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This is Bloomberg Tech coming up in videos, Next target the PC and u AI chip sends and video and Friends soaring while rival slide after Jensen Hung's Computech's.
Keynote, Plus All Eyes on SpaceX will dive into how the upcoming Mega Ibo is already reshaping.
Wall Street and New York.
Tech Week kicks off today, will be joined by Tech NYC CEO Judy Samuels on what to expect.
First, we check in on how the market is trying to digest once again concerns about the Middle East conflict, concerns that sees far is getting further away to have any sort of long term perspective with the US and Iranian talk seeming to break down at this current moment. Look we're looking at we're two tens of percent higher on the last that one hundred. Big tech is trying to shake off the geopolitical risk ed. More broadly, take a look.
At it, yep, Nvidia taking on the PC market for decades. You find in Nvidia GPUs in the PC all about gaming now.
It is the CPU.
It's based on ARM architecture, ARMS up sixteen percent. It takes on the traditional market of Intel and AMD. They are down significantly in Vidia outline the specs here they.
Are introducing RTX Spark. Everything we've learned over thirty three years distilled into one show Blackwell RTXGPU with six thousand, one hundred and forty four couter course, one petaflop of AI performance, a custom twenty core Grace CPU built in partnership with Media Tech, fused by m vlage one hundred and twenty eight gigabytes of unified.
Member Bloomberg, Zy and King with us leads our courage of semiconductors that was classically in video typically Jensen and its presentation. What do we need to know about RTX Spark super chip.
Yeah, I mean this has been go rumored for a long time that in video would directly get into this market with a CPU, and now we've finally seen it. And the way he's packaged it is he's saying, look, if AI is coming to the laptop, if we're going to start talking to our laptops, if we're going to start expecting them to think, we'll need a different kind of chip. And here's what I prepared earlier.
And why is.
It so significant that it's better than XAVY six? Why is this such a competitive threat as the market seems to think, to the likes of Intel, to the likes even of Qualcom.
Well, we asked them repeatedly, give us a comparison, how is it better tell us exactly what it does that the others can't. And what they said was wait and see, will show you when these devices come out. But the market is taking this as Look, there's been lots of attempts to get our architecture into the PC market. None of them have gone particularly well, apart from arguably Apples.
But guess what this is in Vidia. This is a company with all the resources it needs, with an established brand in PCs, and with a you know, a real target, and a technology that can differentiate itself with. So that's why we're seeing Intel and AMD trading off.
In Vidia is.
Holding its gains at four percent. I find that a really interesting reaction. If you remember in and I know it as a while ago, didn't you and I spend a whole month testing aipcs. They're out there, they exists. In that case, it was quite commonside. You know, what do you make of that? You know, Jensen's kind of introducing this as a brand new category, but I thought it it is really there.
No, I mean it isn't. ARM in the PC is not there. In VideA itself tried it more than a decade ago. It didn't work out. So this isn't a revolutionary idea at a fundamental level. But again, this is in Vidia, this is the biggest company in the world, and.
This is media tech, and this is ARM and all the other companies are getting a base bit in the glory as well. Ian King, is so great to have you on the show to start us off. Look and video clearly remains at the very center of the AI trade, but as the technology matures, investors have been diversifying their bets. It's all of the future opportunities. We say, Matt witness
hither with us all Spring Global Investments portfolio manager. I mean we had seen a bit of a well plateauing of in videos rise of late, but now it manages to rekick start. How much do you still need to be in the very infrastructure the bowels of the AI trade.
Well, it's a great important question right now, and you talked a little bit about some of the uncertainty in the market. I think it's really forcing investors to remain in some of those safe haven names. Ours cap take tech makes sense, strong visibility with cash flows and their positioning, But we think diversification is going to be important going forward. Concentration risk is real, so we're taking a holistic approach
to tech in the AI ecosystem. As those CAPEX dollars started to spread across the AI value chain, so big cap tech names like the Mac seven are going to play an important part with the evolution of AI, but it's it's important to start allocating some of those investment dollars to other areas of the market.
Matt, how seriously are you taking this nvideo entry into the PC market with a CPU.
Well, it's important.
It's it's gonna that edge kind of compute as as that that insatiable demand for more performance kind of extends to those end products.
They're going to have to be more capable.
And so as we move to inference and AGENTIC AI and physical AI, we're going to see different parts of the market with different requirements and eventually new winners. So I think it's important to have opportunities in different solutions sets to handle that. And I think in Vidia coming into the market there's going to play an important role.
