Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is a lie from coast to coast, with Caroline Hyde in New York and Vla Loow in San Francisco.
This is Bloomberg Tech coming up.
Cisco ches jump the most since twenty eleven of the company's earnings results will break them down. Plus, China's Jijingping gives a warning to President Trump on Taiwan that tells US tech CEOs China will open up more, and ai chipmaker Cerebras raises five point five five billion dollars in its USIPO, seizing on the surging demand for semiconductors. Will be joined by the CEO later this hour. Cisco is our top story, and it is actually rising with the
rest of the market. We're up fifteen percent, on track for our biggest jump since twenty eleven, after the open hit seventeen percent, putting Cisco on track for its best day since two thousand and two.
It's a pretty simple story.
Hyperscala demand calendar year twenty six nine billion dollars, up from a previous forecast of five billion dollars. Four billion of that will translate into actual revenues sales on the income statement in this year.
There are many more.
Threads, but Cisco is finding its place in this AI infrastructure story. It's got out to Bloomberg Equities reporder Ryan V.
Selica.
I think Ryan, the best place to start is what has the cell side reaction been to this? What are the analysts saying? The main thread of their enthusiasm for Cisco has been this morning.
Analysts are very positive and very optimistic that Cisco will be able to continue kind of putting up these numbers that we saw in this past quarter. There is a lot of optimism that Cisco is now really part of the AI infrastructure of firmament. It showed very strong demand, as you said, from the hype scalers, it's pointing to very strong growth going forward. I think there's been a growing realization this year that the sort of optical and networking companies are a huge part of the whole data
center build out. And obviously we have seen no end of demand and growth for data centers related to AI. And Cisco is really well positioned in that it's a legacy company, it has a wide product suite that.
People are using here.
It seems very well positioned, and it does seem like analysts are really sort of seeing additional confirmation of this trend.
Right, And there's so much to pack into Bloomberg Tech today. People are saying, why you're starting on Cisco. The market's team is looking at the equities market widely, and Cisco is a big factor in kind of the feel good that's out there networking is your cables, your switches, your routers, that all goes into real data centers, right. But the other part of the story is Cisco's discipline. They're cutting
about four thousand rolls. The company kind of spin that as a positive in that that sort of feel good around AI in the market today.
Well, they talked about how they are really focusing and prioritizing AI.
You mentioned the job cuts.
It does seem like all of their investments are really geared toward this in market in particular, So there is.
A lot of optimism about that.
And I would just say, as I'm sure you remember, Cisco is one of the major companies of the dot com era build out. Now, it saw huge growth at that time and it only recently surpassed its dot com era high. So there's a certain amount of poetic justice, I guess, and the fact that AI is a thing that is finally bringing it back to record levels. It does seem like it is now becoming a real part of this technology buildout, just as it was in the Internet tech buildout.
Ryan, you and I were not doing this in the dot com era, but you know here and now, Cisco is a big story. Bloombers rhyme lslica on the equities desk, Thank you so much. Another start we're watching is Klana looking at shares, also up fifteen sixteen percent. The company posted just one million dollars in first coordinet income, but it beat estimates, swinging from a ninety nine million dollar
loss a year ago. This in the fintech space right, revenue jumping forty four percent to one billion dollars, driven by higher interest income, growth in debit card sign ups partnership fees. It's another one that we had to fit in in a very busy Thursday morning. Today, all eyes are on Cerebras, the company set to begin trading after pricing its IPO at one hundred and eighty five dollars a share, raising five point five five billion dollars. The biggest USIPO of the year so far, it has been
mayhem in the market. So far, shares were indicated at one point to open at four hundred dollars a share, four hundred having priced at one eighty five. I think we're now back down at three hundred and fifty dollars a share as of one minute past eight Pacific time one minute past eleven am Eastern time. Bloomberg's Bailey lip Schultz has been my partner in tracking the chaos of this IPO for a good few days.
Now start with the math.
Yeah, the indicated opening price well beyond one hundred.
And eighty five dollars a share. What's that telling us?
