# Samsung’s Record Profit Fails to Impress After AI Chip Rally

An episode of [Bloomberg Intelligence](https://invisiblenetwork.ai/podcast/326301337), 7 Jul 2026, 18 min.

Audio: https://podtrac.com/pts/redirect.mp3/tracking.swap.fm/track/UVBrz8bN8aM2Xe47PEPu/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/7f534b8c-9e91-429a-b102-ae3c00090c6d/1e53e44a-2bd6-497a-a9aa-b4800114cc5f/audio.mp3?utm_source=Podcast&in_playlist=0ad812bf-fd15-4012-a18c-ae3c00090c76

Watch Paul and Scarlet LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Intelligence hosted by Paul Sweeney and Stacey Vanek Smith -Ed Ludlow, BTech Anchor, discusses top tech stories. Samsung Electronics Co.’s quarterly profit surged, prompting investors to cash out of a near-150% rally this year that had baked in the AI-fueled growth. Separately, Amazon.com Inc. is looking to raise at least $25 billion from a US dollar bond sale to fund spending on artificial intelligence infrastructure. -Ryan Vlastelica, Bloomberg Equities Reporter, discusses why the Mag 7 tech giants are no longer dominating the stock market, with their index gaining just 1.7% in 2026. Investors are now focused on the biggest beneficiaries of the wave of cash dedicated to building out AI, such as memory chipmakers like Micron Technology Inc. and Sandisk Corp. -- Gautam Mukunda, Lecturer at Yale School of Management and Bloomberg Opinion contributor, discusses his column: “Sam Altman Offers a Trojan Horse to America.” Sam Altman offered the US government a 5% stake in OpenAI, which he said would allow Americans to share in the benefits of artificial intelligence. The offer is seen as a way for OpenAI to "capture" the government and gain an advantage through regulatory capture, where the government becomes an owner of the company and has an economic stake in its success. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
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[0:24] Speaker 2: Looking at a lot of tech news today, I'm going
[0:26] Speaker 2: to start with just Samsung's.
[0:26] Speaker 3: I'm looking at the SMP, I'm the Nasdaq ROF.
[0:29] Speaker 2: You know, one and a half percent here, the socks
[0:31] Speaker 2: index trading off today. Samsung reported the numbers. I don't know,
[0:36] Speaker 2: to my own trained they look good. I don't know,
[0:39] Speaker 2: but apparently the market's not digging it. So let me
[0:41] Speaker 2: go to the guy who does this stuff for living
[0:43] Speaker 2: at ludlow b Tech co anchor, talk to us about
[0:45] Speaker 2: Samsung and get the spillover maybe for the broader tech market.
[0:49] Speaker 4: Well, there is a lot of spillover, right, there's a
[0:50] Speaker 4: lot of downward pressure on chip stocks in particular, but
[0:53] Speaker 4: genuine generally the AI trade in the US. You are right,
[0:56] Speaker 4: numbers good, you know, revenue more than double profit nineteenfold.
[1:01] Speaker 4: And what's so interesting about it is fundamentally very deliberate
[1:06] Speaker 4: choice of word, nothing in the memory markets change from
[1:08] Speaker 4: when you and I went to bed last night. You
[1:10] Speaker 4: know it. There is still tight supply pricing of de
[1:14] Speaker 4: RAM and nand the key markets for memory is going up,
[1:17] Speaker 4: and Samsung has no line of sight when that improves.
[1:21] Speaker 4: It's really a stock story, where like Samsung was a
[1:24] Speaker 4: stock that was up one hundred and fifty percent year
[1:26] Speaker 4: to stay going into it. And I think everyone's just
[1:28] Speaker 4: taking a pause and saying, you know, this isn't the
[1:31] Speaker 4: right trade right now, you know, let's do something different.
[1:34] Speaker 5: It seems like a lot of AI and tech stocks
[1:36] Speaker 5: are having sell offs this morning, and like you say,
[1:38] Speaker 5: there doesn't seem to be a real reason behind it,
[1:41] Speaker 5: just animal spirits. Is that what's going on? Or people
[1:44] Speaker 5: just taking stock at this moment and worried we're out
[1:46] Speaker 5: over our skis or something else going on.