We've seen entire adjacent industries take off that are at the heart of the bottlenecks. We think of the energy trade that has picked up, even nuclear companies. We've seen the focus on new types of when it comes to photonics map. But where are the opportunities that haven't already been ridden in this wave?
Yeah, and you know, we're focusing a lot of our time on the application layer right now. Look, we kind of look and view as that the AI value chain is having kind of five important layers. You've got energy and power like you talked about you talked about the infrastructure with Chips, computing infrastructure. You've got the hyperscalers, You've got those AI models, and then on top of that
is the application layers. Those are those those adopters and the abilities for industries where they're going to be able to drive automation, decision support and kind of productivity gains. They're going to need software to do a lot of that for them, and that's where we've been spending a lot of our time and focus from an investment perspective.
Oh, I don't want to front run and where ED is going to take this conversation just after this map. But software has been getting a bid today, So are you a believer that there are going to be ultimate winners out of us going to get more detailed on the application there for us?
Well? I think so.
I mean, I think companies are starting to focus on how important it is to have that AI is going to be an important driver of what they're going to be able to do, and they're going to need software
to come along with them along that journey. And so those companies that have robust access to that data, that have the operational scale and are fully embedded within their customer suites, I think are going to be important to have that ecosystem help get them to where they're going to be going when it comes to productivity, enhancement or whatever they're going to use AI for.
It's a very difficult morning to make sense of what's going on in the world. I've got some d ram and nan flash data we kind of breather in May pricing slowed down flat on land. There is still an ongoing situation in the Middle East. IDC has this forecast for the PC market that the PC market overall is
going to decline eleven percent in calendar twenty six. When you have a big moment like computechs and Jensen Wong, probably the most important person in the world of technology is on stage and the market reacts like it does, do you actually learn anything useful from that map?
Well, I think it just gets back to the diversification points that we want to make sure that our clients are paying attention to. You need to have a holistic approach to whatever you're doing from an investment perspective, whether
it be across all ten sectors. But I also think it's important just within the AI ecosystem itself to make sure you're spreading your bets across to all those layers, to make sure when there are big moves, when there are those bottlenecks that are going to force pricing up and really force the agenda, I think you need to make sure that you have exposure to all five layers to make sure that you don't lose out on any opportunities that are out there.
And Matt, we become very myopic sat in the United States with the biggest winners being US names. But this is a global supply chain and with some huge wins in South Korea, over in Japan and Europe. Where are you thinking geographically, Well.
I think it starts here, primarily here in the US, but I think there are some names outside of the US ASML I think is a great example of that. That's going to play an important part of the build out and their ability to help provide with these these big customers need to drive those product sets in the right direction.
Matt, just really really quick.
You don't stay up at night worried about memory bottlenecks or you do lose a lot of sleep because of that.
I do, I absolutely do.
I think it's you know, these cycles are probably the duration of these cycles are going to continue to evolve and move out further down the timeline, and I think a lot of that has to do with the fact that these clean rooms are are are are There's only a few of them out there, and they're they're.
Taking up time.
These green fields are going to take two to three years before they come online. So I think the memory names are going to continue to to to drive pricing in the direction that they needed to do for the stocks to work.
Matt Weimer of all Spring. Great to have you back on the show, Thank you very much. Coming up, we're going to discuss how the SpaceX I p O is already changing the world of finance.
Details.
Next, the other big story out of copy techs and in the markets is software. Look at the gains for example on service now in Adobe very simply put Gensen one arguing that the biggest users of software will be AI agents.
Later in the show, will dig in. This is Bloomberg Tech.
Even before it begins trading. SpaceX is reshaping Wall Street. Elon Musk is pitching investors on a company that combines rockets and AI with a claimed market opportunity twenty eight and a half trillion dollars. That is today's big number. That scale is challenging long held assumptions about how companies
are valued, who ultimately drives stock market demand. Bloomberg's tech equity reporter Isabeli is one of the team on today's big take all about how already SpaceX is just so large, so consequential that benchmark's having to tear up the rule books as to how they let them start trading.