It tells us that there's untapped demand. And when you look at a deal like this, more than twenty times over subscribe. We reported before it even launched there was ten billion dollars of demand. So these are huge numbers. This is the hottest stock, at least from an IPO perspective this year bar none. The big question and you asked me, you know, look at the market cap of
where this could open. If we're getting closer to eighty billion dollars, talking to folks on the buy side, they're still saying, you know, if in Videa's worth five trillion dollars, who's to say that this company doesn't easily treat closer to one hundred billion. I don't know what you've been hearing about that from your.
Side, yees so exactly.
That brings us back to like what is Cerebras.
What does it do well?
It is a full stack, vertally integrated supercomputer maker right and video makes largely the chips, but the server trays. These days, it doesn't build its own servers. Dell does that, super Micro does that. Cerebras does the full send package. But even at one hundred billion dollars, it's a drop in the ocean. Why the market's so enthusiastic about its technology? Like, what else do we know about this company's financials or its customer backlog?
The big thing initially when they tried to go public call it two years ago was concentration risks, so G forty two was pretty much their only customer. They've expanded that now you have open AI and others in the big pitch ed, at least when I talked to folks on the buyside, is how broad based can that be? If we're dealing with a market, especially as it relates to building some of the compute and everything that goes
into building out the AI future. If this is just the start and we're an early innings, what does this ultimately look like? Call it five years from now, and the big question is back to your point earlier. If this is just a drop in the bucket, there's a pretty much massive potential as it relates to going forward. Though again, all things considered, we've seen semi sconductor index up what thirty percent since they started this process.
I would say indicated opening prices. They're on the Bloomberg terminal.
They're not always right.
Who knows what happened when trade starts with Bloombo's baited at Schultz.
Please don't go far.
Stay with Bloomberg Tech because coming up later this hour we will speak with Cerebra CEO Andrew Feldman, and if you're on the socials, hit me up.
I'll welcome your questions.
Now, coming up, China's Jujingping gives a warning to President Trump on Taiwan. We're gonna have those details next. This is Bloomberg Tech, one.
Of the most important summit in human history, and the two the two presidents.
President, you don't Trump have such a monty relationship. This is an incredible opportunity for us to rely on the relationships to build up much munch partnership.
Did you get any specific customers for your chips for the eighths two hundred we didn't really talk about. I'm here to support the president and to represent the unity.
That was in Nvidia CEO Jensen Wong speaking to reporters in Beijing and telling Bloomberg the company hasn't really discussed the h two hundred chips during the president's trips to China. He's there to support President Trump. What was discussed though, it's Taiwan Jijingping through state news agency calling it quote highly dangerous situation for the world's biggest economies. Let's get out to bloembig Tyler Kendall, who joins us from Beijing.
There are many threads.
We also have the breaking news of the last fifteen minutes, the President saying that Iran was discussed and that there is some sort of agreement there.
What do we need to know? What's the latest from China?
Well, at this point, as you're saying, there are a lot of different threads that we could pull on here.
I can't say that the.
Overarching theme appears to be that the efforts here in Beijing are aimed at stabilizing ties between the US and China rather than overhauling them. If we start with the latest news, President Trump out saying that Jijingping has pledged not to supply with any weapons and that it's going
to help get Ran to the negotiating table. Perhaps this will help make some progress when it comes to what has been gridlock in those ongoing discussions, as well as a reopening in the Strait of hermus Though we would be remiss if we didn't point out that from the Chinese readout, we didn't really get any indications that China is willing to go further in terms of helping to ease that conflict, saying instead that they had extensive dialogue about the situation in the Middle East, but not really
giving us any firmer details there. Another point where there appeared to be a mismatch in terms of the public readouts from what happened behind closed doors was, as you mentioned, that issue related to Taiwan, as Chinese President Jijingping basically
threatened that Taiwan could derail the US China relationship. That was not mentioned when it came to the US readout in this and in fact, we just heard from Secretary of State Marco Rubio, who appeared to downplane, that the concerns were raised after we really saw US officials in recent days signal that there would not be a change
when it comes to US policy regarding Taiwan. Now, we can't say, though, that there was a more optimistic tone reached when it came to the economic issues, including the fact that Chinese President Jijingping did appear to signal a move towards greater openness, telling tech execs in the room, including Elon Musk, Tim Cook, Jensen Wong, who traveled with President Trump in part quote that China's door to the
outside world will only open wider. Though despite the messaging, we haven't really seen tangible signs yet that any steps
have been taken. But Chinese state media did report that these executives told Jijingping directly that they highly value the Chinese market and ed as you well know, this US business delegation includes these companies that already have high exposure to the Chinese market, but also companies like Micron, which have seen some of their products barred over cybersecurity concerns
here in China. We can't say at this point there's still a lot that we are waiting for purchase agreements when it comes to agriculture, Boeing aircraft, or energy products from the US. But the dialogue does continue. These pair of leaders do have bilateral meetings going into tomorrow as well.
