Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive from coast to coast with Caroline Hide in New York and Ever though in Sent Francisco.
This is Bloomberg Tech coming up. Colweedlands another twenty one billion dollar Meta deal in an AI computing push.
This compute needed.
As Meta debuts it's first closed AI model from the new superintelligence group called new Spark. We'll discuss how it used China's Queen model to train it.
And all eyes on Anthropic as it closes an inside a share sale that leaves some investors without the stakes they wanted.
Meanwhile, we look at what the market is up to today because once again pessimism risker version concerns that there's a moving away of backtracking by the US and Iran about any sort of peace talk or enter this conflict. We're currently up down six tens percent, though on in particular moves on certain stocks. So as we move out from the macro and into the micro, we.
Talk about Core.
Weave another huge deal with Meta twenty one billion dollars worth. It's going to be issuing its own debt. On the back of that, we're going to dig into that is why we sink perhaps a.
Little bit on this stop.
But Meta up three percent and ED this is notable on the back of a move, and not only to be getting more compute, but why it's using that compute then.
Yeah, two days, two different stories. Meta unveiled a new AI model, the companies first since that multi billion dollar overhaul of the AI lab, and in reaction to that news in yesterday's session, the stock jumping six percent. Today, the core Weave news also a catalyst to push the stock higher, up ten percent on a three day basis. That's bring in Bloembos Riley Griffin, who leads the coverage of Meta. Very simple. You know they need neo clouds,
they need core Weave for the compute. Give us the basics of this deal.
Yeah, I mean this brings Corewave to thirty five billion in total contracts from Meta. This is a amount and it really tells us something that we've been talking about, ED, which is that Zuckerberg really wants to front load capacity. He thinks there's insatiable appetite for compute, and these deals just don't stop. It's almost every other week now that we're coming here talking about compute for Meta.
And it's every end of the day that we talk about a new and updated model. So dig into the model and the meuse spark and why this is so significant for the beefed out super intelligence labs.
This is an incredibly important development. If you look at the market reaction and listen to analysts, they're saying Meta is.
Back in the game. This comes after last year.
Early last year, Meta facing setbacks with their Lama models.
These are open.
Source models that just weren't performing at the frontier edge, at the bleeding edge with its competitors, from OpenAI, from Anthropic, from Google's Gemini. With the model that was released yesterday, it's a closed model. That's a big departure in Meta strategy. That means that developers can't get access to that back end code, that blueprint. And really they're talking about monetization here.
And Alex Wang, who leads this unit, he actually instagrammed last night a post that put Meta at number four. They clearly don't think they are number one yet, but back in the game.
I mean the stock reaction one point yesterday in the session, the stock's up almost ten percent, like it was pretty big. How the market reacted to the release. Very interesting. New Spark was trained using several third party open source models, but that included Quen from Ali Barber, Chinese technology company. Why is that significant and what we need to know about that.
Well, tension has emerged between the US and China in this global AI race.
We're seeing several.
Big tech leaders come out and suggest that we need to protect our national security in our leading edge. Also, you are seeing them take efforts to ensure that Chinese companies aren't training on their models. This is a a different approach, right, This is learning from a Chinese model that is saying that it is taking efforts to ensure security. But the fact alone that they turned to Quin in part to train their model, among others, is rather telling.
It's interesting after their purchase of Manners as well. Fascinating Riley Griffin with all the news on the compute as well as why they're getting the compute, Let's go back to the compute side.
Call.
We've Meta latest deal.
And additional twenty one billion dollar agreement that we'll see Corewy's supply computing power to Meta through twenty thirty two. That's why and Robert Schiffman and blombag Intelligence to discuss the financing of the deal because interesting core, We've also plans to offer what three billion convertible senior notes due twenty thirty two, one point twenty five billion, also in credit, and maybe that's why the stock's down a bit because of the convertible note.
It's not twenty one billion dollars worth. How is this all being financed?
Yeah, well, listen to me. This is yet another wildly bullish statement from the bondholder community, is that we are willing to waive in bonds because we believe in the AI growth or we've has a lot more to finance over time. But they're being very creative. Today they're doing a convertible deal. They're also doing a bond deal. Last week they did a Urnalan backed by Metas cash flows at investment grade ratings. So there's lots of different options
that they have over time. But what we're seeing deal after deal after deal, when bondholders get offered bonds at wider levels, they're going to wave them in and we're seeing them perform.
Robert, we're showing your research. You know, you publish very quickly when the news headlines hit, and you give the credit perspective and that line in the middle there Meta and call we'd likely to continue to tap debt markets. Why do they need to keep doing that? You kind of hinted it there, but their commitments are very large and they're still kind of finding the capital to meet those commitments.
