Investors Question Oracle’s Data Center Financing

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Oracle data center financing being questioned. Ellison's Giant says the equity deal for its Michigan project is on schedule and doesn't include Blue ol Capital.

US.

Open Ai is in talks to raise ten billion dollars from Amazon.

We'll use this trainium chips.

We have the story, and Waimo is in talks to raise more than fifteen billion dollars at a valuation that could exceed one hundred billion. Details later in the hour, but we begin with our top story. Oracle shares extending losses, worst day that we've seen since December, the tenth for the lowest since June of this year. Oracle's largest data center finance partner, that's Blue ol Capital, will not back a ten billion dollar deal for a one gigawatt facility

Ford covering all things Oracle.

You've talked about how certain data center projects that are going to be there for open AI might be behind schedule.

But have you heard and.

Are we reporting out that financing is becoming more difficult to raise for these data centers.

The big context on Oracle is that they are embarking on a historic build out data centers where it's.

Really a logistical feat.

It's quite a tight schedule they need to be on and if it all goes right, it's transformational for Oracle and the entire industry. But all that needs to happen for that to get off is a couple things falling out right. And that's the issue with what we're seeing today is that the FT is reporting that there's been some issues in getting the financing for one of their big centers, and that's giving investors a lot of anxiety that, Hey, are are these lenders seeing something that we are not.

What interesting is you've been writing about the sheer scale of leases, right, and I think leases is something different because it's off balance sheet. You're always saying, we're hearing it in attend Q that they could have up to three hundred billion dollars worth they're about in terms of their overall leases that eventually they're on.

The hook for paying. Yes, how is this different?

How is this sort of financing different from capital expenditure?

And they're like, right, so we're used to hearing about capital expenditures, which is I'm going out and buying computers, I'm buying wires, I'm buying the data centers themselves. But what's becoming more popular is renting the data centers, and that allows you to not pay everything upfront and not have that beyond your books directly. And so what we've seen is a big spike in these kind of future

What's interesting, I think is the Oracle is different from the other hyperscalers. And then it's relatively new to this whole data center least build out element.

It used to be a software company.

So is that something that also the market's trying to factor in How good is it at this compared to Alphabet, Microsoft, Amazon, who've been in this game for a very long time.

Yeah, that's a huge part, right, I mean, if Microsoft has one hundred billion in commitments, people don't batinize much because their cash flow is quite a different style than of Oracles. Right, I mean, oracles spending is such a large percentage of its overall company size because it's making a very ambitious transformation. Now, if you're a bull on Oracle, you say, yeah, well, you know they are doing what

You're going to be across how all of it does go right or as planned? Rarely forward across the Oracle story. Look, let's turn to well, the company that's buying a lot of the data center or needs the data center compute from Oracle, and it's Open AI.

It's in initial discussions.

To raise at least ten billion dollars from Amazon, and we'll use some of the cloud giant's Trainium chips as well. For more, let's go to Bloomberg's Matt Day, who covers Amazon.

Is this a circular deal?

Oh, it sure looks like it.

A few row o'clock back a month, open ai bought thirty eight billion dollars of compute capacity from Amazon.

That was a seven year deal. It was primarily for Nvidio chips.

Per for this news that emerged last night, looks like Amazon maybe giving some chunk of that back and investment open Ai.

So ten million dollars in equity so that open ai can continue to afford to buy compute, of which is going to be buying from Amazon and its trips. But go to the chips part of this, because Matt, this could be a real endorsement once again for Trainium in the same way that Anthropic lent its name on its capacity for actually using them.

Yeah, that's right.

Amazon also a close partner of Anthropic. They've invested eight billion dollars in that company as part of a deal that got Anthropic to use Amazon's own homegrown AI chip for their models. Right, So this would definitely be a coup for Amazon's in house chip making effort, but ch analysts are still trying to struggling a little bit to understand the effectiveness of to date, in part because there's

Because it was such a big deal for Alphabet, And we think about the endorsement that its vertical model seems to be getting from the market. What does it mean for in video because as you mentioned, the previous cloud deal between open ai and Amazon actually was a ringing endorsement for in video chips.

It means there's hunger for an alternative too in video. I mean, in video stuff works well, but it's expensive, it's in short supply only one supplier. So you've definitely got increased credibility among the other folks who are putting out AI accelerators on the market. You know, AMD has an open Ai ideal. For instance, Amazon and Google's TPUs are all making a claim for some of that big Nvidia business.

All of this is about trying to finance the heaven needing compute coming from the likes of open ai, mat day, brilliant reporting.