Bloomberg's Tyler Kendall with everything you need to know out of China so far in the meeting between President Trump and China's using ping. Thank you very much, And let's get the broader picture with Michelle Guide, the CEO the Crack Institute for Tech Diplomacy at Purdue, also served as Assistant Secretary of State for Global Public Affairs under the
first Trump administration. You understand how this works and you understand what's at stake, and like here on Bloomberg Tech, right, I want to start with Taiwan because for a very long time you've been coming on this program and we've been talking about Taiwan in the context of America's dependence on that nation for semiconductor supply. Right, I'm literally talking about TSMC and the manufacturing footprint in China in Taiwan. Apologies if we learn anything new here on Taiwan. What
did you make of President G's statement? I suppose through the State.
Agency, nothing's new here. I think the position that China has taken on Taiwan being really important to them when it comes to US China relations has been the case for quite some time. We know that General Secretary Shijinping has been pressuring the President on arm sales to Taiwan for a while, so that's not new at all, and neither is the United States position on maintaining the status quo. As Secretary Rubio said, there's been no change on the
US position here with regards to Taiwan. But as you had mentioned, the ties between Taiwan United States are strong, they run deep. Some MY conductors are a critical piece of that, and there's been a lot of collaboration with TSMC building out here the United States increasingly more over time, and I think ultimately the status quo hasn't changed.
A red headline on the Bloomberg terminal just before we came on air, President Trump saying that President G offered help on Iran and pledged not to send weapons to Iran.
The President has said that.
It wouldn't be an important topic of conversation, but actually, if you look at what markets are saying and what people are saying on socials, it's a key issue, particularly on how it would have a bearing on the straight of hormus.
It's been one of several key issues. I think it's not surprising that they talked about Iran. It was looming
over this entire thirty six hour summit. The fact that you had mentioned this breaking news that presidency is going to stop supporting the Iranian regime is a positive step and I think one that the United States would welcome, So again not surprising, And I think overall, the big picture on this is, you know, this is a thirty six hour summit on all of these agenda items and ultimately micro movements in a much bigger picture here of the United States and its long term view to achieve
the Golden Age of America and retain our leadership across the world. And China is on its own path to China rejuvenation, and the big question is who gets there first? And did the thirty six hours in this summit helped the United States move incrementally faster toward our vision.
I just want to disclose the Bloomberg Tech audience that President Trump in those comments about Iran and President G's commitment for run that was part of a Fox News interview, a clip that Bloomberg reviewed. Michelle, would you kindly draw on your experience from participating in the first Trump administration?
What does it take to put a delegation like this together that includes Elon Musk Jensen one, picking them up in Alaska for the Refield stop on Air Force one, and taking the world's most important tech CEOs to China as part of a high stakes meeting between President Trump and President G.
Yeah, these things take a lot of preparation historically and especially in terms of what you want the meetings to be about the readouts coming out of these meetings. However, I will say this, this type of delegation is unprecedented, and I think if you look at how the President has been agile and maybe non traditional in his work, so are these tech CEOs. They move fast, and they're disruptive, and it's easy to hop on a plane in Alaska
and go to China. So I'd say, you know, there's a lot of planning at the same time with this administration, with these types of disruptive tech leaders, there's also a lot of room for ad libbing and improvisation, and I think that's what we're seeing here.
Michelle Goad to see you at the Correct Institute for Tech Diplomacy at Purdue.
Thank you very much.
Now coming up, we're going to get out to Napa Valley for our own Caroline Hyde set to speak with the CEO of Ericsson on the sidelines of the Spark Global Leadership Summit.
It's coming up next. This is Bloomberg Tech.
Nuclear power is trying to make a comeback, but the resources required are in short supply. From uranium mining to enrichment. The supply chain is being reshaped by geopolitics, lobbyists, rising energy demand, new technologies. That's the focus of Bloomberg this week.