I couldn't have put it better tearing up the rule book or read buysing if you want to be more diplomat. So the companies behind the most familiar names you can think of, like Nasak one hundred and foot Sea Russell, they've already changed the rule book from Nasak the seasoning period or the call it the waiting period when the company debuts they go public, they have to sit there for a while before three months before they'll consider you to be part of the Nasak one hundred, they've narrowed
that down to fifteen days. For the foot Seat it's five days. The SMPS and consultation from twelve months to six months. So of course you have proponents saying, yes, this is what we want because it will reflect the market. But you have critics saying, but wait, when companies go public, they're usually volatile, and don't you want to wait and see first, you know, have a normal price discovery. So of course, just like with anything, there's critics and there are also supporters.
And the critics a worried perhaps about protections for retail investors or new entrants. Meanwhile, SpaceX is all about the retail investor. I mean a thirty percent allocation towards them. How are we seeing this managing to go into sometimes Elo Musk's criticism himself of passive investments exactly.
So in the tracking fund estimated to buy nearly twenty billion dollars worth of SpaceX. That's massive. I don't think we've seen that before. And going with retail traders. I went on Reddit, which is the most reliable source on Earth. That's obviously a joke. I'm smiling if people are just listening and some people were like, why will we even buy this? It will be in our brokerage, in the index funds in just a few months. So there is that thinking of like, how will this reshape passive investing?
Will traditional money managers have to reallocate because they don't want to be too overweight on one thing? I mean, where is SpaceX going to be categorized under even industrials tech or communication? So lots of unknown but definitely consequential.
As well. Tough decisions need to be made.
We spent a lot of last week talking about Tesla and the idea that SpaceX merges with Tesla in the future.
You just showed a quote from Scott Sogny.
One point he makes is that actually Tesla and Bitcoin is examples. You know, and I thought about the bitcoin holdings at SpaceX last week.
They might actually get hit by this.
Why because a play on Tesla and a play on SpaceX is really just a belief on Elon. And if you're invested in Tesla and SpaceX, are you too over concentrated on an Elon?
Now?
I know that these are two separate companies, and within those two companies are multiple companies, it feels like, and they have different valuations, different technicals, but it's all really Elon at the end of the day. So that's what one analyst was telling me. Also, like, if you're into Tesla, would you sell that because you're going to be in SpaceX and SpaceX of course it's also in the index. So really lots of over concentrated risk. And it's not
just Tesla. I mean, soon we'll see OpenAI, we'll see Anthropic, which the show has covered a lot. What's that going to mean for our for your brokerage as an ordinary American? I mean, you're going to have such a huge concentration of chech and do you want that for your portfolio?
Blimberg ysabarly tough stuff, Thank you very much. Now, when the Apple Watch went on sale in twenty fifteen, it's on not just the other high tech wearables but also the wider mechanical watch market, and as you can see, that meant hit to sales of traditional in that space. Now, Apple's aiming to use that playbook in the eyewear market. Bloombost Mark German leads our coverage of Apple and that's the subject of this weekend's power On.
We've talked about.
This before, you know why how Apple and the ewear market. But that historic playbook, you broke it down. What do we need to know?
Yeah, it's interesting when the Apple Watch launch, you see what you saw. Within a few years the entire mid tier mechanical watch industry get completely upended.
Right.
There was Movado, there was Fossil, there was Swatch, and those companies are still around, but their revenues are considerably lower than they were.
A decade ago.
The high end of the watch market, companies like Pateech, rolex ap all the hot ones right now and the Covid luxury boom they did fine and what you're going to see is the same thing play out in glasses I believe where Apple and therefore other smart glasses makers are going to completely disrupt that mid tier market brand. It's like ray Ban, Warby Parker, etc. Now you've seen ray Ban, Warby Parker Pivot too Smart. So really the non smart glasses I think are going to.
Get wiped out.
But the very high end Maison Bonet Cardier, et cetera. Those guys I think are going.
To be okay.
I mean, we really do see how RayBan has positioned himself like Zotoca more broadly alongside Meta. But where do you think has also managed to start to get in ahead of the curve from a digital tech perspective, not having to just depend on we'd tie ups like we see with APN Swatch for example, which does prove pretty successful.
Yeah.
No, I mean Meta has done a great job. Obviously, they've pioneered the space there. They're going to be launching new smart glasses. I guess it's June first already, so later this month. They have partnerships with Exertal Exotica. I would expect them to eventually roll out new designs that
are in house form factors. So certainly it's going to be a pretty booming space, and Apple coming into the space with an iPhone exclusive pair of smart glasses is going to drive interest for the rest the industry, and I think Meta has a strong chance for the android side of the world.
Very very quick, Mark, is there anything that we learn from from the vision pro story about how they approach glasses?