Thank you very much. Indeed, let's get the market reaction.

Let's get an investor perspective for you, Tony Ams with us here is put flow Manager at t rope. Price is twelve billion dollars Science and Technology Fund. You are naming an own who's who of the players within AI infrastructure and AI used. Tony, are you worried let's start with Amazon and open ai. Are you worried about the circularity of deals once again at play here?

Yeah, Well, I think that whenever there's some type of creative financing, there's always some scrutiny that's on there. But I kind of view it as you know, there is a synergistic partnership here and that you know, open ai is growing rapidly, they need to compute, and it makes sense that they want to look forward multisurce, and so I think going to Amazon does make sense.

In addition, I think they want some of that upside.

And so you're seeing like whenever there's like a new frontier of technology, there's often you know, companies that need to come together and build the ecosystem, and I think that this is an instance.

Of this, and so you know, I think it's definitely something to watch.

But I think that what matters at the end of the day is that AI continues to progress as scaling laws hold, the use of you know, CHATTERBTL, lens continue to grow, and I think that when you look at these tools that are coming out for the companies, they are like transformational in terms of how we are rethinking work. So I think what really matters is that the end demand continues to be really strong and that we're seeing progress on AI.

I'm looking at your holdings and the number one holding that you have at the moment is Alphabet. Interesting news with a new Gemini release this morning, which we'll get into, But video is your second biggest. Now are you worried about in video losing any sort of market share too Alphabet to Amazon, to some of these other chip players.

Yeah, well, I think the person market is growing and so you know, this is an exponentcial growth curve. So I don't think that it's a winner take all and so you know, multiple companies can can do well and in some ways I think when you step back and think about what's going on, you know there are there is kind of a space race for AI, but they're going to multiple areas, multiple moons, and so they're all

And then I think in video is like kind of more of the merchant.

A broader platform can run everything, and I think both can have a place and you can see that. You know, Google has been doing really well over the last five years, so as Nvidia. So has a MD so has Broadcom, and so to me, I think that you know, there's not a winner take all year.

Okay.

I love that sort of element of there are many races, maybe many moons, Tony, But talk to us about the moon shot that Oracle is making at the moment, and the anxiety that people might not be wanting to lend to their future of leasing and the sheer scale of capacity that they're building with other partners of course out there like related Digital.

Have you got any anxiety around Oracle?

I know it's in your portfolio last time that it was published.

Yeah, so I think that you know, Oracle delways sees the demand signals that are probably really strong, and so they're looking to meet that demand, you know, in the near term with leases and then over the long term probably with owning their own capacity. And so to me, they see that this has a big opportunity that is once in a generation, and so they're building for it and they're you know, kind of.

Being creative with it.

And so to me, it definitely you know, Marcus super concerned. I think that there's probably somewhat an overreaction. And I think as long as like you know, the demand is there in years three to five, I think that that's what made kind of the oracle that made sense.

So all of this anxiety written large around sort of whether it's more experimental financing, creative financing, circular financing.

Is it actually a buying opportunity for you.

Tony, I think we're constantly managing risk and you know, rotating the portfolio to what has the highest RLI, what has the best press could justin in return, you know, I still think that AI is like continue to be a really good area of place capital.

You know, it's a lot of multi year inflection.

That being said, it's also been uh, you know, two three years since chatcha met has been launched, and so we are kind of, you know, further along in AI, but I still think we're pretty early, and so you know a lot of my views, you know, are expressed over the multi year and think that you want to invest in companies that strong competitive advantages, that capture the value with their ecosystem. And I think that not everyone's going to be a winner in the space race, like

At the moment.

You think the rockets to be betting on are in order of importance, Alphabet and Video, Broadcom, Apple, Microsoft, But how will that change as the application of AI comes. Thus far, it has all been about the AI infrastructure, but there's going to have to be proof in the putting the productivity. Are your science and tech fund going to end up looking like healthcare companies, like financial companies, like actually the users of this tech?

Yeah, I think that's a great question.

And you know, often I think about where the economic profit pools are are shifting or where is the second derivative, like you know, accelerating too, and you've been right, like you know, the last few years have been really heavy infrastructure build outs and that's where a lot of the companies have crewed.

A lot of value.

You think about you know, in video broadcom those have been like you know examples, and then you're also seeing the components that are going in this system like you know, memory, hp M, you know, networking. Those companies are seeing a

Well, you're in some of the software play, in particular salesforce, which has been a bit beaten up for perhaps being not at the typical sphere of things AI in terms of the monetization. But where's really been monetizing has been the picks and shovels and memory of late. You just mentioned memory, we've got Micron after the bell. Are you feeling positive about how much more we're seeing price strength from these sorts of companies.

