# AI Boom: Bigger Infrastructure, Bigger Fortunes

An episode of [Bloomberg Tech](https://invisiblenetwork.ai/podcast/1611767434), 5 Oct 2026, 44 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/41764a4f-fc64-4e11-89ba-ae7c0030ab5e/0bda010f-e533-4e20-a5b2-b4da01124351/audio.mp3?utm_source=Podcast&in_playlist=9caafc41-289c-4115-995d-ae7c0030ab75

Bloomberg’s Ed Ludlow breaks down Hon Hai's results beating revenue expectations as the infrastructure boom rolls on, in another sign the AI spending spree isn't slowing down. Plus, the AI boom leads to a billionaire boom as Tech's richest are now worth a combined $4.6 trillion. And, how Apple's new CEO is putting his own stamp on the company and making design a much bigger priority. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios.
[0:04] Speaker 2: Podcasts.
[0:05] Speaker 1: Radio. News.
[0:13] Speaker 3: Bloomberg Tech is live from the heart of Silicon Valley
[0:17] Speaker 3: with Ed Ludlow in San Francisco.
[0:22] Speaker 2: This is Bloomberg Tech coming up. Another sign the AI
[0:25] Speaker 2: spending spree isn't slowing down, with Honhai beating revenue expectations
[0:30] Speaker 2: as the infrastructure boom rolls on. Plus, the AI boom
[0:32] Speaker 2: leads to a billionaire boom. Tech's richest are now worth
[0:36] Speaker 2: a combined $ 4. 6 trillion. And we dive into how Apple's
[0:40] Speaker 2: new CEO is putting his own stamp on the company
[0:43] Speaker 2: and making design a much bigger priority. Good morning. Welcome
[0:48] Speaker 2: to a new week. The Nasdaq 100 is building on
[0:51] Speaker 2: the record close. It's set Friday up about half a
[0:54] Speaker 2: percentage point in the session. A little bit of underperformance
[0:56] Speaker 2: in chips. There's a lot going on in financial markets.
[0:59] Speaker 4: I don't know.
[0:59] Speaker 2: It feels kind of weird. It's like summer arrived in
[1:02] Speaker 2: a Monday in October. We will get to more of
[1:05] Speaker 2: that throughout the hour. Let's get to our top stories.
[1:07] Speaker 2: The AI spending boom isn't slowing down. NVIDIA partner Honhai,
[1:11] Speaker 2: the publicly traded name better known as Foxconn, beat sales
[1:14] Speaker 2: estimates with revenue jumping 47% as demand for AI servers surges.
[1:19] Speaker 2: Bloomberg senior tech editor Mike Shepard is with us. This
[1:23] Speaker 2: is the infrastructure story continuing to have momentum.
[1:27] Speaker 5: Yeah, Ed, every week we're looking for another sign that
[1:30] Speaker 5: the AI build-out will continue unabated. It's something that investors
[1:35] Speaker 5: and Silicon Valley leaders are counting on, really, on a
[1:38] Speaker 5: week-by-week basis. And last week we saw Micron Technology indicating that, look,
[1:43] Speaker 5: our sales are going to be better than expected in
[1:45] Speaker 5: the coming quarters. And this time around, we're seeing this
[1:49] Speaker 5: from a key NVIDIA partner that demand for the service
[1:52] Speaker 5: that they make is stronger than expected. And this comes
[1:55] Speaker 5: as we're seeing some headwinds for the sector. There's increased
[1:58] Speaker 5: concern over the amount of debt that a lot of
[2:00] Speaker 5: the hyperscalers and other companies are taking on to ensure
[2:04] Speaker 5: that construction of these data centers continues apace. There's also
[2:08] Speaker 5: concern we have seen in more recent weeks about the
[2:11] Speaker 5: idea of pacing AI development and what that could mean
[2:14] Speaker 5: potentially for the construction of all these facilities.
[2:18] Speaker 2: But so far, we are.
[2:19] Speaker 5: Not seeing any sign of that kind of slowdown. And look,
[2:22] Speaker 5: for Hanhai, this is pretty key because they also are
[2:25] Speaker 5: known for making iPhones and smartphones and a.
[2:28] Speaker 1: Lot of other gear.
[2:28] Speaker 5: But the margins on that are much lower. the margins
[2:32] Speaker 5: for those AI servers containing NVIDIA's chips are much higher
[2:35] Speaker 5: and much more lucrative for them. So this is a
[2:37] Speaker 5: key moment, not only for the AI trade broadly, but
[2:41] Speaker 5: for Hanhai specifically.
[2:43] Speaker 2: There's another story out of Asia that I want to
[2:45] Speaker 2: get to, which is Qualcomm agreeing to license patents which
[2:48] Speaker 2: underpin Huawei's logic folding chip making technique. This is technical, Shep,
[2:53] Speaker 2: but it seems like an important story to me.
[2:56] Speaker 5: Well, Ed, I love digging into the technical stuff with you,
[2:58] Speaker 5: and especially this one, because it was only back in
[3:01] Speaker 5: May that we saw Huawei unveil this new idea of
[3:04] Speaker 5: logic folding, that it would be able to pack more
[3:06] Speaker 5: transistors onto a chip and somehow optimize data transmission speeds.
[3:11] Speaker 5: And this was a way for them of making a
[3:14] Speaker 5: step change in function that would allow them to gain
[3:18] Speaker 5: ground on the U.S. in the advantage when it comes
[3:21] Speaker 5: to chipmaking. and do so using domestic resources rather than
[3:25] Speaker 5: having to rely on outside semiconductor manufacturing equipment, which has
[3:30] Speaker 5: been subject to all those export restrictions imposed by the U.S.
[3:33] Speaker 2: And other limits that the U.S.
[3:36] Speaker 5: Has imposed on access for China to advanced technology. But
[3:40] Speaker 5: the question hanging over it at the time was, well,
[3:43] Speaker 5: will it work? Will it gain purchase? Will it actually
[3:46] Speaker 5: gain traction? And we're seeing that with this patent licensing
[3:49] Speaker 5: agreement from Qualcomm that, yes, perhaps there is appetite for it,
[3:53] Speaker 5: not only in China, but perhaps outside China as well.
[3:56] Speaker 5: We don't know the financial terms, Ed, but this is
[3:59] Speaker 5: certainly a signal and a vindication for Huawei that its
[4:02] Speaker 5: bet on this logic folding technique could actually pay off.
[4:07] Speaker 2: Bloomberg's Mike Shepard in Washington, D.C. Thank you very much.
[4:10] Speaker 2: Let's go back to financial markets. So the Nasdaq 100
[4:12] Speaker 2: is extending its record run this morning. Chip stocks taking
[4:16] Speaker 2: a bit of a breather. Oil is falling. Yields remain elevated.
[4:20] Speaker 2: And investors are asking how much further this AI-driven rally
[4:24] Speaker 2: can run. Perfect conversation coming up. Carol Schleif, BMO chief
[4:28] Speaker 2: market strategist. All of the above, I guess, cross your
[4:32] Speaker 2: desk at the moment. But is that a fair summation
[4:35] Speaker 2: of where the market is right now?
[4:38] Speaker 6: It's totally a fair summation.
[4:40] Speaker 7: The market's trying to decide, do the higher yields, do
[4:43] Speaker 7: you do traditional dividend discount modeling and bring the valuations down?
[4:48] Speaker 6: But then you look at the valuations on a lot
[4:50] Speaker 6: of these.
