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This is Bloomberg Tech coming up. President Trump signed executive orders to boost AI development in the US. We'll dig deeper with White House officials Michael Kratzios and Shari ram Krishnan.
Plus we get back to big tech earnings, but Tesla and Alphabet's results, Tesla sliding after Musk's warning for the quarters to come.
And Intel's next on the docket. We'll discuss what to expect from the ship maker's results and it's turnaround efforts. Later today the ED.
First, we check in on these markets that are once again at record highs. We're focusing in on what has really been the uplift, feel good factor of the fact that the trade deal starts to roll in Japan. All eyes on Europe and we look at the naz currently up quarter of percent if you're looking at the Nazbak one hundred, but it had been a new record highs.
We're seeing it on other benchmarks as well, and I know you're digging in to the key contributors to the upside and the downside in terms of points.
Yeah, let's go on the downside. Tesla is the earning story on track for its biggest drop since the first week of June, a period of transition, and the core business suffering. Alphabet is AI fueled growth but at a greater cost, raising capex later in the show, going deep on both those names and Nvidia in this session is
pushing fresh record highs. Jensen one front and center of yesterday's Winning the AI Race summit, but sprinkled within that a warning from the President about how closely he's looking in a video Let's get out to Bloomberg's Michael Shephard here in Washington.
D C.
The executive orders of the fresh bit action by this president to enact his AI action plan, a standing ovation for Jensen one, and within it a warning, so to speak.
Well that's raded.
In this he we saw President Donald Trump embrace artificial intelligence is a pillar of his economic and national security agendas, and with it we saw him practically throw his arms around Jensen Wang himself during the event, singling the Nvidia CEO out for praise, really for the company's prowess in making the AI chips that power this new and transformative technology. But he did sprinkle a warning in there before going
on to praise Jensen. He let it slip that he had thought about trying to break up in Video, which would be a startling and very much a market shaking move, and yet he said that he was talked out of it by AIDS, who pointed to the company's importance and how it had taken years to develop that pre eminence, and if the US government had gone after Nvidia, it would be really hard to walk that back.
Mike Shepherd on the latest out of that AI Action Plan event and let's get more analysis, more people in the room. Michael Kratzios is one of them, Director of the White House Officer Science and Technology Policy, and it was let's just start such an enthusiastic welcome embrace of AI written large, Michael, I got to get your take.
It was perhaps jovial in nature coming from the President of the United States, But what did you make of the fact that him, once upon a time considered even thinking of breaking up and video.
I think it was a tremendous day for the country and for AI more broadly. We definitively turned the page on what the last administration had tried to do to really hamper this industry and chocolate with a high level of regulation that didn't allow it to fully spread its wings. What was tremendous about the event yesterday was not only the President's speech, but the participation that the Vice President
himself and five Cabinet secretaries. This was a big moment for the American I industry and it really showed how committed this administration is to ensuring continued American dominance in this critical technology.
Mister Crisis, you helped to write this document and form the policy alongside the advisors David Sachs and Shri Krishnan, who will be on the program later today. What I got from Corporate America is that they feel the action plan is actionable. It's heavily rooted in deregulation and expediting permits. Of the twenty three pages, which section do you think gets enacted by this administration?
First?
Well, we are racing ahead on all of them. I think the one piece that you didn't mention, which I think is also very critically important, is this focus on exporting American AI. This idea that we want the entire world to be running on American artificial intelligence stack. That is, our cloud, our chips, our algorithms, all of that needs to be exported and packaged to the world so that
we become the ecosystem of choice globally. And that is something that Secretary Lutnik and Secretary of State Rubio have been tasked to work on and put together for the country. So between that and our very ambitious agenda on the actual infrastructure of empower it's going to power this, there's a lot of work for us to get done in the next few months.
MISSUS crisis. What's the rulemaking process from here for exporting chips? In particular, the way that your colleague, mister Lutnik put it was that the administration is comfortable with large clusters going to third parties foreign countries, but American company access to that stack would be part of the evaluation process. Do we get a successor to the diffusion rule? Have you started drawing up some guidelines?
