Chapter 1: What is the main topic discussed in this episode?
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Chapter 2: What is the significance of CoreWeave's $21 billion deal with Meta?
And so investors had lined up about $6 billion for the share sale, but it came in significantly undersubscribed with employees not trying to unload just yet.
And it is the talk of the town. I'm lucky enough to have you, Rebecca, usually in New York. But you're on the West Coast because there's a big event happening, Human X. And all anyone wants to talk about is the growth of Anthropic, it would seem, and indeed that run rate. No wonder employees are pretty bullish. Everyone else seems to be.
It's remarkable. Honestly, nearly every single conversation I've had at this conference has included an unprompted mention of Anthropic.
It's become the benchmark for a lot of investors and startups to measure themselves against and for investors to evaluate startups against, both in terms of the growth that it's seen, but also where can startups fit into the market that Anthropic is unlikely to touch. As of now, Anthropic has really dominated in the AI coding space, but there's projections that it may look
to expand into financial services and other areas. And especially with the release of a new AI model earlier this week, which had said it was too powerful to be released to the broader public. It's got some founders shaking in their boots a bit.
Rebecca, real quick, what's Humanex been like? Like we have Nico Rosberg on the show later, former F1 world champion, now venture capitalist investor. The footfall to me when I was on stage, like a lot of people there.
Yeah.
Lots of people there. There were, I want to say, about 7,000 people or so on the ground. Full conference hall and just AI all the time. Founders running around trying to pull you into their booth. Tons of interesting conversations happening left and right.
We'll let you continue to have them left and right, Rebecca Torrance. Thanks so much for joining us. It's a great write-up, what's happening on the West Coast right now with her. Coming up, well, we've got a markets conversation with JP Morgans, Stephanie Aliaga. We've got to go back to what's happening in geopolitics and how that affects the world of tech. This is Bloomberg Tech.
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Chapter 3: How is Meta's new AI model positioned against competitors?
How much is that seeping into the general optimism around CapEx AI and continuing to be in tech? Yeah. Markets are trying to use the ceasefire as a de facto end to the war, and clearly we're not in the full, like, coast is clear just yet.
But we do think, when we think about the balance of risk out here, it is far more likely that this conflict winds down in the matter of days or a couple weeks than the alternative scenario of this extending into the summer. And when things extend into the summer, that is where the macro picture really begins to dim, and that flows through to markets and earnings.
However, the scenario that I think we're in right now It is one that is a pretty constructive setup for equities from here. I mean, valuations have contracted meaningfully. We mentioned tech, like in the tech sector, valuations today are cheaper than consumer staples. There's been a pretty meaningful decline there.
And if you look at even valuations for some of the individual names, they're tracking below where they were before this AI boom even got started. So investors today are paying a cheaper price for robust earnings. And we've seen earnings expectations actually climb throughout this war, not because of the geopolitical headwinds, but because of the continued strength in this AI narrative.
We remain in a deeply compute-constrained environment, and many of those dynamics are favorable for some companies to cross this AI value chain. You look at tech, right, in terms of forward earnings, and there's been compression.
But like other people on the program in the last maybe seven days or so have said, look at the biggest names in the sector, maybe on a weighting basis at index level, and they're back to where they were before the war even started. So the question I put to you is the same I've done to all the other buy side and strategist names we've had is, has this fundamentally altered the outlook for CapEx?
Which I think was Cara's question. Has it altered the growth outlook for the world's biggest technology names? No, because we think that that growth outlook is inextricably linked to demand. And what we've learned, and you even can look at revenue expectations and realize revenue from the model labs as a signal of that demand, and that demand continues to beat expectations.
Every single hyperscaler this past earnings season said, if we had more capacity on board today, revenues would be higher. All of this is continuing to funnel investment into AI CapEx. Where I think this geopolitical situation is relevant and potentially a headwind is around the cost of that CapEx.
The economies that are most dependent on oil from this region, Taiwan, Korea, are also some of the most important bottlenecks and suppliers when it comes to AI hardware. And if they continue to face... elevated prices for significantly longer. They're going to pass along those prices to U.S. buyers, which are tech companies.
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Chapter 4: What are the implications of using China's Quan model for training AI?
It's about putting the sensor into space. I think go back to basics for our audience and explain that for the data inputs. Absolutely. So there are two broad technologies that quantum can create. One is called a quantum sensor, and the other is called a quantum computer. Quantum computers are not yet useful.
They will be very useful in the not too distant future, but quantum sensors are very useful today. And so what we do, it's the same underlying technology, the same componentry inside, but we can turn those atoms into extremely precise sensors to sense what's happening on the Earth's surface and the world around you. So in the case of what we're sending up into space, it's indeed a quantum sensor.
Matt, real quick, who's the launch provider? Who puts you to orbit? So we're on a SpaceX vehicle, and then the spacecraft itself is made by Northrop Grumman. And real quick, what's that like, that experience as a customer, the door being opened to be able to get into orbit? It's incredible.
I mean, we wouldn't be able to get this technology up unless the work that SpaceX and other folks are doing to make launches less expensive. And so our partners at NASA have been wonderful in getting that all set up for us. Can I jump in and just ask very briefly, from quantum clocks to what? Because everyone's like, when is there going to be a really useful quantum computer? IBM's saying 2029.
Is that your business model? So the business model is, you might say, what the heck does a clock have to do with a computer? They seem very different.