Listen to this.
Global investment in nuclear energy since twenty twenty is estimated to be around three hundred billion dollars, with ambitious plans in Europe, North America and Asia to revive or kickstart their nuclear energy sectors. Every step of the supply chain, from mining to enrichment to building reactors is highly regulated and controlled. Because a single misstep could be catastrophic and erode the public trust nuclear has worked decades to regain.
It's a real shift from when I came of age and everyone was worried about nuclear war because the process of enriching uranium for a nuclear fuel the same technology that they use for enriching uranium to make nuclear weapon.
Catch the full episode of Primer on Bloomberg dot com and YouTube. Let's get over to the Spark Global Leadership Summit in Napo, where own Caroline Hyde is standing.
By carroc It is a tough life being hosted by Consello here in Napa Valley, and I'm very pleased to say I'm joined by a giant in telecoms based in Sweden. Eriksson is a global company and bory at Com.
Is here with me. Who is the CEO?
Tell me about the China exposure you have, You have supply chain, that you have, consumer and competition is really what you have from China? What did you make of the relationship between us and China that we just said overnight?
Thanks for having me, And that's a great question to ask, very hard to answer. Actually we like to do that in Jennal No I know, but I think there is You know, China is started out as I often look at the old telecom movie from China, right, it actually started out as being a prioritized sector in China. So they had almost one hundred vendors if you go back
thirty years. They consolidated into really two that became fierce competitors in the over a decade, que one Key one One Way of course being the biggest, and they started out being of course low cost and fairly simple. Today they are, of course a phenomenal competitor, and it's the one that we benchmark ourselves with and said that's.
The one we need to beat.
Actually, we need to win on technology, we need to win on cost positions. So for us, the competition with China is front and center and has been, and.
I do believe that for the rest of the world to compete with China, you need to lead on technology.
But you've been outspoken in the past sort of pushing against this idea of sort of a focus on your own country and banning. In Sweden they pushed out Chinese competition, and you actually at the times that that's the wrong thing to do in the US. That is your key markets now are the US, that Japan, there are other nations. How do you think about the China being excluded and should they be?
You know, the way to think about about China is actually it's multi pronent. So if you take telecom again scale game, they have scale in their domestic market.
That's a market you need to be in.
But more importantly, what was also clear is that given the development in China economically and use case wise youse so data consumption grow much.
Faster in China than anywhere else in the world.
That led them to lead on or demanding certain technologies ahead of the rest of the world. So unless you're on the same development curve as they are in China, we're not going to be able to bring those solutions globally. So if we take in our case, we have what's called massive MIMO. Basically it's a way to increase capacity in the radio network. They needed that earlier than in the rest of the world, and therefore if you're not there when that happens, you don't develop the technologies at
the same pace as they do in China. So I think it's a much more interdependent world. You need to think of the world as being interdependent.
And you're dependent on geopolitics, tariffs, inflationary pressures, the straight up all moves again front and center today. How are you managing that?
You know, we actually took a decision a number of years ago now to say that we have three home markets. So that was recognizing the US because it's a.
Front runder market.
Big India in those days was big today it's starting also to be front runder on technology Japan. Japan is very big in telecom and also an early adopter of telecom, so we said that's markets we need to win in to make sure that we combat the scale of China. So we did that. Then we said we need a flexible supply chain in order to manage any disturbances. So we built a factory here in the US.
How big is you're manufacturing now here in the US?
We manufactured pretty in a large portion of what's supplied to the US manufactured here in the US. So we built that in twenty commissioned at about twenty twenty, so we were ahead of the really supplied constraints in that sense and the tariff issues. So we've been able to use that manufacturing footprint. R and D footprint to actually manage a bit of the geopolitical exposure.
Now we look at the markets today and extraordinary rampire on the back of AI. AI is the excitement in your area as well. Look, you've got competition with Nokia, who has got a strong relation with n Video and they've gone big into data center. Briefly, how do you think about the AA opportunity.
We think of the AA opportunity as a massive opportunity for us for the simple reason that AI will ultimately move out to the physical world call it industrial AI, physical AI, and that's going to require inference at the edge of the network to manage the latency requirements, et cetera. And then connectivity be needed. So we will start to enter the world where everything has to be connected. So when everything is connected, you can't connect them with wires.