So that's being handled by BIS and Secretary Lutnik at Commerce, But generally speaking, what we're going to be doing and through the executive order of the President signed the Department of Commerce is tasked to work with American industry to create AI packages. These are packages that we then can work with the State Department to go out and export
around the world. And part of that, because Commerce will be at the table when these packages are being created with our great chip companies and our algorithm companies and our model companies, we'll be able to have packages which we believe will be able to make it through the xport control restrictions of a commerce department and make them actually extraordinarily viable and very interesting and very appealing to lots of countries around the world who all are racing
and very excited to have AI and deliver AI for their people.
And boy are the US companies racing for AI. The investment that we hear coming from Alphabet, for example, opping by another ten billion in terms of capital expenditure. These companies, though a huge Alphabet potentially facing a breakup. We hear about Judge Meta in August. We also know that Meta itself is also being analyzed. Will these companies always be allowed to be huge if the AI innovation is the win?
You know, that's not something that I particularly focus on or look at. I think you have to talk to the Department of Justice and others. But to be honest, I think we are very blessed in the United States. We have the greatest technology companies in the world that are delivering the greatest products in the world that citizens of the world all want to use. If you just look at the numbers of usage for a large language
model builders, it's absolutely incredible. The entire world wants to run American rails, and we need to make sure that the regulations are out of the way to make sure that we can get it out there, not only to Americans, but also globally.
And I thought what was really interesting was the comments coming from President Trump while announcing the AIX and signing executive orders, was one of copyright and almost trying to push back on this need to be compensated. If you're someone who's made the works that the ultimate models have been trained upon, what do you make of copyright and will that be in legislation?
Yeah, you've burned a good point. In the President's speech, the President discussed the importance of being able to use materials in the training of these models, and this is something that is going back and forth and discussed a lot globally. And I think we're excited to kind of see where that all plays out. Ultimately speaking, what we want to do is be able to allow training to happen here in the United States, and that's something that's being sorted.
Out in the courts.
Mister Cratsios, why is the issue of visas and immigration of talent not included in the action plan?
Well, we talk a lot about the importance of the people that are going to make the AI ecosystem thrive. And one thing that was very unique and special about this report, which actually doesn't get talked a lot about when it comes to the I ecosystem is the importance of actual builders in how we build out the infrastructure
for AI. When we think of the people that we need to make AI succeed, we need HVAC people, we need electricians, we need all these amazing careers that we'll be able to actually build these massive data centers for the American people. So this report touches on that, and it also brings up the point that we need great talent and great Americans to be able to work on this technology.
The way that mister Jensen Wong has put it time and time again is that more than fifty percent of the world's AI researchers are from China or currently in China.
And if you look at recent newsflow, and I know that you do, mister Kratzios, all of these members of talent that are moving from Apple to Meta or Google to Meta in its Superintelligence lab our ivor first generation immigrants from somewhere around the world, but including China, do you acknowledge that the administration needs to come up for a plan to attract talent from outside of this country to fuel the AI industry.
Here America is already the place where the best and brightest people from around the world want to come live, work and study. And we are blessed with that, and we continue to have amazing legal pathways for the greatest thinkers and minds and engineers to come work in the United States. Where I spend a lot of time thinking about is how we can make sure that we have more native born American talent succeeding and being employed by
our great technology companies. The percentage of Americans that are now pursuing high end STEM degrees has been declined precipitously over the last twenty years. That is something that is a curve that we need to change. We need more Americans pursuing high end PhDs and things like artificial intelligence and computer science and engineering, and that's something that we're going to work very hard on.
Michael. Also, what's included is well the focus on reskilling, retraining, and helping states and companies do that. There's enough there to support what is going to be a true upheaval in the labor market.
I think we can get it done, and I think the Secretary of Labor and many other secretaries are very excited about driving these programs forward. As I talked to builders that are building out Stargate, they're saying that somewhere between twenty five or fifty states is where they have to bring in electricians and other folks in to actually work on these projects. And that's something that we need
to fix. That's a curve that we need to bend and get more people being able to work on these actually high paying, very efficient, great jobs for Americans and be able to allow them to participate in the revolution.