Well, in quantum, they really aren't, because what we're doing is we're taking advantage of the quantum mechanical principles of atoms, and then using those quantum mechanical principles, and with slight tweaks to what we're doing with lasers, can turn it into a clock, or in more, call it precise use cases, turn it into a computer. And so the clock is in many ways a mini version of the computer.
question, when will computers be useful? The timelines keep coming in and coming in, and the announcement that Google made on Q Day being here earlier and earlier, and Q Day is the day that we can break modern encryption with a quantum computer, getting pulled into 2029. Our view is that quantum computers will start to be useful in the year 2028.
And that is at the, we'll get into what qubits are, but when you can get to 100 logical qubits, you can do interesting things with quantum computers. Oh, we know Qubits. Matt Kinsella, CEO of Inflection. It's great to have you on Bloomberg Tech. Thank you very much. Thanks for having me. A conversation with Nico Rosberg, Rosberg Ventures CEO.
As he said, builders are gaining more control because of AI and with AI. Also, of course, former Formula One world champion. I'm really looking forward to this one. That's next. Halftime. This is Bloomberg Tech. Welcome back to Bloomberg Tech. This is what equity markets look like right now.
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Chapter 5: What are the financial strategies behind CoreWeave's deal with Meta?
But, Ed, it's so interesting, Stephanie Aliaga, just talking about the zero-sum narrative. Let's talk about, on the upside, the AI infrastructure trade, because it's getting a $21 billion shot in the arm. Meta, CoreWeave have inked a massive new deal to supply AI cloud capacity through 2032.
Meanwhile, NVIDIA, of course, chips for everyone, nearing a critical technical breakout of more than 10% in the past six sessions. Let's bring in Bloomberg's Ryan Vlastelica. And it's so interesting because a lot of... The deal with CoreWeave and Meta is around Ruby in architecture, so that's another good narrative for NVIDIA more broadly, Ryan. But talk to us first about CoreWeave.
It's down because it's related to, well, debt that might turn into equity, but it's another sign that AI infrastructure is strong. Yeah, absolutely. Thanks for having me. I would say that the major thing I've heard from people is that this really reinforces that despite concerns about AI spending potentially slowing down at some point, there's no signs of that right now.
AI spending remains extremely robust, and you have these major companies like Meta, like Amazon, continuing to hold very fast to their ambitious spending plans, which is probably going to be a real positive for these infrastructure providers over the longer term. You're out with a really important piece focused on the technicals around NVIDIA.
And we're at a moment now where if you look at the trading in this stock, you might see a breakout from what has been a pretty narrow trading range. What's the data telling you? Yeah, so for about the past nine months or so, NVIDIA shares have really done basically nothing.
They're almost flat over that period, despite some very strong earnings reports, despite, like we were talking about before, still very strong indications about AI spending going forward. But if you're looking at it purely from a technical level,
We had a little bit of a scare last week or so when it dipped below some recent lows, which was perhaps an indication that the stock might be breaking down lower. But since then, we've seen a pretty aggressive move higher.
And we're getting to a level, I think it's 185 on the stock price, where people are saying if it holds this level, that really indicates that people are moving back into the stock. And that could be an indication that we could be poised to see a breakout higher, potentially back towards the 200 level, back maybe even towards all time highs. Thanks very much.
That was kind of what's going on in public markets. I want to get back to private markets, venture capital. It's the last day of the HumanX conference where business venture startup leaders have been gathering to discuss achieving real world results from AI. One of the featured conversations included Rosberg Ventures CEO and former F1 world champion Nico Rosberg alongside lovable CEO.
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Chapter 6: Why is Anthropic's secondary share sale noteworthy for investors?
100 million in revenue, that's no small feat. There were headlines overnight, perplexities just hit 500 million ARR, but look at the coverage that they get. What's your core competence? What is it that you and the team are really good at?
It's a great question. I'm really... proud of the team we've assembled. We've assembled some of the best technologists around. I think generally we focus on people who are really mission-driven and who are exceptional at working with AI. So what we're really good at doing is structuring data, realigning incentives, and then operationalizing that in a really efficient way.
Our entire company, our corporate headcount is about 30 people, and we've been able to grow at that scale with this headcount because of that.
Ross, I've always found the XYZ model really interesting. I may be oversimplifying, but you write checks to companies that are going after the public sector in many ways. It's different to going after some startups that may never need to have revenue and we can get into that at a later date.
But why does that present a real return opportunity as an investor to go after a startup whose dollars come from one arm of government or another?
Yeah. And so our focus area at XYZ has been largely on building and supporting companies that are selling to the government because it is the largest spender in the entire world. So areas of defense spending is one of the largest spends in the entire world. And that's where we backed companies like Andral. Areas of health care spend and Medicare are one of the largest spends in the entire world.
And so that's where we backed companies like Chapter. And when those companies are winning, when they're capturing hundreds of millions and then billions of dollars, we dollar concentrate into those businesses and we get the right to do that because we've been there since the beginning. And so that's our economic approach. Find those exceptional people in those businesses.
Kobi, you're making it easier for people to try and navigate a very complex system. But the narrative we hear time and time again on this show at the moment is abundance of AI being able to bring healthcare to all and being, you know, what is your vision for what healthcare in the U.S. looks like in five to ten years' time?
I want every American who's navigating Medicare and navigating healthcare at large to A, understand what they are buying, what is their health coverage, and B, to be able to access their healthcare in the simplest way.
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