Yeah.
Well that's what we do at BI We give opinions, and we give them right away. I think if you look, it's very simple, go on to the terminal check FA look at consensus free cash flow for these names. You know they're massively negative. And when the massively negative, you need to borrow money. I think Meta could be lined up to do an Amazon Google like fifty billion dollar deal across dollars in euros within the next couple of months, maybe even tomorrow if the if the borrow and window
stays open. So exactly what's going on is you're seeing a tremendous amount of frontloading of capex. So spending is happening now and cash flowers are going to follow later. So in the meantime you'll fill it in with bonds, and again there is a market for that.
Karen made really good point, like why would the stock be down on good news? There's convertible like in pre market when the newsity went aoush. But then there's some dilution there and the credit perspective from Robert Schiffman of BI Thank you very much. There's another big story out this morning, and another pair of stocks are watching Intel and Google. Google said it plans to use future generations of Intel Xeon processes and other chips part of a
new multi year agreement. As part of that deal, Google will work with Intel to customize its IPUs infrastructure processing units that handle things like networking, security, and storage. The companies didn't share financial terms or specific purchase agreements. Another big story, let's pivot to investor demand free sources telling Bloomberg that Entropic has completed a secondary share sale that started earlier this year. Employees sold shares at the same
value as the company's most recent fundraising. Let's get more. Bloomberg's Bench Capital reporter Rebecca tonces with us, what was that valuation? Just to tie that up, But also like the story here is that some employees chose not to sell, and so you have investors that want the stock on the secondary's market, but they didn't get what they wanted.
Anthropics growth this year has been remarkable ed and so understandably, you have some employees that were seeing the valuation that got done at this most previous round, which is three hundred and fifty billion before the new money, and saying, okay, that doesn't look quite high enough for what the growth of this company has looked like. Anthropic just announced earlier this week has exceeded a thirty billion dollar revenue run rate.
And so you know, investors head lined up about six billion dollars for the share sale, but it came in significantly undersubscribed, with employees you know, not trying to unload just yet.
And it is the talk of the town.
I'm lucky enough to have you, Rebecca, usually in New York for you're on the West coast, because there's.
A big event happening in human X, and.
All anyone wants to talk about is the growth of Anthropic, it would seem. And indeed that run rate, no wonder, employees are pretty bullish. Everyone else seems to be.
It's remarkable.
Honestly, nearly every single conversation I've had at this conference has included an unprompted mention of Anthropic. It's become the benchmark for a lot of investors and startups to measure themselves against and for investors to evaluate startups against, both in terms of the growth that it's seen, but also where can startups fit into the market that Anthropic is
unlikely to touch. As of Nowanthropic has really dominated in the AI coding space, but there's you know, projections that it may look to expand into financial services and other areas. And especially with the release of a new AI model over this week, which had said it was too powerful to be released to the broader public, it's got some founders shaking in their boots a bit.
Rebecca, real quick, what's human X been like?
Like?
We have Nico Rosberg on the show later, former F one world champion now bench capitalist and investor. The footfall to me when I was on stage, like a lot of people there lots.
Of people there. There were I want to say, about seven thousand people or so on the ground, full conference hall and just AI all the time, founders running around trying to pull you into their booth. Tons of interesting conversations happening left and right.
We'll let you continue to have them left and right. Rebecca Torrens, thanks so much for joining us. It's a great write up. What's happening on the West coast right now with her coming up. Well, we've got a market conversation with JP Morgan's Stephanie Aliaga. We've got to go back to what's happening in geopolitics and have that fact the world of tech is blue bag tech. Let's check in on these markets because well, risk euphoria of yesterday dialing back somewhere off by two tex percent on the
NASA that one hundred. It's not big moves in the stock market, but it's bigger moods in the bond market. It's bigger moods in the oil market. Brink Fude ninety nine dollars. Look, we're retracing some of that set off yesterday. We're up some five percent. Y well, because we're once again seeing both sides when we think of US and Iran accusing each other of violating the truth announced after almost six weeks of fighting.
We want to get you up to speed with.
That being leg Washington correspondent Tyler Kendall has the latest, and we're back on thin ice.
