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All eyes on Nvidia this week as investors anxiously await the company's earnings results, plus the AI data center Boom triggers the largest power deal in history with next Era acquiring Dominion Energy for sixty seven billion dollars, and Elon Musk says he's in Texas working on plans for the space XIPO.
The filing come as soon as this week.
But first we check in on these markets, which again are sinking for a second straight day. Like the NASA one hundred under pressure on Friday, it was around anxiety or underwhelmed between the US China relations. Now it's front and center back on geopolitics and the US around conflict. We're off by five tenths of a percent as all pushes higher, but we're seeing the Semiconductor index once again taking a pullback.
We're down by two point two percent.
In fact, we've lost about six percent on this index in the last two training days as we saw a significant sell off on Friday, it ramps up into another day.
Now.
All of this is why we still try to digest the reality of the AI demand and spend, and all eyes are going to be over in Las Vegas on Dell World today. This is as we think about how Dell is putting on its annual conference with developers, and we're trying to understand what new tech, new innovations, what new offerings are on board. But there's a very special conversation we had a bit later. Ed Ludlow's standing by and look, you're going to speaking to the men of the moment a little bit later.
Yeah, And there's a lot that needs to be reconciled.
Right.
This is the first time that the Gensen one will be speaking, having comeback from China, and what needs to be reconciled is that in March, at in Vidia's own conference, Gensen one said that they were ramping up their supply chain for H two hundred. The US had approved the
licenses they could do business in that market. The president on Friday at board Air Force one said that he did discuss H two hundreds was ujingping, but China does not want them, and so now we're in this holding pattern where we need to explain to the market what's going on, because a big part of the trade Friday and a little bit into this morning's trade has been this idea that nothing concrete came out of President Trump's visits to China with a video kind of the center
of it. But generally speaking, so many supply chain questions post melt up in the AI infrastructure trade.
Yeah, maybe we take a breather in that melt up just on the day ed or a second straight day, But meanwhile, the enthusiasm doesn't seem to be particularly being curbed for in video. If you're looking, some of the analysts knows today.
Yeah, it's fun to just hit fa go on the Bloomberg terminal and just go back to basics right when they had their print on Wednesday. EPs growth above eighty percent, top line growth just below eighty percent. And what's so fascinating about being here at Deltagies World is that if you cook back at history of how these companies used to do business, right, Nvidio never really sort of had Gensen one fly around the world and deliver chips directly
to the end user. Dell was the kind of key sales channel and so in the era of more agenta KI where more enterprises are investing to have the compute capacity they need. It's a really interesting lens. The timing is curious, of course, right speaking Monday in video reports earnings Wednesday, but they are very key partners in the state of play for AI servers what the AI factory but data center for running AI workloads. And you know, this is kind of his playbook, right Carol, Let's be
honest about it. You know, Jensen does tend to appear alongside his partners often. But I think we'll learn a lot today about the state of the world, the demand levers, and also the issues with supply.
So much to learn ed.
Ludlow is going to be with us a little bit later in the show, but tune in later today. It's going to be an exclusive intero with the CEOs, as he says, of Dell of Nvidia, live from Dell Technologies World. That's a two thirty pm Eastern eleven thirty am Pacific time. But as we think ahead to Wednesday and videos earnings out after the Bell, I want to bring you what
to expect with Manday seeing Bloomberg Intelligence and Mandy. We just heard a little bit about the drivers the trends from ED, but get into the nitty gritty on Nvidia. Is there as much enthusiasm as to really what the CPUs are bringing to bear as well as the GPUs and the infrastructure.
Yeah. Look, I mean when a company is growing top line the way in Vidio is growing, and that top line growth seems to be accelerating.
It just there's no doubt that, you know, they are capitalizing on the demand and the chips remain in short supply. The only thing I would caution on is you know, the rising memory prices, so we still have to see the impact of that on in videos margins, and they have talked about, you know, maintaining those mid seventy percent growth margins and the other the thing is there's been that big shift from training to more inferencing and reasoning.
And we know Nvidia almost had a monopoly when it comes to training workloads, but when it comes to infrincing and now with the rise of Entropic, you know, and how much traction Entropic has had with coding agents, it remains to be seen if Nvidia still has that bulk of the share when it comes to the use of their chips, and I think that's something we'll try to ascertain with the earnings call.
I mean, it may move is moves in inference. I think about the acquisition of Grock with a queue not like k but Mandie talk to us about what we might hear about that partnership, about what they're building to serve the inference market.