Yeah, we're definitely on an upward trajectory and memory prices. So I think what's going on there is that HPM, the stuff that goes into these GPUs and AI systems, you know, they soak up a lot of way for capacity and so as a results, creating shortage is in broader dram and then also that's great shortages in broader land and so that you're seeing list ripple effect into other areas like sand disks for example, I've seen, you know, tremendous appreciation of their stock price.

So yeah, I think that there will be.

These areas where you know, the economic product can be distributed to even more that didn't participate as much over the last few years.

What's really interesting and correct me if I'm wrong, But I've gone to the bluemog terminal. I've looked at the members that make up your fund. Lambing private company is in there. You of course, of course a tro price know the opportunity there is in these crossover financings and the desire there is for private companies and exposure to it.

So are you going to be.

Seeing these companies going public? You're looking more for private holdings as well as public.

Yeah, thanks for asking about that.

You know, at Hero, I think whatever our biggest competitive avantages that we are you know, both public and we're also one of the biggest financers in the private markets,

We'll keep an eye on Lambda and the executive team over there as well. Turny On he's portfolio manager at t Rowe Price Science and Technology Fund Public private. We went everywhere mean while coming up the bidding battle for Warner Brothers Reaching across Roads.

That's up next is a Blomberg Tech Discovery.

It is urging its shareholders to reject the Paramount's Guide dounce takeover bid, favoring its original agreement with Netflix, and Meg's Michelle Davis joins us. Now in the latest we're seeing the market reaction Paramounts guideounce off by four and a half percent. Now, so what is the thesis of Warner Brothers Discovery is why the thirty dollars. Paramount is not living up to what's been offered elsewhere.

So what Warner Brothers is saying is they reviewed the Paramount thirty.

Dollars a share offer.

It's the same offer that Paramount had offered them two weeks ago when the board already deliberated and decided to go with Netflix. And in some ways they're saying this offer, the tender offer, is worse than what was initially offered. The logic is they don't view it as certain as the deal they already have signed with Netflix. And part of that has to do with the fact that Paramount has lined up okay, fifty four billion dollars of debt, but they also are going to need forty billion dollars

I mean fascinating that everywhere in our show, it's questioning of Larry Ellison's financing for various things at the moment, whether it's his son's bid for Warner Brother's Discovery, or whether it's his financing for future Oracle Data Center leases. It's interesting though, also that others have been pulling back on the potential financing. Talk to us about what's happening with Jared Kushner's Affinity.

So yesterday we reported that Jared Kushner's Affinity was pulling out of the equity commitment or the backing of the Paramount bid in this kind of underscored some of the concern that the Warner Brothers board has around where all the equity is coming from, because Paramount has said that it's lined up, you know, sovereign wealth funds across the Middle East as well as Affinity as well as others to back the funding. And if those are falling through,

They say both.

Can get through and we don't see any you know, marginal risk or difference between the two of them, and so it's kind of a moot point.

I guess we'll.

See how the formal rejection of Paramount software continues in this unfolding story.

Quite the drama. Michelle Davis covering it all for us. We thank you.

Now let's turn our attention back to large language models for a minute, because Google is rolling out a more efficient, more affordable version.

It was my powerful AI model across its products.

The company announcing today the release of Gemini three Flash, and this comes just one month after the release of Gemini three Pro, which reasserted its leadership in the AI race. Since then, of course, opening I declared a quote code read and pushed out a new version of its flagship GPT five model, as well as an updated image generation model to trankey pace for Google AI's offerings. Tesla it's facing a thirty day ban on car sales in California,

Now a judge back the DMV's complaint.

The auto maker has ninety days to appeal or comply before the band take effects, and Tesla has worn the ban could have major consequences for the business. It Shares have been on a tear before today. They hit your all time high yesterday. Today we just pulled back some almost three percent lower. Now, turning to other autoe news, Weimo is in talks to raise more than fifteen billion dollars at evaluation that could exceed one hundred billion.

It's all according to sources.

Now the robotaxi maker has discussed raising billions in equity from external backers as well as it's parent company, Alphabet.

Let's get the details. Some pretty bags. Sarah Fry, who helped break this story.

And really we're starting to see the race being on one hundred billion or in excess of is a lot more than what it was previously valued back in twenty twenty four.

