know, you still need to have all of this get approved by Congress. You need to have it approved also on a state level, and so you're seeing a lot of states actually start to jumpstart this. And so you're seeing states such as Texas most recently this week, say that they want to have bitcoin as a reserve currency for the state. The US has spoken
about it. You're seeing a number of states now four actually say that they're going to go ahead and do that. And so I think you'll see a lot of the checks and balances on both a state and federal level, and we're excited to see that play out.
And recent Horowitz is crypto policy lead Brian Quintez is a top contender to lead the CFTC under President lex Trump. What kind of role do you see that he would play in shaping cryptopolicy.
He's been pretty favorable in both what he said very publicly and also in the guidance that he's given for a lot of the A sixteen Z companies. For example, UNISWAP is one of the largest ones that's a decentralized exchange platform. It touches a number of users, and I think what you'll see is that a lot of these currencies will fall under the CFDC. CFDC has given very clear guidelines and so we're very excited to continue to push in partnership with them.
Are you concerned that there could be clear winners and losers here given that there are people from certain venture capital firms who have the presidentallex Ear, Elon Musk has the president of x ear, but not everybody is going to have his ear. Are there are there going to be clear winners and losers as a result of who has access.
That's a very very good question, and I think it still boils down to what are the guidelines and rules? So if you do pick, you know, call it a clear winner based on someone's relationship with a specific company or their previous investments. It really depends on why is it a commodity? Is it a security? And then boiling that down and then we can take that guideline and apply that to many other winners as well.
Ayah, what happens if there is some sort of meltdown akin to what we saw at FTX two years ago in the coming years and you see a large number of people who have holdings of cryptocurrencies get burned. Maybe it's the result of a more lax regulatory environment. The whole idea with regulations is these are supposed to be guardrails and protect consumers. Does this whole thing backfire if consumers get burned?
So my personal opinion, and I think that of the industry is not a lot of the things that happened with FTX were personal people issues and people management issues and lack of operational back end systems in order that you see both in traditional finance but also in centralized exchanges.
That may be true, but it didn't happen in a vacuum. We saw the failure of a lot of crypto firms during that time. We saw the real depression of many crypto asset prices can one.
Hundred percent agree. We also saw that in traditional finance with our Kegoes for example, and that took down Credit Suite. So it's not unique to crypto. These are still financial companies and they still require very clear guidelines on operations, on people management, and on flow funds. And I think what we're going to get from this administration is exactly what that needs to look like in the United States.
We can copypaste that into these companies and then we can, you know, with that clear guideline.
That's the issue.
Since we don't have the clear guidelines, we don't really know how and where to operate, and that creates more confusion. Even with less regulation, as long as the guidelines are very clear, we can operate within those, hire the right people, whether it's for compliance or again back in operations and continue forward.
What are you seeing on August platform right now, Like, what's the activity that you see that you can tell us about.
Yes, our volumes have really spiked tremendously. It's very very exciting. You know, yields are spiking, and so we're seeing, for example, our clients get yields over five percent on bitcoin and majors on basis. Right now, we're seeing roughly eleven percent for majors, over twenty five percent for some all coins, and then even for for example, lending rates for stable coins,
the seven day average is around sixteen percent. So it's really tracting more capital on chain and we're excited to continue to see that.
I always get to see you. Thanks so much for stopping by Bloomberg HQ. That's August CEO Aya Kantorovitch joining us here at Bloomberg. Well, coming up, Archer teaming up with Anderill. Archer CEO Adam Goldstein joins us. Next for more, This is Bloomberg. Archer, the electric aircraft maker, has a new partnership with defense tech firm Anderill to build a hybrid at military aircraft. This as the company also announced it has brought in four hundred and thirty million dollars
from investors including Stillantis and United Airlines. Archer CEO Adam Goldstein joins us now. Adam, I think a lot of people when they envision Archer, when they hear Archer, they think of air taxis, they think of urban mobility. What is the opportunity and defense for Archer?
