Chapter 1: What is the main topic discussed in this episode?
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This is Bloomberg Tech. Coming up, Meta agrees to deploy millions of NVIDIA processors over the next few years, reinforcing its ties with the AI chip giant. Plus, Meta's CEO Mark Zuckerberg is set to take the stand later today in a landmark social media addiction trial in Los Angeles. And we discussed some news in software and energy tech with the CEOs of Autodesk and Heron later this hour.
Welcome to Bloomberg Tech. The story right now in public markets when it comes to tech is we are rebounding a little bit. The Nasdaq 100 up more than a percentage point.
largely that's on strong or positive economic data but i put the philadelphia semiconductor index in there or socks because actually movements in in chips and the mag 7 is the news driver the catalyst in some of what's happening at the index level that manifests in a deal between meta and nvidia for millions of nvidia's processors over a number of years
But this is clearly a driver of markets, at least in NVIDIA's case, up almost 3%. Meta had been lower, is now modestly higher. Let's get the details with Bloomberg's Ian King, who leads our coverage of semiconductors.
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Chapter 2: What is Meta's agreement with Nvidia about?
What we see in the data is that the AI adopters, are experiencing margin expansion that's double the market indices, double the MSCI World Index, double the S&P 500. And so we believe that there's a regime shift happening in the market away from a purely tech and specifically AI enabler leadership to now broadening of AI adoption and leadership, not just in technology, but across all sectors.
Katie, tied to this, one of the big moments of last year was Morgan Stanley launching its private companies coverage, going much deeper on private companies who are so active in this world, right? Have you shifted existing analysts from public to private companies? Are you onboarding specific private analysts on specific domains? We just have 30 seconds.
Right.
Chapter 3: How is Meta's CEO Mark Zuckerberg involved in a social media addiction trial?
So we believe that the domain experts that cover the public companies are typically and best positioned to also cover private sectors.
But there are areas of thematics, think humanoids.
and AI where we have shifted analysts from stock coverage to covering those thematics where there will be a lot of private company innovation, but most of the time that coverage comes from our existing public company domain experts. Katie Huberty and Morgan Stanley, it's great to have you on Bloomberg Tech. Thank you very much.
Now, coming up on the show, we're going to speak with Andrew Inegnos, Autodesk president and CEO. That conversation's next. This is Bloomberg Tech. Today's show is brought to you by Vanguard. To all the financial advisors listening, let's talk bonds for a minute. Capturing value and fixed income is not easy.
Bond markets are massive, murky, and let's be real, lots of firms throw a couple flashy funds your way and call it a day. But not Vanguard. At Vanguard, institutional quality isn't a tagline. It's a commitment to your clients. We're talking top-grade products across the board of over 80 bond funds. actively managed by a 200-person global squad of sector specialists, analysts, and traders.
These folks live and breathe fixed income. So if you're looking to give your clients consistent results year in and year out, go see the record for yourself at Vanguard.com slash audio. That's Vanguard.com slash audio. All investing is subject to risk. Vanguard Marketing Corporation Distributor. Hello, I'm Stephen Carroll. I'm in Brussels, where many of Europe's biggest decisions get made.
And I'm Caroline Hepke in London. We're the hosts of the Bloomberg Daybreak Europe podcast. We're up early every weekday, keeping an eye on what's happening across Europe and around the world. We do it early so the news is fresh, not recycled, and so you know what actually matters as the day gets going.
From Brussels, I'm following the politics, policy and the people shaping the European Union right now.
And from London, I'm looking at what all that means for markets, money and the wider economy. We've got reporters across Europe and around the globe feeding in as stories break. So whether it's geopolitics, energy, tech or markets, you're hearing it while it happens. It's smart, calm and to the point. And it fits into your morning.
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Chapter 4: What are the implications of Nvidia's new CPU for the market?
So it really is a space race right now.
I'm very much pro-America and a capitalist, but I don't think we want another Sputnik moment. And we were the first to put boots on the moon, and I really feel like we want to put boots on the moon. And this time, the name of our group inside of Blue is Lunar Permanence. So we're not only racing to the moon to get there back again for the first time, but we want to keep people on the moon.