Miscristus very quickly. The plan includes a provision to contract only with developers using non bias models. The President brought the issue up also talked about woke in the context of models. Explain why that was included. Please, we have thirty seconds.
The President has been very clear from day one about trying to remove Marxist DII ideology from the federal government, and a big part of that is making sure that the models and the technology that we actually perture and spend taxpayer dollars on does not support these types of ideologies. And that's why you're going to see changes in the way that we procure AI models to make sure that we eliminate this.
Michael Kratzius, Director of the White House Office of Science and Technology Policy, Grateful to have you back on the show after a busy twenty four hours here in d C. Thank you know coming up. Elon Musk warns of rough quarters ahead, following one of Tesla's worst stretches since I first started producing EB So we're going to go to that next. This is Bloomberg Tech.
We probably could have a few rough quarters and I'm not saying it well, but we could Q four, Q one, maybe Q two. But once you get to autonomy at scale in the second hand of half of next year something. By the end of next year, I think the I'll be surprised if the economics, I'm not very compelling.
As a CEO. Elon Musk there on the earnings call yesterday has discussed the results. The share prices reaction is stark. William Stein is with US managing director and senior analyst at Truest Securities. Was there anything about this autonomy promise that is enough to make up for the ugly fundamental picture in the here and now? William?
Oh?
Sure, if you take a very long term view and look at the track record of this remarkable human being and the team that he's been able to assemble, they've done some just really amazing things with new technology in automotive and certainly in AI, and it's moving more in that direction. So one can, you know, certainly take that very much optimistic view on the long term. However, the short term clearly sounds worse.
William. On the earnings call, you asked a question about the more affordable model. What happened was Lars interjected, I think it's Lars when I checked the tape and said we're not going to talk about and then Elon interjected and said, it's just a model. Why I've checked the tape so many times it's just a model. Why why is it that important that he answered you a question? And where does it fit into robotaxi? Please?
So I don't think it's so relevant to Robotaxi. But this lower cost vehicle is something they've promised for a while that is supposed to be a half step between what they're doing now and what they promised at the last analyst day, which would be a significantly cost reduced car, a smaller form factor, and a different architecture entirely. What he talked about yesterday, or what I asked him to talk about, was give us more detail on this interim thing that you said you were making in the first
half of this year. You reiterated that in the press release and on the call, But we're all scratching our heads where is it? And his saying that the form factor looks like a model, why, from my perspective, that is not surprising at all. I was trying to draw out from him some details as to what the architecture is going to look like and to what degree the cost is going to come down as a result of the new innovations he's bringing.
Yeah, he didn't.
Bite on that.
We've got no clarity and ultimately the interjection of a new cheaper model is what's meant to perhaps drive sales in the next second half and the next future year. If we're not getting that clarity, are we just going to get canibalization? If it looks and feels like a.
Model, why, I think that's a very smart point you're making. And the way that I'm thinking about this is, remember, there are some consumer tax credits that are going away. There are also regulatory tax credits or regulatory credits that revenue is going to decline from that. I see an incremental reduction in the cost and therefore the price that they can charge customers as perhaps maintaining volumes at this
level of growing them a little bit. I don't think this is going to be even a significant evolution in the story.
William Stein from Turier Securities, thank you very much, recapping One of the questions posed on the call. Google parent Alphabet was also about with this earnings last night, the company said demand for AI products boost sales and now requires an extreme increase in capital spending. Schweeder Cajeria, managing director of Global Internet at Wolf Research, joins us I put the earnings transcript through various generative AI tools. And the answer I got out Schwetter was AI fueled growth
at a higher cost. Does that summit for you?
I think so.
First of all, thanks for having me ed. I think so. There's just a tremendous amount of focus on AI, and the conclusion here from the earnings is that AI related investments are showing are bearing fruit, not only in search, which is their bread and butter, but also in cloud, where revenue grew significantly higher than where expectations were. So fundamentals are getting stronger for Google, They're showing it, and they're justifying with greater gap xpend so that they can continue.