[4:50] Speaker 7: Tech stocks and they're already accommodating higher yields. And I
[4:54] Speaker 7: think what we all forget is that this technology in
[4:57] Speaker 7: particular works. has scaled faster than anything, probably, arguably, in
[5:02] Speaker 7: human invention. And we're just, we can't wrap our heads
[5:05] Speaker 7: around it. And the fact is, is you've got a
[5:07] Speaker 7: major secular cycle that's muting, if you will, the cyclicality
[5:13] Speaker 7: of a lot of these. You know, semiconductors are supposed
[5:16] Speaker 7: to be cyclical, but we're stuck in this very.
[5:20] Speaker 7: Reassuring, if you will, long-term secular trend where we've got
[5:24] Speaker 7: to bring us up to par, if you will, to
[5:28] Speaker 7: enable this next phase of the Industrial Revolution.
[5:32] Speaker 2: I got my first sort of official, is this what
[5:35] Speaker 2: we should expect this earnings season question this morning on
[5:39] Speaker 2: open interest? I think what's interesting, like there were some
[5:43] Speaker 2: early signs in the second quarter earnings season about AI's
[5:48] Speaker 2: impact on the real economy, you know, call it productivity.
[5:52] Speaker 2: Is that the next catalyst? You know, wait for third
[5:55] Speaker 2: quarter earnings season and look for more evidence that AI
[5:58] Speaker 2: is having some kind of broader impact on the U.S.
[6:01] Speaker 2: economy and beyond.
[6:03] Speaker 7: I think there's that piece of it. It's difficult to
[6:05] Speaker 7: parse out exactly the return on investment for a lot
[6:10] Speaker 7: of us.
[6:10] Speaker 6: I mean, a lot of us.
[6:12] Speaker 7: I read a McKinsey report here recently that talked about 100%
[6:17] Speaker 7: of companies are experimenting one way, shape, or form with AI.
[6:20] Speaker 6: You can't not dabble with it.
[6:22] Speaker 7: And it's muddy in there, but this will probably be
[6:25] Speaker 7: the most important earnings season because there will be a
[6:28] Speaker 7: lot of parsing, not just of the AI theme, but
[6:31] Speaker 7: also costs involved. And how can companies offset those? Because
[6:34] Speaker 7: we've got a pretty stagnant or steady labor supply. And
[6:39] Speaker 7: so the only way to offset the cost is to
[6:41] Speaker 7: hurry up and hurry along some of those AI improvements.
[6:44] Speaker 6: So there'll be a lot of commentary. There'll be a
[6:46] Speaker 6: lot of.
[6:47] Speaker 7: Leaning into the Q & A that these managements do
[6:51] Speaker 7: in the conference calls that accompany the results. Less looking
[6:55] Speaker 7: at the results and a lot more leaning into what
[6:57] Speaker 7: it means for the next few quarters.
[7:00] Speaker 2: Again, the NASDAQ 100, I always go to it. It's
[7:03] Speaker 2: like a highly concentrated tech-heavy index, but it's pushing beyond
[7:07] Speaker 2: the record set Friday. There is this kind of interim
[7:11] Speaker 2: period between now and November, which encompasses the midterms. It's
[7:19] Speaker 2: been a pretty straight line up since April, but what
[7:22] Speaker 2: kind of volatility is on deck in this kind of
[7:25] Speaker 2: interim period, Carol?
[7:27] Speaker 6: Yeah, we would.
[7:27] Speaker 7: Expect to see volatility, especially because who knows what will
[7:32] Speaker 7: get said in the future. As we release earnings in
[7:35] Speaker 7: the next four to six weeks and particular stocks will
[7:38] Speaker 7: be volatile. The actual the broader indexes mask the fact
[7:43] Speaker 7: that there has been a lot of under the hood
[7:45] Speaker 7: volatility already. The breadth has been pretty narrow. You have
[7:49] Speaker 7: had a narrow or just a handful of companies driving
[7:53] Speaker 7: through most of the last few years in particular. So
[7:56] Speaker 7: there'll be a lot of emphasis, particularly on those earnings.
[7:59] Speaker 7: We wouldn't be surprised at all to see increased volatility there.
[8:03] Speaker 7: Not just through the midterms, but here to your end.
[8:06] Speaker 2: What's fun? Fun, the right word. The news cycle changes, right?
[8:11] Speaker 2: Stories kind of come and go. When we do get
[8:14] Speaker 2: to earnings in a few weeks' time, that environment that
[8:18] Speaker 2: everyone was talking about in the second quarter is still there.
[8:20] Speaker 2: I'm talking about like higher component costs and how companies
[8:24] Speaker 2: manage that for the bottom line. That's still like a
[8:27] Speaker 2: big factor, right, going forward. It doesn't sort of just disappear, right?
[8:31] Speaker 6: Yeah, it's definitely a big factor.
[8:32] Speaker 7: And the fact that you've got the chip companies allocating
[8:36] Speaker 7: resources to the data centers and to the hyperscalers, which means.
[8:41] Speaker 6: You're going to see the costs increase.
[8:42] Speaker 7: They're going to come through. We saw it when Apple
[8:44] Speaker 7: announced all the new round of fall.
[8:50] Speaker 6: Upgrades, and we've seen more hints of that.
[8:53] Speaker 7: I'm sure we'll see more of that in The issue is,
[8:56] Speaker 7: is it's like trying to deal with the supply chain
[8:59] Speaker 7: shocks that we had coming out of COVID.
[9:01] Speaker 6: Where it took a while to get things open.
[9:03] Speaker 7: You had severe, you know, super high inflation until you
[9:07] Speaker 7: got it pulled down. We're going to see that temporarily.
[9:10] Speaker 7: The issue is, too, is that to mitigate some of
[9:14] Speaker 7: those cost increases, you need new fabs, you need new
[9:16] Speaker 7: physical equipment, and that stuff takes time.
[9:19] Speaker 6: So I would think that's with us for more than
[9:21] Speaker 6: just this quarter.
[9:23] Speaker 2: You know, technology has continued to push higher, even with
[9:27] Speaker 2: yields creeping higher. What does that signal to you?
[9:32] Speaker 7: Well, technology is creeping higher and focus on the word creeping.
[9:37] Speaker 6: It's crawling up that wall of worry.
[9:40] Speaker 7: And it's important to remember when you look at where
[9:42] Speaker 7: valuations are actually relative to where earnings have come in,
[9:46] Speaker 7: the valuations have come down pretty starkly in the last decade.
[9:50] Speaker 7: You know, quarter by quarter, you've had companies like NVIDIA
[9:53] Speaker 7: announce really great results, and more times than not, the
[9:57] Speaker 7: stock has come down, meaning that you've got valuations. that
[10:00] Speaker 7: already accommodate higher inflationary impacts and higher rates. But it's
[10:06] Speaker 7: tricky for the markets because psychologically, you know, we're beyond
[10:09] Speaker 7: levels that were supposed to be problematic.
[10:12] Speaker 6: Markets have continued to struggle higher anyway. and narrower parts
[10:16] Speaker 6: of the market.
[10:17] Speaker 7: So that again adds to what we talked about earlier
[10:20] Speaker 7: with the potential for volatility.
[10:24] Speaker 2: Carol Schleife of BMO Wealth Management. It's great to have
[10:25] Speaker 2: you back on the show and kick off another busy week,
[10:28] Speaker 2: I'm sure. Thank you. I want to talk about Cerebrus
[10:30] Speaker 2: really quick. The stock's up 10% right now. Sam Altman
[10:35] Speaker 2: posted on X over the weekend that there's been some
[10:37] Speaker 2: speculation about the relationship between OpenAI and Cerebrus, and he
[10:41] Speaker 2: kind of reinforced the relationship being strong. Go back to
[10:44] Speaker 2: last Tuesday, there was a report by Seminalysis that said
[10:49] Speaker 2: OpenAI was running GPT 6.1 Sol on NVIDIA-based platforms. The
[10:58] Speaker 2: conclusion that the market had drawn back to last Tuesday,
[11:01] Speaker 2: the 29th of September, was that Cerebrus has lost out.