It just simply doesn't work. You're going to need the terrestrial cellular network to provide the backbone to scale AI. So I think of AI. Yes, it's going to fundamentally change the economy. It's going to be a driver or productivity. It's hugely positive and for us it will be a benefit because we will see a new type of traffic coming in.
The network, I can talk to you more. I'm luckily going to be talking to you in a panel a little bit later here at the Spark Leadership Summit, hosted by Cancillo, ed back to you, all right, coming.
Up, rebrass IPO time a big conversation. This is Bloomberg. Welcome back to Bloomberg.
Tech to our TV viewers and radio listeners around the world. Were joined by Andrew Feldman Cerebres CEO Cerebrest priceless IPO. Andrew one hundred and eighty five dollars a share above the top end of the marketing range. I'm looking at the Bloomberg terminal shares indicated to open three hundred and fifty dollars a share.
Your reaction to that.
Pretty good day? Huh?
How you feel? I mean, did you see this coming?
There's some mechanics to it, right, but you know, I know you, I know you like to let's be honest, you like to talk about what's happening in AI. The big focus on inference Cerebress is place in it. But this is the biggest IPO of the year so far. You know, what does it mean to you and your employees and your back is.
It's the biggest tech one of the biggest tech IPOs in history, and it's the biggest SEMIIPO in history.
We couldn't be more proud.
This is the coumbination of a decade, a work of countless late nights and long weekends. We are enormously proud and excited and ready to get back to work and start working on the next, on the next great thing.
Again, the market is indicating shares to open at three hundred and fifty dollars a share. Let's see where we're at when trading starts. But you're being priced in as a major player in this field. Now, what evidence would you point to that you are in fact a major payer. A lot of focus is on the concentration in the relationship with open Ai. Tell me about some of the other frontier labs or other names that you have some concrete talks with.
Sure in the last four months, we announced a deal with open ai and that's north of twenty billion dollars for seven hundred and fifty megawads of compute. We also announced a major engagement with AWS. Our equipment would be deployed in their data centers. I think those are obviously the largest, but there are dozens of others that are in what used to be a big deal in the ten to fifty million dollar category, and so there's just
an extraordinary demand right now for fast inference. We're the fastest, not by a little bit, but by more than an order of magnitude. You know, we're fifteen times faster than the next nearest competitor. And as AI has become useful, everybody wants it to be fast.
Nobody wants to wait.
On that, you know, twenty one x on you know performance and also like a lot of emphasis on the dollar PA token, right that is the metric that the field cares about.
But that's on paper.
You know, you just talked about the AWS relationship as an engagement. When does the word engagement end and real revenues start to show up for you from those relationships.
Sure, we signed a binding term shoot with AWS as described in RS one, and we're working through the master agreement. I think in dealing with organizations of that size, it takes a little time to dot all the i's and cross the t's, but we are extremely confident that they will be an enormous channel for us and a partner in delivering our technology to large enterprises and medium sized
enterprises around the world. I think they are one of the preferred cloud providers for just about every enterprise on Earth, and so an opportunity to have your solution embedded in their offering as part of their bedrock offering, that's a huge win for us.
We're live on Bloomberg Television and Radio. This is a Bloomberg Tech takeover, and we're speaking to Andrew Feldman, the CEO of Crebrius, whose company just priced the IPO at one hundred and eighty five dollars a share and is indicated right now, I'm looking on the Bloomberg terminal maybe to start trade at three hundred and fifty dollars a share. Andrew, I think you know this about me. Whenever we have a big moment, to have a conversation like this, I
always go to the Bloomberg Tech audience. What do they want to know? And actually the first question is what was your attitude toward retail investors? Why did you not do more for the retail investor in this big moment for your company?
We were more than twenty five x oversubscribed.
There was a lot of hard decisions that needed to be made, and nobody got what they wanted, and you know, we did our best.
It's about all you can do.
When there's twenty five times more demand for your stock at the institutional level and at the retail level, then there are shares to be sold.
So we're really proud of the way we chose to do it.
We thought we did it with integrity, and I think we are very comfortable with the ending allocation.