The durability is justified.
We'll see whether Ed was putting into notebook ILM and making it into a podcast shreutter. But I am interested as to why this is negative for Amazon. Your note is so interesting. Ultimately, think that this is a beat across the board. You think this is a good news story for METSA but not for Amazon.
Well, I think it is a positive. I should have been a little bit clearer in my note, just to be you know, a little bit more upfront. In the second quarter, I think it would be positive for Amazon. With the cloud numbers, we're pretty strong for Google, and there's not a ton of reason to think Amazon also wouldn't have seen benefits of demand. The incremental negative pieces that Google also commented on applied demand remaining tight and so the capacity constraints. They are not out of the woods.
And one of the key focus areas for investors was whether we'd see acceleration in AWS revenue growth in the back half, and as early as the third quarter. We may not see that just yet. It could be pushed into Q four or beyond.
One of your self psych colleagues had a know oubt that basically said Google's hand has been forced by open AI and open hours commitment to spend also in the talent domain. How honest do you feel Alphabet or Google were about the pressures they're facing to spend their way into a situation or out of a situation.
Well, I think that there's a growing amount of pressure and that is pretty well documented across these you know, across what Mark Zuckerberg is saying and what is actually happening. But the benefit with Google is also that they do also have the advantage of the infrastructure of the Deep Deep Mind Research group of some of the best engineers that are out there. So not only a high bay package, but also who you work with, how how innovative you
work is all that also matters. I do think that there was some truth behind what Sundar was saying that, you know, the retention levels are kind of where they want want to be.
Schwider Cojuria of Wolf Research is always great to get your notes and your expertise on the show. Thank You Now. Another company out with earnings, Service Now. The company says it's these strong outlook for revenue growth in the third quarture as customers adopts AI software tools. I spoke with Service Now CEO Bill McDermott. You're out to the company's savings on labor with the help of its own AI.
We're slowing down the hiring in jobs that are quite frankly soul crushing jobs. I mean, just think about like it support. You know, ninety seven percent of standard software automatically generated by AI now, and the pressure on supporting function and people has been cut in half. Customer support eighty percent of the customer inquiries in cases now are fully managed by agentic AI. And think about security and risk management in real time. All the patchwork and the
change management is done by agents now. And the same is true go to market. You know, think about people that talk to customers. There's no prep work anymore. Their AI teammate is doing that for them at service now, So the speed of the company has accelerated dramatically. The supporting cast of the sole crushing work is now being done by agents. They work hard twenty four by seven. You don't have to pay them, and they don't need any lunch, and they don't have any healthcare benefits, so
they're very affordable. And that really complements all workforce. So we're still hiring, but we're hiring less in those supporting functions. And I suppose that's going to happen to all well run companies. And I say that because we now need to think about how you've run a core operation on service. Now, how you change the way you run your business processes.
It could be ordered a cash, procure to pay.
Hire to retire, designed to product. These are all processes that go across functions and we need to have those twentieth century ORG charts obliterated. We now need to work in teams. Teams need to work across processes and the agents need to be the best friend to humans. And if we do this right, the GDP of the world will go up. Companies will outperform not just on the op X costs, takeout and productivity, but they will be building new horizons, new business models, and new dreams on
the service now platform. And we're excited.