[11:04] Speaker 2: It was losing business to NVIDIA because it was a
[11:06] Speaker 2: Cerebrus platform. uh, inference platform that was being used for
[11:09] Speaker 2: 5.6 Sol. Um, so Sam Altman's kind of come out
[11:13] Speaker 2: with some latency a few days later, address the situation
[11:16] Speaker 2: over the weekend, but the stock is up a lot
[11:18] Speaker 2: in response to that voter confidence on the socials.
[11:22] Speaker 4: Okay.
[11:22] Speaker 2: Coming up, we're going to discuss the race for AI
[11:24] Speaker 2: talent and how to actually get AI into production in
[11:28] Speaker 2: the enterprise with Pablo Dominguez of Insight Partners. That conversation
[11:31] Speaker 2: is next. This is Bloomberg Tech. Companies are spending billions
[11:48] Speaker 2: on AI, but actually getting it into production remains a
[11:51] Speaker 2: major challenge. Insight Partners sees forward-deployed engineers as part of
[11:56] Speaker 2: the solution, embedding directly with customers to turn AI into
[12:00] Speaker 2: working products and workflows. The firm's launching a dedicated practice
[12:04] Speaker 2: to help its portfolio companies build that capability. And Insight
[12:08] Speaker 2: Partners operating partner, Pablo Dominguez, joins us now for more.
[12:11] Speaker 2: I mean, the idea of FDE is not new to
[12:14] Speaker 2: the audience of this program, right? We've discussed it with
[12:16] Speaker 2: the hyperscalers, some of the bigger names in software. But
[12:20] Speaker 2: what is interesting here is how you guys as a
[12:24] Speaker 2: venture firm and an operating partner with the portcos are
[12:28] Speaker 2: helping them do this, right? The army to rent maybe.
[12:33] Speaker 2: Just explain how it would work.
[12:35] Speaker 8: Yeah, well, first of all, thanks for having me, Ed.
[12:37] Speaker 8: And Insight Partners, venture capital and private equity firm based
[12:40] Speaker 8: in New York. We're one of the leading firms investing
[12:43] Speaker 8: in tech, AI, software for the last 30 years. And
[12:47] Speaker 8: we're really proud of the scale, right? So we've had
[12:49] Speaker 8: over 600 companies. And so that's allowed us to see
[12:52] Speaker 8: some of the best practices in our portfolio. And so
[12:55] Speaker 8: today we're actually launching the industry's first forward deployed engineering
[12:58] Speaker 8: council made up with members from Microsoft, Databricks, SAP, ServiceNow, Anthropic, Wonderful,
[13:07] Speaker 8: which is one of our companies, and others. So we're
[13:09] Speaker 8: super excited to have these leaders get together to provide
[13:12] Speaker 8: best practices, not only to our companies, but to the
[13:14] Speaker 8: rest of the industry.
[13:16] Speaker 2: How much of setting this up is just an admission, really,
[13:20] Speaker 2: that there are all sorts of companies that just haven't
[13:23] Speaker 2: worked out yet what it is they can do with AI?
[13:26] Speaker 8: No, I think you're spot on. I know IDC came
[13:28] Speaker 8: out with a report earlier that 88% of all AI
[13:32] Speaker 8: implementations have not gotten past the POC stage, right? where
[13:38] Speaker 8: you implement it and it's ready to go, AI has
[13:41] Speaker 8: endless possibilities. And so you're seeing the addition of a
[13:45] Speaker 8: lot of these roles for deployed engineers to really help
[13:49] Speaker 8: you get the maximum value from AI. I think this
[13:53] Speaker 8: year alone, the top five platform companies spent over $ 9. 5
[13:56] Speaker 8: billion building their own FDE teams to really help their
[14:01] Speaker 8: customers see the value as well.
[14:04] Speaker 2: I want to go to a case study, which I
[14:05] Speaker 2: appreciate isn't within the portfolio, but I'm thinking back to
[14:08] Speaker 2: some of the reporting that we did around cognition and
[14:11] Speaker 2: Devin and what people kept saying to me about cognition.
[14:15] Speaker 2: It's traction, which you can measure as ARR, or just
[14:18] Speaker 2: the number of contracts it has. It was really good
[14:21] Speaker 2: at getting into everyday companies, call them Fortune 500 companies, whatever,
[14:25] Speaker 2: and just saying, this is how you could use Devin,
[14:27] Speaker 2: and we'll help you do it. That, in summary, is
[14:31] Speaker 2: kind of what you... you hope to do for your
[14:33] Speaker 2: portfolio companies, right? Absolutely.
[14:35] Speaker 8: I mean, the purpose of the four deployed engineer and
[14:39] Speaker 8: sort of what Insight Partners is doing with their companies
[14:41] Speaker 8: is helping them maximize the value of the solution, not
[14:44] Speaker 8: just simply implement it, right? So if you think about
[14:46] Speaker 8: traditional professional services or consulting, you implement the software and
[14:50] Speaker 8: the company's left basically doing the rest of the work
[14:53] Speaker 8: With forward-deployed engineers, they're embedded, they're measured on driving very
[14:59] Speaker 8: clear outcomes, and every single implementation and work that gets
[15:03] Speaker 8: done gets fed back into the product. So the next
[15:06] Speaker 8: forward-deployed engineering initiative sort of compounds on what it's learned
[15:10] Speaker 8: from other FDEs.
[15:11] Speaker 2: It's very exciting. What is the value proposition or the
[15:15] Speaker 2: economics of taking in FDEs? Is it something that would
[15:20] Speaker 2: tip the balance of paying for a system or a service?
[15:25] Speaker 2: Is it an added layer of cost?
[15:27] Speaker 8: Yeah, so we see it as an opportunity to actually
[15:29] Speaker 8: expand the total addressable market for a company versus just
[15:33] Speaker 8: thinking about what the product could do out of the box.
[15:36] Speaker 8: A lot of these forward-deployed engineers, because they're embedded working
[15:40] Speaker 8: with the company, are looking to find other ways to
[15:43] Speaker 8: streamline and automate a lot of the workflows that the
[15:46] Speaker 8: company has. So it's really a compounding effect of not
[15:49] Speaker 8: just the original solution, but of what's possible within the company.
[15:52] Speaker 2: All right, you guys are kicking off your scale-up conference,
[15:56] Speaker 2: I think, tomorrow. That's right. Yeah. What do you think
[16:02] Speaker 2: people are actually going to be discussing and talking about
[16:04] Speaker 2: right now?
[16:05] Speaker 8: Yeah, no, so it's a great week for us. Again,
[16:07] Speaker 8: the Ford Deployed Engineering Council goes off today. Tomorrow we
[16:10] Speaker 8: have our Scale Up AI conference here in New York
[16:12] Speaker 8: where we are bringing in leaders from across the globe,
[16:16] Speaker 8: experts on AI technology to really talk about trends, what's
[16:19] Speaker 8: going on with the models, We have leaders from Anthropic.
[16:22] Speaker 8: The CRO, president of Databricks, will be there to talk
[16:25] Speaker 8: about how they've scaled from zero to seven billion. And
[16:28] Speaker 8: of course, the Ford Deployed Engineering Council will be there
[16:31] Speaker 8: to answer questions and share best practices. So really an
[16:33] Speaker 8: exciting time, not only for Insight Partners, but for the
[16:36] Speaker 8: industry to just get a sense of how AI is
[16:38] Speaker 8: transforming the industry.