Absolutely, and you bring up a very good point that they have talked about, you know, Grock being a very big driver on the infrincing side to the tune, you know, north of twenty billion dollars just from that acquisition. What they're doing integrating that acquisition. And look, I mean we know Entropic has also partnered with Nvidia now and Anthropic is the one that is had the most traction you know, this year with coding agents. So from that perspective, some
of those influencing workloads will be deployed on Brock. And to your point, you know, AGENTAI does require a lot more CPUs, which is why we've seen you know the likes of Intel and AMD do very well. So it will be interesting to see how Nvidia is positioned in all of this with you know, CPUs also having their moment when it comes to the chip DEMND.
That's looking towards Wednesday, after the bell, all after that key conversation that Ed has Later today, blumbg Intelligence is man deep saying thank you very much, Elo Musk. He says he's back in Texas working on plans for that SpaceX ipo as the rocket and AI company prepares what could be the largest listing ever. Now Mask made the comments virtually the sum International Smart Mobility Summer in Tel Aviv.
Take listen IPO. You know we've going to get the ipo SpaceX ipo going pretty.
Zoon, I think.
Meanwhile, SpaceX has notified investors it's executing a five for one stock split. It's lowering the per share price for investors. In an email, shareholders were told the fair market value are of each share was adjusted to about one hundred and five dollars roughly five dred and twenty seven dollars following the split.
According to sources.
Now coming up CME and Silicon Data, they are teaming up to create a futures market for computing power, a key resource driving the AI boom. Silicon Data CEO Carmen Lee is going to be joining us. This is Rumberg Tech. Let's take a look at today's big number, sixty seven million dollars. This is the largest power deal in history triggered by guess what.
AI data center?
Boom next Era is acquiring Dominion Energy for sixty seven billion dollars in stock forging a giant utility.
It's going to span from Florida to Virginia's.
Tech hubs at Bluemmegg's Leanna Baker, who leads the M and A team is here with us. Leanna, what is it that the driving force here? Is it really all about the AI compute?
Need?
You said it, and I'm surprised it took this long to see a major deal in utility since demand for power is at levels not seen since, you know, after World War Two. So it was really a matter of time for some of these giants to come together in utilities because they need to team up to be able to pay for the build out that's necessary for AI.
They say it's about scale, but with scale comes ayes of regulators.
How easy is this going to be to get through?
From what we're hearing, It's not impossible. Now's the time under you know, the Trump administration to go bold and go big on deal making. But also where Dominion the target is based. It's only in three states apparently. You know, Virginia's data center ally is a really key part of this. But because only three states might be needed for regulatory approval, you know, this could could really happen within a year to eighteen months. Of course, there's other regulatory bodies that
also regulate power, nuclear, et cetera. But it's not an uphill battle. Analysts are saying, you know, it's not a trivial regulatory review, but looks like it's going to be okay.
The timing is going to be key though, in terms of there's a little of political pressure, a little bit political focus on the cost of energy right now in large pot because of the AI build out, So how is that going to serve a customer base? Do we have any idea what impact that happen pricing?
In the press release, they hit on this idea that there's going to be these credits going to Dominion customers. So they're very aware that they have to focus on this idea of cost and price to make sure that consumers don't think their utility bills are going to go up because of this deal, so that will be key. You're right, and you know time will tell if prices will go up.
Leanna Baker an extraordinary m and a Monday. We thank you for talking us through it. Look, we talk about the need for energy within AI, but compute, of course is officially becoming a financial asset class that we all care about too. CME Group, Silicon Data then launching the world's first futures market for AI computing power later this year Penning regulatory Review now joining us, and please to
say in the studio is Silicon Data CEO. Commonly you're also the CEO of Compute Exchange, So talk to us first and foremost what the relationship with CM is going to be bringing us. How important is it to have a futures market and compute.
It's incredible important. I'm glad that like came in. This week is exciting week for the semi industry as a whole. As you mentioned energy spend, we're pubably going to spend over ten trillion dollars this year. Think about the SPA market, fund energy to call, location, to the server themselves. Everything is at a commodity level. You need finance your infrastructure to head to manage our risk exposures them While the bank right they're underwriting trillion's dollars loans, how they manage
their exposure? How do they hatch your future volatility as online? So from a commodity point of view, think about how oil futures the wonderful job for people hatching oil fluctuation, especially during the round wartime. So it's incredibly important to have futures.