Service Now CEO Bill McDermott. Now, let's just shift to IBM shares briefly because they are down pretty significantly day of their lows. But actually spoke with Avin Krishna yesterday, the CEO of IBM. He had been pretty upbeat about his revenues, thinking it was of high quality, felt good about the product. He also felt good about federal spending
and had been a key question mark. They think that this is an opportunity that they want to modernize and leverage technology within the federal government and there are opportunities and they want to compete for that business. It is time now for talking tech and first up, more fallout from Microsoft's SharePoint floor Now. Hackers have compromised several entities
in South Africa, including the National Treasury. As according to cybersecurity firm ICE Security, South Africa's National Treasury has said it's seeking help from Microsoft after identifying malware on its network. Plus Amazon's Prime Day plan if at fires. The company's extended Prime Day sales were men to give more time
for customers to browse, and z Shopers compared prices. Many went to Walmart, the sales at the retailer growing twenty four percent, and Elon Musk's Neuralink is expected to implant chips into twenty thousand people by the year twenty thirty one, generating at least a billion dollars in annual revenue. That's all, according to documents reviewed by Bloomberg, Neuralink has raised one point three billion dollars for investors and is now valued
a nine billion according to Pitchbook. Welcome back to Bloomberg Tech. Let's check on these markets because there are at new record highs and as that one hundred up three tenths of a percent. Yes, there are key moves to the downside. Tesla being one of the men on the upside, with the in video once again crushing it to a new record high more than four trillion dollars in market cap. We are up on the cross the benchmark today hope about that European trade deal to fueling some risk on sentiment.
Move though to a company that has no risk on sentiment, in fact, following the most in a year, down sixteen percent, SD micro Franco, Italian chip maker. Now I'm looking at the ADRs traded here in the US, but it was damn Similarly in Europe. This is after their numbers showed
a surprise operating loss instead of a profit. The every structuring costs, but also big exposure to the automotive sector like Tesla one of the key clients, and they're seeing some slowdown margins also not looking good for the third quarter. We've had that from NXP and of course Texas Instruments. To add.
AI developers and chip makers are rallying behind President Trump's AI action. Yesterday I caught up with AMD CEO Lisa Sue, who said the efforts to bring semiconductor production to the US were strategically important, but come at a higher cost. Listen to this.
I think the AI action plan absolutely helps this notion of bringing up the resources that are necessary, whether it's regulatory or power or you know, just ensuring that there's a view that this is a priority. And if it's a priority for the administration, it'll be a priority for the industry. And you know, it kind of coalesces all of the aspects that are necessary. So it's still hard work. I don't want to say that you know, we can do this, you know quickly. It's still multi years.
But you will move some chips from Arizona this year.
I think you said absolutely, we're going to start manufacturing this year, and we're going to add to it as we go forward.
One of the things you addressed on stage was the idea of the relative price comparison for a semiconductor made here in the United States versus abroad. There is a marginal degree of greater expense. I think you said it was less than twenty percent, more than five percent, somewhere high double digits. But if you are building the broader high performance compute system in the United States, does it matter? I mean, how do you approach the sort of economics of it.
I think the economics of it are we have to consider the just resiliency in the supply chain. I think we learned that, frankly ed from the pandemic. You know, the idea that you think about your supply chains, not just by the lowest cost, but also about reliability, about resiliency and all those things. I think that's how we're thinking about US manufacturing. And yes, it will be a little.
Bit more expensive.
You know.
Frankly, some of the work that has been done to encourage semiconductor investment has been helpful. But when you really average it across everything else that you need to build this computing infrastructure, I think it's a very good investment for us to make to assure that we have you know, American manufacturing and resiliency.
The AI Action Plan will be followed by action, you know, executive orders from the President and other pieces of specific policy. What is left to do, to your mind, what is it actually that needs to be enacted, either from a supply chain point of view or your ability to sell your technologies around the world.
Well, what I really like.
About the AI Action Plan is I actually believe it's quite actionable. So there are lots of things in there where when we look at it, it's a perfect blueprint for public private partnership. And you know, we're going to be active with the administration to try to help shape some of those conversations about you know what should be exported, what an open ecosystem looks like. How do we ensure
that AI for science is front of mine. You know, we're very active with the Department of Energy on you know, the entire national lab infrastructure which can really help accelerate AI in the country. So yeah, we're ready to go.
That was a m d CEO Lises who speaking to me at the AI summit in DC yesterday. Let's talk more about the impact of this new USAI policy framework, the AI Action Plan. Irene Soliman, headed AI Research and Policy for Hugging Face, was in the room yesterday now in the room with us here in the DC studio, And you know, I haven't got it with me now. But when I printed out the twenty three page document, I turned page one and in the indexing open source and open weight was so high up, which was a
surprise to many people. For hugging face that that clearly is a good result.
