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This is Bloomberg Technology, Microsoft and AMD earnings on deck as big tech flirts with a correction, and we hear from Nvidio's CEO on Meta and Zuckerberg being their most important customers. Plus a Tesla test drive that hit a roadbump. Truest analyst William Stein joining us after narrowly avoiding a car accident while testing full self driving.
This is a big day.
It's the charting gun basically for megacap tech earning. So after market, you start with Microsoft and you start with AMD, talking a lot about the money machine, the money going into the machine, the investment in the infrastructure. That's where we check on AMD that soft buy almost a percentage point. The money coming out is the top line growth. Are we going to see any anything tangible from Microsoft? In particular massive investment in terms of CAPEX into the GPUs
and infrastructure needed for their cloud business. How is that translating to top line growth? Let's talk about it and what to expect with the Cole Web Senior vice president and financial advisor at the Wealth Enhancement Group, a national independent wealth management firm with eighty five point seven billion
dollars in client assets. I've been talking about the money machine here on Bloomberg Technology, the money in for infrastructure and not knowing how much money's coming out in terms of top line growth.
Is that how you would approach earnings?
Yeah, you know, I think it's it's unique and you have to look at each company differently, and the setup going into this week is one where I think there has to be a hyper focus on the unique business model of each So when we talk specifically about Microsoft, the thing that we know is that capacity is below demand.
So to your point, the spending is going to be high. We expect that both in land GPUs, but on the same token, we expect that bookings are going to be relatively strong again this past quarter, and so we look to names like Microsoft or continued Efficiency where they can offset some of that cost spend through other parts of
the business. The other thing that I would mention, you know, our King's point team is things that there's actually going to be this transition over where the forgotten sub sector of software is going to be more part of the conversation again going forward. So we expect that both from Microsoft, and we actually really think that about salesforce as well.
Let's focus in on Microsoft. I think language is really important. Last quarter, Microsoft told us Nicole that they had over rule more than thirty percent top line growth for the cloud unit, and they said seven percent of that was a contribution from AI. Do you think that a number like that is enough for investors to say, okay, I believe the story for all the investment you've made, you are out actually making money from this AI thing.
You know, this is where we are in a pivotal moment in evaluation. And so when you think about where exactly AI is going to take us five years from now, nobody knows the answer on that. What you're listening for is when can I expect any glimmer of return on the invested capital that's going to work today?
And so you've seen that play out in.
The last few weeks where you really did have to right size your positions as valuations looked a bit stretched if that is going to be a moving target. And so we are very much of the choppy and the short term great returns in a longer period of time as you see that navigation both of right sizing positions here to date from that really fast priced movement, and then also this expected drop down.
In earnings in the next couple of quarters.
There's a line in one of our Bloomberg Terminal stories today about how Microsoft is like one of the most widely held stocks in the world amongst retail investors and institutional investors. What kind of a dynamic is that when you talk to clients, it seems that Microsoft's always been there and you want to have a piece of it.
Yeah, Microsoft became the utility of enterprise business, and so when you think about the structure of both business and personal life today, Microsoft is at the center of that.
What Microsoft has built out for the consumer is a unique story, and so you can both look to them for having the free cash flow, the money to the money to build the the future of infrastructure, will also providing those subscription level services that are so necessary for day to day operations, and so from that perspective, it's really hard to break up with a position like Microsoft in a portfolio.
Niicole I wanted to ask what this week's going to be like for you. You know, if you're a technology investor, you have just this incredible calendar of the world's biggest technology names reporting and then a FED meeting slap bang in the middle of it. How do you operate like that in that environment?
Yeah, you know.
I think starting on Friday, what we started to see was the narrowing in the divergence between Nasdaq and small cap, and so that gave us a better footing going into this week.
When we think about the FED.
We really see that as creating this backdrop where we believe there can be wider participation. So we want diversified portfolios to have their moment in the sun.
Again, I think seeing.
Too much return for too few names creates an investor sentiment that is systemically.
Going to lead them in the wrong direction.
At the same time, though you've seen some of these names like Meta, where we've chosen to deploy more cash because you see where they're trading, and from a relative valuation perspective at twenty two times, you have kind of a tiny risk there, and so you can play both sides of this leading into earnings.
When you have moments of volatility like we've had.