[1:49] Speaker 4: Yeah, I mean if there was a place with Samsung
[1:52] Speaker 4: you might have some concern, And with memory generally, you
[1:56] Speaker 4: could point to margins and say how do we feel
[2:00] Speaker 4: about this? Historically memory is a very cyclical market boom
[2:04] Speaker 4: and bust. It's highly commoditized. Right now, what's happening doesn't
[2:09] Speaker 4: reflect it reflect historical norms, but in those periods where
[2:13] Speaker 4: the memory names have had very high margins, they've never
[2:15] Speaker 4: been maintained. They ever flow, they crash to a floor,
[2:19] Speaker 4: and I think everyone might be a little bit worried
[2:20] Speaker 4: about that maybe, But generally speaking, you know, we've had
[2:26] Speaker 4: a melt up, We've not quite had a melt down.
[2:30] Speaker 4: And if you just look at the last month of
[2:31] Speaker 4: trading on the socks, it's so normal to have a
[2:34] Speaker 4: swing of five to eight percent. I think, you know, Paul,
[2:37] Speaker 4: you know this. Right in the equity space, there is
[2:39] Speaker 4: a distinction between volatility and a swing in price, but
[2:44] Speaker 4: you know, probably both are true in that market right now.
[2:48] Speaker 2: The folks on Wall Street, my friends on the debt
[2:50] Speaker 2: capital market says they have to be going crazy busy.
[2:53] Speaker 3: No summer vacation for those people.
[2:56] Speaker 2: Say every day there's another mega, mega tech deok to
[3:00] Speaker 2: the investment grade bond market today, to Amazon looking to
[3:03] Speaker 2: raise at least twenty five billion dollars in a US
[3:05] Speaker 2: dollar year, to.
[3:07] Speaker 3: Just what's going on? What is Amazon doing? Is this
[3:10] Speaker 3: just more ai capeck?
[3:11] Speaker 4: The latest is that in quick succession for the second time,
[3:15] Speaker 4: it's looking at the USIG market and Bloomberg's reporting twenty
[3:18] Speaker 4: five billion across eight tranches maturities three to forty years.
[3:22] Speaker 4: You know, corporate credit is not my strong suit, but
[3:24] Speaker 4: Robert Schiffman of BI would tell you that on a
[3:29] Speaker 4: weighted cost of capital basis, it makes total sense for
[3:32] Speaker 4: these hyperscalers to use the debt market to finance massive capex.
[3:36] Speaker 4: Amazon's a really simple story. Capex is growing at an
[3:40] Speaker 4: enormous rate, much faster than revenue is growing. The reason
[3:44] Speaker 4: capex is growing is also because building data centers is
[3:46] Speaker 4: getting more expensive with inflation. There is labor and construction
[3:51] Speaker 4: labor inflation. There is memory chip pricing inflation. We just
[3:54] Speaker 4: talked about that, and so right now, you know, BIC
[3:57] Speaker 4: is a path of capex for Amazon, going from two
[3:59] Speaker 4: hundred bis into three hundred billion dollars in full year
[4:02] Speaker 4: twenty seven. I've got to find the money somewhere. But
[4:05] Speaker 4: like you know, bondholders love Amazone, the krem de la
[4:09] Speaker 4: creme of credit profile, you know, so exactly that's the story.
[4:13] Speaker 3: Bring it on.
[4:14] Speaker 5: Well, all kinds of companies are going to have to
[4:15] Speaker 5: be raising money for AI, for data centers and things
[4:18] Speaker 5: like that. Like you say, Amazon is krem de la
[4:20] Speaker 5: crem So there will definitely be a market for this step.
[4:23] Speaker 5: But what about for other companies that are wanting to
[4:25] Speaker 5: expand into AAR They're going to have trouble.
[4:26] Speaker 4: So there is there are distinctions, right, So something happened.
[4:32] Speaker 4: There are two case sies where we can compare and contrast.
[4:35] Speaker 4: There was a time where Amazon flipping into negative free
[4:38] Speaker 4: cash flow. I one would imagine the market would have
[4:40] Speaker 4: freaked out several years ago, but now that's okay, you know,
[4:44] Speaker 4: negative free cash flow Amazon. Andy Jasse explained that a
[4:48] Speaker 4: way that you know, when you have a period of
[4:50] Speaker 4: time where you have cafex and whatever you build takes
[4:53] Speaker 4: time to come online. Like data centers are real things,
[4:55] Speaker 4: it takes a couple of years for them to actually
[4:57] Speaker 4: like do something and get some revenues.
[5:00] Speaker 3: Paragrapas with Oracle.