[16:41] Speaker 2: So this is interesting. We're going to talk a little
[16:43] Speaker 2: bit more about this with NEA later in the hour.
[16:45] Speaker 2: You know, they're not necessarily mutually exclusive. Pacing the frontier
[16:50] Speaker 2: of a model's capabilities versus the rate of deployment in
[16:53] Speaker 2: the enterprise, right? companies big and small can just plow
[16:57] Speaker 2: on with AI irrespective of what the frontier labs are doing.
[17:00] Speaker 2: Like is that seem to be the general consensus among you,
[17:03] Speaker 2: your partners, your port goes?
[17:05] Speaker 9: Yeah.
[17:06] Speaker 8: So whether the frontier models slow down or speed up,
[17:08] Speaker 8: I know we've seen a speed up in the, you know,
[17:10] Speaker 8: in the past, I think there's, there's discussions on, Hey,
[17:12] Speaker 8: if they slow down, what happens? Then you also have,
[17:16] Speaker 8: you know, the open source models as well. Basically we're
[17:19] Speaker 8: seeing a lot of momentum still in the portfolio that
[17:22] Speaker 8: specifically for insight partners, but also the industry, because we
[17:25] Speaker 8: talked about the adoption sort of lagging earlier, there's still
[17:29] Speaker 8: a lot of opportunity and momentum to get the maximum
[17:32] Speaker 8: value out of AI. And that's why we're doubling down
[17:34] Speaker 8: on the forward deployed engineering council.
[17:37] Speaker 2: Pablo Dominguez of Insight Partners. Really appreciate having you on
[17:40] Speaker 2: the show. Thank you very much indeed. Coming up, New
[17:43] Speaker 2: York City lawmakers hear from some of AI's most vocal
[17:46] Speaker 2: critics as they weigh a package of AI safety bills.
[17:50] Speaker 2: We're going to have the details of those next. This
[17:52] Speaker 2: is Bloomberg Tech. Let's get over to New York where
[18:08] Speaker 2: Bloomberg's Yahaira Anand is standing by.
[18:10] Speaker 10: Hi, Yahaira.
[18:10] Speaker 1: Hi, Ed.
[18:11] Speaker 11: It's time now for Talking Tech. First up, Paramount Skydance
[18:14] Speaker 11: has announced David Ellison will serve as chairman and CEO
[18:17] Speaker 11: when the company combines with Warner Brothers Discovery. The new
[18:21] Speaker 11: company will be called Skydance. Enon Karais will serve as co-CEO,
[18:26] Speaker 11: focusing on day-to-day management and integration of the businesses. Plus,
[18:31] Speaker 11: Japan's second largest brokerage, Daiwa Securities, says information on more
[18:36] Speaker 11: than 100,000 clients may have been stolen. Data including names
[18:41] Speaker 11: and account numbers were leaked in an attack on an
[18:44] Speaker 11: external vendor. Daiwa says its own systems have not been
[18:48] Speaker 11: breached and the information can't be used to access securities
[18:51] Speaker 11: accounts or conduct online trading. And AI can now start
[18:57] Speaker 11: prescribing acne drugs in Utah. A startup called Nola Health
[19:01] Speaker 11: has been given the green light to send orders to
[19:04] Speaker 11: pharmacies without a doctor. While the move is limited to
[19:08] Speaker 11: acne medications, it sets the stage for a new era
[19:10] Speaker 11: in healthcare where AI takes on a larger role.
[19:14] Speaker 1: How about that, Ed?
[19:15] Speaker 2: Okay, thank you, Yohaira. We are looking at live pictures
[19:18] Speaker 2: of New York City Council, which is currently holding a
[19:22] Speaker 2: hearing on AI safety. This, as city officials try to
[19:25] Speaker 2: play a larger role in regulating the AI industry. Representatives
[19:29] Speaker 2: from some of the top AI companies are also attending
[19:32] Speaker 2: the hearing. Bloomberg National Reporter in New York, Nahar Khatan,
[19:36] Speaker 2: joins us with the details. What's going on here?
[19:40] Speaker 6: Yes, thanks for having me.
[19:41] Speaker 4: So the big picture here is that New York City
[19:44] Speaker 4: is trying to put some guardrails around artificial intelligence. And today, lawmakers,
[19:50] Speaker 4: are bringing both the industry and some of its most
[19:54] Speaker 4: outspoken whistleblowers into the same room. One of the key
[19:58] Speaker 4: witnesses is former anthropic researcher Jacob Coxon. who quit the
[20:03] Speaker 4: company last month with a warning. He said that AI
[20:08] Speaker 4: could become so powerful that humans may eventually lose control
[20:12] Speaker 4: of it. And he accused Anthropic and OpenAI essentially of
[20:15] Speaker 4: gambling with our lives. So he'll be joined by other
[20:19] Speaker 4: former researchers from some of the biggest AI companies. And
[20:23] Speaker 4: these people who have worked on this technology from the
[20:26] Speaker 4: inside have also raised concerns about that. And on the
[20:29] Speaker 4: other side, you'll have representatives from Anthropic, OpenAI, Google, and Meta.
[20:34] Speaker 4: That includes people who work on AI safety and policy. Anthropic,
[20:38] Speaker 4: for example, is sending the head of a team whose
[20:42] Speaker 4: job is essentially to stress test advanced AI models to
[20:46] Speaker 4: see what they're capable of and where they can pose risks.
[20:50] Speaker 4: So some of these companies initially didn't volunteer to show up,
[20:53] Speaker 4: but they got pretty much everyone in the room. SpaceX
[20:57] Speaker 4: is the only one that hasn't shown up. And the
[20:59] Speaker 4: speaker of the city council said that she's trying to
[21:01] Speaker 4: get a judge to bring them in as well.
[21:04] Speaker 2: So we're looking at these live pictures still of that
[21:06] Speaker 2: hearing that's going on. I think that the question a
[21:07] Speaker 2: lot of people have was, what can a city, even
[21:10] Speaker 2: one of New York's scale, do to regulate AI?
[21:16] Speaker 5: Right.
[21:16] Speaker 2: I agree.
[21:16] Speaker 4: That's a really big question. What can New York City
[21:18] Speaker 4: actually do about AI? I think there are limits. A
[21:22] Speaker 4: lot of major decisions about regulating AI are going to
[21:24] Speaker 4: come from the state and federal level. But the council
[21:27] Speaker 4: is considering several bills that could have real consequences for
[21:31] Speaker 4: companies operating in New York. One would create an incentive
[21:36] Speaker 4: for AI whistleblowers. So if someone inside a company reports
[21:39] Speaker 4: wrongdoing and then that ultimately leads to a fine, that
[21:43] Speaker 4: whistleblower could receive a share of the money.
[21:46] Speaker 6: Another would allow people harmed.
[21:48] Speaker 4: By an AI system to sue the developer under some circumstances.
[21:52] Speaker 4: And then a third would require independent third parties to
[21:55] Speaker 4: validate some AI systems before.
[21:57] Speaker 6: They could be deployed in the city. So the hearing
[22:00] Speaker 6: is really about a much bigger question.
[22:02] Speaker 4: AI is advancing extremely quickly, and New York officials are
[22:05] Speaker 4: asking whether the rules and the government are moving quickly
[22:08] Speaker 4: enough to.
[22:09] Speaker 2: Keep it up.