You know, I think that there's really it's really two different stories, you know, the vision Pro obviously thirty five dollars, very heavy, very tech tour de force on the glasses something quite lighter and a lot cheaper. So I think they're two distinct categories.
Really is again one of the most read things over the course of the weekend, Bloomberg's Mark Gum and thank you very much, all things power on. Next coming up from video generation to robotics, Luma Ai CEO and Jane's going to be joining us on the next frontier in artificial intelligence. This is blombag Tech.
Another Nvidio message at computext. The next AI race is in the physical world. That brings us to Lumerai, which is launching an open research lab focused on solving generalization in robotics. Joining us now CEO and it Jane. We've talked quite a bit on this program about the challenge. The challenge is that in the physical world, models need to be multimodal. But I think let's start by defining the problem generalization. That might be a newer term. What are you what are you getting at there?
Oh?
Thanks for having me.
First of all, currently, pretty much all robots are trained by showing a few examples of specific tasks, So the entire field basically trains one task at a time. If you compare that to the world of language models, where you know, you train a large model and then it is able to handle a wide variety of tasks unseen problems as well. So that is an example of generalization.
And in robotics we are we have this critical gap where, like you know, we are just stuck in the value of specific tasks in order for robotics to be impactful in the world and for us to be able to just talk to them and ask them like, hey, okay, do this, then like you know, when you're done with that, go go take care of that thing.
Maybe a new scenario being presented for the first time.
For the first time, So generalization is this problem of how do we allow robots to solve generally any.
Task, even in a world where you have access to a lot of synthetic or virtual data. Having a grounding in physics the real physics of the world is a principle challenge. So why is it that having an open science phys quai that have is a solution?
It sounds somewhat abstract with.
Respect, right, So I mean there's two aspects to this. One that it is open and the second is the world that we are specifically doing.
Just open being open source, you mean open.
Being open science, open source, both of those aspects. So, first of all, what the solution actually looks like from our perspective. Currently, the best solution is brute forcing this approach, which is gather data on every single task you can imagining combination of task everything humans do from picking up cups to you know, digging like you know, minds all of these things and gather data one piece at a time.
That's a practically impossible solution. On the other hand, the teams at LOOMA, the work we have been doing for the past four years is in building out these general systems out of multimodeal data Internet scale multimodel data and extracting signals from that. That allows control, that allows simulation of reality, and that allows physical control. So this lab's
job is to leverage that skill into physical AI. And the second aspect of that this is open and I think we would not be doing it any other way. And I think this is really really significant. So if you think about what physical AI would mean for the world, it will be everywhere. It will be in our houses, will be these systems. Robots will be manufacturing everything we depend upon, everything we eat. There will be in our hospitals, they will be in scientific labs, they will be on
our streets. It's completely it's completely untenable that one or two people control this entire stack. So we want to live in a world and we want to affect a world where a small group of people can, like you know, take these technologies and build them into productive systems. And that's why it is an open linesation.
This seems like more of a philosophical push of yours, the idea that we shouldn't have so much control. I mean, it's almost akin to the encyclical by the Pope. But Meta at one point was pushing open source and then it moved away from that just the sheer amount of money that needs to be made.
How are you going to fund this?
How do you commit to open science when everyone's so worried about China and geopolitical tensions?
Right? I think, first of all, it has to be philosophical, because it's not just a tool. This is going to be technology. I mean, AI already is immensely impactful in our world, beyond what anybody imagined even two years ago. Physical AI will be deployed even faster because of the economic impact it's going to have. So a physical philosophical stance is absolutely necessary. But you're absolutely right funding these systems.
So what we believe actually is that this level of control over means of production is actually not a tenable economic situation anyway. You know, nations would not be happy with one or two companies outside their borders controlling their
means of production. So we believe, actually this is not just a philosophical stance, this is an economically sound stance and building an ecosystem where like you know, chip partners, the model brain providers like Quma, and deployment partners work together to build these out into systems of productive work is the right economic path and currently intelligence especially lllms, are going on the wrong path here.
I mean we've got thirty seconds, you've raised nine hundred million. Seriously, we're just seeing the output that Luma creates. But why are you the right person when you've got world Labs for example with faith Ailee.
I think the just like lllms were not or language models were not solved by linguists, we believe to solve physical AI, you need the systems of large scale, multimodel data infrastructure. This is what Luma does. This is our bread and butter and we have produced some of the best models in this space on three D, on images,
on video, taking raw Internet data. This skill is I think what is essential to solving this problem and that's why we think we are one of the best suited companies in the world to solve it.