[5:01] Speaker 4: You know, Oracle flip to negative cash flow free cashwoaw
[5:04] Speaker 4: for the first time in the nineties and the market
[5:05] Speaker 4: melted down because you know, you have to look holistically
[5:09] Speaker 4: at the strength of the balance sheet that that company's
[5:12] Speaker 4: power in the real world market of AI, like Amazon
[5:15] Speaker 4: and aws's cloud business are highly important in what's happening
[5:19] Speaker 4: in AI compute. So those are the two things I'd
[5:22] Speaker 4: point to that not all companies are created equal in
[5:24] Speaker 4: that sense, you.
[5:25] Speaker 3: Know, talking about Amazon.
[5:26] Speaker 2: You know what surprised me, What's that the extent to
[5:29] Speaker 2: which Jeff Bezos has stepped back. You never hear from
[5:32] Speaker 2: this dude other than you see in Powder Boring, Padda Borning,
[5:35] Speaker 2: you know somewhere.
[5:38] Speaker 4: Yeah, that's certainly how I think about it, though, you
[5:41] Speaker 4: know he's a busy guy elsewhere.
[5:42] Speaker 3: Yeah, but boy, I just don't as it related to Amazon.
[5:45] Speaker 2: You know, he's just he really has step back and
[5:48] Speaker 2: just kind of bracing the chair and letting his management
[5:51] Speaker 2: team go, which oftentimes with founders you just don't see
[5:54] Speaker 2: it that they can turn it off that quickly.
[5:56] Speaker 3: So yeah, it depends.
[5:58] Speaker 4: Like in the Valley, like founder mode On is still
[6:00] Speaker 4: that the mantre, you know, like Airbnb has Brancheski found
[6:03] Speaker 4: a CEO, Mark Zockerberg found Azeo. They lean into that,
[6:07] Speaker 4: you know, Jeff's running a space company and an AI
[6:09] Speaker 4: company somewhere else, that he's kind of busy exactly. Still
[6:11] Speaker 4: ends not eight percent of the company.
[6:14] Speaker 1: Stay with us.
[6:15] Speaker 2: More from Bloomberg Intelligence coming up after this.
[6:21] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us Live
[6:25] Speaker 1: weekdays at ten am easterned on Apple, Cocklay and Android
[6:28] Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever
[6:31] Speaker 1: you get your podcasts, or watch us live on YouTube
[6:35] Speaker 1: the Mag.
[6:35] Speaker 3: Seven and I was looking at some Bloomberg News reporting
[6:37] Speaker 3: on this.
[6:38] Speaker 2: The MAGS seven tech giants are no longer dominating the
[6:41] Speaker 2: stock market, with their index gaining just one point seven
[6:43] Speaker 2: percent in twenty twenty six.
[6:45] Speaker 3: Let's break it down. Our next guest, Ryan Lastelica.
[6:48] Speaker 2: Equities reporter for Bloomberg News talk was Ryan about this
[6:53] Speaker 2: rotation we're seeing in the stock worker.
[6:54] Speaker 3: What are you seeing?
[6:56] Speaker 6: Yeah, it's been pretty remarkable. After years of really being
[6:59] Speaker 6: the driver four stocks the MAG seven have really started
[7:03] Speaker 6: to become something of an afterthought. Momentum has shifted away
[7:06] Speaker 6: from them and into other parts of the market, even
[7:09] Speaker 6: though the momentum is still within tech. But we've seen
[7:13] Speaker 6: a lot more interest in the semiconductor side of things,
[7:16] Speaker 6: especially the memory and storage area, which have become the
[7:19] Speaker 6: real bottleneck for this stage of the AI infrastructure buildout.
[7:24] Speaker 6: So we've seen huge gains in stocks like Micron, sand Disk,
[7:28] Speaker 6: Western Digital, Seagate, and we've seen basically flat performance overall
[7:34] Speaker 6: in the names that have otherwise been sort of the
[7:36] Speaker 6: market leaders for like I said, for years, this.
[7:39] Speaker 5: Doesn't seem like such a huge shift. It seems like
[7:41] Speaker 5: more of a semantics issue, like shifting money around within
[7:46] Speaker 5: the AI space. Still, do you see it as a
[7:50] Speaker 5: significant shift?
[7:52] Speaker 6: Well, I think what it really shows is that people
[7:54] Speaker 6: are really trying to go where the AI trade is going.