[22:09] Speaker 4: The speaker of the city council, Julie Menon, put it,
[22:13] Speaker 4: you know, the idea that AI companies simply self-regulating is
[22:16] Speaker 4: not going to work.
[22:17] Speaker 6: We really need a pencil's legislation.
[22:19] Speaker 4: And then hopefully the federal and state jurisdictions follow suit.
[22:25] Speaker 2: Thank you so much. You can watch that full hearing,
[22:27] Speaker 2: by the way, on Live Go on the Bloomberg Terminal.
[22:30] Speaker 2: Coming up, if 2026 feels like a banner year for
[22:33] Speaker 2: the world's tech billionaires, you're not wrong. And the Bloomberg
[22:37] Speaker 2: Billionaires Index backs it up with the numbers. We're going
[22:39] Speaker 2: to get into that next. Just to recap, the Nasdaq
[22:42] Speaker 2: 100 pushing, extending on the record that it set as
[22:46] Speaker 2: of Friday's close. There have been many new records this year,
[22:49] Speaker 2: but tech higher as it stands. This is Bloomberg Tech.
[23:02] Speaker 2: Welcome back to Bloomberg Tech. The NASDAQ 100 has continued momentum,
[23:05] Speaker 2: building on the record that it set Friday as of
[23:07] Speaker 2: the close. There's a slight underperformance in chip stocks in general,
[23:12] Speaker 2: reflected by the Philadelphia SMA Conductor Index. In this environment
[23:15] Speaker 2: where yields, what was it we said earlier, yields are
[23:18] Speaker 2: creeping higher, technology stocks continue to... to cruel higher in
[23:23] Speaker 2: the face of bond losses. And there's a story out
[23:26] Speaker 2: there I want to get to from the weekend. These
[23:29] Speaker 2: are the US listed shares of TSMC and then Intel shares.
[23:33] Speaker 2: There was a report from Tim Colpin that said that
[23:37] Speaker 2: TSMC is holding talks with the TerraFab project. And it
[23:40] Speaker 2: could look in different ways, like either TSMC operates some
[23:45] Speaker 2: facility for the TerraFab initiative which is the JV between SpaceX,
[23:49] Speaker 2: SpaceX AI, and Tesla for leading-edge chips, or Terafab becomes
[23:54] Speaker 2: a sort of anchoring customer of TSMC. Now, Intel had
[23:57] Speaker 2: signed up to the Terafab project back in April for
[24:00] Speaker 2: the 14A process, and with those shares under pressure, the
[24:03] Speaker 2: kind of conclusion that the market is drawing here from
[24:06] Speaker 2: that report is that Intel might get pushed out a
[24:08] Speaker 2: little bit, displaced by TSMC. What Elon Musk posted on
[24:11] Speaker 2: X was that there are discussions between tariff and tsmc
[24:16] Speaker 2: which may result in something happening we'll see schneider electric
[24:20] Speaker 2: is making its biggest acquisition ever buying industrial software firm
[24:24] Speaker 2: ptc for nearly 23 billion dollars as it doubles down
[24:29] Speaker 2: on ai but investors are looking at the price tag
[24:32] Speaker 2: and have a few questions bloomberg deals is liana bakers
[24:34] Speaker 2: with us yeah saw this one play out over the
[24:36] Speaker 2: last 24 hours or so i guess let's start with
[24:40] Speaker 2: with the deal like what is schneider electric trying to
[24:41] Speaker 2: get hold.
[24:42] Speaker 12: Of Sure, so Schneider Electric, like many industrial companies, is
[24:46] Speaker 12: trying to figure out how to incorporate AI and software
[24:51] Speaker 12: into its products, because even though they're dealing with heavy
[24:55] Speaker 12: machinery and electronics and infrastructure, All of that is still
[25:00] Speaker 12: being potentially revolutionized by some of these strides in AI.
[25:04] Speaker 12: No one wants to be left behind. So here they're
[25:07] Speaker 12: making a big bet on a U.S. company based in
[25:09] Speaker 12: Boston called PTC. We've reported before that Autodesk last year
[25:14] Speaker 12: had taken a look at PTC. So this was a
[25:16] Speaker 12: company on the radar of other potential buyers, but ultimately
[25:22] Speaker 12: it's Schneider in France making its biggest acquisition yet.
[25:26] Speaker 2: With this one. Okay, so $ 22. 6 billion. Why are eyebrows
[25:31] Speaker 2: being raised at the numbers here and the price tag
[25:34] Speaker 2: on the deal?
[25:35] Speaker 12: It was a bit shocking that Schneider was the buyer.
[25:38] Speaker 12: We often see on merger Mondays like today that the
[25:42] Speaker 12: acquirer stock goes down when you have a big announcement.
[25:46] Speaker 12: The premium was pretty rich for PTC, close to 40%.
[25:51] Speaker 12: So it definitely is a big bite. It's an interesting
[25:55] Speaker 12: time also in France politically. So there could be different
[25:58] Speaker 12: reasons here, but ultimately investors will decide, you know, how
[26:04] Speaker 12: it plays out. But analysts seem to think that there
[26:06] Speaker 12: is synergy here. These companies and industrials have to be aggressive,
[26:10] Speaker 12: especially with deal making, because, you know, their business lines
[26:15] Speaker 12: are changing with all the transformation driven by A.I., You know.
[26:20] Speaker 2: I started the show saying things seemed a bit slow
[26:23] Speaker 2: and that summer had arrived in a Monday in October.
[26:25] Speaker 2: Maybe I was wrong. Maybe I walked that back. Bloomberg's
[26:28] Speaker 2: Liana Baker with a big deal and a nice piece
[26:31] Speaker 2: of M & A Monday. Thank you very much. Let's
[26:33] Speaker 2: take a look at today's big number.
[26:34] Speaker 10: $ 4. 6 trillion. That's the combined worth of tech billionaires on
[26:41] Speaker 10: Bloomberg's Billionaires Index, which relaunches online today. Despite making up
[26:47] Speaker 10: only about a fifth of its members, that group accounted
[26:50] Speaker 10: for about 36% of the index's wealth.
[26:54] Speaker 2: Let's talk through it with Bloomberg's Dylan Sloan. $ 4. 6 trillion
[26:58] Speaker 2: is a big number. Good job, the team there. Put
[27:03] Speaker 2: that in the context of this relaunched Bloomberg Billionaires Index
[27:06] Speaker 2: and what we're kind of learning about the AI side
[27:09] Speaker 2: of this story. Yeah, absolutely.
[27:11] Speaker 3: So 4.6 trillion. We're taking this opportunity to really look
[27:14] Speaker 3: at how the numbers have changed through the first three
[27:17] Speaker 3: quarters of the year. We were seeing a lot of
[27:20] Speaker 3: dynamics in our list of the world's 500 richest people,
[27:23] Speaker 3: really sort of encapsulating what we've seen in the markets
[27:26] Speaker 3: more broadly this year and in the past few years.
[27:29] Speaker 2: The big one, of course, is tech, AI, the AI trade.
[27:33] Speaker 3: And there's really been this divergence between billionaires who owe
[27:35] Speaker 3: their fortunes to the tech industry and everyone else. You
[27:38] Speaker 3: mentioned that $ 4. 6 trillion headline number. There's around 100 tech
[27:42] Speaker 3: billionaires on the Bloomberg Billionaires Index right now.
[27:45] Speaker 2: They've gained $ 845 billion in total through the end of Q3.
[27:49] Speaker 3: On the flip side, every other industry combined has actually
[27:52] Speaker 3: lost $ 62 billion on aggregate. So again, it's just this
[27:56] Speaker 3: real divergence between tech And everybody else, tech just keeps
[27:59] Speaker 3: racing ahead at the expense of some other sectors of
[28:02] Speaker 3: the market. That's what this beautiful chart is showing. And
[28:05] Speaker 3: as you said, net worth changed through September 30th.