Full stack, fully vertically integrated. And what I mean by that is you literally build the supercomputer top to tail, right, so in Video will do the tray, not just GPU, but then Dell super Micro will assemble it. Dell's margins low teens, in Video's margins mid seventies, Your margins forty forty one percent. And what I'm trying to help the audience understand is why that strategy of owning everything top to sail is going to pay off in the long run.
And I would say that The other question I get for you is what's the future outlook for margins based on your plans?
Well, I think a couple things.
I think we have obviously opportunities at to improve our cost structure. You know, we did half a billion last year in sales. That means we put two hundred and fifty million in the supply chain. Obviously that's not an efficient spot.
As we grow, we will have.
More leverage in the supply chain and our cost of goods will come down. I think we have an opportunity to.
To increase prices.
I think the demand for for fast inference is overwhelming this minute, and so I think in the in the long run will be really proud of our of our gross margins and where they will sort of wash out as we hit scale.
I've got a question for you from a from a terminal client via i B. Thank you for the question. Everyone's tuned in right now, Andrew. They want they want they want the detail. And so one way that people look at it is that you know, this is custom silicon, but Cerebrius isn't. Isn't a chip per se. It's like wafer level, right. Is there a reason why you can't just sell that versus the whole server?
Yeah, that that's a good question.
For the entire seventy year history of the computer industry, every previous effort had failed to build a chip of the size. So for your for your audience. This chip is the size of a dinner plate, while traditional chips through the size of a postage stamping. And not only had everybody failed until we succeeded, but several tried to copy us and have since.
Failed as well. Part of what we.
Were capable of doing and able to do was that we were able to use not just the chip, but also our expertise in packaging and in system design to solve some of the problems and build a truly compelling solution. Right, you don't just get fifteen or eighteen or twenty times faster than the competition because you built a good chip. That's one of a collection of different things that enable
that sort of performance. You can build a great chip, and the system vendor, the ODM, can nibble away at your performance by not delivering the right amount of power or the right amount of IO. Right, there's a reason why in Nvidia then sought to control the IO the Envy link, because they didn't want others to nibble away at their performance. And so by building the system, we're able to optimize all parts. I mean, you could ask the same thing about Porschow. You know, why don't you
sell just engines, right, Andrew. It turns out that that's a nine to eleven is a beautiful car because of the engine and everything else they put in it.
Andrew, the team's telling me we've got to go, But I got to ask you five point five billion dollars, what do you use the proceeds for? And actually, how flexible can you now be an allocating capacity to new customers. We just have thirty seconds.
Oh, I think we will use it to increase capacity. We are excited to bring many new customers on board. There's tremendous demand for what we're doing. I think we can be aggressive on that front.
Andrew Feldman, Cerebras CEO pricing the IPO one eighty five indicated to open three hundred and fifty dollars a share.
Thank you for your time.
Now coming up, Tom Hale, the Aura CEO, discusses the future of wearables. So you're going to go back to the Spark Summit next. This is Bloomberg Tech. Let's go back to the Spark Summit where our own Caroline Hyde is standing by.
I am the Cancello Sparks Summit right here in Napa Valley, and with wine comes a focus on your health, and many might be looking at their orering today is to see how they're feeling after a day in Napa Valley.
And I'm joined by Tom hale acause, the CEO of Aura, and with so exuberant in the market, whether it be personally about artificial intelligence, I'm interested as to how you're seeing your own product iterate or all about now prediction not just assessing how I might feel on the day or the inputs that I'm getting, but predicting how I might in the future.
Yeah, We've been doing AI for many years, so I think that's most interesting is that the predictions that we make generally are short term. You might be getting sick in a couple of days, is coming in a couple of days, and they're very accurate because they're short term.
But I think where this starts to get really interesting is if you can make predictions over a longer timeframe, you're starting to help people understand how their behaviors can bend the curve on their health outcomes or maybe even ultimately on the cost of healthcare. I think this is really disruptive but also really positive because one of the biggest problems with healthcare is there's just simply not enough care to be provided for everybody, and AI lowers the
cost and provides access and provides medical information. It has to be high quality, it has to be scientifically validated, has to be accurate and good. But that opportunity exists, and so we're pretty excited about, Hey, how AI can transform healthcare and the.
Moment an order RING is deemed in general wellness product, but there could be even further ways in which you move within the medical space that requires FDA approval, particularly for blood pressure for example. How are you thinking about that getting the science on board?