Mess is a great final thought based on the idea you separate them out from the rest of the megacaps, and it's something for us to look forward to see. Nicole Webb, Senior vice president and financial advisor at the Wealth Enhancement Group, Thank you now. Sticking with earnings so far, CEO Anthony Noto joined Bloomberg just moments ago. Here's what we had to say about the company's results. But also it's planned for diversification.
Over the next five years.
I would expect our growth to result in revenue that's about thirty percent financial services revenue, thirty percent tech platform revenue, and thirty percent lending.
The business that's.
Growing the fastest now and that's increasing as a percent of revenue the fastest is the financial services segment. We had a record revenue for the quarter at close to six hundred million dollars and twenty two percent growth, and it was really driven by that financial services segment that grew eighty percent year of year and is now starting to reach real scale at about one hundred and seventy million dollars of revenue. It's benefiting from fifty eight percent
growth in AUM in our invest business. It's benefiting from deposit growth of eighty percent, and it's growing. It's benefiting from high interchange revenue growth as well, and of course forty percent product growth in that segment. So that'll be the horse that we continue to ride to drive the diversification.
The second element would be, as you mentioned, the technology platform business, which we believe is a mid to high teens grower for the rest of this year, for the full year I mean, and then going to twenty percent growth shares. We have a great backlog of partners coming online hopefully in twenty twenty.
Five, and theny One major question is around interest rates. If you do see the FED cut this year, then what does that four point six percent APY on your sofa money product look like moving forward? If it lowers, how competitive do you have to be to keep that money flowing in.
Yeah, we think we'll still have a very competitive APY and a declining rate environment. Several of our businesses will benefit meetingful from a higher lower rate environment. The loans in our balance sheet will be worth more. Everything else equal. Home loans will actually see more financing, and that business should benefit for greater demand, greater marketing, efficiencies gre greater flow through.
Also our student loan and financing business would benefit. That will all allow us.
To continue to maintain a very high APY relative to competition. Many of our competitors that offer an APY that's even close stars We're at four point six percent if you do direct deposit, We're still superior to others. But those that are to us will struggle to keep the same rate in the same premium because they're not origination platforms. So we benefit from both of those businesses working well together.
That was so FI CEO Anthony Noto, along with Bloomberg's Shnale bask Another top story we're looking at is PayPal, the company that suddenly got a sixty million dollar market gap shares notably higher, up almost eight percent, jumping the most in more than like twenty months adjusted EPs. You know, the guidance that will increase loads of single digits I think beats expectations. And then we discuss less on Bloomberg technology, but one that seems to be holding its own in the earnings context.
We will revisit it all right.
Coming up on the show, we will be joined by Truest Security Senior analyst William Stein on his experience using Tesla's full self driving technology. That's next, This is Bloomberg technology. Elon Musk has said during Tesla's last two earnings calls that investors won't understand the company unless they're using the
driver assistance system marketed as full self driving. Well Truest Securities Managing director and senior analyst William Stein did just that, and he writes the version he tried is quote stunningly good, but does not solve autonomy. In fact, he even narrowly avoided a crash or accident. William Stein joins me now
for more. And William, when I said on social media you were coming on the program, many many people pointed out that the version of a FSD you were using was twelve point three point six, not the latest twelve point five, which rolled out starting Friday last week and in a limited release through the weekend. So let's start here. Give me the basics of the tests you conducted, where you conducted it, whose Tesla you were using, and the parameters around it.
Please, yeah, that's a very fair question. Thanks for having me. So both the test initially after the Q one earnings report and the Q two report were done you know, under very similar conditions. Sunny, dry, easy to see, easy to operate. This was a Tesla owned car.
This was, you know, a I.
Approached Tesla as if I were any other potential buyer. So I went to a Tesla showroom, signed up, and plugged in a relatively local address about seven miles away from from the showroom, someplace near where I live in suburban New York City. And that was the setup, and it mostly worked well in both cases.
And William, just real quick, when did this test take place?
Sure?
So the first one that I tried was right after Q one, when Musk first issued this sort of directive to investors or potential investors that they must see this in order to determine whether they should invest in the company. So that was about a quarter ago. And the most recent one was done on Friday. Okay, And I'd like to acknowledge that we did not have version twelve dot five. I have asked the company for access to it hasn't
been made available to me yet. I think they will, just it wasn't available when I went to the dealer or to the I should say, to the showroom, and I was using twelve to three dot six.