You mentioned the banks, but who else would be the players involved in such a market that need to be hatching right now?
So think about people who naturally long GPUs, so they listen to themselves, new clouds, design houses, fabs, Everyone long gp exposure. They want a way to hatch it through short futures or produptions whoever needs compute just like you and me, Like astartups, they spend billions of dollars on GPUs. They need to hatch their costs as a complete component
to a line item. Traditionally, sales companies they do not really have a cost line item, as I found people now they do either found GPU level or token level and it's a big line item coming up.
So the whole push is about transparency and an ability to be able to put these sorts of assets on your.
Overall balance sheet.
But then when it comes transparency just about the cost of compute, you've already been doing that with the computer exchange.
What is it thing you built there and who's using that?
It's great question. So compute changes farm market for GPO resources. So we do four contracts as well as reserve contracts for GPUs resources. So a lot of participants. I would say all participants so far are the underlying consumption layer, so AI startups all the way to the neon clouds, so two really big sides of companies.
We work with European Neo.
Clouds, American New Clouds Sales Eastern Union Clouds. On flip side, we have startups and enterprises globally. It's really fascinating you see how people try to do longer term contracts because they want to lock here in the rate. They don't want the forty percent daily volatility comes on demand GPO pricing. There's other way to hadg that fuel futureon options. So we want to make sure we have the right venue
for the right use space. If you want to reserve GPUs, you want to face called deliveries go to comput Change. You want to hedge financial exposures, go to CME in the future.
Tell us about what sparked this whole idea, I mean for full transparency for audience. You used to be part of the Bloomberg team, you used to work in this very building. What was it that you felt was missing in the market, Whether it was there literally no transparency around around access to compute from one AWS versus a Microsoft offering or a neocloud offering from Corway for example.
I won't say it's no transparency, but very little. So unless you're in the ecosystem, you're actually in the neocloud transactions. You prop do not know what's a resource price of paying people paying for longer term contracts. The about term structure risk today and I thinking about this lack of visibility on demand pricing all the way to reserve which is three years, five yearson deal. And also GPU is
not homogenius products. You need to normalize that. You can just say, hey, I'm paying the HIT one hundred with certain HVM, You're paying different HVM devents your location.
We can just do a simple average.
You need indices to normalize the online assets. So producers as a data that's trackable a representative to the price we are paying today.
You know, we're just talking to man thing of BlueBag inteligence, who are saying that we need to get to the bottom of invidious numbers that come after the bell on Wednesday about how much HBM or memory costs really starting to impact their margin. What is it you're saying in your data about just the cost of computer at the.
Moment with the price that going up, the price going up since December last year, it was pretty interesting last year everyone's talking about, Hey, shouldn't the computer price always come down and come down to zero by a year A It's not really happening, supplied. The man shift every single day, the term structure to forward pattern shift every single day because people have these expectations, they do different bournets come out all the time. You stood at last week.
Last year is a fab and this year is memory and going forward maybe you call location space. So every time it's different.
So pricing pressure is there for you.
The pressure is on to get this deal solidified with the CME.
You've announced it, but we didn't say there's regulatory oversight. What sort of he do you need to go through what sort of questions we asked.
So we are actively working with CME and then review with CFTC and other regulatory bodies.
It is a very.
Traditional data future products. We're not talking anything that's exotic, right. We have done that for oil, for gas, for any other as a classes, so I really don't see a major concern farm for anyone.
And going global, how global is the offering that you currently have with CME or indeed the compute exchange. Where else do you likely to push in two more broad offerings worldwide?
So we launched GPU Industries at Bloomberg Terminal last year, the world's first GPU indices. We cover all prices x China, so think about the European from the US. We normalize it your location to win data points, so anything x China is capture our indices. So ideally around the world you can hatch that you're exposure with our indices.
Well, have to see how this progresses come back on. I hope Silicon Data CEO commonly there on all things futures market for compute becoming up. We're talking Apple's revamped Siri, but it was expected to introduce a new privacy focused features aimed at selling it apart from rival chatbelts or on that. Next, this is Blueberg Tech time now for
Talking tech and first up by Jus. One percent drop in sales was less than analysts had expected, void by its new AI businesses, but the tech giant in China is making a strategic pivot, shifting towards automated agents and aipower cloud.
Units and away from search plus.
Publicis is acquiring online data broker live Ramp for about two point five billion.
Dollars in cash.