[28:09] Speaker 2: I love data. I love indexes. Let's talk about people, though.
[28:12] Speaker 2: That group of 100 tech billionaires, I have some suspicions,
[28:16] Speaker 2: but who are we talking about here?
[28:18] Speaker 3: And we're talking about 100, but really it's more the
[28:20] Speaker 3: top 10 or so. We've seen racing ahead, Elon Musk.
[28:24] Speaker 3: who became the first trillionaire earlier this year, of course,
[28:26] Speaker 3: after the SpaceX IPO. He's added $ 310 billion to his
[28:30] Speaker 3: fortune this year, and that's almost 40% of the entire
[28:33] Speaker 3: gains on the whole index writ large. So just one
[28:36] Speaker 3: person alone contributing so much to that. And it really
[28:38] Speaker 3: has been kind of the standard cast of U.S. tech
[28:40] Speaker 3: characters who contributed the majority of those gains. Michael Dell
[28:44] Speaker 3: has been a big gainer this year. Mark Zuckerberg is
[28:47] Speaker 3: up 23% on the year. For the first time, actually,
[28:51] Speaker 3: this was last month, we saw all 10 individuals, the
[28:54] Speaker 3: top 10 on the list were all Americans, actually, for
[28:56] Speaker 3: the first time. since Bloomberg began tracking wealth in 2012.
[29:00] Speaker 3: So it really is this small circle of U.S. billionaires
[29:03] Speaker 3: who owe their fortunes to tech that have contributed a
[29:06] Speaker 3: lot of the gains there.
[29:07] Speaker 2: You know, when you grow up in the school of
[29:09] Speaker 2: the Bloomberg newsroom, you learn really quickly that through the
[29:13] Speaker 2: terminal and online, people love reading about the stories behind
[29:17] Speaker 2: the world's wealthiest people, right? So we're relaunching Bloomberg Billionaires
[29:21] Speaker 2: Index online today. What kind of things can you do
[29:24] Speaker 2: with the index, the data? What can you play around with?
[29:27] Speaker 3: Yeah, great question. I'd encourage all of you to go
[29:28] Speaker 3: check it out. Bloomberg.com slash billionaires.
[29:31] Speaker 2: There's a link there.
[29:32] Speaker 3: There's a bunch of new functionality in terms of being
[29:34] Speaker 3: able to compare fortunes between different individuals, filter those, looking
[29:37] Speaker 3: at whether they be specific industries, specific partnerships. of the world,
[29:40] Speaker 3: age brackets, and just see over time some of these
[29:43] Speaker 3: trends that we're talking about now, how they're playing out
[29:45] Speaker 3: in terms of the dynamics of where wealth is growing
[29:47] Speaker 3: across the world, in which industries. And then also, of course,
[29:50] Speaker 3: our coverage is ongoing about how that's being deployed and utilized.
[29:54] Speaker 3: So I would definitely encourage folks to check it out,
[29:55] Speaker 3: bloomberg.com slash billionaires.
[29:58] Speaker 2: Bloomberg's Dylan Sloan, thank you very much. And as Dylan
[30:01] Speaker 2: just said, you can check out the Bloomberg Billionaires Index
[30:04] Speaker 2: online for new ways to browse the world's top 500
[30:07] Speaker 2: richest people by region or industry or age and even
[30:10] Speaker 2: more things. And I recommend that you do that. Strategy
[30:15] Speaker 2: is back in the black thanks to Bitcoin. The company
[30:18] Speaker 2: posted a $ 21 billion gain on its crypto holdings in
[30:21] Speaker 2: the third quarter as Bitcoin rallied 43%. But Michael Saylor's
[30:26] Speaker 2: firm's facing waning demand for the securities it uses to
[30:30] Speaker 2: fund Bitcoin purchases and has spent more than $ 1 billion
[30:34] Speaker 2: buying back preferred shares. Strategy now holds 848,000 Bitcoin worth
[30:37] Speaker 2: about $ 73 billion. Okay, coming up on the show, AI's
[30:45] Speaker 2: biggest players are debating whether it's time to slow down
[30:49] Speaker 2: at the frontier. But would that actually slow the AI boom?
[30:54] Speaker 2: We're going to discuss with Tiffany Luck of NEA that
[30:56] Speaker 2: conversation next. This is Bloomberg Tech. so SoftBank chief Masayoshi Sun,
[31:23] Speaker 2: one of AI's fervent believers, said even he's worried about
[31:26] Speaker 2: safety risks as machines quickly gain more abilities. Countries must
[31:31] Speaker 2: build trust and work together, said Sun, a major backer
[31:34] Speaker 2: of OpenAI. He spoke alongside White House science and tech
[31:37] Speaker 2: policy advisor Michael Kratzios on the sidelines of the Science
[31:40] Speaker 2: and Technology in Society Forum in Kyoto over the weekend.
[31:45] Speaker 9: I think we don't have any more luxury of having
[31:50] Speaker 9: human fight against human. There will be a bigger issue
[31:55] Speaker 9: of human against super intelligence. You know, that if the
[32:00] Speaker 9: super intelligence becomes so smart and if bad usage by
[32:10] Speaker 9: bad human use the wrong usage, this can become super dangerous.
[32:20] Speaker 2: I want to build a little bit on that topic.
[32:22] Speaker 2: The world's leading AI labs are debating whether it's time
[32:25] Speaker 2: to pace the frontier as increasingly powerful models raise safety concerns.
[32:30] Speaker 2: But for businesses already deploying the technology, slowing model development
[32:35] Speaker 2: doesn't necessarily mean slowing AI adoption. So what would pacing
[32:39] Speaker 2: the frontier of model development mean for the enterprise? and
[32:42] Speaker 2: for the race between OpenAI and Profic and the rest
[32:44] Speaker 2: of the industry. Tiffany Luck, partner at NEA, joins us
[32:47] Speaker 2: for more. I mean, I think the simple truth for
[32:50] Speaker 2: many VCs in your position is, like, if the frontier
[32:53] Speaker 2: labs pace, the frontier life resumes. Is that fair?
[32:58] Speaker 1: Yes, I think that's fair. First of all, thank you
[32:59] Speaker 1: for having me.
[33:00] Speaker 2: It's great to have you here.
[33:01] Speaker 1: I'm excited to be here.
[33:02] Speaker 13: You know, one actually way I like to think about
[33:05] Speaker 13: this is, you know, you have the frontier, you have
[33:07] Speaker 13: where the technology is today, right? And then you actually
[33:10] Speaker 13: have the kind of reality of adoption. And actually Waymo
[33:14] Speaker 13: is a good early example of this. Probably the cars
[33:17] Speaker 13: were ready to be on the road far ahead of
[33:19] Speaker 13: when they actually got on the road.
[33:21] Speaker 5: Right.
[33:21] Speaker 1: And what did it take to actually get them on
[33:23] Speaker 1: the road? It took trust. It took regulation.
[33:25] Speaker 13: It took, you know, obviously kind of shipping them into production.
[33:28] Speaker 13: And so I almost think, yes.
[33:31] Speaker 2: It also took regulation city by city, state by state
[33:34] Speaker 2: or bed level.
[33:35] Speaker 1: Totally.