That's correct, William did test the response specifically to the research report that you posted.
I reached out to management in a proactive effort to not hide from them, because I think it's important when one is critical of technology or a solution or a financial aspect of a company.
That did not be confused with an attack or especially something that's unfair.
And there was a reply, and it wasn't really substantial other than you know, we understand your view and it's okay to have a difference of opinion.
We're actually showing some style, William, just really quick. We're showing some file footage of FSD which comes from Tesla. It's not the trip that you took, and so I'm just stating that because you used a Tesla sort of showroom or dealership vehicle, you don't actually have access to the footage from your trip, do you.
That's correct.
I tried to take I actually had my son with me taking some videos, but unfortunately we didn't capture the most interesting and most exciting, okay parts of the trip or when I avoided in your ground.
One of the things you tested was the ability to look away from the wheel right, and so I have twelve point five on my own Tesla at home, and I put on X for example my experiences with it. But it doesn't require me to have my hands on the wheel. It does require me to stay focused. The camera in the cabin judges my ability to be attentive. You tested by turning your head away for twenty to
forty seconds. My question around that is whether NITSA has reached out to you, because that's one area that they've looked at.
NITSA has not reached out to me. I was very surprised that the car allowed me to be not just distracted. I mean my head was completely turned away. I was looking, you know, in the back seat. And you know, luckily I was able to do this because I brought my son with me and I said, hey, you know, tell me if i'm if there's anything dangerous about to happen. We were on a relatively you know, underpopulated area and on the highway, so it was fairly predictable, and I
trusted him to give me enough warning. The car allowed me to do is for something on the order of thirty seconds, which.
Sixty miles an hour. It's half a mile.
I mean, you could do a lot of damage in that that was sort of stunning.
When I got back to the showroom.
The service associate told me, oh, that's demo mode, and that's to make the experience more useful and perhaps easy for an inexperienced user of this technology.
For me, it was a little frightening, right. It allowed me to distract William.
There are many on social media who are sort of bemoaning that you didn't use twelve point five point one. There are many that acknowledge twelve point five also has yielded some quite worrying scenarios for those that have tested it. I want to get to the big picture, which is that Mosk said on both first quarter and second quarter, and it is cool to judge whether Tesla can in the future soul for autonomy.
Go out and use FSD for yourself.
The conclusion that I read in your research note is you don't see the jump right from a consumer that's using FSD and there will be more iterations of it in their car to a world where Tesla operates a fleet of robot taxes itself.
Do I have that right?
I think it's a very challenging thing to know with certainty. Right there are certainly improvements from version to version. As it stands in version twelve three six, this is totally inadequate to solve autonomy, if there is such a thing as solving it. Ifull autonomy is not there with twelve three six, do I anticipate it could be there with twelve five to one or some later version.
I would say that's a maybe.
I think for me, the big question is the near accident that I experienced.
What was the failure mode?
I think that's William, may I jump in here. Please let's go through the specifics of that. You were approaching intersection at speed, there was a vehicle in front of you making a right hand turn, and you write in the note it didn't complete that turn. So just explain literally what happened and how you or your son reacted.
Yeah, so it's slightly different from how you'd described. It was in a very congested downtown street and a suburb. We were lined up stopped at a light light turned green. I think I was second in line. The car in front of me progressed making a right turn, but it didn't quite complete it. So I was the second car in the line, and as the car in front of
me moved off to the right. The tesla just it reacted as though it was all clear and just started accelerating, and so the failure mode would have been, you know, we would have hit the back right corner of the car in front of us, and I had to you know, idea, William, we're.
Out of time.
William Stein a Trice Securities, I appreciate you coming on the show.
He shares a.
Crowd Strike down around nine percent right now after reports that Delta hired a prominent attorney following that technology outage that led to carrier to cancel thousands of flights. Those reports noting that the airline may seek compensation from both CrowdStrike and Microsoft. Another catalyst, ever Core, added the company to its tactical underperform list, the firm cutting the price target from three hundred and fifty dollars to three twenty five while maintaining its outperform rating.
Let's bring in Shlomakram, a CATO.
Network CEO, a leader of secure access service EDGE in the field of IT security, and my goodness, the last ten days with somebody of your experience and reputation in the industry must have been interesting.
What happened well.