[7:57] Speaker 6: So right now we have all of these sort of
[7:59] Speaker 6: trational mag seven companies, and I'm talking particularly about the hyperscalers,
[8:03] Speaker 6: which is Amazon, Alphabet, Microsoft, Meta, companies that are really
[8:08] Speaker 6: spending aggressively to build out their AI infrastructure. People have
[8:12] Speaker 6: sort of moved away from those. Now there's been sort
[8:14] Speaker 6: of a mixed bag even within that group. Alphabet's doing
[8:17] Speaker 6: pretty well because people remain pretty positive about its AI position.
[8:21] Speaker 6: Microsoft has really struggled this year because people aren't sure
[8:24] Speaker 6: about its AI position or what it's really getting out
[8:28] Speaker 6: of the tens of billions of dollars that it's spending
[8:30] Speaker 6: on this infrastructure. So right now there is a lot
[8:33] Speaker 6: of questioning and concern about what is all this money
[8:37] Speaker 6: really going to, what kind of return are they going
[8:39] Speaker 6: to see from it? And at least for the time being,
[8:42] Speaker 6: people feel a lot more comfortable being in the companies
[8:45] Speaker 6: that are the beneficiaries of all that spending, which, like
[8:48] Speaker 6: I said, is the infrastructure complex, memory other parts of chips.
[8:53] Speaker 2: So, Ryan, I'm old enough to remember the day when
[8:55] Speaker 2: a stock would go up, when a company would take
[8:57] Speaker 2: its CAPEX.
[8:58] Speaker 3: Numbers up here, maybe like three or four quarters ago.
[9:01] Speaker 3: That game seems to be out of fashion. Is that
[9:04] Speaker 3: what you're saying.
[9:06] Speaker 6: Yeah, I think there's been a real change in centiment
[9:08] Speaker 6: in terms of how investors are viewing these kinds of
[9:11] Speaker 6: aggressive capbex plans. Now. I think people, you know, you
[9:15] Speaker 6: talk to a lot of investors, they say, you know,
[9:17] Speaker 6: I still feel pretty positive. I think they know what
[9:19] Speaker 6: they're doing. But at least for the time being, we're
[9:21] Speaker 6: really seeing an impact on free cash flow, on their
[9:23] Speaker 6: cash piles. Some companies are raising equity or tapping debt markets.
[9:28] Speaker 6: There's been a lot of, you know, complicating factors that
[9:30] Speaker 6: have just gone beyond you know, you know, spend the money.
[9:34] Speaker 6: You know, spend a dollar on AI infrastructure, you get
[9:36] Speaker 6: a dollar back and revenue growth or something like that.
[9:38] Speaker 6: It's not nearly that simple anymore. I think people are
[9:40] Speaker 6: taking a much more jaundice look on this type of strategy,
[9:44] Speaker 6: even though I think they remain pretty positive that over
[9:46] Speaker 6: a longer term period it will eventually start paying out.
[9:49] Speaker 4: Stay with us.
[9:50] Speaker 3: More from Bloomberg Intelligence coming up after this.
[9:56] Speaker 1: You're listening to the Bloomberg Intelligence podcast live weekdays at
[10:01] Speaker 1: ten am. He's done on Apple, Coarclay and Android Auto
[10:03] Speaker 1: with the Bloomberg Business app. Listen on demand wherever you
[10:06] Speaker 1: get your podcasts, or watch us live on YouTube.
[10:10] Speaker 2: All right, here's a pretty good deal, I think Sam Altman,
[10:13] Speaker 2: you know, the open ai guy. He's offered the US
[10:16] Speaker 2: a five percent stake in open Ai, which he said
[10:19] Speaker 2: would allow Americans to share in the benefits of artificial intelligence.
[10:24] Speaker 2: Seems like a good deal to me. Let's suit our
[10:26] Speaker 2: next guest, Thanks got Kunda. He's a lecturer at the
[10:29] Speaker 2: Yale School of Management and he's a Bloomberg Opinion contributor,
[10:32] Speaker 2: joining us via zoom from Sweden.
[10:35] Speaker 3: Okay, why not? It's a nice place to hear Gotham,
[10:38] Speaker 3: What do you mean here? How do you view this
[10:40] Speaker 3: potential offer.
[10:41] Speaker 2: From mister Altman as it relates to ai open Ai.
[10:45] Speaker 3: I think it's a bit of a trojan horse, Paul.