Yeah, hey, Caroline, Well, at this point, this White House maintains that diplomatic efforts are indeed continuing confirming that the US and Iran will hold direct talks this weekend led by Vice President Jade Vance, and reporting from the region does indicate to that Iran's attacks against golf energy sites have ease. Still, at this point, the ceasefire is considered to be very tenuous, and that is in part because Iran is mandating that a tax stop in Lebanon in
order for this two week truce to take place. But still, the US maintains that Israel's separate front against the Iranian back militant group Hezblah was never part of a ceasefire, and President Trump is downplaying the potential that this could be a major roadblock to the discussions, as Israel actually a few hours ago issued a new wave of evacuation warnings in Lebanon, signaling the potential that we could still
see some more strikes there. President Trump, in a post overnight, did say that the US military remains ready to resume operations if needed, and he highlighted the importance of reopening the Strait of Removes because I'm sure, as you saw, Iranian state media is now reporting that any vessel that wants to transit through the Strait has to liaise with
the Iranian military. Plus we also heard that they have now opened up these designated passages in a bid to make sure that vessels do not hit any potential minds that may be in the strait. Ed and Caroline, we heard earlier today from the head of the UAE's biggest oil producer who said, quote conditional passage does not constitute real passage.
Tyler Kendall with all the latest when it comes to geopolitics, we so appreciate it.
Look, let's let's get to how that affects you in the market.
Stephanie Aniagus with us Well market strategists for shaping Walgan Asset Management been tracking the intersection really of geopolitics, of earnings and fundamentals of AI driven market. Right now, let's just focus on the Iran.
And the tensions.
How much is that seeping into the general optimism around CAPAXAI and continuing to be in tech.
Yeah, markets are trying.
To use the ceasefire as a de facto end to the war, and clearly we're not in the full like coast is clear just yet. But we do think when we think about the balance of race out here, it is far more likely that this conflict winds down in the matter of days or a couple of weeks than the alternative scenario of this extending into the summer. And when things extend into the summer, that is where the macro picture really begins to dim and that flows through
to markets and earnings. However, the scenario that we think we're in right now, it is one that is a pretty constructive setup for equities from here. I mean, valuations have contracted meaningfully.
We mentioned tech.
In the tech sector, valuations today are cheaper than consumer staples. There's been a pretty meaningful decline there, and if you look at even valuations for some of the individual names, they're tracking below where they.
Were before this AI boom even got started.
So investors today are paying a cheaper price for robust earnings, and we've seen earnings expectations actually climb throughout this war, not because of the geopolitical headwinds, but because of the continued strength and this AI narrative. We remain in a deeply compute constrained environment, and many of those dynamics are favorable for some companies to cross this AI value chain.
You look at tech right in terms of forward earnings and there's being compression. But like other people on the program in the last maybe seven days or so said, look at the biggest names in the sector, maybe on a waiting basis in next level, and they're back to where they were before the war even started. So the question that puts to you is the same I've done to all the other byside and strategist names we've had,
is has this fundamentally altered the outlook for capex? Which I think was Karry's question, Has it out altered the growth outlook for the world's biggest technology names.
No, because we think that that growth outlook is inextricably linked to demand and what we've learned. And you even can look at revenue expectations and realize revenue from the model abs as a signal of that demand, and that demand continues to beat expectations. Every single hyperscaler this past earning season said if we had more capacity on board today, revenues would be higher. All of this is continuing to
funnel investment into AI capex. Where I think this geopolitical situation is relevant and potentially a headwind is around the cost of that capex. The economies that are most dependent on oil from this region. Taiwan Korea are also some of the most important bottlenecks and suppliers when it comes to AI hardware, and if they continue to face elevated prices for significantly longer, they're going to pass along those prices to US buyers, which are start tech companies.
Just really quick, because I think we want to get to what's happening in credit as well. But chips have massively outperformed here today the socks is up more than twenty percent, the rest of the indices down single digits.
Why markets are increasingly looking at this AI wave as a bit zero sum and where caution has been concentrated in the hyperscalers because of or turn on investment and rising costs. Where we just continue to see constructive evidence is around the need for AI infrastructure. This is going to be the year that inference demand outpaces demand from training and it's a pivot, but one that is expected
to continue to compound. All of that points to a continued need for chips, and it's not just your GPUs but also memory CPUs and a much broader custom silicon, a much broader array of those chips that are needed for AI zero.
Something is interesting because well software continues to sell off when we're seeing anxiety around Carlisle's private credit fund today and redemptions being there, but elsewhere in credit and elsewhere in loans, for example, the fuel.
M and A we're actually looking like we're getting.
Towards an end game when it comes to paramount and they're being able to syndicate out some of that debt efficiently. How are you thinking about the mommarkets remaining open in this moment.