A mistake happened, and mistakes will happen, But what's really important was that that mistake caused tremendous a disruption. And I think what's really important is what is the.
Learning from that, Missie?
What is the learning?
And the learning is that we live in a very vulnerable world where everything is digital. And imagine if this was not a mistake but an attack.
I wrote about this, I call them right.
Let me ask you this real quick though, that in the crowd strike example, Microsoft and crowdstrikes, what's about how only one percent of Windows PCs were impacted, but it's those PCs that were mission critical, right, think about the cost of securing them? Is that just part of doing business in this day and age. It's something like this happening.
Well, mistakes will happen.
You know, aws head an outage, GESPAN an outage, everybody has an outage. But you have to take the economics of that outage and learn from it. And the learning is that everything needs to be gradual. You can't deploy anything to all the computers in the world at the same time. You need to be very gradual in doing that.
That's a cloud service learning. And the second learning is that we really need to make security pervasive because the next time it's not going to be a mistake, it's going to be an attack.
And correct me if I'm wrong.
You built CATO because you basically looked at the big guys out there, the names you and I have talked about the fresh for, and you thought I can do this better. Indifferently, your phone must have run a few times.
Well, I want to correct it.
I thought I can do it in a way that simplifies security and AWS and digital transform it security and make it more affordable and accessible to all types of organization, which means that security is pervasive in cases of such mistakes and thet texts.
You are very experienced, well known, and have invested a lot in this sector. How do you assess how CrowdStrike handled the fallout and responded.
I think they, George and his team responded really well to this mistake, and I really commend them for.
That philosophically and very quickly. To we change how we approach security now at the corporate or enterprise layer.
I think we need to operationalize security. I need we need to make security available to any types of enterprise. We need to digitively transform security and make it simple.
Schlimo Kramer, co founder and Ceoka Too Networks, really appreciate you.
Thank you very much.
Joining me here in New York City, but also drawing on your your wealth of experience in this domain. Welcome back to Bloomberg Technology, Ed Ludlow in New York City, And overnight there was some news, so to speak about two names that are a business relationship to names that are well known in this industry, in Nvidia CEO Jensen Huang and Meta CEO Mark Zuckerberg.
Just real quick mes as flat as a pancake.
It is in Nvidia that's been the main mover in the last thirty minutes or so. Not entirely clear what the catalyst is either way. Last night they both sat down at the Sidegraph Computer Graphics conference to discuss the future of generative AI and how open source will help AI developers and creators. Here is Meta CEO Mark Zuckerberg.
There is a lot of new stuff to build, and I think even if the progress on the foundation models kind of stopped now, which I don't think it will, I think we'd have like five years of product innovation for the industry to basically figure out how to most effectively use all the stuff that's gotten built so far. But I actually just think the kind of foundation models and the progress on the fundamental research is accelerating so that it's a pretty wild time.
His breakdown what was said at the conference is Bloomberg's Ian King actually for Jensen I and this was the second appearance of the day, and he actually started by talking about NIMS. We have a new acronym in the world of AI and high performance GPUs. But basically in videos trying to say to us all the rest of you that aren't a hyperscaler, don't worry.
We got you.
Yeah, now that's exactly I mean.
This is something that they've previously announced and now it's actually coming to market. These are micro services is what they call them. Basically software that says, hey, you just tell us what you want to do in your business and we'll sort everything else out. We'll provide you with the model and then all of the links to the hardware and the other pieces of software and data that
you need. And this is a big push for the company because right now they've got sort of four or five big customers and great customers, but really they want this to be out there in the economy, to be pervasive, and that's what they're trying to facilitate.
In video is down pretty sharply.
I don't see any kind of clear catalyst other than the mechanics of the market trying to work things out. The conversation between Jensen Huang and Mark Zuckerberg highlighted one thing, which is Meta is a critically important.
Customer for them.
Could you just explain to our audience what Meta does within video's technology and a sense of how important a customer they are.
Yeah, I mean they're one of the biggest spenders on in videos, GPUs.
And other systems.
Basically, they are putting these massive supercomputers in place to do training of AI models that they then use for the services that they offer through the phase through Facebook and their other platforms. And you know, Luckenberg was talking about that yesterday. He was somewhat begrudgingly acknowledging just how many hundreds of thousands of the GPUs he's bought off.