Yeah, well, I think it's quite common for aircraft manufacturers to participate in both the commercial aspects of the industry as well as the defense aspects. The commercial side of Archer's business has become very mature, and the aircraft is in the late stages of its development and certification program, and so it was a great opportunity for us to really extend and expand our capabilities and move into the
defense side. And of course partnering with Androl is an amazing opportunity as they're the premier defense tech company in the world.
So what does that product look like when it's all said and done in partnership with Androl.
So we're building a hybrid electric vertical takeoff and landing aircraft. It will have a lot of the same capabilities that you've seen on the commercial side. So these are vehicles that can be produced at much lower costs. There are vehicles that have low acoustic, low thermal signatures, and so applications that will be very helpful towards defense vehicles. I think it's also really important to the US Department of
Defense that we add new capabilities. There's this whole new trend in affordable autonomous aircraft that can help bring new capabilities but also at the same time dramatically lower costs.
You've been working with the Department of Defense for a few years, going back to twenty twenty one, but now you're just creating this separate defense division. Why are you doing it now and what's different about defense tech going into twenty twenty five. Is this about a new administration?
Yeah, So Archer has a team of around one thousand people, and we've been working for a long time on building out the capabilities of our aircraft. As the aircraft matured, it allows us to take that platform and build variants of it that can be useful across different applications. You combine that with the new administration and you have an
incredible opportunity for us to dramatically expand our business. So on the commercial side, it can be certainly very big, but it also is for some people hard to define. On the defense side, it's very clear that there are new needs that the Defense Department is looking for and we can certainly fill those as well. So the opportunity here really is pretty impressive.
What's the type of infrastructure that has to be in place for the Defense Department at bases here and at outposts around the world in order for this product to succeed well.
The beauty is that they're vertical takeoff and landing aircraft, which means we don't need runways. And so that's one of the big benefits that you can have these aircraft that could be utilized across many different applications. So you can think about all things that helicopters do, and then there's certainly things that you can envision that go beyond those use cases. So when you don't need runways, you need limited infrastructure.
I look up at the sky in New York City and I see airplanes from bowling In, Airbus and Breyer and the like. I still don't see air taxis. When will I see air taxis?
Well, the air taxis will come to the US as soon as the regulatory pathway is clear. And one of the benefits of the new administration is that they are projecting that there will be an easier time to get through some of the regulatory pathways. That being said, it is still up to Archer to make sure that we produce a safe aircraft, and that's where we really focus, and I think you'll start to see things sooner than you might expect.
What sooner than you and I expect. What does that mean in terms of number of years? Am I counting on one hand?
Oh?
Yeah, absolutely.
Our goal is to have aircraft commercial in the marketplace by the end of next year.
And where would that be.
Well, the starting point is in the UAE. So the UE has created a framework for us to get to market by the fourth quarter of next year, and so we've been working very closely with the regulators there.
But I do think you'll start to.
See an increasing amount of excitement coming from the FAA as these products get a lot of hours under them in flight tests and really advanced in the certification programs, And so my guess it will be a short time after to just see these aircraft come to market in the US.
And if they do come or when they do come to market in the US, give us a year that you think it would happen if all goes according to a plan from a regulatory perspective, and where we'll see it in the US? What city, what state will this happen first?
Yeah, So we've announced several key markets that are important to US. LA is a fantastic market that are over five million daily trips that take greater than an hour by car going less than twenty miles. So when you start to think about that, just the city of La alone could be bigger than the entire aviation industry globally. And then you start to think about the other big markets in the US that we concentrate on New York, Miami,
and so there's an amazing opportunity here. It's our job to build safe aircraft and once the regulators d must safe, and that's when we'll ultimately get to market.
Archer CEO Adam Goldstein, Adam, good to talk to you. Thanks for checking in. Do appreciate it. San Francisco has been at the center of the boom, yet the city still running up against its issues. Locally, Carolin Hyde sat down with San Francisco Mayor elect Daniel Lurie to discuss the future of the city under the new age of AI. This after he assembled a transition team that includes Open AI co founder Sam Alman. Check it out.