Appreciate you coming on and bring us the news. I'm at Jane of Luma AI. Have a great day. Meanwhile, coming up, we're going to dive into the impact on software and look at the stocks.
I'm currently seeing.
After Jensen Wang remarks over at computext, he's talking about how software lives on in the age of generative AI, and you're just going to be using more of it on the Agentic from New York for San Francisco.
This is a BlueBag.
Tech Videos CEO Jensen Huang call agentic AI useful AI and says it's going to be the next main driver of AI adoption and AI investment. He calls it the Agentic age. Hwang was in full salesman mode here at Copy Text in Taipei. In Nvidia, of course, is a dominant player in AI data centers, and Hoong says its latest AI supercomputing platform, Vera Rubin, is now in full production, Nvidia's most ambitious endeavor to date, he says. Now in
Nvidia is also launching a reboot into home computers. He wants to quote reinvent the PC with its new RTX Spark super chip built with Taiwan's media tech that will be offered in high end laptops and desktops from the likes of Dell and Lenovo this fall. It's in Vidia stab at loosening the stranglehold of Intel and move the humble home computer into the Agentic AI age. And you know all that talk of late about AI eliminating jobs well,
Jensen Huang calls that notion complete nonsense. He says, a gentic AI is going to be a generator of GDP and that creates jobs. Stephen Engel Bloomberg News at copytechs in Taipei were.
Welcome you back to bloombag tech and look, Stephen said it all in video once again being bullish, and the market is bullish in response for more than four percent on the name. That's the biggest movement in a couple of weeks. We're seeing it back at five point three trillion dollars.
A lot of.
Analysis out there back of America seeing it is continually strengthening. In video's systems mode. We've got City saying as a number of positives. But it does have an effect.
On the rest of the market.
Yeah, and there is a massive rally in software names, as Jensen Wong says, it's an incredible time to be a software company. We're going to dig into it in detail soon, but basically he's arguing the billions of AI agents will be the biggest users of software, and so the biggest customers of those companies that you see rallying on your screen.
Let's get more on the.
Impact of a videos announcement Bloomberg Intelligence highlighting the demand in the AIPC category is growing. Bloomberg Intelligence is Mandy, you've seeing joins us for more. So interesting because actually, like in aggregate, the PC markets under pressure, right, Mandy, because of the memory pricing issue, because of the generations to generations.
Of hardware out there.
Just bring the B thesis on how you respond to the Spark super chip and what you think it will do for the AIPC category.
Look, I mean what we have seen with the AI server category. You know, server used to be a low to mid single digit growth market and look at what they have done, you know on the server side and the data center side with this AI server category. And Vidia is much more of a household name now than it was probably a few years back, so it makes sense for them to try out, you know, whether they
can have some traction on the PC side. And the specs are you know, way different than the current proper PCs. I mean one hundred and thirty two gigabytes of DRAM. Look, these are the type of things that they were the first ones to build. On the server side, it really took off. And with AGAI one thing we know is it requires a lot more compute across the board. So I think it's an interesting area that they're trying to
get into. But I think the big picture here is they want to address physical AI client PCs and really create an ecosystem where they can work across the board, work.
Across the board, and people then question about the role of their own work. Is interesting that well, once again, just in one, I'm really trying to outline his view that it went would use jobs.
Just take a listen.
People talk about AI reducing jobs, complete nonsense. It's causing more software engineers to be hired because the output is so incredible. People want to hire more soft engineers. This is going to show up in our economy somehow soon. And so the first thing is useful AI has arrived.
Mandy, do you align yourself that, yes, more engineers will be there, so more software as you So this is positive for the software names. So have they just been so beaten up ahead of this that people are willing to dig their toe? And if Jensen says too, I.
Mean what we saw this earning season with data dogs, Snowflake, Mango dB is you know, it's hard to think of a thesis where software gets completely disintermediated and everything is built from scratch in terms of agent TAKEAI coming up and really doing things. You know, in terms of the plumbing work and everything. No, this will be built on
top of existing software. Yes, the UI will change, it will be a lot more conversational natural language, but you know, in terms of system of record and you know, things that are that have been built over the years, no one is talking about that anymore. And that's where you know, some of these companies have shown that in their numbers.