And really those numbers, I mean in the AI race, they seem they seem equivalent to what we're seeing from you know, opening eye and found that there is a really big hope here for these companies in Weimo. The difference is it has a product that is changeable. People are using it.

People are.

Taking their waymos around San Francisco right around you know, see them outside by my window all the time as regular transportation options. It is real happening in many cities throughout the US right now, and I think that that is why they need so much money. This is a very expensive business. This is a business that's going to require a lot of capital to expand into other cities and also other types of roads right like freeways and.

More rural areas. I don't know.

How quickly that's going to roll out, but we are seeing some international expansion in the next few months as well. So it's a very big moment for wave Land, for Alphabet and.

Your revenue run right you are reporting is above three hundred and fifty million dollars. Tell us just very briefly the Alphabet relationship here, they are being able to go to external capital.

I've gotten a lot of questions about this because people are like, wait, isn't it way more part of Alphabet? But Alphabet is investing in them. What's going on here? So it's one of Alphabet's so called other bets. That's the division that includes these We previously thought of them as moons companies like Verily, the life science company, Weimo and Ruth Porrat under her leadership, has tried to make this a more financially financially safe and smart find the business.

I have to leave it there.

Sarah on all the news to do with Weymo, Congratulations on the scoop with a Blue bag Tech.

Welcome back to Blue bag Tech.

We check in on these markets that have some anxiety baked into them at the moment. When it comes to the financing of the AI spend. Still the question of bubble lingers. We're off by one point two percent on the NASTAC one hundred.

We're looking at some.

Of the biggest draws in terms of the overall points perspective. And look, we've got Sea of Read and Videos off by three point seven percent. When you're worth four trillion dollars. That matters to an overall benchmark.

We've perhaps got some competition.

Coming if open Ai does indeed start using Trainium over an Amazon.

A key story for US today.

Broadcom once again under pressure, this time by almost five percent. Remember it had been sort of hard since its earnings. We see it now at three hundred and twenty four. Micron has its earnings after the bell, or two and a half percent ahead of that number. But we're expecting fifty percent growth in revenue for this business as it's and managing to really capitalize a memory and the price of We'll dig into that in a minute, but for now we focus in on what's happening with Oracle. We're

Yeah, And look, I think a lot of it is around what kind of open Ai run rate will we see in twenty twenty eight, twenty twenty nine, because you know, we're talking about build out of data center infrastructure for things that are going to go live, you know, in twenty twenty eight, twenty twenty nine. And that's where investors who are funding this do they have the patience to wait for revenues to show up, you know, three years out.

But because open ai seems to.

Be losing its lead when it comes to, you know, the model provider race, and now Gemini and Tropic Xai.

They all seem to have caught up.

And that's where the anxiety seems to be stemming from. Is are you better off just you know, focusing on one LLM provider when you know it's going to be a race where you know, four or five providers are.

Neck and neck.

And if they diversify that you know, exposure in terms of having someone else like Xai use Oracle capacity, then I think that may calm down that anxiety.

But for now, I.

Think that's one thing and the other thing is training versus inferencing. I mean, if Oracle is more exposed to training workloads, then you have to ask yourself how much ROI will open Ai have with training the next version of their model, which is going to cost a lot more, but will it have the kind of returns that everyone expects in terms of the model intelligence and how much they're going to get out of that next training run.

There's also the question of what chips you can use for training, and we're questioning in videos dominance at the same time. What's so interesting, though, is the more we peel away the layers of the onion, more we understand what this data center financing looks like and a lot of it.

We all talked about capital expenditure.

From all these big cloud companies, but actually we've got to look off balance sheet and we've got to look to ten Q reports with Oracle, how much is that being sacked in by equity investors as well as debt investors.

I mean even a Meta is looking to finance stuff off balance sheets.

So that's about to yeah, exactly.

So that's where you know, all these companies don't want to take too much debt. In fact, part of the reason why Oracles equity seems to be going down is everyone is thinking maybe they should be you know, raising this money. Why raise everything using debt? And so that's where you know they're going to be creative, and sometimes

It's just a question of you know how much training needs these model providers will have.

And how much are you going to make from the next version of the model training. Is it really worth the ROI in terms of spending five x on the next training run when things seem to be closing down when it comes to all these frontier models. At the end, it comes down to who has the lead when it comes to models and or a while it was just open Ai Mandy saying.