We still think there's a lot of appetite from bond markets to finance this AI boom. I mean, this is such a different business model than what you typically see in credits in credit. It's one that is potentially recipient to significant demand and one where the fundamental so far
is still look quite solid. When I think about the worries around private credit more broadly, Obviously they have catered significantly towards software, and there is just this inherent unknown of what the future of software is going to look like around A. But we think that a lot of that caution is already reflected in valuations for these publicly traded BDCs, and instead we do see room for software to reinvent itself too, and we just haven't seen this
play out just yet, which is why what we're seeing in the market right now is actually a reflection of that sentiment, of that caution, but not a real deterioration and the fundamentals that's going to be a story for the next few years.
Stephanie Aliaga of JP Morgan, thank you very much. Like coming up, Inflection CEO Matt Kinsella, join us. Tell us about the quantum economy. It's out of this world. That's next. This is Bloomberg Tech.
From the front lines of the Iran conflict to the International Space Station. A new kind of arms race is heating up, and it isn't about traditional ballistics.
It's about quantum.
The ability to navigate without sacllite is no longer science fiction is a national security mandate. And Matt can sell a CEO of Inflection, the company deploy quantum clocks to navigate without GPS on Earth, joins us now because in a few days it was meant to be today weather has denied you. You're going to send up some of your technology to the International Space Station because we're updating quantum research in space.
Why what is it giving people.
Well, first of all, thank you so much for having me, Caroline, and let me tell you a little bit about Inflection, just because that'll help inform the answer. So Inflection is a quantum technologies company, and we create a suite of products all based on these quantum cores, and inside these quantum cores live millions of atoms, and we turn those atoms into all sorts of products, ranging from clocks to sensors like the one we're sending up into space, to computers.
And the reason that matters is because they can do things that classical technologies can't do nor will ever be able to do. And so what we're doing is, in the case of sending this product up into space, is to replace some technology we put into space back in twenty eighteen.
Called the Cold Atom Lab.
And what that is doing is doing experimentation on quantum because you can actually experiment on quantum better in microgravity in space, and it's approving ground for being able to sense what's happening on the world's surface or under the surface with extreme precision, or sense what's happening around to other spacecraft in space. And the level of precision that we can bring with quantum is orders of magnitude bigger than what you can do with classical technologies.
ISS NICE. It's role is changing.
It is so so where next there's a proving ground for the tech's approving ground for where you put that tech.
Correct.
So in twenty eighteen, actually Christina Cook, the astronaut who's currently on Artemis two, installed our tech on the ISS and they've been working to make sure this technology works on the International Space Station, so a human in the loop. Next stop is to put what we call our quantum gravity gradiometer into a satellite, which we're working with NASA to do, and so we're taking it from research in
space to an application in space. And what that quantum gravity gradiometer will do as it circles the Earth's orbit from a satellite is sense changes in gravity on the Earth's surface with extreme precision. And you can infer all sorts of interesting things by the way gravity changes. So you can infer the depletion of aquifers underneath the Earth's surface, you can see what kind of things are being built underneath the Earth's surface, sorts of very interesting use cases.
Hey, Matt, go ahead and hold that up again, because Bloomberg Tech Executive producer Jackie Lopez wants to see it. I think it's really important to let's go back to space this this is not about putting the quantum computer into space. It's about putting the sensor into space. Go back to basics for our audience to explain that for the data inputs. Absolutely so.
There are two broad technologies that quantum can create. One is called a quantum sensor and the other is called a quantum computer. Quantum computers are not yet useful. They will be very useful in the not two distant future, but quantum sensors are very useful today. And so what we do, it's the same underlying technology, the same componentry inside, but we can turn those atoms into extremely precise sensors to sense what's happening on the Earth's surface and the
world around you. So in the case of what we're sending up into space, it's indeed a quantum sensor.
Ed Matt real Quick, who's the launch provider who puts you to orbit?
So we're on a SpaceX vehicle and then the spacecraft itself is made by Northwork Crummen and real.
Quick, what's that like that experience is a customer the door on being opened to be able to get into orbit. It's incredible.
I mean, we wouldn't be able to get this technology up unless that you know, the work that SpaceX and other folks are doing to make launches less expensive, and so our partners at nasav and have been wonderful and getting that all set up for us.
Can I jump in and just aus very briefly from quantum clocks to what because everyone's like, when is there going to be a really useful quantum computer?
IBM saying twenty twenty nine, is that your business model?