Blue Origin CEO Dave Limp speaking with Bloomberg's Anne-Marie Horder. In other news, it's time for Talking Tech. And first up, Warren Buffett's Berkshire Hathaway cut its Amazon stake by 75% in the fourth quarter, reducing it to about 2.3 million shares, according to a regulatory filing.
At the same time, it built a new position in the New York Times with 5.1 million shares and continued trimming, according to the 13F document, its other holdings in Bank of America and Apple. plus Uber and plans to invest more than $100 million to expand fast charging infrastructure for autonomous EVs in the US.
The company will build high capacity charging hubs in San Francisco, Los Angeles and Dallas, the same markets where it's preparing to roll out a public robo taxi service. and Apple is breaking away from its tech peers. Bloomberg data show the iPhone maker's 40-day correlation with the NASDAQ 100 has dropped to its lowest level since 2006, as it largely sits out the AI arms race.
With rivals pouring money into AI-related CapEx, some investors are starting to see Apple as an appealing alternative. Let's power on and stay with Apple. The company's fast-tracking work on three new wearables as it races to compete with AI-powered hardware. Sources say the tech giant is developing smart glasses, a pendant, and AirPods with expanded AI capabilities.
Bloomberg Consumer Tech and Apple managing editor Mark Gurman broke the story and is with us. Okay, three distinct products, three distinct categories. Let's go through what you've learned from sources. You know, Apple, they are sitting out the AI race in a way, but they're going to enter in an Apple way. And that means hardware blended with AI, blended with software, blended with services.
And they're going to get there if they're able to pull off this new Siri, which I believe they will before the end of the year. And so three hardware products. One is smart glasses. These are going to be quite significant. They're going to compete with the meta product. They're likely going to be a bit pricier.
They're going to have dedicated cameras, one for media capture, one for computer vision. In terms of functionality, you'll get things like if you're taking a walk and you have turn-by-turn directions on, instead of it telling you, make a right in 450 feet, it might say, make a right at the gray building because it sees your surroundings, or make a right past the white car.
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Chapter 5: How is AI impacting the productivity and investment landscape?
The company has also invested and taken stakes in XAI and OpenAI, really giving it, in a way, the triple crown of AI investing. And there's more. They've also put money into the big Stargate AI data center venture here in the U.S. and also taken a stake in the new TikTok that we've spent so much time talking about. So MGX is really a player in so many of these different areas.
And one thing that struck me, Ed, during the interview and reading the big take on this was that David Scott likened their approach not to a private equity firm or
or a venture capital fund, but really to NVIDIA, which you and I have seen from the conference here in Washington in October, just how much NVIDIA has tried to take stakes in cloud computing and software companies that try to feed the ecosystem of artificial intelligence.
And this is just a sign of how Abu Dhabi, whose sovereign wealth fund backs MGX, is really trying to diversify its economy away from just energy and try to seize on the AI wave now.
That's Abu Dhabi. The other news headline of the morning was Saudi Arabia's Humane disclosing that it had participated in XAI's Series E round, which predated the merger with SpaceX. What do we need to know there?
Well, this is another key tie up between humane, which got its start just last year. The Saudis unveiled humane, which is backed by the public investment fund. Again, we have state backed golf money going into this new venture. It was announced just as President Donald Trump arrived in the Middle East for a high profile visit, high stakes visit with golf leaders.
And they are now deepening this partnership already. In November, Humane announced with XAI that it would develop a 500-megawatt data center in Saudi Arabia. And this just furthers that partnership. And as a result of this investment, of course, they end up now with a stake in the much larger combined SpaceX, which now counts XAI as a subsidiary.
And Humane is also looking to deploy more of XAI's technology, including the Grok chatbot across Saudi Arabia, giving Elon Musk access to a key market that it could see develop going forward. And, of course, possibly more access to funding as his larger combined venture moves forward.
Bloomberg's Mike Shepherd, thank you very much. Now coming up, Drew Baglino, CEO of Heron Power, joins us to talk about the energy startup's latest funding round. He may be a familiar face and a familiar name, of course, long time Tesla executive. Now in a new domain, that's next. This is Bloomberg Tech.
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