Absolutely, it's not just for hugging face, it's for the community at large. It's time that the US gets back to its roots of open source and what that means for the future of innovation.
Why is open source, I mean so important to the future of innovation and this so called race of US versus China.
So much of what has started this AI boom today is really the foundation of open science, the original papers that created the kinds of transformers that we're seeing today, and there's something in that report for everybody. So we're really looking forward to the next generation of manufacturing, to the and to the many areas of science where we're seeing where we're seeing more development through open source and open science.
It's not just language models.
There's many communities that rely on sharing and with community work.
What Lisa Su was talking about there was an involvement in forming policy from her perspective. How involved has hugging face bin with this administration? And you know we had mister Kratzios on the show earlier. True Round Christian will be we on just after you are these conversations you were involved in as this document was written up.
We were lucky to engage deeply with this administration. I will say that we are we are a little tech and we've also appreciated the attention that this administration has given to little tech. With our two hundred plus team.
One of the interviewes ide yesterday was with SBA director Kelly Leffler, who said the same thing that you know, her interpretations of heard domain is that this is written with a view to how it impacts main street companies of all sizes as they kind of get to grips of using AI. Why is that important?
Well, so much of.
AI, I think it's easy to overlook those hobbyists. Part of what our platform wants to encourage is the kind of person who's just been toying with AI in their rooms, who.
Really wants to skill up.
We talked a little bit yesterday and today about training and deployment. We want everybody to be able to ensure that they can contribute to AI because everybody is affected by it.
That's what's so important. Perhaps more about the AI evaluation ecosystem as well. I know that's something that you prioritize a lot at Hugging Face and you think about ultimately the societal implications that US talk about how they support the labor market. But I'm interested in the note on bias or potential bias or what ultimately they see as bias within some of the large language models and how
that's adopted by federal government in the US. I mean, how have you interpretated that, Yes, so the AI.
Ecosystem is really a thriving area for research for development. I'm sorry, I'm unable to hear some of that question. If you could repeat that.
Caroline, can you hear me now? Ed do you jump in?
Oh?
Jump in? We have some You know, it's a technology show where sometimes the technology fails just a little. You heard Lisasu talk about science the application of AI. She meant in I think infrastructure, but in energy for example. One of the panelists I believe you listened to with Jake Lucerrarian from Gecko, heavy emphasis on how AI can help the energy industry boost its output. You're also interested
in the science application. You came away reading the document and the President's speech feeling what about that domain.
A huge part of AI, of course, is going to be energy. The energy was high yesterday, and as the plan says, it's only going to get higher, we're seeing it hugging fased. People really using actually smaller models to enhance their workstream. Some of the most downloaded models are energy efficient. As we scale up our infrastructure, people need to rely on what is easy to deploy.
There is a heavy emphasis on exporting the American technology stack or simply exporting American AI. That's the bit of the open source debate that I really want to understand from you, because at the same time, this administration frames this as competition. America wants to lead with its commercial leadership of AI against China in particular, as much as it wants to foster an open source ecosystem.
Are both achievable.
One of the biggest takeaways that we have from this action plan is this US tech stack. So there's not just this race for the frontier, this race for AGI, there's really this race for the global ecosystem. A huge part of open source and open weights is what people are able to locally deploy, and this is the emphasis on the American tech stack. We need the US to develop more of those open weight and light weight models.
Are in Finally, you were in the room, and you know, some people were taken a back a little bit, But about who was in the room, the mix of policy makers, leaders in your industry, What was it that was most discussed in between the panels? You know, what is it that you exchange views on with your peers.
It was a mix, it was It was a huge variety of people in that room. Which is who needs to be a part of this AI conversation. Some of the conversations we were having is about the next areas that we're excited about. We're looking forward to the next generation of manufacturing, towards robotics, towards what we can be doing to make sure that AI is being deployed in every sector in a meaningful way.
Irene Sleiman, head of AI Research and Policy at Hunting Place, joined to have you on now coming up, President trumpnveil's' AI road map has been talking about throughout. Sharam Christian is going to be joining US White House Senior Policy Advisor for AI. You Jos us to discuss next. This is blumbed tech.