So the business model is you know, you might say, what the heck does a clock have to do with a computer? They seem very different. Well, in quantum they really aren't. Because what we're doing is we're taking advantage of the quantum mechanical principles of atoms and then using those quantum mechanical principles and in with slight tweaks to what we're doing with lasers, can turn it into a clock or in more call it precise use cases, turn it into a compute. And so the clock is in
many ways a mini version of the computer. Your question one will computers be useful. The timelines keep coming in and coming in in the announcement that Google made on QDA being here earlier and earlier, and QDA is the day that we can break modern encryption with a quantum computer getting pulled into twenty twenty nine. Our view is that quantum computers will start to be useful in the year twenty twenty eight, right, and that is at that
we'll get into what cubits are. But when you can get to one hundred logical cubits, you can do interesting things with quantum computers.
Oh, we know cubits. Matt Canseller, CEO of Inflection, it's great to have you on Bloomberg Tech. Thank you very much. That coming onlan a conversation with Niko Rosberg, Rosberg Ventures CEO. As he said, builders are gaining more control because of AI and with AI also of course former Formula one World champion. I'm really looking forward to this one. That's next halftime. This is Bloomberg Tech. Welcome back to Bloomberg Tech.
This is what equity markets look right now, and it's a simple story where investors in the technology sector are trying to gauge this ceasefire situation with the war in Iran. Now's that one hundred is flat after a rally yesterday,
Still there outperformance in chip stocks. A big story overnight was Amazon CEO Andy Jase putting out his annual shareholder letter very simply defending capital expenditures at two hundred billion dollars for this year, but also talking about the chip business Trainium two in particular twenty billion dollar run rate and Amazon's now ready to sell those chips out to
third parties more. The stocks up almost four percent. There's a lot of pressure as well in software stocks, and like look at the worst performers, Palenteer, Workday, z Scaler. Those are big, high single digit declines. And as I'm reading the cell side notes, Caro, it's a pretty simple story as well, like that fear of AI disruption or AI rendering legacy software obsolete is impacting. In Palenti's case. That's kind of odd though, because like that is what their pitch is. AI's made them a.
Lot better, and of course they're related to with the geopolitical environment as well. But edit's so interesting. Sephanie Aliaga just talking about the zero sum narrative. Let's talk about, well, the upside the AI infrastructure trade because it's getting a twenty one billion dollar shot in the arm. Meta core Weave have inked a massive new deal to supply a cloud capacity through twenty thirty two. Meanwhile, in video, of course, chips for everyone nearing a critical technical breakout and more
than ten percent in the past six sessions. Let's bring in Blue Meg's Ryan for Stellica, And it's so interesting because a lot of the deal with core Weave and Meta is around Rubin architecture. So that's another good narrative for in video more broadly, Ryan, But talk us first about core Weave. It's down because it's related to well debt that might turn into equity, but it's another sign that AI infrastructure is strong.
Yeah, absolutely, thanks for having me.
I would say that the major thing I've heard from people is that this really reinforces that despite concerns about AI spending potentially slowing down at some point, there's no signs of that right now. AI spending remains extremely robust, and you have these major companies like Meta, like Amazon continue to hold very fast to their ambitious spending plants, which is probably going to be a real positive for these infrastructure providers over the longer term.
You're out with a really important piece focus on the technicals around Video. And we're at a moment now where if you look at the trading in this stock, you might see a breakout from what has been a pretty narrow trading range. What's the data telling you, Yeah.
So for about the past nine months or so in Video shares have really done basically nothing. They're almost flat over that period, despite some very strong earnings reports, despite like we were talking about before, still very strong indications about AI spinning going forward. But if you're looking at it purely from a technical level, we had a little bit of a scare last week or so when it dipped below some recent lows, which was perhaps an indication
that the stock might be breaking down lower. But since then we've seen a pretty aggressive move higher and we're getting to a level I think it's one eighty five on the stock price where people are saying, if it holds this level, that really indicates if people are moving back into the stock, and that could be an endection that we could be poised to see a breakout higher, potentially back towards a two hundred level, back maybe even towards all time highs.
The most rhym lastellca, thank you very much. That was kind of what's going on in public markets. I want to get back to private markets venture capital. It's the last day of the human X conference, where business venture startup leaders have been gathering to discuss achieving real world
results from AI. One of the feature conversations included Rosvo Venture's CEO and former F one world champion Nico Rosberg alongside lovable CEO Antono Seka, with a focus on how AI is shifting more control into the hands of builders. Delighted to say that Nico joins us now here in San Francisco. Welcome to Bloomberg Tech. I mean you and I were reflecting off camera, like what it's been like in San Francisco for the last few days. Let's start
with the conversation you had on stage. What was it that you kind of wanted to get across and what was it that you heard in response?