Says it's a paying a thirty percent premium per share to supercharge its data assets and accelerate its AI driven marketing capabilities and.
Shares of Japanese chip maker Kyosha.
They were flooded with by orders after forecasting a massive eight point two billion dollar quarterly operating report profit. It is latest sign of meteoric demand hardware for AI services and the resulting shortage and conventional memory chips. Let's talk elsewhere in the world of AI, because Apple is set to debut is iOS twenty seven and this year is WWDC, featuring a revamped Siri experience.
Now.
The update is expected to introduce new privacy focus features.
That could help.
Differentiate SyRI in the crowded chatbots space. For more, Bloomberg Apple and Consumer Tech Managing editor Mark gum And brings us what is always the bread and butter you bring us to scoops and push us towards For many reasons, Apple wants to lean in on its privacy advantages. That what is going to make it distinct versus the other offerings already out there.
Yeah, for Apple, privacy has been a differentiator now for going over a decade. They talk about privacy when they release any new product, or any new operating system or any new software service feature. For them, it's, you know, their north star that they like to say, everything is built in from that perspective, and they release see it is a selling point that people want devices that have
better encryption, better security, better privacy than the competition. And obviously this is really important for everything you're doing on Apple devices. You have your financial data on there, your communications, you have your smart home information, all sorts of different features. You want the key private and that's going to extend
to the new SERI. We're in an age right now where everyone's got a chatbot, everyone's got AI features, and just like you've seen Apple do with features and comparing themselves to Meta and Google and whatnot. You'll see them do that with this chatbot that they're going to announce on June eighth and developer conference, talking about THEIRS retaining less information and less so called memory than other chatbots.
And one feature that a report over the weekend that they're planning for this is the auto deletion of chatbot conversation. So you can set your chats just like you can with the Messages app, to save in your phone and your iCloud forever, or you can have them auto delete after a year, or you can have them auto delete after thirty days.
So that's going to be a bit of a unique feature.
Other chatbots have what they call on incognito mode, which is basically, you know, private browsing mode and a web browser, but private chatting in your chatbot.
But this is going to be a little different.
Talk us about just how technologically that makes it stand out. If I have an auto delete for thirty days, what does that actually mean to the memory that than me having had that discussion with the chatbot and it being useful going forward.
Yeah, Well, it's two separate things.
Right.
The auto delete of conversations means that that conversation, that chat that's just gone forever. In terms of memory, right, you have chatbots that keep your memory forever, keep your memory for a finite amount of time. Apple is going to retain memory a shorter amount of time than a lot of the competition, which may make it useful in the short term less useful in the long term. They're
using techniques. There's one technique they have called differential privacy to be able to retain some memory but have it glued exactly to the user, right, And when it's stored, not glued towards the user, but you're able to stort on device, so it's able to come back and tell you what you've talked about or give you that context.
So I think it is going to work fairly well.
It is going to be fairly competitive, but Apple really going to market it around privacy and security.
As always A muster read with power on Bloombo's Mark German, Thank you very much. Indeed, let's talk about Miami International Holdings or MIAX. It has seen tremendous growth since it was founded over a decade ago, operating eight exchanges, cross options, Secretaries and futures for disclosure purposes as part of a collaboration with Bloomberg and MIAX have launch pad Futures and Options, and Bloomberg has a dedicated studio on the exchange floor
where Bloomberg's Norah Melinda is joining us. Now, heart off your interview with MIAX CEO Tom Nus Gallaghan. Talk to us about what you've been discussing over there.
Well, Carolina, have the opportunity to chat with Tom Gallagher earlier this morning. Of course, we're here celebrating the launch the Bloomberg one hundred equity Index Futures. Now, this is a product that the company is launching, hopefully geared at retail traders. We've been seeing an emphasis on a lot of companies, a lot of brokerages really being interested in
bringing in the retail participation. This company offering the opportunity of commission free for retail traders as they are launching this product, the first of a series of products to also come. But what was really interesting from my conversation earlier with Tom was the idea of Miami as the
Wall Street South. We've been seeing so many big business leaders, Ken Griffin, a number of other names talking about the tax environment being more favorable in states like Florida, southern states, and so you're certainly seeing my EX really leveraging that coming to Miami. They're headquarters, funnily enough, were actually in Princeton,
New Jersey, but the trading floor just behind me. So a lot of activity here in some of these southern states, and certainly my AX looking toward further growth and development here.