Well, our view is that we want to be as aligned with the FDA as possible. We want to make sure that what we do is in the path of scientific and medical validation that includes the FDA. So we're working closely on multiple submissions. Blood pressure is certainly one of them. We're currently running something called the Blood Pressure Profile Study. That's almost three hundred thousand people who are taking CUUGH measurements and comparing to the predictions that the
RING is making. So we all have a data set that will support the idea that what this does is accurate, validated, clinically relevant until that time, we'll probably operate as a wellness device, which means that we can provide insight, but not something that's like a diagnosis.
Will stop short of that, the.
FDA doesn't have someone at the top right now, Does that affect the way and what you want with you?
Yeah, not really.
I think we're very excited to see how we can work with CDRH, which is the division of the FDA that focused on that. So we're working with the rank and file that people who are focused on medical devices, and we have a great collaboration with them.
You have a great collaboration with Apple, but you're also kind of friend of mees in some way to derise it that way, Well, you've taken some significant talent from them.
Well, I think the interesting thing about how Apple and Aura interact is that turns out that almost two thirds of Aora ringwears have a second wearable, most often a risk wearable, and most often an Apple watch. So we're actually highly complimentary now going to the people, there's great talent. Apple is produced some of the you know, the icons of health and hardware, and I think having some of those people join our team has been an incredible uh
I don't know. We feel very proud of the people who've joined us, and we've got some We've got some great connectivity with Apple as well.
I'm a long.
Time independent software developer on the Apple platform, so we have a lot of people that we, you know, have been working with for years.
Software developers are not cheap in this age of AI. How are you thinking about your talent?
More broadly, so for us, the interesting thing is about a year ago, people were like, wow, I.
Mean hardware is hard.
Why are you doing hardware?
And of course the first rule of software school is you don't do hardware. So I've obviously I missed that that class or lessons school. But it's worked out okay because now what people tell us is they say, we can't believe how resilient you are to the AI disruption to software.
It turns out haftware.
Hardware is very very attractive right now because you can't vibe code atoms right you can't.
Just summon them into existence.
And so interestingly, I think for Aura, steering the way we have and having always been a hardware company with a very strong software backing, it's actually been really advantageous in investors look at us and they say, good, We're so glad that you're not in the software space and that you're a hardware provider.
You've just been luring more investment and you've got a bigger market cap. On the private side, I'm interested is to whether there's any inflationy pressures your investors are worried about. How are you thinking about manufacturing, the stage of supply chain. We think about home moves, we think about China today.
Yeah, I don't think we've really had seen the impact of inflation on demand, which is good. We've certainly seen some inflation impacts on kind of supply chain, but nothing material. And interestingly the last year, of course, there was all this drama about tariffs, and I think as a company we were quite lucky. One we actually announced an intention to have a factory built in the US, and so that's actually one really interesting that it's just underway. You know,
we'll let you know when it's all rolled out. But at the same time, I think we also were able to, because we manufacture around the globe, be very careful to sort of manage the terror issues very effectively.
Somehow could speak to you for much longer. CEO of or a fascinating to catch up. We hand it back to you from the concllo's Spark summit here in napavaliad.
Okay.
More interviews to come out of the Spark Summit throughout the afternoon. Tune in for a conversation with open Ai CFO Sarah Fryer eight thirty pm Eastern, five thirty pm Pacific. Elon Musk is taking Grock to Wall Street. Sources tell Bloomberg the heavyweights like Morgan Stanley and Apollo A testing Xai's grok chatbox as SpaceX now parent of Xai, prepares for an IPO. Bloom Best Carmen and Royer breaks the
story wide open. No surprise that you wake up. It's one of the most read stories on the Bloomberg Terminal and Bloomberg dot Com. There's so much detail in the report about the Xai strategy. The players involved give us as much of that detail as you can.
Sure, thanks for having me.
Yet.
Basically, Xai is trying to boost their corporate client roster ahead of the IPO, and John Schalkin, who's been the chief revenue officer the company has been really driving this strategy. In order to do that, they've mainly gone to Wall Street clients that have previously worked with MASK companies before. Among them is Apollo, which helped finance XAIS access to chips.