Jenson, I just add one thing to what Ian said, which is that's why we're watching Microsoft and watching others in the earnings context, because the infrastructure commitments probably will have an impact on Nvidio down the line, and then Ian will come back on the show. Bloomberg Z and King, thank you very much. Sticking in the world of AI, Credo Ai recently completed a funding round of twenty one million dollars, but it doubled their valuation to about one
hundred and one million dollars. That's in Bloomberg exclusive reporting. The company focuses on AI government governance, an area of particular significance during a time where deep fakes are increasingly interfering with election cycles. I'm delighted to bring in and welcome back Navna Singh, who's the founder and CEO of Credoai.
I'll start on the funding round.
I we bring you to Bloomberg Technology because the world of AI is basically on a collision course with society and the world of politics. That's what we often talk about. But let's just focus on credo for a minute. Why did you raise the funds and what are you going to do with it?
Well, thank you so much for having me ed.
Certainly a very exciting day for credoaif you've just raised twenty one million dollars in new capital and this capital round is really focused on making sure that the AI oversight and accountability is pervasive. As Zuckerberg just pointed out, we are living through really wild times and AI innovation, but it can get really wild if the risk of these technology is not really assessed and managed proactively. This is where from our founding in twenty twenty, we've been
heads down focused on bringing AI governance to forefront. You know, my belief has always been governance really unlocks the understanding of this very complex technology, which, as you can imagine, is just getting more and more complex with the coming of the foundation models and frontier capabilities. So with this round of funding, we are doubling down on making sure that one understanding risk of these new frontier models is
at the hands of these enterprises. Secondly, making sure that these organizations are well equipped for all the regulatory changes that are happening globally, and lastly to adopt generative AI with confidence at scale.
Mavrina, you are a vocal You have official positions in government appointed panels in the domain of AI and some of the safeguards around its use in society. I just wonder if this this funding gives you the ability to have a sort of louder voice in the things that you think are important.
Absolutely.
You know, governance is many a time seen as a barrier to innovation, and you and I've spoken about it multiple times that governance actually is going to be an enabler and a competitive advantage for every organization, whether you're a Meta or a Microsoft, to really make sure that you can bring the frontier EI capabilities with confidence in
the market. And I think with this round of funding, what it is providing us is an ability to continue delivering to our customers who are becoming responsible by design and not waiting for failures to happen. In this world where AI is transforming pretty much every use case, every business at scale.
I think we should probably talk about the presidential election cycle. A lot was made particularly from small tech, so to speak about JD Vance in particular being a running mate who supports entrepreneurship and in technological advancement. Does CREEDOT have a position on what will happen with AI safey, God rails and safety depending on the outcome of that race.
You know, ed we are living through a very important time, especially with the upcoming election, and I don't want to speculate what the outcome of that election is going to be. But I think the key thing I want to bring our focus back to is that irrespective of the outcome of the election, governance of this transformational technology, artificial intelligence,
is going to be paramount. You know, we are seeing at scale that the traditional GRC, the governance, risk and compliance tooling that exists in the market does not serve the needs of this very complex and emerging technology. And this is where you know, not only did we coin the term AI governance, but bringing in tools that can keep up with this very increased sense of capabilities that AI is presenting and also the increased risk it's presenting.
So irrespective of the election outcome, what is going to be critical is enterprises put governance front and center as they adopt this technology.
We've heard a lot from Mark Zuckerberg about open source. We heard from him again it's cygraph. Just listen to what he had to say on the topic.
I don't think that there's just gonna be like one AI model, right, I mean, this is something that some of the other companies in the industry, they're like, you know, it's like they're building like one central agent and and yeah, we'll have the MEDAI assistant that you can use. But a lot of our vision is that we want to empower all the people who use our products to basically create agents for themselves.
So whether that's you know all the many.
Many millions of creators that are on the platform, or you know, hundreds of millions of small businesses.
Your reaction to that Avrena in the idea that he's he's a world where people go out and create their own AI agents.
You know, absolutely true. I think we are already reaching a stage where the reliance on a single model is not going to happen. We at CRETOAI ourselves are now switching from open AI to open source models because the innovation in that space has been accelerating. So what we are going to see ed is our need for a single pain of governance. This is where Credo AI comes in. That can actually not only you know, connect with different AI toolings, but also be able to adapt.
To these new plethro.