[33:35] Speaker 13: And trust by consumers that when I get into a car,
[33:39] Speaker 13: you know, it's going to be safe. And now I
[33:41] Speaker 13: think you get into a Waymo and you're like, wow,
[33:43] Speaker 13: the magical moment of riding in an autonomous vehicle. And
[33:46] Speaker 13: so I think we will see that with AI. We've
[33:48] Speaker 13: had some of that right to close that gap between
[33:51] Speaker 13: where we are on adoption front and where we are
[33:52] Speaker 13: on the technology front. Obviously, every single model that gets
[33:56] Speaker 13: released is more and more capable. We've seen just incredible
[33:59] Speaker 13: breakthroughs on the intelligence front. But if you ask me,
[34:02] Speaker 13: I think we have so far to go on the
[34:04] Speaker 13: adoption front, both on the enterprise side and then actually
[34:07] Speaker 13: as a personal consumer as well.
[34:09] Speaker 2: Right, so far to go. I mean, we had this
[34:11] Speaker 2: conversation earlier with Insight Partners about forward-deployed engineers, which was
[34:15] Speaker 2: not a new conversation. But there's the admission there that
[34:18] Speaker 2: you need forward deployed engineers because like loads of companies
[34:21] Speaker 2: just haven't worked out what it is they're supposed to
[34:23] Speaker 2: be doing with AI yet.
[34:25] Speaker 7: Totally.
[34:25] Speaker 2: You might see that as TAM though. The TAM is there.
[34:27] Speaker 1: The TAM is huge.
[34:28] Speaker 13: I actually do think like this just means even if
[34:31] Speaker 13: we're like early single digit adoption, let's say today on
[34:34] Speaker 13: an overall broad curve, there is so much room to grow.
[34:38] Speaker 13: And I think a couple points make me really believe
[34:41] Speaker 13: that intelligence is not enough. And I think it's incredible
[34:44] Speaker 13: we need to keep going up that intelligence curve, but
[34:47] Speaker 13: we really need to figure out how to get up
[34:48] Speaker 13: the deployment curve or the adoption curve. And so I
[34:51] Speaker 13: think you had OpenAI and Anthropic publicly launch deployment companies
[34:55] Speaker 13: to say, And raw intelligence is not enough. We need
[34:58] Speaker 13: to translate that into real outcomes, translate that into the enterprise.
[35:02] Speaker 13: We just saw Anthropic actually talk about their Frontier Academy.
[35:06] Speaker 13: So they're investing $ 100 million to train 10,000 engineers kind
[35:10] Speaker 13: of between now and the end of next year.
[35:12] Speaker 9: Right.
[35:12] Speaker 13: To actually teach people how to take this intelligence and
[35:15] Speaker 13: how intelligence and how to actually get it into real
[35:18] Speaker 13: world examples where it's producing outcomes, where it's dealing with
[35:21] Speaker 13: end to end workflows, where it's producing real tangible ROI.
[35:25] Speaker 13: I think today everyone thinks, obviously, yes, like AI is
[35:28] Speaker 13: powerful and it's going to help me do X, Y
[35:30] Speaker 13: and Z. But now we're at the point where rubber
[35:32] Speaker 13: meets the road and say, like, OK, well, what is
[35:34] Speaker 13: that ROI based on what is the value of driving
[35:37] Speaker 13: based on what I'm spending?
[35:38] Speaker 2: There is a trend, but there is a approach of
[35:43] Speaker 2: owning your own intelligence. First of all, I think that's
[35:46] Speaker 2: something that you would prescribe to, right? Or subscribe to.
[35:49] Speaker 2: Explain that part to me. And then within that, the
[35:52] Speaker 2: thing I see quite a lot is, depending on where
[35:54] Speaker 2: you are in the stack, which layer of AI you're in,
[35:58] Speaker 2: it's like, what are you paying for? Run with both ideas, yeah.
[36:03] Speaker 5: Yeah.
[36:04] Speaker 13: So, okay, so own your own intelligence. What does that
[36:06] Speaker 13: really mean? I think it means a couple things. One,
[36:08] Speaker 13: from an enterprise perspective, there is this tailwind of enterprises
[36:12] Speaker 13: wanting to own a piece of their intelligence stack, whether
[36:15] Speaker 13: that actually means training their own models, having more control
[36:19] Speaker 13: over their data, more control over their intelligence. So I
[36:22] Speaker 13: think that's a trend we'll continue to see more of,
[36:24] Speaker 13: a very, very important trend, and actually a really important
[36:26] Speaker 13: part of the ecosystem. I just saw kind of overnight,
[36:31] Speaker 13: or I guess yesterday, that Reflection is supposed to be
[36:34] Speaker 13: launching soon its Western version of an open weights model,
[36:37] Speaker 13: which is super important. I think that will help this
[36:39] Speaker 13: trend of own your own intelligence, right? And it really
[36:43] Speaker 13: just comes down to, I think, three things if you
[36:45] Speaker 13: think about it. You know, one certainly is this idea
[36:48] Speaker 13: of enterprises want to keep their moat. They want to
[36:51] Speaker 13: keep compounding their moat. That means data private. That means
[36:53] Speaker 13: compounding workflows, et cetera. So kind of keep it within
[36:56] Speaker 13: their their own ecosystem, if you will. The second two
[37:00] Speaker 13: things which are related is just performance and cost. So
[37:03] Speaker 13: if you think about owning your own intelligence relative to
[37:05] Speaker 13: the frontier, there's a wide spectrum of what tasks need
[37:08] Speaker 13: to be taken care of by the frontier. Not every
[37:11] Speaker 13: single query or workflow or agent behavior needs to be
[37:14] Speaker 13: handled by a frontier model. And kind of what, you know,
[37:17] Speaker 13: maybe let's say the 80% that gets done or the
[37:20] Speaker 13: everyday things that get done could actually be tackled by
[37:22] Speaker 13: an enterprise's own model. And so you actually have a
[37:25] Speaker 13: whole ecosystem building around this, right? And we're actually seeing
[37:28] Speaker 13: higher performance than some of the... base models at a
[37:31] Speaker 13: lower cost as well.
[37:32] Speaker 2: It's the idea that you avoid paying for tokens twice over.
[37:36] Speaker 2: Everything that we've discussed, I really think we underappreciate NEA's
[37:42] Speaker 2: size and scale, where it's deploying capital. How does everything
[37:46] Speaker 2: you've discussed with me impact where you guys are investing?
[37:50] Speaker 1: Sure.
[37:50] Speaker 13: So I would say we are investing across the AI
[37:52] Speaker 13: ecosystem and have been for you know, since the earliest
[37:55] Speaker 13: days of AI. You know, where I spend a majority
[37:58] Speaker 13: of my time is actually on applied AI, and that's
[38:00] Speaker 13: kind of what I think about as the deployment layer, right?
[38:04] Speaker 13: So we talked, I think, earlier today about for deployed engineers.
[38:07] Speaker 13: You know, you see a lot of applied AI companies saying,
[38:09] Speaker 13: how can I take this raw intelligence?
[38:10] Speaker 1: How can I package it?
[38:12] Speaker 13: You know, in many cases, the answer would be, let
[38:13] Speaker 13: me get some for deployed engineers into my customers, right?
[38:17] Speaker 13: Figure out how companies are using the models, how they
[38:19] Speaker 13: need to use the models, package it in a way that,
[38:21] Speaker 13: you know, kind of makes sense.
[38:23] Speaker 1: So I spend a lot of my time on applied AI.
[38:25] Speaker 13: We also spend a lot of time on, I would say,
[38:27] Speaker 13: unique models, unique tooling, everything that comes around that, including cybersecurity,
[38:33] Speaker 13: of course, data, memory, semiconductors, really the entire AI ecosystem.