Fantastic.
Thanks for bringing us and insights from your conversation. We appreciate it. Coming up, well, we've got plenty to be discussing with a recursive CEO, Richard Soshia. It's an AI company coming out of Stealth and already he's been running you dot com as the CEO. He's already also got AIX which is a venture fund, but now he's starting yet a new company all around the issues of AI and where we take large language model creation in the
lab and the frontier lab lab area. We're looking though right now as AI not being the savior to these markets. Now's that one hundred off by seven ten percent. Look, it's a second straight day of losses. We've seen the semiconductor index as well, off by two point four percent. That brings its losses in the last couple of days to more than six percent. Of course, got a lot of the eyes on a video for later this week Wednesday, after the bell we get their numbers. We're off five
percentage point for the world's most valuable company. This is Bloomberg Tech. Welcome back to Bloomberg Tech. We got a little bit of risk aversion creeping into the market, and it's largely geopolitically focused. We're worried once again about the conflict to US Iran, and we're seeing all prices on the rise. That is seeing yet a second day of pullback, particularly on an ADSDAK one hundred or off by eight
nine ten percent, let's call it. We're seeing the chip stocks under pressure and a particular Micron and the like really dragging in points perspective. But I'm also looking what's happening in Crippo. Look risk assets in general taking a bit of a hammering. We're seeing down two point eight percent, but we're sub seventy seven thousand now it's seventy six thousand for bitcoin, and there's been about seventy million in terms of the actual bearish bets coming back into the market,
bullish bets are being taken off. We've seen seven hundred million dollars worth of those bullish bets being taken off in the last twenty four hours alone, according to coin Glass. So just keep an eye on risk sentiment. But look, if we look across the Asia, not always bearish. I'm looking at Samsung shares in South Korea up nearly we
call it three percent. Investors were actually encouraged by signs at the company's union it's open to some negotiations, while at local court moved to limit the threat of strike remotes. Global Tech editor Peter Elstrom joins and just remind us of the context here. This is Samsung that has done phenomenally well in terms of share price, in terms of profitability, and now labor wants to see some upside from it.
Yeah, these are very tense times in South Korea, make no mistake about it. Samsung is squaring off against its union. The union has said it may go on strike as soon as Thursday for eighteen days. That's a big deal for the company because, as you say, they're in the middle of this boom and memory chip prices, which has been great for their profits. They made a ton of
money because of that. The whole AI industry needs more of the memory, both from Samsung and from s K Heinez at this point, but this labor disruption threatens to throw a wrench into that whole dynamic. And just to set the scene, it is quite unusual for Samsung to have this kind of conflict with their union. For decades, they never had any conflict at all, and then just a couple of years ago they had a small strike, but it wasn't that serious. So this is unusual for
them to come this far. As you say, they've agreed to go back to the table after setting this possible strike date. They are talking again, but they haven't reached
a resolution yet. The court took a little bit of the damage, the potential damage off the table by saying there are some limitations about what the union can do at this point, but there's still this possibility of a strike coming up later on this week, which would affect not just Samsung and the South Korean companies, but the AI industry more broadly.
Yeah, everyone waiting with bated breath as we worry about memory prices yet further if there's less of supply. But Peter I mean, it was just last week that we saw the South Korean market lose billions, hundreds of billions of dollars in just ninety minutes, as people wondered how politically speaking, we might see AI profits be shared with a nation writ large. We've always seen s k Heinez have to offer more of its profits to its workers.
Just remind us of the tensions there and if they'll also spill out globally.
Yeah, the Korean society right now is having this debate about what are you going to do with these enormous profits coming out of AI? And also the government is beginning to ask this very important question, how should governments prepare for this world that's coming at us with AI, with all these AI improvements, where perhaps you're not going to have the same kind of jobs that you had
in the past. So, as you're referring to, one of the policy advisors to the president posted something on his Facebook page where he talked about the possibility of a citizen dividend where they would take some of the profits from these big companies and use those to establish a more stable foundation for the society that could involve retraining. He said it could involve support for people who want
to startup companies. It could involve a number of different things, but his goal was really to kick off this conversation and try to ask the question, how do we as a government proactively start to think about these big issues and if we're going to get this windfall of profits because these companies are making so much money, how do we use that cash to the best advantage for what's ahead of us?
Thinks Peter Elstrom. Fascinating what's happening in Asia. We appreciate it. Let's look at what's happening with Google's leadership in AI right now has made computing power a really prized resources inside the company, with priority increasingly going two major projects like Gemini and paying customers.