With ARR growth accelerating, and if Jensen is saying you would require a lot more software, folks, then probably you know it is the right sort of thesis at least for now that it will be positive and not as disruptive that everyone thought, you know, a few months back. When it comes to the software.
Stocks, Mandy Vinvidio's pitch, if you just boil it down, is that if you're a experienced software engineer, you become a manager of a team of AI agents. And then last night, his further pitch is that those AI agents, the billions and billions of them, are users of software. The agents become the customers of the software company the bi take on that, your take on that.
I mean there will be a multiplier effect. So when you think about, you know, how any technical knowledge worker would do their jobs going forward, they will be using a lot more of these agents and there will be you know, one is two ten or one is two hundred in terms of the multiplier effect. So from that perspective, you could see a lot more consumption of the software.
Now what that means in terms of end to end automation, that's the part that you know, we still need to figure out how it's going to impact the overall employment picture because look, the college graduates that are passing out, they were trained in a certain way. They moved up, you know, in a certain way in terms of their skill set. That I think notion in terms of how the evolution took place has changed and it will change more.
With agenty GAI BlueBag Intelligence is Mande saying fascinating, thanks for joining us. No Kwang's comments on the job market that actually echoed by Nvidia's partner at Media Tech, the company which is helping build that new ut X spark super chip. Well, it expects it's AI data centership revenue to multiply next year, impacting its own headcount. Now Vitz, who is the company's corporate senior vice president, spoke to Bloomag Stephen Engel over at comfortext.
So, as Jensen mentioned, AI is not going to kill jobs, it's actually going to create jobs. And I think one of the things we're seeing is our business is taking off on a number of fronts and a number of new businesses like automotive, IoT, data center, and wearables. Our existing businesses are also increasing in future momentum because of the introduction of more AI capabilities to change the user experience.
So actually we're in a situation where we're not reducing the number of engineers, but actually expanding and hiring the number of engineers, and we're chasing a lot more opportunity. So I see this voting very well for us.
Do you agree with what Jensen said as well? Today he says AI and what they're doing is a GDP generator. I think the latest numbers that did come out of as the forecast for Taiwan is almost ten percent growth this year and GDP on top of seven.
Percent last year, and now we're going to see potentially one tillion dollars in value probably this year or next year, and I would say, with annoying the exact data, probably Taiwan is experiencing its heyday and unprecedented growth here in technology, and it's probably the center of the high tech world
here now because of the AI revolutions. Most of the customers who are working the gate today are tier one hyperscalers, and so I feel very good about the fundamentals of the business we're pursuing, and I think we're pretty said at least through the twenty thirty horizon.
Those media techs Vince who's thinking with Bloomberg Stephen Angel at Computechs coming up. New York Tech Week kicks off today. Tech NYCCO Julie Samuels joins us to discuss what happens and what's to expect.
Cary, I'm actually.
Looking at a New York based company that is running pretty hard today, IBM up almost ten percent. But the weird thing, ed is it's all based on a nearly six month old video it seems O'donald Trump, President Trump phraising ibmco that sent the stock surging, and over the weekend we saw many accounts, dozens of the one x recirculating that video and Plleymarket Money actually wracked up some hundred thousand views on it. Why now, Why the win now?
It seems to be the speculative mania some are talking of in our analysis of Blue Beg Tech New York Technique officially kicks off today with a record fifteen hundred events, gathering thousands of founders, of venture capitalists, innovators across the city joining us now to discuss the city is really rising status as a global tech hub. Julie Samuel's president and CEO of Tech NYC. So, Judy, is it a
rising status? What data can we look at to feel that AI am all the tailwinds are benefiting this city.
Well, first of all, it is absolutely rising. It's booming. It's booming of course in a lot of tech hubs right now, but New York is absolutely feeling the benefit We've got. We're hiring at twice the rate of San Francisco, four times the rate of Boston in our tech sector here last count we had over nine thousand startups. We're raising venture year over year.
It's just I think.
It's doubled, like forty fifty percent. And that's, of course against the backdrop of this entire AI boom. That is just putting so much oxygen into the tech sector.
And it's not why New gets that oxygen is because if it is financial industries, they're going to be disrupted. What do you want to be without industry is if it is going to be health how you want to be the industry is?