It's Morgan Stanley, which is one of the go to banks that has worked with MUSK for years, and it's also Valor Equity, which is a venture capital firm that has backed MASK companies for a long time. They're testing Rock and they're using it alongside other AI models. But this is happening while like you know, on Thropic and Open AI are really trying to fight the same piece of the pie, so the adoption is going very slowly.
No, So one real quick interesting thing is that actually in your reporting they're not using it necessarily for work, is that right?
Like on desk work in those firms.
They're trying to adopt it and use it along other AI models, but the chadbod has been falling behind on coding and a financial implementation, which is why XAI is trying to like really ramp that effort up, and they've been trying to move more stuff internally to work on training Rock for financial modeling and like boosting also like the sales team, So they're trying to really prepare the chadbot for that use case, but it's not really being ready for.
Idiot also reporting that John Shulking stepping back as chief revenue Officer of course a partner at Valor Now and advisor recommon story Bloomers coming.
To Royal Thank you very much.
All right, coming up on the program, Alphabet is taking the AI race the global bomb market. I'm going to discuss that next. This is Bloomberg Tech Time now for Talking Tech and first STARp. Hon High, also known as fox Conn, reported a nineteen percent jump in quarterly profit, says the US will gradually become the company's largest AI server production hub. The company has become a key AI hardware player by assembling servers that house Nvidia accelerators. Plus,
China's tech leaders are facing a reality check. Ali Barba narrowly missed revenue targets this morning as e commerce war was blunted its cloud search, while ten Cent reported its slowest growth in over a year, and ad Tech is eyeing a potential four billion dollar debut in Hong Kong. The optical connectivity specialist is reportedly seeking to raise at least five hundred million dollars or more at evaluation of three to four billion dollars.
According to sources, Big story.
On the terminal Alphabet is taking the AI race to the global bomb market. After a blockbuster seventeen billion million dollars sale at home, the Google parents now tapping the Japanese yen market for the first time. Bloomberg's Tasos Vossas joins us to explain Big Text move into what is international debt? Right, So that's the evolution here, looking at international markets outside of its home.
Why well, at that point, you have to if you look at issuans. This year, for example, non financial corporates in the US, which is the deepest, biggest credit market in the world, forty cent out of every dollar was raised came from the tech sector, which is which is rather large. So you have to think in order to avoid saturating even the biggest market in the world, you actually have to look at every corner out there. So hyperscalers in particular Alphabet, but also Amazon have taken steps
to diversify that. So they they've tapped every every big market they can imagine. So it's been Euros, pound, Sterling, it's been Swiss Franks, and now we're looking at the yen market, so it's pretty much a global race in order to finance this massive cap expending the way we're going to see in the next few years.
Right, and then in the eurobond market, we're talking about the second biggest credit market. Why is it different this time around TuS US? Like we've done a lot of breaking news on this show in corporate bonds, is there something new here?
There is actually, and we've had mega deals in the past where you have tens of billions of dollars being issued in a single day. The problem with well, the difference with that is that that was a one off. Usually it's on the back of M and A. You have to raise massive amounts of cash or to do that. But once you've done that, then you can just absorb
the company we've just bought. The difference here is that because cap expending is going to be so large in the next few years, hundreds of billions of dollars, you have massive deal after massive deal, which is a conundrum that investors are facing. They want to be involved in them. The main issue is that in other massive deals is just around the corner. So the previous one is going to weekend in the back of that, so that that trend of big deal after big deal is something that
we haven't seen before. Pretty much in there sure as a gread market. Bloomberg's taslos fossos, Thank you very much. Let's get back to Cisco before we leave today. Today's big number nine billion dollars. That's how much the company expects to get in orders from hyperscalers in calendar twenty six, up from previous five billion dollar target. Suggest this company's AI shift is showing a payoff, right Cisco, welcome to
the AI party. That's part of the story, and the shares really reflecting that we're up fifteen percent, on track for the best day for Cisco since twenty eleven. At the open, seventeen percent gain put them on track for their best day since two thousand and two. Networking routers, switches,
cables make those components the story again. Wonderful, That does it for this edition of Bloomberg Tech, Standing by for Cerebres to start trading, priced at one eighty five for its IPO indicated to open three hundred and fifty dollars per share. Check out the podcast, A stunning show to recap Apple, Spotify, iHeart and
On Bloomberg, this is Bloomberg Tech