The bottleneck. It's frustrated to some employees, prompting a number of.
AI researchers to leave for startups for Morell bloombergs Julia Love, who covers Alphabet joins us now and Julia they're going and founding their own companies because they can't get what they want done internally at Google. How how much of a change is that to be struggling to get access to computing?
Yes, so I think it's a you know, just a fact of the AI industry that researchers would always like more compute, but the shortage has just become more acute in this day and age because large language models require such vast amounts of computing power. And so traditionally AI research at Goodle, especially in Goodle Brain and one of the labs, was very idalitarian and researchers not a certain amount of computing power and they could team up to
try to do bigger projects. But now that fool still exists, but it contracts in times of high demand, and researchers just often can't get meaningful research done with their allotations. And so if their work isn't a priority at Google, that is the only you know, avenue they can pursue, whereas in a startup they have more doors to knock on.
I mean, let's just talk about Andrew Dye, who've focused on in this particular story. You've also focused on a female founded company that's gone on to get VC backing when they articulated.
To you what it used to be like what it is now in terms of building businesses.
But is it because Alphabet is too busy selling out its compute to its cloud customers or what is it that's making it so much more of a tussle.
Yes, I think there's a few things happening at once. One is that generative AI has made you know, Goodle's consumer products so popular, and Goodle needs a lot of computing power to serve those. And then the cloud business is to peking off, so Brutal wants to meet that demand.
And then at the.
Same time, AI research is more computing and intensive than it once was, and so researchers need more compute to do a cutting edge experiment. And so there's a lot of mouths to feed. Everyone wants more. And if people run up against roadblocks at Google, that, oh.
What a tech issue.
On the Tech Show, Dan, we'll get back to Julia Love when we can, but we appreciate her insights there. Meanwhile, let's talk about where else computer is being used and what we're seeing in the Frontier labs. Because Recursive is a startup creating AI that conducts experiments on how to safely improve.
Itself and it just came out of stealth. The company is.
Valued at four point six five billion dollars. Back is including Greycroft Video, AMD Ventures and more. CEO Richard Susha joins us now for more. Many will recognize you because Richard, you've joined on another company that you're also leading, you dot Com. You also happen to be busy in venture capital. So talk to us about Recursive. What is it that you felt needed to be fixed?
So we want to build recursive self improving superintelligence that automates knowledge discovery. You know, AI now is code and can code, and so you can have a closed loop where you replace human ingenuity and trying to come up with ideas, implement those ideas, and validate those ideas, and you can actually allow AI to do that on itself.
The reason you're able to enter out of stealth with a four billion dollar market capitalization is because you're a pretty well known famed AI researcher, Richard. But there are many well, shall we say, there are many very ambitious labs out there who also want to reach superintelligence.
Why aren't they doing it right?
What is it that you feel Recursive is going to gain the edge or rather than helping another lab already do what they're doing.
Yeah, we're we collected a combined an incredible team of co founders, folks from Google DeepMind, from open AIE from Salesforce Research and many other incredible labs Meta and so on. We are focused on open endedness and really have the entire company try to allow AI to build the next better version of AI. And whenever in AI research we replace manual systems with learned systems, we see a massive improvement.
And then on top of that, we can sit now on top of this whole new infrastructure where we built a company from the ground up by empowering AI to do its own experimentation, whereas most of the other labs in the past basically started before that was possible.
Okay, so you've got this focus from the very birth of the business, but you also need a lawful lot of money, as we can see there raising for Compute to.
Take on some of the juggernauts. How much is it a costly business?
How are you thinking of reframing the demand for GPUs and the like.
You're absolutely right.
A big new scaling law we're trying to prove is that the more compute results in more inventions, more improvements, and so compute is one of the largest costs for us, and that's where we're really excited to have the folks like Nvidia and AMD be part of this round.
Just the open ended nature of driving in endless innovation. You say you want to do that safely. What are the worries and the limits of it not being done safely?
You're absolutely right. Safety is a huge concern.
That's why we have some of our co funders who've done research in rainbow teaming, for instance, where I improve the safety of large language models like Tim rock Teeschel and his collaborators worked on. We think we take safety very seriously and we believe though that this is the best and fastest way to superintelligence, which will then allow humanity to flourish much much more by inventing building ultimately a Eureka machine, one that allows us to invent everything else thereafter.