I think the AI Action Plan is actually extremely well done. President Trump knows that small business is big business.
It amounts to shock therapy for American competitiveness and the AI industry.
I think the key component is it's very much all about energy. The fear right now before this action plan was that we weren't doing enough, and so what's exciting is that the action plan is addressing this head on with permitting as well as a call to arms.
I think the third pillar around making sure that we are expediting the export of our American AI stack. That is really core to our mission at Armada.
Well, what I really liked about the AI Action Plan is I actually believe it's quite actionable.
That's just what a few of the AI leaders had to say yesterday in Washington about President Trump's AI Action Plan here with more in the administration's AI rollout. Is one of the people that helped formulate write that policy in that document, Shariram Krishnan, White House Senior Policy Advisor for AI, to get it here in person in Washington, d C. There was a point towards the end of that sequence of comments about exporting the American technology stack,
exporting chips in particular. Your colleagues in the cabinet, mister Lutnik, for example, talked about this at length on stage. Are we going to get a set of rules and how will we decide the volume and specificity of the types of chips that we can sell, particularly into China?
Thank you Ed for having me here. I think you know you're going to work on that. I think if you look at the executive order that President Trump signed, which is about America setting the standard, what you're going to see is we're going to work closely with our friends in commerce, especially in BIS and what we're going to figure out is what those policies are going to be.
But the metap point here is President Trump said was very clear we need America to set the standard for how AI is being used globally, from chips to models, to every part of the stack. And what we have seen over the last six months, be it with Huawei on the chip side, or be it with models like deep Seak, we have competition, and yesterday's plan sets a very clear note that we need to be making sure that our standards exist worldwide.
I read all twenty three pages as many times as I could. I think twenty three on the version I have, but we can agree to disagree. There's a heavy emphasis on deregulation and permitting that we get to the onshoring component for exporting American AI. What is it tangibly? What action will be taken to open that up, be it on the software end or the hardware end of the stack.
Yes, So if you prison, Trump signed three executive orders yesterday and one of them deals exactly with this. And what we're going to do is we're going to work with industry to come up with a gold standard for what the American stack should be. And there's going to be a process how we figured this out, and then we're going to try and make sure that when we work with our partners and our allied countries that they are using our stack instead of the competitions.
So many would look at the four point two trillion dollar market capitalization of Nvidia and wonder doesn't need any more help in exporting its tech stack right now? How much more support does an AMD or an Nvidia need.
You think, Well, the way we look at it is we want America to win. We want American GPUs and American models to be used. And Nvidia and AMD happened to be great American companies along with many many others, and so our job is to create the playing field where company where Jensen or I saw doctor Lisa Sue earlier can go sell their products worldwide.
Let's talk about that team. Because there were some absences, Let's say it we would think that Intel would be a company about some imported on its earnings. There would be integral to manufacturing here in the US, TSMC from abroad coming in and putting money to work here in the United States as well. What we do we interpret by those who weren't in the room.
I'm not sure I would read too much into that. I think if you look at yesterday's event, it was amazingly well attended. We had industry leaders from across the stack, from the semi conductor space to energy, do AI models to AI applications, and as you said, you know, we really want American semi conductor industry to win, and you saw today's event being extremely well represented.
When it came to that, you have advised the President and collectively as a group, looked at policy, but there was a moment that we have to address yesterday where the President, after making various people stand up, said that he had looked at breaking up in video, but then came to understand how crucial they were to the American technology stack and that his aid so basically said to him,
Jensen's great. Can I ask you, did you ever discussed with the president the idea of breaking up in video and why that was included in his speech.
I wasn't in that meeting with the president, but I think what the President was referring to is that Nvidia has just done a phenomenal job in building products and applications and GPUs that the world is using and that they are so ahead of the curve. So if you listen to the second part of what the President said, he talked about how it's going to take several years
for people to catch up with them. And I think that's one of the pieces that's put America in this poll position when it comes to the GPUs that everybody in the world wants to get access to.