I think that's a huge piece. There's a couple things happening. Number one, of course, is that once the companies are building within sectors, they have to be here. Like you just said, you need the expertise, you need the smart capital. You know, you need not just disrupting those industries. But those industries are the clients, they're the customers. They're also going to be your mentors. You know, that's how you
build network. But what we also see at the higher level, and we're at this point that we saw in the early twenty early two thousands to early twenty tens, when the big tech companies and the big platforms build their technology on the West Coast, they often come here when it's time to figure out how do you monetize it and who's going to buy it? How are they going
to use it? Like those are New York questions to get answered, so I feel very great about where New York sits right now in the ecosystem.
Jud I was going to say that, you know, a year ago, the headline probably was that, you know, if Silicon Valley and SF and the AI era where tech companies are born, they go to New York to mature. What in the last sort of twelve months of data would either reinforce that for you or do you think it isn't quite that story yet?
No, I think that's very true. I think you've got two things happening in parallel that underscore that trend. First of all, the largest frontier labs are hiring and growing in New York, like crazy open AI, anthropic, huge new, huge new real estate deals. They're hiring here.
So you see that.
And then you also just see the startups just again, they're coming here as well. But it's a slightly different flavor of startups that you get in San Francisco. And I think that's okay. You know, I think that's good for the country. In San Francisco you get a lot of really really hard tech, and here in New York, again, it's slightly more integrated into existing sectors. I feel very bullish about that. I think that's long term, incredibly healthy place for our city and our state's economy to be.
We actually see a lot of open source AI happening here in New York, which is interesting. We're seeing a lot of infrastructure happening here, also interesting. You know, people are really excited right now, and people want to be in New York City. I guess that is the underlying.
Well, Julie, let's finish on the experience of the highly paid tech employee, software engineer, otherwise, who has options right. Part of the story in SF has been the city being a place where people want to spend their money and live right alongside locality to their employer.
What's the New York City pitch equivalent?
Well, New York City does urbanism like no other city in the world. Surely in the United States, but I would argue the entire world. And I think there's so much about the tech sector culture, so many people building
in tech want to be here. They want to be or there's functioning public transit where the density of this city lends itself to the kind of creativity and excitement and diversity that you really can only get in a city as dense as New York and you see that like this is as Caroline said, this is the first day of tech Week. Our tech week is much much bigger than San Francisco's Tech Week. And that's because here you can bounce every week.
Tech Week, I think is the point.
Yaps perhaps, But you know, I would one quick little anecdote that might be a little too cute I have, but I think it's very true. When you're in San Francisco, you meet people who work in tech, tech people who live in San Francisco. When you're in New York, you meet New Yorkers who work in tech, and that just it's a different it's a different dynamic, and I think for our country you need both. I feel really good
about that. I think New York just is so it feels so optimistic right now and there's just so much building going on in the tech sector that I feel like it's it's great. It's a great time to be building in tech.
In New York.
Julie Samuel's President CEO of techmyc greats. Have you back on the process. I really appreciate it. Thank you, Carol. A lot more news out there today.
It is easy versus West clas you've got to love it, but this time it's talking tech and first Up Wise shares actually tumbling over in London today, the fintech giant confirmed in his answering queries and Belgian prosecutors investigating an alleged five hundred and eighteen million dollar money laundering network linked to forward and drug trafficking. Why says the requests are a routine part of highly regulated operations. Plus midge
ones quarterly losses. They're shrinking Espajian's regulatory warnings finally cool China's brutal e commerce price war, but the food delivery platform posted a narrower than expected nine hundred and sixty one million dollar operating loss, but that the company remains locked in that costly battle with Ali Baba and JD dot Com and Uber. Well it's driving deeper into the
Middle East. The company is paying one hundred million dollars in cash for saking Kareem, a regional souper app from the Gulf that offers food and grocery delivery and payments. That the deal accelerates ubers rapidly common expansion bulits across Europe, Middle East and Africa.
Ed Okay coming out We're going to get back to the SpaceX IPO and what to expect that's next.
The cis Blombog Tech.
Let's get back to the SpaceX IPO and get down into the nittigritty of the numbers. New bloom Mug intelligence analysis reveals SpaceX is some of the parts valuation could hit nearly two trillion dollars. This is the company marches towards its historic Wall Street debut, joining us now to
break down the framework. Blooemug Intelligences is George Ferguson. George's interesting that Ed has been part of that reporting team showing that well, maybe they're offering at one point eight trillion dollar valuation, role perhaps two trillion, but you think really it should add up to two trillion.
Oh well, so I think you know, what we wrote was that we could see the market comparables that could.