How are you going to divide your time? Richard?
Your CEO of you dot com, and you're also at AIX, the venture firm that's just lost its co founder.
So how do you divv this all up?
I work all the time and have incredible teams around me that enable this of AI agents, also AI agents, yeah, but also some really incredible humans.
Okay, incredible humans cost a lot of money, so were they incentivized by equity, by the sheer ambition of the task, or how are you going to be hiring yet further talent because they're also getting to a significant expense line compared to GPUs.
That's absolutely right. Yeah, I think as a founder these days, you want to think more about the overall potential of the pie rather than your slice an amount of pie that you have as a And we do share equity with our employees and everyone, and I think that encourages and excites everyone. I think in general, the more you have ownership of what you're creating in this AI world, the more you love AI, because then you just care
about the outputs. And so I think it's important to share that equity and ultimately grow something amazing together.
Which is so sure.
Great to have some time with you, CEO, co founder of Recursive, We appreciate your time today. Coming up, we're going to go back to Las Vegas is Dell World and we're speaking with Daniel Roberts from the AI cloud provider Iron.
That's next.
That's a pretty big tech Let's get back over to Las Vegas. Our own ed Ludlow is standing by with Dell Technologies World.
Event upon you ed, Yeah, we've got a really great case study.
Iron is an AI cloud that is building infrastructure all over the world, not just the United States and all these geographies.
Dell is its key server partner.
Right it wants the Nvidia GPUs. Couldn't think of a better conversation to have to kind of kick off the day. Dan Roberts, co founder co CEO, you've been busy guy as well on the M and A side. You've acquired a marketing or creative agency. I mean basically why. But there's also this conversation Caroline and I have it all the time about the public's perception of what's really happening with data center and how it impacts them.
Yeah.
Look, brand awareness, we're going global, We're growing our customer base. It's really important to us. But that's a small point of the grand scheme of things. It's all about power and time to compute, and the issue is you can't employment a software update to bring on power. The tech industry is very brilliant at going really fast, but you can't code your way to an AI gig awad of compute.
And that's what we're focused on.
In the United States, at least there is some some sort of public backlash in zip codes where data center's getting built, the public feels the pressure of higher energy process. What's that like for iron and what are you confronting in that respect?
Yeah, eight years ago when we started this business, we had a differentiated strategy. We never went to metropolitan areas. We went to regional communities where there was an abundance of renewable energy that creates a cost structural advantage over time. And we've reinvigorated local communities across British Columbia, Canada, Texas. And it's an advantage for us because we are located where people want us.
To do business.
Dan, I think I'm saying, just as with everyone else, you're in a position where demand for compute, your compute is vastly outpacing your ability to supply it. What is the biggest barrier to you getting more capacity online, getting more stuff built?
Absolutely? I mean we're still in the dial up era of AI.
When you step back the amount of friction you've got waded in for prompts, You've got to craft your prompt really carefully. Complex prompts take fifteen to forty seconds to actually spit out an adser as. That speeds up demand accelerates, which drives more compute and more use cases. And for us, it's been a focus on what is the end choke point, and that's power, it's feel, it's concrete, it's actually building the physical infrastructure.
That takes years and years.
If you wanted to start today and build a gigawat ai factory, you are looking twenty thirties before you get the first compute online.
Let's get a bit deeper on that. So if you wanted to say, in other words, you choose a site, you get permissions, You're not going to get it online for six years, four years.
It'll take you eighteen to twenty four months to get the attention of a utility to work out whether your block of dirt even has power or not.
That's the starting point. How we're getting to it. What are the utilities not doing that you need them to do? Oh, utilities, they're doing the best they can.
Like they're running complex networks with a lot of generation on one side, a lot of power demand on the other and at the end of the day, when you connect to them. This is why grid connected capacity is so valuable. When you connect to them, they're underwriting twenty four to seven guaranteed power, so they're naturally risk adverse and.
They're naturally dealing with in the inundation of requests.
At the moment, I'd love to go back to basis for seconds. You build data centers, and those data centers have servers inside them, and those servers are for AI workloads. What's it like working with a Dell? What is it that you rely on Dell four? And how do you get hold of in video GPUs?
Right?
There is this idea that you can just phone gents and one and say hey, I need some of those, but in practice it probably doesn't really work like that.
Yeah.
Look, we've got great relationship with both Dell and in Video. We announced a partnership with n Video for five gigawats of compute.