FAI models and agents that are showing up in the market. But the consistent pain of governance, which provides oversight and accountability, is going to be critical.
Every innessing founder and CEO of Credo AI, Thank you very much.
I had a fantastic experience with jd I worked with him for about a year when he was just starting out in Silicon Valley.
When it comes to deregulation, tax policy, AI, cryptocurrency, there is, you know, some degree of consonants between what a jd Vance wants and what much of the tech industry wants.
Jd Vance in the business side doesn't make me confident at all.
But when it comes to Section two thirty, privacy, even competition, to some degree, they're going to be at odds.
He's going to be good at for Silicon Valley, he's going to be good for the country because he is pro growth, he is pro innovation, and he's also pro eliminating those regulations that strangle industry, that strangle growth.
Having somebody who's been as part of a fund, who's seen the way innovation works, back companies, been on a board things like that, I think it's kind of a unique experience and opportunity that can be helpful.
Those were some of our recent guests weighing in on Donald Trump's VP pick Jade Vance and what that can mean for Silicon Valley. If the Republican ticket were elected. Now some other vcs have been coming forward more recently in support of Democratic candidate Kamala Harris. So as we await her decision for a running mate, let's dig into it with Katie Jacob Stanton, founder and general partner of Moxy Ventures.
And it's been interesting.
You will have noticed your peers and colleagues in let's call it venture capital but small tech maybe as well. That week following the assassination attempt on former President Trump and then Jade Vance emerging as the pick X in particular, was a place where everyone was quite vocal. Now we're hearing more from the Kamala Harris side. Your position, please, Katie.
Hi, thank you so much for having me. So we live in a democracy and everyone has a right to their own opinion, and I think our industry, just like our country, has a diversity of opinions. And I think there are a lot of people like myself who are really enthusiastic and excited about what the Kamala Harris campaign stands for or hope for optimism, for innovation, and we're excited to move the country forward.
One of the areas of focus with JD Vance particular is his experiences of entu capitist, his experience of so called Silicon Valley and what that might mean for sort of an environment where entrepreneurs want to thrive. Do you feel that Kamala Harris has the same attributes that she can provide a similar environment if she were to be re elected.
Well, first, she's way better be elected. Yeah, yeah, she's way better.
She's from the Bay Area, she understands technology, she understands innovation. She also understands responsibility. So she is somebody that I think we're very enthusiastic from the tech industry about what she can bring to the future and really excited for her campaign.
Finally, on the election, I was not in America in twenty sixteen. I arrived twenty eighteen, But I find the venture capital community how vocal they are a bit of surprise this time around. Do you see a difference in how active your industry is now versus twenty sixteen and twenty twenty.
I think right now we have enormous challenges in front of us. We have climate change, we have economic uncertainty, we have a lack of access to healthcare affordability and housing affordability, and it's important to be able to support a number of entrepreneurs and innovators and to help provide
better solutions that make life and work better. So I think they're enormous challenges, enormous opportunities, and again really excited about teams that can move us forward and help us build services for more people.
Casey, we welcome you to Bloomberg Technology because Moxie has raised ninety five million dollars for a third fund. There's some interesting and quite unique factors behind the LPs and how you went about the raise. Just just explain the basics of that.
Sure, we're thrilled to be able to announce our third fund, which is ninety five million dollars in a really challenging funding environment, and we're looking for founders who basically make life and work better for millions of people around the world. And most of our founders are technical, fifty percent of them are immigrants, a third are women, and we're really excited to have a diverse group of founders. We're also
really proud of the investors that have backed us. We have a number of world class mission driven investors, from GEM to the Nature Conservancy to Children's Health and Foundry, and we're really delighted and honored to be able to work with them going forward.
Case I just mentioned quickly you were within the Obamba administration at one point, but in Tech, Twitter, Google, you're on the board of Yahoo, Vivendi. How's that sort of CB going to influence your your investments and where you write checks.
I think it's really helpful.
So I invest in seed stage companies, but I'm on the board of a company, the Vendi, which was started by Napoleon, So that's a really wide range, and I think it's important to be able to cross pollinate our network, our experiences, and to enable ourselves and our team at Moxie to be able to help support our founders, helping them grow, helping them build, helping them hire.
Katie Jacob Stanton, founder and general partner of Moxie Ventures, thank you once again going viral.
The Olympics.