Of Blue Meg Intelligence the breakdown there. Let's focus in on some earnings after the Bell Micron schedule to report first quarter fiscal first quarture results and Alicus expect the chip make it to benefit from strong pricing trends. Let's get to Kim Forest, Boca Capital Partners, CIO. We're all ahead of these numbers, but a lot of optimism baked into Micron and memory makers.

Right now, absolutely, and the price shows it. And there is a pattern to Micron's earnings right that, oh maybe a month before people and it's probably in reaction to Micron's customers talking about, you know, what they're buying from Micron the stock generally and when things are good, this

So I mean today kim stalks up one hundred and sixty eight percent, So we've got a little bit of a dip into the earnings. It's kind of nothing in terms of its performance, But what are you looking for after the bell in terms of signals that the strength is there and that we don't keep questioning the AI bubble as we know it.

So there are very few providers of the big product that AI once, which is high bandwidth memory DRAM, and there's only two other players in the market. Micron has had a nice lead. The other players are coming up, but it looks like for at least the foreseeable future, infinite demand is there for this product. And I'm teasing, Okay, I don't really believe it's infinity, but it's a very high demand. So we would like to know what that's doing.

So that's what I'm looking.

For, is what is the Why do they have that confidence and why should we as shareholders, you know, go along with the ride.

Because right now there is shaky confidence around certain names about the AIF structure buildout. Do you have shaky confidence about certain newer players to cloud newer areas and data centers.

Well, this is going to sound like a Miss America kind of speech. I have a real I know AI is going to work out. I just don't know how The large language models seem to be consumers of tons of bandwidth, which you talked about on your last segment or not, you know, computing power.

Not bandwidth.

But I don't know that that goes on.

Forever because this whole scaling thing where just throw more compute power at it seems like the brute force method and it's not very computer science. We like to think. I'm an ex practitioner. We like to think rather than just you know, build. So I'm thinking that breakthroughs in the design of these things are going to help out and may make a lot of the demand that we assume is there for hardware not irrelevant, but not infinite.

Well to that point, we've seen what China has been forced to do because it can't just throw ever more compute at the situation, doesn't have access in terms of supply chain, what about micron zone ability to the global opportunity here, And they're exposed to China in some ways.

Sure, I mean it is a concern because we don't really want to allow them to sell the really good stuff into China because of military issues. And well, just you know leadership, but that we're capitalist society, so some of that kind of has to get pushed aside and

Well, it's interesting, So we're trying to understand how much Nvidia is still in demand at the same time as an Amazon builds out as trainium, as the same time as TPUs come to the forward alphabet, and indeed broadcoms used for a six What do you make of where if they can all win?

Well, I think they can all win because the training, training, test and validation are parts of this prot and they can better use different hardware setups. So I think that there's a place for everyone. What you're trying to figure out is how much of a place for each one of these items. I think competition always makes it better for the end consumer. And I'm not talking about the people using lms. I'm talking about the people building LMS now. So I am very heartened to see that the leadership

The clear winner.

So actually I love it as a capitalist.

Kim Forrest a poker Capital Partners Capitals in the name, We appreciate it. Fintech startup Imprint Payments has reached evaluation of one point two billion dollars, the company that helps retailers offer co branding credit cards. It's brought in one hundred and fifty million dollars in a new funding round there by. Coast Adventures CEO Darra Murphy joins us now for more, what are you using the one hundred and fifty million for dollar.

Hey Carl, and great to see you. Thanks for having me at in Print. Our bet has been the same since we started the company five years ago. We want to be the modern co branded credit card and loyalty platform for the world's great brands, and we've raised as capitals to allow us to double down on that strategy. Our bet was relatively simple, and we started the company that the world's biggest banks weren't building good enough experience for great brands to launch co branded credit cards.

And that's been true.

And what you see is we've taken a siloed experience that used to live in the banks app and put it at the heart of our partner's experience. And so when you open our partners app or you open their website, you can engage with the card, you can pay your bill, you can check your balance, and that puts you one tap, one click away from buying your next bag of groceries and book your next flight. And for our partners, that

Mission that is actually incubated in Thrive Capital. They participate in this round RIBTDG, Klaneperkins, Spice.

Capital, and the Likedara.

But I've sort of got a bigger question of just how many of these credit cards am I going to have or even in debit card that you're looking at now? Am I as an individual going to have a Booking dot Com one and a Racutin one and I'm going to have a turkishare line?

At what point do I become exhausted with all the offerings.

Well, what you see is we're working with partners that demand a lot of share of wallet from their customers. Right like, if you think about Booking dot Com, they're winning against airlines, they're winning against hotel companies, and customers are going there to book the full trip experience. And so by partnering with Booking or by partnering with Bracketen, that's taking such a large share of online commerce for customers.