Well, first of all, the speed of innovation here at the moment feels like it's even faster than driving a Formula one cards. Pretty incredible, pretty scary at times, even because especially, I mean it's anthropic, who's leading the charge at the moment and disrupting one vertical after another. So yeah, I mean it's impressive. And nevertheless, I think the value creation is going to be insane. So you cannot sit on the sidelines. You need to get involved, you need
to invest, be part of it. But yeah, I mean interesting times.
You have a portfolio that has around thirty five direct investments into all kinds of startups. Just on the Anthropic piece. Real quick on stage, I was with Mike Krieger and Thropic he leads the Labs team now, but was CPO and Rebecca Torrents, our colleague, wrote that that's the talk of human X. What Anthropic is doing mythos came out. What was your sort of interpretation of that.
I was with a startup last night and they said to me, WHOA, We've just reduced our spend on all observability tools because now we have our age build agents with Claude code who do the observability in an automated way for us. Right, So that was another example of
another space that Anthropic broke into just recently. That's kind of in the last days, you know, these things have been happening and it's very difficult to predict how far this is going to go, you know, and how much of the value anthropic and the other frontier models are going.
To capture with time.
Nico, you do things differently, and I'm interested as to what your philosophy is. You're someone who's bringing sort of the expertise and the European perspective here over into the West Coast. But also you have a fund of funds, you also have direct investing. How are you thinking about building out your exposure to the private side right now?
Very very important is always you have to diversify, you know, That's that's essential, not only diversify across sectors, but also across time.
So you do have to plan to deploy capital across.
Time into the private markets, and that's what we're what we're trying to do because this is not going to be a straight upward trajectory here. It's going to be a very very bumpy ride. That's almost guaranteed. With the
pace of this innovation. The leaders are constantly changing as well, every three months as a different leader, So I think it's yeah, it's very very important to diversify, but it's so important, especially to be involved in venture capital at the moment, because so much more of the value creation happens before going public in private markets and especially venture capital is perhaps the only way to get exposure, you know, to the likes of these frontier models and all the
other things that are that are happening now. So it's a very very exciting time and I think huge potential for this asset class in the next years, And already the last two years have been incredible.
I mean, nic keep dropping in the odd little idea around formula one and using that as some sort of descriptive factor. What's also descriptive maybe is that, like in Formula one, we have a lot of real leaders of the pack when it comes to VC. You have companies like Klein Perkins or like Thrive, like a sixteen Z with enormous new fundraisers, and then you have everyone else who's worried about liquidity, worried about being able to get money into.
The LP's hands.
How are you distinguishing between those funds to be able to allocate your fund into your fund of funds.
Yeah, at the moment, it definitely looks like the winning strategies is to back those multi stage, large incumbent funds because they're capturing more and more of the value creation in this asset class. They are becoming bigger backing more of the winning founders. So it's really the power law is like exaggerating even more, it seems at the moment, and the performance is being concentrated more into these top
funds out there, like even top ten, top twelve. That's really where you needed to be in the last couple of years. So we're pretty pleased with the strategy that we've been that we've been going after.
I took a little bit about the technology in F one, if we can your former F one World champion in twenty sixteen, when you're retired, the powertrain already had an element of being hybrid, but the new regulations this year is smaller, lighter cars, active aero fifty fifty system, and everyone talks about that, the drivers, the principles, and then the fans, your your interpretation, your opinion you read on these new rags.
Of course, if one is pursuing the technology that is most relevant to society, yes, so these engines are probably this power unit is probably one of the most efficient there is in the world. Fifty fifty PC battery power. That's of course a lot and also, as you know, the fuels are COEO two neutral biofuels, synthetic fuels, a mixture of that, so it's it's a COEO two neutral fuel.
But of course there's a lot of criticism at the moment as well because you can see, like at the last race they go down the straight through a flat out bend and have to downshift after the bend whilst is still in the straight because their battery power switches off and they have time to get on. So of course, so of course that like from a spectator point of view, is a bit like that's a bit awkward when you're supposed to be going flat out with the highest performing
Formula One car. What Nevertheless, I'm a bit more easy going on that because from my point of view, it's as long as there's great battles intra team, the other teams into the battle. You know, hopefully Ferrari can use this gap now to close up to Mercedes. McLaren was there already now in the last race. So if we get like a really cool battle there, then I think all the fans won't mind, you know, where the technology is and we'll just love and appreciate the racing and
the battles, and what an amazing story we have. Nineteen year old Kimi Antonelli, the ultimate underdog, is leading this World championship three races in, you know, so that's wonderful. He has so many fans, even yesterday at the conference here in San Francisco at Human X, loads of Mercedes and Kimi Antonelli fans as I was as I was walking up on stage.