[38:40] Speaker 13: And then I would say the other area we're super
[38:41] Speaker 13: excited about is just physical AI. So we've had the
[38:45] Speaker 13: kind of aha moment, if you will, from a text
[38:47] Speaker 13: modality perspective with LLMs. And now we see, you know,
[38:51] Speaker 13: world models and unlocking physical intelligence or physical AI, also
[38:56] Speaker 13: physical intelligence itself, the company, but physical AI more broadly.
[38:59] Speaker 13: And I think that that's another really exciting wave that
[39:01] Speaker 13: will come.
[39:02] Speaker 2: I'm following you completely. I mean, we just had Lisa
[39:05] Speaker 2: Su and Fei-Fei Li here in the seat you're in
[39:07] Speaker 2: now after that deal closed. And clearly AMD was thinking
[39:11] Speaker 2: about it as well. I really appreciate the deep and
[39:14] Speaker 2: thorough discussion with you, Tiffany Luck of NEA. Thank you
[39:18] Speaker 2: for your time. Now coming up, Apple's new CEO takes
[39:21] Speaker 2: control of design. What it means for the next wave
[39:24] Speaker 2: of Apple products. Power up. That's next. This is Bloomberg Tech.
[39:41] Speaker 2: Disney is giving ABC News the TikTok treatment. It's Vert's
[39:46] Speaker 2: vertical video format launches today in the ABC News app.
[39:49] Speaker 2: Disney first rolled out Vert on ESPN last year, and
[39:53] Speaker 2: it's caught on with more than 26 million users spending
[39:57] Speaker 2: a combined 1.8 billion minutes watching in the vertical format.
[40:03] Speaker 2: Apple's new CEO is putting his own stamp on the
[40:05] Speaker 2: company and making design a much bigger priority. John Ternes
[40:10] Speaker 2: is taking a hands-on role as Apple prepares a wave
[40:13] Speaker 2: of new products. It's the topic of this past weekend's
[40:16] Speaker 2: Power On newsletter and now podcast. Bloomberg's Mark Gurman, who
[40:20] Speaker 2: leads our coverage of consumer technology, the author of Power
[40:24] Speaker 2: On and now the host of Power On Pod. is
[40:27] Speaker 2: with us. Let's get right to the design bit. Is
[40:31] Speaker 2: that something you expected of the areas where John Ternus
[40:34] Speaker 2: would say, okay, I'm going to focus here rather than
[40:37] Speaker 2: let other executives do that area? Yeah, very much so.
[40:42] Speaker 2: I expected this.
[40:44] Speaker 14: The reason is that Apple doesn't have a chief design
[40:47] Speaker 14: officer or a head of design at this point. That's
[40:50] Speaker 14: a position that was never really filled since the departure
[40:53] Speaker 14: of Johnny Ive in 2019. They have a head of
[40:56] Speaker 14: industrial design, Molly Anderson, and they have a head of
[40:59] Speaker 14: user interface design.
[41:00] Speaker 2: That's now Steve LeMay.
[41:02] Speaker 14: And the two of them worked together and they've been
[41:04] Speaker 14: reporting to Ternus for quite some time. But now that
[41:07] Speaker 14: Ternus is CEO, he's spending a lot of time in
[41:10] Speaker 14: the design studio, part of both industrial design and human
[41:13] Speaker 14: interface design, working closely with the leadership team and the
[41:17] Speaker 14: designers there. And this is a big change for Apple
[41:20] Speaker 14: in terms of the CEO participating in the design process.
[41:24] Speaker 14: That's something that Tim Cook really never.
[41:26] Speaker 2: Got involved in.
[41:26] Speaker 14: I mean, I'm told that they'd be lucky to see
[41:29] Speaker 14: him in there for a month or for an hour
[41:32] Speaker 14: a month. He would come in for the quarterly reviews,
[41:34] Speaker 14: but definitely not in the thick of things. Ternus, on
[41:37] Speaker 14: the other hand, is trying to get his hands dirty
[41:38] Speaker 14: with everything going on in the design world.
[41:41] Speaker 2: So how does this show up? You know, we talked
[41:44] Speaker 2: about a wave of new products. Are there specific lines
[41:47] Speaker 2: where John Ternus, like in the first instance, is saying, okay,
[41:50] Speaker 2: this is where I'm going to have my product expertise
[41:53] Speaker 2: come into play? Oh, it's very much to be seen, right?
[41:57] Speaker 14: I mean, the design process, the product development process, these
[42:00] Speaker 14: are things that could take three, five, seven years depending
[42:03] Speaker 14: on the product. So he's working on very much longer
[42:06] Speaker 14: term stuff. You know, the design team, he has been
[42:10] Speaker 14: part of the engineering process obviously for decades at this point.
[42:14] Speaker 14: He's been in the thick of things there, but carrying
[42:16] Speaker 14: that over to the CEO role is quite notable. It's
[42:19] Speaker 14: different from how he's handling things like finances, operations, and sales.
[42:23] Speaker 14: He's essentially taking the opposite approach to Cook. And each
[42:26] Speaker 14: of these CEOs are spending their time where they can
[42:29] Speaker 14: have the most value, which is what Cook told Ternus
[42:32] Speaker 14: to do.
[42:34] Speaker 2: Mark, you've launched the Power On podcast. Some people call
[42:37] Speaker 2: it Pop. I don't know. That's for you. But what's
[42:39] Speaker 2: it been like? I mean, to me, the reception seems
[42:42] Speaker 2: just incredible.
[42:44] Speaker 14: Yeah, we were ranked pretty much immediately in the top five,
[42:47] Speaker 14: top ten on at least Apple Podcasts for the technology
[42:51] Speaker 14: section and the top charts. So it seems to be
[42:53] Speaker 14: resonating so far. People are really enjoying it. To be clear,
[42:57] Speaker 14: this is separate from the newsletter. So the newsletter continues,
[43:00] Speaker 14: the Power On podcast continues.
[43:01] Speaker 2: Is its own thing. We record every week. We air
[43:04] Speaker 2: every Thursday.
[43:06] Speaker 14: This week's episode, we're going to go deeper into Ternus's
[43:09] Speaker 14: impact on Apple, the changes he's making. We'll go deeper
[43:12] Speaker 14: on the Vision Pro. And then next week, of course,
[43:15] Speaker 14: we'll be giving our impressions for everything Apple introduces at
[43:18] Speaker 14: its big smart home launch. So looking forward to these
[43:20] Speaker 14: next two episodes and beyond.
[43:23] Speaker 2: Bloomberg's Mark Gurman, thank you very much. And once again,
[43:25] Speaker 2: go check out the new Power On podcast, which extends,
[43:28] Speaker 2: but it's separate to Mark Gurman's newsletter, a weekly audio
[43:31] Speaker 2: deep dive and video on Apple, but also like the
[43:34] Speaker 2: biggest stories in consumer tech too. Very much what Mark
[43:37] Speaker 2: does here for us at Bloomberg News. That does it
[43:40] Speaker 2: for this edition of Bloomberg Tech. I don't know, like
[43:42] Speaker 2: started like slow start.
[43:44] Speaker 13: To the week.
[43:44] Speaker 2: Then there was a lot of news and things have
[43:46] Speaker 2: kind of picked up. Tech stocks pushing fresh record highs.
[43:49] Speaker 2: recap all of it on the podcast. It's a really
[43:51] Speaker 2: good way to start the week, if I say so myself.
[43:53] Speaker 2: Find it on the Bloomberg Terminal, as well as online
[43:56] Speaker 2: on Apple, Spotify, and iHeart. From San Francisco, this is
[44:00] Speaker 2: Bloomberg Tech.

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