We appreciate the clarity stream open source, very prominent, very high up in the AI Action Plan. Why that's something you're particularly focused on as well.
Yes, And this is an issue nearer and dearer to my heart. And this is something which I think the Biden administration got totally wrong, where they tried to basically scare people about open source. We believe that open source is the integral part of innovation, of how academic research is done, how you get little tech to innovate quickly and be on a level playing field. And we think
America should win. And you know the first day when I took this job, we had Deep Sea come out and really, you know, send a signal that America wasn't actually leading in open source at the time, and we believe that needs to be rectified. And that's why in the action plan we send a very strong signal that open source or open weights America is going to have a leadership position.
Another thing near in dat to your heart is pro wrestling, and it feels like we're in a wrestling match between China and the US, and I'm really interested as to how you navigate the rules of that wrestling match. For example, China gives US rare earth metal access in return, we give them some H twenties. But how does Vidio navigate if China stops and chokes that will they have to be limited in H twenty How do they get certainty in this environment?
Well, first of all, if you're talking for wrestling, let's speak clear. We are the face. We have the baby face who's going to alt go over for all of you pro wrestling fans. But look, you know the way we think about it is we want the American tech stack to win. One of the metrics I talk about is every token that is inferenced worldwide, we want it to be on an American GPU or using an American model.
How many our quarterllion tokens there are, and when it comes to the head twenty, I think the way we think about it is we would much rather have Nvideo or AMD be the GPU of choice rather using Huawei or somebody else's And that's how we see it.
In video is a babyface as a fan favorite. I love it. Sharam krish Nan has been great having time with you. Thank you, White House Senior policy advisor for AI. Back to earnings now and looking after the closing bell today, it's Intel's turn reporting second call to earnings and giving its new leadership a chance to update investors on the company's opposed turnaround efforts. For more Meg's in King joins us, Now, I just want to reflect for a moment on the
numbers we're expecting. I know, we've got a chart to show it.
All.
These are woeful, like one cent for earnings per share. You were singling out the revenue number.
Yeah, that revenue number below twelve billion, if that's what they come in at, is going to be probably the second or arguably the worst total that they've had in more than a decade. You know, they're clearly at the bottom or bouncing along the bottom at the moment, and really, you know, it's difficult to describe how far things have declined in terms of where this.
Company used to be and where the anxiety does up is. Actually this is reflecting some pulling supposedly, even ahead of tariff implications, people actually rush to do orders. So what does nip Bhutan need to signal here?
Yeah, No, you're absolutely right, even if they have a good quarter, the glingering concern will be well, it's not going to continue because of what's going on in the market right now. Yeah, I mean, it's all about the diagnosis and the prescription. Really, what is this company going to do going forward to change this momentum to solve all of the issues that we know? It's he and that's what investors really want to hear from him.
How much more can he cut? Because that has been the initial prescription. Hasn't it been just delayer? Get management speaking more clearly to those underneath to be able to be more efficient. But they can even pull that string so far.
Yeah, No, that's a very good point, Caroline, that yes, great, cutting costs helps, and you know, we need a cultural shift within the company to be more lean, to be more adaptive and flexible in this difficult situation.
We're in.
All of that message resonated, but the fundamental problem there is that you can't cut your way to growth, right. You can only grow by having better products and more customers. And we don't know how they're going to do that yet and what people really want to hear.
And we've got a minute left in but just thinking of what the AI action plan means for them, they were absent in the room yesterday. Are we anticipating any sort of federal help for them to build a manufacturing US?
Yeah.
I mean what they've said is what the plan we had isn't going to work. We can't catch in video with our current products, so we're going to have to come up with a different plan as to how we can cash in on this massive opportunity. Obviously that in video is grasping with both hands, and the answers will think about it and we'll come back to you so bad time. We want to really hear what they're.
Going to do, inking you'll be across those earnings later after the bell. Thank you so much. Now, that does it for this edition of Bloomberg Tech. Do not forget to check out our podcast. Find it on the terminal, as well as online on Apple, Spotify, and iHeart this is Bloomberg