So it's nice to see innovation storytelling sprinkling Hollywood.
We appreciate it.
Niko Rosberg of Rosberg Benure is great to have you on the show. Coming up, Medicare Navigation Platform Chapter close.
There's one hundred million dollars in funding.
We're gonna be talking to the CEO and one of its key investors, Oscar Uny.
That's next. As Bluebotech Markets.
Reacting to the latest headline regarding geopolitics, Israel says that it agrees to direct talks with Lebanon. In fact, the leader of Canada will support bring Hesbela under control as well. We understand this is as Israel had been warning once again to Lebanese residents.
Just a few hours after.
Ranium president stress the continued attacks in the country threaten upcoming ceasefire talks.
The market.
We've been worried about this, but now we understand that Israel says it will agree to direct talks with Lebanon. Therefore, maybe we get some support that Benjamin Netanya, who will indeed perhaps scale back those strikes, and market's rallied.
Okay, we're going to go from those public markets to the private markets again. We have some funding. News Chapter an AI platform for the navigating the notoriously complex processes of the US Medicare system, as a one hundred million
dollar series E round. Chapter's CEO, Kobe Bloomful Gantz is with us along with one of the investors, Ross Uvini, managing partner at XYZ Bench Capital, known for writing early checks to companies like Anderill, for example, but also like those types of companies that are closely linked to the government and government apparatus of this nation, and Medicare is something that if you look over the course of decade, it's trillions of dollars. You are trying to change how
the system works and access that capital. What are you going to do with the one hundred million you raised? Thanks for having me.
We are really focused on continuing to build the best products we can for seniors, for American retirees because it is the most underserved population in the US. So we're investing in a lot of AI technology. We're investing in new products to help people navigate Medicare and their healthcare rit large, and we're really excited about it.
Let's do the basics. What is Chapter? What is Chatter do?
I started the company a few years ago after seeing my parents struggle with the Medicare process. They received terrible guidance working with a local Medicare broker, and as I sort of peeled back the into how the ecosystem works, I was just appalled at how bad the incentives are, how bad the technology is.
So we do it.
Chapter is we are the only unbiased AI driven Medicare guidance platform. So when you need help signing up for Medicare, which every American senior needs, you call Chapter and we help you enroll in the right plan for you. We save people thousands of dollars a year when they enroll in Medicare, and we help them navigate the entire ecosystem throughout their Medicare journey.
One hundred million dollars Series E.
And whilst I want to go to you here because you have come on and again you're an existing institutional investor, our Goals Generation Investment Management has joined this particular round ross. What has made you so committed to Chapter Why this particular way of navigating healthcare?
Well, it's really two things.
One, as Kobe mentioned, everybody over sixty five in America is going to get Medicare, So everyone in the US is eventually going to be a Chapter a customer in that scale of business, like that opportunity, like that to the adventure scale business, and you want to be part of companies that are building at that level.
Talk to that thesis though, why is every single American going to be using Medicare?
Everyone over sixty five in the country is going to enroll in Medicare services because it is the best way to get healthcare for the agent population in the US and not just a point of fact. Chapter enables enables my mom my dad to make the best choice of where they should get their Medicare services. Further, Chapter has done a tremendous job in the last few years of growth.
We grow over three x last year.
One hundred million in revenue, and the reason that we keep pushing more money and more excitement into chapters because we see that growth continuing three and four x in subsequent years. And that's really just the tip of the iceberg of building out a solution for the entire US population.
One hundred million in revenue. You know that's no small feet. You know there were headlines overnight Perplexities just hit five hundred million ARR. But look at the coverage that they get. What's your core competence? What is it that you and the team are really good at. It's a great question.
I'm really proud of the team we have assembled. We've assembled some of the best technologists around. I think generally we focus on people who are really mission driven and who are exceptional at working with AI. So what we're really good at doing is structuring data, realigning incentives, and
then operationalizing that in a really efficient way. Our entire company, our corporate headcount is about thirty people, and we've been able to grow at that scale with this headcount because of that ross.
I've always found the PXYZ model really interesting. I'm maybe oversimplifying, but you write checks to companies that are going after the public sector in many ways, it's different to going after some startups that like may never need to have revenue, and you know, we can get into that a later date, But why does that present a real turn opportunity as an investor to go after a startup whose dollars come from one arm of government or another.
Yeah, And so our focus are XYZ has been largely on building and supporting companies that are selling to the government because it is the largest spender in the entire world. So areas of defense spending is one of the largest spends in the entire world, and that's where we backed companies like Andrel. Areas of healthcare spend and medicare are
one of the largest spends in the entire world. And so that's why we backed companies like Chapter And when those companies are winning, when they're capturing hundreds of millions and then billions of dollars, we dollar concentrate into those businesses.