Paris Olympic Games organizers postpone them men triathlon to Wednesday morning due to insufficient water quality levels in the Sene River. The delay to one of the game's flagship events came when athletes were already at breakfast, leading to some anger and disappointment. Meanwhile, the US is leading the field in total medal count, recently picking up the gold in fencing and swimming. However, Japan and China are leading the gold medal count at six, just ahead of France, Australia and
South Korea. Everyone is talking about it on the social So let's get back to the other big story of the day, which is earnings. Out after the bell, you have AMD, you have Microsoft reporting. Mandy Saying of Bloomberg Intelligence joins me on set. I want to first just think about Nvidia in the context of what's to come.
The stock is down significantly with no news headline. Although if you read the markets and listen to the markets, I think there's a growing skepticism that either the infrastructure spend is going to pay off in top line growth or that the infrastructure spend is going to remain what's the b I take, Well, so I.
Look at it this week.
Google last week told us that they're raising their capex. We expect something similar from Microsoft tonight. Meta also this week, So that's all good news for video. I'm actually surprised by the market reaction given you know, hyperscalers still make up almost fifty percent of in Video's data center revenue. Why is this start going down. Given whatever we have heard so far has been incrementally positive.
That shot maybe I was talking in a few blocks ago. This is still a stock. This up one hundred and ten percent year today, and so.
That's where the valuations come into play. You know, there's a lot of good news that's prized in, and you know there could be some negatives in terms of the ROI as you alluded to. You know, companies probably aren't able to monetize the GPUs as fast as they would like.
The Bloomberg technology audience is global and diverse. Not everyone is an institutional investor, not even retail investor. And way we've been talking about it is like the money machine. Okay, so you have capital spending going in and what everyone's trying to understand is how many dollars are coming out in terms of top line growth. So you gave Alphabet as the example last week. I think what Ruthparat said on the call was year to date, we've made billions
of dollars in AI infrastructure and generatord AI. Essentially, it doesn't seem very tangible, do.
You know what I mean?
You know what I to me and Vidia is more about the supply demand imbalance. As long as your supply constrained. When it comes to GPUs and the demand exceeds supply, I think it's positive for Nvidia. Once we get to a point where TSMC can make enough of these chips and you've got custom ASICs and companies can train outside of Nvidia GPUs, that's when they will have a problem sustaining that pricing that we have seen with GPUs.
Okay, so let's bring up the calendar because it's a huge week. It's a good week to be in New York City with you. I think Microsoft is a big one. You know, what is the BI expectation.
I mean, the estimates have to go up for this doc to sustain this kind of valuation. And when I say estimates, last quarter they said geni contribution to Azure was seven percentage points. You want to see that number go up because even if it's flat, then what it's telling you is Jenni actually is not translating into revenue. To answer your prior question, and the copilot side of it has to boost the office segment. I mean, what we saw last quarter was it was low teen's growth.
You want some meaningful upside to office coming from these copilot sales.
The other one after the bell is AMD and all I'll say on that is that Lisa Sue, the CEO, is coming on the show tomorrow, so we'll get the opportunity to kind of review.
The rest of the week is also massive.
Maybe like in aggregate, Amazon AWS is a component with an Apple Meta, what's the common thread, I mean Capex.
In the end, it comes down to what these companies are spending and how does it translate into revenue. So clearly for cloud guys like Amazon and Microsoft, it's the Azure.
Growth, the Awlus growth.
But for Meta about how they've deployed on their social media network and they talked about custom chat our tools for Instagram. I mean, that's huge if they can monetize it, you know, through more ad revenue, and that's something to watch out for.
It's a busy week for us here on Bloomberg Technology, but my colleagues over at Bloomberg Intelligence are just as busy and handle all those earnings so well. Mandate seeing of Bloomberg Intelligence who's leading our tech team there. It's a big week, but there was a lot that just happened in the show, so recap. That may well do
it for this edition of Bloomberg Technology. But we always have our podcast, which you can find on the Bloomberg platforms like the Bloomberg Terminal, but also on Apple Spotify and also on iHeart After the Bell, Microsoft, AMD Tomorrow AMDCO Lisa Sue on this program. These are all big ones you don't want to miss. You've got any questions, you know where to find me. I'd be happy to look at them and fill them to Lisa.
Thanks for tuning in. This is Bloomberg Technology.