Now and do the inevitable AI question. But I imagine a lawful lot of this is about personalization, understanding where my next offering or next purchase is coming from, making sure you're meeting me where I am at. So how much are you looking at AIAI, how much you're having to hire an AI.

Yeah, we think about it as kind of two sides of the coin, right. One is the customer experience that you've mentioned, and one is how we build the company on customer experience. Automation and ail I let us personalize how much rewards you get, how we talk to the customer, how the experience even shape shifts for the customer, and more and more investing in that.

So it feels.

Radically different to anything that a bank has ever provided in the past for these brands or free these customers. The really interesting thing, and maybe it's not as apparent under the surface, is we get to rebuild what looks like a financial company or even a fintech in the time of automation and AI and so over the last year, we've grown the business by almost three hundred percent. We've

Wow.

So I imagine that one hundred and fifty million dollars doesn't actually go that much on talent. It goes more on the marketing of your product. And what does it double down on in particular?

Yeah, three things.

One is we continue to grow, right, so we obviously continue to market to customers, but we're not burning all this capital. If you think about the market we're in, big brands can choose one hundred year old banks, or they can choose Imprint. If you choose one hundred year old bank, you probably sleep really well at night. If you choose a relatively new company, maybe you worry a little more. And so we just want to be very well capitalized to make that choice easy. BOOKO two is

Dara Murphy in Print CEO, fascinating talking to congratulations on the funding round.

Thank you coming up.

After burning through more than one billion dollars a space startup with turning to a tech veteran more on relativities, say that again, relativity spaces new CEO Serah Schmidt.

This is going to beg tech. It's time now for talking tech.

First up, China's PDD Holding. It's creator of e commerce site Temo. Of course, it's fired dozens of workers following a fistfight between employees and Chinese regulators. And that's according to sources. Two fights occurred during a government visit to investigate claims of fortulent e commerce deliveries. Class chip startup Mythic Well, it's raised one hundred and twenty five million dollars to support its efforts to challenge Nvidia.

Take a look at some of the investors.

Mythics Tech relies on analog chips with far less power consumption than the traditional brains of a computer, and sticking with chip maker shares, China's metax jump at least seven hundred percent on their first trading date is the latest outsize market debut by Chinese chip maker, as investors really beanning on the domestic firms that could become viable competitors to Nvidia.

Now, let's talk about another startup, Relativity Space.

It's set out to revolutionize the rocket industry with three D printing, but it burnt through more than a billion dollars and his big idea hasn't exactly planned out. Now the company is turning to form a Google boss, Eric Schmidt, and an eight hundred million dollar fresh funding round from him to turn around. The company has get more on this Suppoomberg Space reporter Lauren grush So a new exec same thesis, still three D printing of rockets.

Now unfortunately that seems to have been changed and now the company is much more focused on traditional manufacturing, which, as you said, it's a far cry from what they started as, which was supposed to be this SpaceX disruptor that was going to revolutionize manufacturing rockets with three D printing.

All this sort of speaks there for more to Eric Schmidt's commitment that we've seen of late, of competition versus China and supply chain and defense space tech. But have you heard exactly why he's decided to take the CEO role.

The overwhelming theory in what he has also hinted out on social media is that he purchased Relativity for a trend that we've actually been hearing out about a lot lately, putting data centers into space.

So you might have heard.

That from CEO SpaceX, CEO Elon Musk or Blue Origin or Blue Orange and founder Jeff Bezos, because they've also talked about putting data centers in space, and so it seems that Eric Schmidt also has that plan as well. There might be some other things that he's cooking up that he'd like to do with a rocket company, but so far that seems to be the prevailing reason the he bought this and.

We're now looking at, well, his fortune fifty two billion dollars, He has money to put to work into this, so this is his own bet on space yees.

So he was actually keeping the company aflow for a little while, and then he is, so far, from what we've learned, has invested a substantial portrait of money into this company. And then we've also heard that the company is potentially fundraising again, so they're actually going out to high net worth investors to see if they want to be a part of the company. So it looks like they actually do want to grow and maybe have big plans.

Long grush for the latest space startup to keep an eye on.

Thank you very much. Indeed, now that does it for this edition of Bloomberg Tech. Do not forget to check out our podcast. You can find it on the Terminal, Blows online on Apple.

Spotify, and iHeart or continue on the theme of Oracle of financing of data centers throughout the shows from New York.

This is Blomberg Tech.