Get it close to two trillion. And so today, you know, today, I think we were even seeing some of the space stocks come down as SpaceX lowered their I don't know their.
Targets, their guidance, whatever you want to call that, late last week. So I mean we see comparables that could get it there. I didn't say that was necessarily the right price. They seem pretty rich, but there's comparables, a lot of it built around the space launch business, which we saw a sort of eighty to ninety times revenue.
You know, I was really surprised by the launch figure because Elon Musk himself said repeatedly a number of times in the last decade the launch business tops out right, there is a limit to how much money you can make putting payload into orbit. So why the TAM number is literally everything? But that just give me the math on how you arrived at the number.
Yes, I mean again, we looked really up market comparables, and so from a space launch perspective, rocket labs in the marketplace, and it's about an eighty to ninety times revenue number on Rocket Labs valuation. And so we think that SpaceX, if you plussed up the revenue inside the launch business for the launch they're doing internally because they don't book that in the revenue line, it's about eleven
billion dollars of revenue. And we plug sort of an eighty to ninety multiple on that and got about a trillion dollars in value out.
Of launch potentially. And then you know the other businesses like Starlink.
I have colleagues here at Bloomberg Intelligence Intelligence that are much smarter at that and did that valuation. But Starlink kind of came in thirty to forty times revenue based on some of their comparables.
It's not a lot of the value. It's another sort of six hundred billion. And then the AI business came in around four hundred billion, and that's man Deep Singh, and that's a there's a lot of voodoo. I think inside valuing AI companies. There's a lot of loss in there. I can't totally figure out how.
He does that, do George.
And what's interesting is who's holding say Rocket Labs, and how memified they've become, how much their valuations are based on retail. The latest is out of our store that SpaceX is going to reserve five percent of the shares for certain employees and friends and they're not going to perhaps be held to a lockup.
How much of an issue is that, sorry, I cut the very tail at the lock up.
How much of an issue.
Is well the fact that they're not going to be held or bound to a lock up in the same way.
Briefly, I mean, look, I think there's in any IPO, there's always this challenge that as you come out of the hype of the i PO, you'll see prices sort of fall on it. And yeah, you know, I think though there's going to be a lot of hype around SpaceX, it doesn't mean I think the shares will hold the value that they're coming out of the IPO at. But
I also think again it's a big enough player. It's and it's in AI launch and in connectivity that I think you should see maybe maybe some of that hangover afterwards being less of an issue, but for sure I think you'll you'll run into some challenges.
They beg Inteins, George Fergs and part of the team crunching the numbers.
Thank you very much.
Amazon wants your next Prime order to include a banana. The company is betting that same day delivery and Whole Foods can finally unlock online grocery shopping at scale. Bloomost Matt Day joins us with the deep dive. There is no visitor more frequent to my front door than Amazon Prime, But to this point, a banana is yet to arrive.
Take us inside your story. What do you get in that here.
So Amazon, I think, maybe uniquely for them and their long history, is trying to get groceries to your doorstep.
They've just started asking, right.
So if you ed go online today and you place the same day order, it's very likely you're going to see a little pop up show up near the end, like, hey, do you want to add some perishables to this? About some lettus have about some blueberries, that kind of thing. And so it's that sort of in your face prompting combined with some listenatures to come the back end that makes Amazon think they can play a bigger part and grocery talk us.
About you've been walking around the store. I mean, your whole story is wonderful. It starts with Jason Bruschell. I think that's how I'm now emerging from a big walk in refrigerator. But how impactful is it that they have the logistics down. It has to be the one day turnaround that makes it work.
So it's really gotten them closer to customers in a way that they couldn't before. I mean when they started Fresh a couple of decades ago, they were doing it from the suburbs. You know, a lot of produce was spoiling, and stuff wasn't getting the density they needed to make
the math work. You know, now suddenly, with Amazon coming out of the pandemic, with warehouses real close to a lot of metros, there's more ability to kind of sprinkle these these sort of mini chillers in and make a small grocery distribution center perhaps near you.
And this is where the Amazon Whole Foods thesis bakes in Bloomberg's Matt Day. It's a great story. Go read it on the terminal our online. But meanwhile, and I'll say for this edition of Bloomberg Tech Ed, yeah.
Don't forget to check out the podcast.
You can find it on the Bloomberg Terminal and outline, on Apples, Spotify, and iHeart It is the very early start of what I'm sure is going to be a pretty crazy week in the world of technology. A lot to recap from New York City and from San Francisco.
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