They're also asked Weed in an investment.
Yes, so they're exposed to upside in US as we grow and deploy their GPUs, and we're working on their reference architecture for a gigawat factory in Sweetwater. But the opportunity with those partners is to work closely and build up the whole ecosystem all the way from land Steel concrete down to the end us of this compute.
Is there a geography somewhere in the world that is a best place to build a data center right now?
Look, every geography is slightly different in terms of how they handle things. But the majority of our capacities in Texas, and they've been pretty good.
If you could ask mister Wog and mister Dell one thing right now, or we ask something of them, what would it be.
Oh, look, I think the whole industry is moving from. If silicon is no longer the choke point, how do we solve steel? How do we solve concrete? How do we solve the killer watts?
And this president and this administration they have an answer for that.
I think everyone's trying to work it out. It's been an.
Interesting evolution for your company right now. Public in the United States, Sydney, Australia is your home. What's that like, trying to work across borders at the moment and trying to get projects done at the same time in different jurisdictions.
Oh, look, the reality is we've got projects in North America, We've got projects in Europe, We've got projects in Australia. Yes, my family is in Sydney and I get back for the weekends. But you know when people ask where I leave, plenty bulances on a plane.
Den Roberts, co founder co CEO of Iron really critical AI cloud and like your previous guests, I think everyone's just working all the time right now, character.
Largely on planes ahead. Thanks so much.
Look tune in later today as ed sits down with the CEOs of Dell of Nvidia for an exclusive interview.
Live from der World.
You don't want to miss up to thirty pm Eastern eleven thirtym Pacific.
Coming up new thirty F filings.
They're revealing how hedge funds are repositioning around big tech and the AI trade. Will break down the BEGINUS moves next.
This is blue Beg Tech.
Fresh regulatory filings known as thirty F filings, giving investors a close look at how hedge funds and major money managers are positioning around tech and the AI trade. Joining US now to break it all down. As Blomberg's Hemma Palma is always so much happening each quarter at this time, Hama passed through, for example, what's happening with Microsoft, because certainly the bill Atman News quarter attention. Where else is there been moves in that company?
Absolutely, Bill Ackman taking a pretty sizeable steak in Microsoft, more than two billion dollars worth, making it his fourth biggest holding. And this is a stock that fell a great deal in the first quarter, So he may have been buying up these shares that attractive prices, but he believes that Microsoft is stronger and a lot more resilient than investors are out there believing. He thinks Microsoft three hundred and sixty five suite with Word and Excel or
two of the most valuable franchises in enterprise tech. So really Bill a sentiment from Bill on Microsoft, but that's not what everyone's thinking.
Yeah, is that at odds with some of the others the Tiger cubs.
And that's absolutely So it's really interesting when you see these divergences. So Tiger Global and Co. Two slash their steak in Microsoft by more than half.
Wow, Loan Pine got out of it entirely.
So you see really different moves from these firms that really do spend a lot of time investigating these companies. Now, this stock fell twenty three percent in the first quarter. It has rebounded some of that since.
What about just in general, whether Microsoft is the old one out here in terms of everyone either taking one one view or the other, or of the big moves in other companies.
So we did see a.
Decent amount of selling in the first quarter from across the Tiger cubs. We look at them because they tend to focus on tech, they tend to be directional and intentional. Keep in mind, the first quarter incredibly volatile. This March was a wild month. A lot of funds lost a lot of money. That could be why we saw some firms trying to sell. We don't know when in the quarter funds were selling, just because of the nature of thirteen f's.
But we did see some other trends.
When we look at popular cells Amazon, this is a stock that sunk about ten percent in the first quarter. Tiger Global trimmed at stake so to cut Amazon by about a fifth, and Loan Pine sold out of Amazon entirely. Berkshire Hathaway also exited that company too, So you do see some big moves in some of these localized companies.
For sure, I'm fascinating because some of them ever since written up higher on the back of that exactly Hemma Palmer always breaking it down for us. We so appreciate all the moves from the regular refindings. Meanwhile, that does it for this edition of Bloemberg Tech. Tune in later today again, do not miss this exclusive interview. We can't tell you about it enough CEOs of Dell of Nvidia. They are live from Dell Worlds at to thirty pm Eastern eleven thirty am. If you're over on the Pacific side,
don't forget to check out the podcast too. You can find it on the terminal as well as online on Apple, Spotify.
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From New York and from Las Vegas today, this is Blueberg Tech