Sam Alman has been great as a transition code chair. We are committed to leaning into being the home of AI. We have historic investments already here in San Francisco. We're going to continue to lean in not only AI, not only technology, but really once again being the epicenter for business again. There is no better place to do business on the globe than San Francisco when we're at our best.
But it's not just about business. It's about bringing our arts and culture back to San Francisco, because that's where people. When people think of San Francisco, they think of culture. They think that everything starts here. Yes, I started here and we wanted to grow here, but we kind of want the best of everything coming back to San Francisco.
I mean, you're someone who knows well how to make cultural events bound together, big cultural movement benefit concert raise seventeen million dollars. You've done other philanthropic work. But you're also from a business dynasty of Levi and what parts of industry do you want to cultivate here? You just mentioned financial services there, you mentioned sports, but it's going to be broader than that.
Absolutely, we are calling healthcare executives, biotech AI, we want real estate thinking that San Francisco is a place that they want to invest in again. Because when you get these business leaders back, what that tells me is that we get the small businesses back to San Francisco, back thriving again.
That was San Francisco's Mayor elect Daniel Lurie with Caroline Hyde there and from San Francisco to Boston. Liquid AI and MIT spinoff designing AI systems inspired by the tiny brains of a worm, set to raise two hundred and fifty million dollars in funding at a two point three billion dollar valuation Bloomberg. Sharen Gafari joins US now for moreen neural networks. Typically they're modeled after, you know, the old human brain. These things that have proved to work
really well. What's up with worm brains? Why is this an exciting new frontier? That's right.
So the neural networks of power things like chat ship tee that we all use are loosely modeled off of a human brain. However, there's a lot of complexities there. The human brain has a lot of neurons. It's difficult to understand. And so the idea is that a worm brain, if you can still get some reasoning out of it, might be simpler and actually more intuitive to study than a more complex human brain like system.
But I thought worms were again not here. Not to be a biologist, but aren't worms the type of creatures that are incredibly simple and don't necessarily have reasoning capabilities akin to other animals let's say a pig, for example. Could a neural network designed after a worm brain actually bring us in terms of AI?
Yeah, Look, it is still you know, experimental technology that they're stealing up, but actually in some early research that the founders did, they were showing that potentially this kind of tech could be used to steer self driving cars to help analyze that data. So there's big potential here and you always have to be open to exploring you and sometimes kind of almost incredible sounding models in AI.
And I think this is a reflection of investor interest in going beyond kind of the standard transformer neural network type models that we use just.
Envisioning a worm being driving a self driving car. But that's neither here nor there. Some real money coming into this in some established companies, not just vcs, but also establish publicly traded firms that are betting big on this tech.
Who's there, that's right, So AMD is a lead investor, and you know, again, I think this reflects sort of the interests that we're seeing and going beyond what's been out there for a while now, which are transformer based models.
You know, I think what would be sort of the test to see when this technology or if this technology works, because this is such a hefty valuation for something that at this point is in the early stages. Or does that just show that there's so much exuberance for AI out there.
I think the proof will be in the putting about these models. You know, there are some early tests that they've brun. These are you know, benchmarks that they do internally, seeing that on certain tasks this is competitive with some of the similar sized, more traditional models out there. But again, you know, it's one thing to test something in a lab. It's another thing when you go out there and get this product in front of people. Is it actually providing value?
I think that will be the ultimate sign of whether this is going to work on a bigger scale.
Seren, always good to see you, Thanks so much for joining us. Thank you, Bumberg Technology, Bloomberg. Serene Gafari here in the studio that is going to do it for this Faraday edition of a Bloomberg Technology. Don't forget to check out our podcast. You can find it on the terminal as well as online. On Apple, Spotify, and iHeart this is Bloomberg.
Thank you wh