And we get the right to do that because we've.
Been there since the beginning. And so that's our economic approach. Find those exceptional people in those businesses.
Kobe, You're making it easier for people to try and navigate a very complex system. But the narrative we hear time and time again on the show at the moment is abundance of AI being able to bring healthcare to all and make you know what is your vision for healthcare in the US looks like in five to ten years time.
I want every American who's navigating Medicare and navigating healthcare at large to a understand what they are buying, what is their health coverage, and to be able to access their healthcare in the simplest way. There's no reason people should have to read hundreds of pages of documents and go through tons of emails and faxes and phone calls
just to understand what they've already signed up for. And so really we're trying to create a more equitable healthcare system, a more efficient healthcare system, and one that drives down the costs to the system and creates much better care and coverage for every American.
Kobe Blumenfeld Gantz, CEO of Chapter Great to have you with us, and Ross Fabini, managing partner at XYZ and long term investor, thank you coming up open AI as pausing Stargate project in the.
UK as it reigns in some of its ambitious spending. We'll have the details next. This is BlueBag Tech time now for Talking Tech and first Up.
Samsung is planning a four billion dollar outlay in to build a chip packaging plant in Vietnam, continuing to expand its country's largest foreign investor.
Now.
The investment will be implemented in several phases, with the first consisting of a two billion dollar outlay, according to sources, and the company has invested in fact more than twenty three billion in Vietnam, creating ninety thousand jobs. Because Amazon CEO and Jasse is doubling down on customs Silicon, revealing the AWSS chip business now has an revenue run rate exceeding twenty billion dollars, growing triple digit percentages year on year.
An Amazon's annuel shareholder letter, Jase noted that the division sold its chips externally by in video or IMD and that figure, if it happened, would likely hit fifty billion dollars. And Open Ai said it is pausing its Stargate AI infrastructure project in the UK, citing regulation and the cost of energy.
Now, the company said they will continue to explore Stargate.
UK and we've forward when the right conditions enable the long term infrastructure investment.
Ed.
Okay, let's stick with this story and bringing Bloomberg Tech editor showing a ghost out of London, and you know, what's the reporting here, Like, let's get into the reasons why they're doing the pause, and I guess also a sense of the scale that Stargate had hoped to achieve in the UK.
Yeah.
I mean, firstly, it's a little hard to say exactly why. The reasons given by open ai was the high cost of energy in the UK, which is true. It's one of the most expensive companies for energy costs in Europe. So that's certainly one reason that may be causing delays to the plans. And the other reason, you know, without much further definition, was regulation that might be around, you know, the difficulties of getting planning permission, et cetera to get say,
data center infrastructure up and running. So Stargate, as your viewers probably know, is open aiy's large, many multiples of billions of dollars project to build data center infrastructure all over the world, beginning with the US. It's got the first data center CAMPRA in the US, but expanding internationally, so the UK Norway and other regions as well.
But it's sounding like this UK project is on hold.
I mean that cannot be great news for Kirstarma and the government in terms of growth. I mean, how are they thinking about navigating this because there is end Scale, which is a more local builder of this infrastructure.
Yeah, I think it does raise a broader question about how successful our infrastructure build out is going to be out of the UK. You know, let's say predominantly it is about energy costs. It's not just going to be open AI that's impacted by that, but any local data center provider like nd Scale, which is the local partner that OpenAI had struck this deal with n Scale, has other projects around the UK, and so potentially that that raises questions about how quickly these other data center projects
are going to get up and running. The UK and the Labor government has been very proud of lots of these investments that have been announced, but you know, I think we can see that the reality maybe that not all of the not all of the investments, not all of the infrastructure promises will materialize.
Bloomberg's showna gosh, thank you for bringing us up to speed on that particular infrastructure build out and meanwhile, well that is.
It for this edition of Bloomberg Tech Ed.
It's interesting that there's a big piece on the Bloomberg Today about G forty two and continuing to build out in terms of infrastructure despite the Iranian conflict, whereas the energy prices hit the UK.
Yeah, it's a must read and it's based on some important reporting from Tom Jarles Martberg. And also just what shown has said. How often is a project announced and then several months later either scaled back or changed happens all the time at the moment recap on the podcast like a really packed show, a lot of news, a lot of insightful and important conversations as well. You know where to find the pod so on the Bloomberg Terminal, source of online on Apple, Spotify, and iHeart from New
York and San Francisco. This is Bloomberg Tech