[10:49] Speaker 7: If he gives fifty five percent of the equity of
[10:52] Speaker 7: open Ai to the government. He's going to get the
[10:54] Speaker 7: government committed to the success of open Ai, and since
[10:57] Speaker 7: the government has a lot of ability to determine that success,
[11:01] Speaker 7: that's probably worth more than five percent to him. But
[11:03] Speaker 7: I'm not sure it's worth more than five percent the
[11:04] Speaker 7: American public.
[11:06] Speaker 5: Is this I mean, is this an attempt to make
[11:08] Speaker 5: the company kind of too big to fail? And what
[11:11] Speaker 5: is the case he's making to the government for why
[11:15] Speaker 5: this would be a good idea?
[11:17] Speaker 3: Right?
[11:18] Speaker 7: I think it's exactly that, right, And it wouldn't be
[11:20] Speaker 7: too big to fail economically. That argument just doesn't make
[11:22] Speaker 7: any sense opening eye, however, bigot is not systemically economically important.
[11:27] Speaker 7: What it would become is too big to fail politically,
[11:29] Speaker 7: right that because there's this huge chunk of equity that
[11:32] Speaker 7: people would be able to track, it would go back
[11:35] Speaker 7: if you think back to like in twenty twelve, the
[11:40] Speaker 7: Department of Energy had a loan program during the Obama
[11:42] Speaker 7: administration that gave out loans to lots of companies, one
[11:45] Speaker 7: of which was Cylindra, a solar sol company that's failed.
[11:48] Speaker 7: It was a sort of a catastrophe. They lost all
[11:49] Speaker 7: the money and Mitt Romney made a lot of hay
[11:52] Speaker 7: out of that. And you you know, if the Obama
[11:54] Speaker 7: administration had the ability, you think they might have gone
[11:56] Speaker 7: back and been like, maybe we should have propped that
[11:57] Speaker 7: company up. That that would be open AI times like
[12:02] Speaker 7: a million, right, because the scale of the open Aie
[12:04] Speaker 7: investment is so large, and it would put so much
[12:07] Speaker 7: pressure on the government to kind of lean on the
[12:09] Speaker 7: levers and keep this company propped up for no other
[12:12] Speaker 7: reason than to stop people from saying, hey, you cost
[12:15] Speaker 7: us you know, eighty billion or one hundred million dollars
[12:17] Speaker 7: or whatever it ends up being.
[12:19] Speaker 2: So we have seen this administration take investments in other
[12:23] Speaker 2: companies a put give us some context around that. I
[12:27] Speaker 2: don't recall our country doing our government doing that too
[12:30] Speaker 2: much before, maybe the auto industry, and I don't know,
[12:33] Speaker 2: how do we think about that in general?
[12:35] Speaker 7: Yes, this administration alternates between launching those sufference attacks on
[12:39] Speaker 7: socialism and communism and taking ownership of private companies. So
[12:43] Speaker 7: I guess today we're on a taking ownership of private
[12:45] Speaker 7: companies day, and tomorrow we'll be back to attacking communism.
[12:49] Speaker 6: And yeah, this is this.
[12:50] Speaker 7: Is a new thing, and they're very good reasons we
[12:52] Speaker 7: don't do it right, and they're good reasons on both
[12:55] Speaker 7: sides of the equation. We've talked on the government side
[12:58] Speaker 7: how this is going to lead to bad policy and
[13:00] Speaker 7: to bad political outcomes, and it is just right. It
[13:03] Speaker 7: is corrosive on free markets and free enterprise to have
[13:06] Speaker 7: government puts a heavy hand in like that. But it's
[13:08] Speaker 7: also really bad for the companies, right, So they may
[13:11] Speaker 7: think of themselves as buying insurance against failure by getting
[13:14] Speaker 7: the government on their side. But these are companies that
[13:16] Speaker 7: have a global market. And if you are you know,
[13:20] Speaker 7: the government of France or Germany, or you know Denmark,
[13:24] Speaker 7: which is just seeing the United's just a few just
[13:26] Speaker 7: a few minutes ago, right, Donald Trump issued more threats
[13:29] Speaker 7: to Greenland. Then the idea of having your economy or
[13:33] Speaker 7: your government run on a company's software when that company
[13:38] Speaker 7: is functionally part owned by the United States government, you know,
[13:41] Speaker 7: a few years ago that wouldn't have been a problem,
[13:43] Speaker 7: but now it's a huge problem. And it means that
[13:45] Speaker 7: these companies are going to limit their global market in
[13:47] Speaker 7: a really profound way.
[13:49] Speaker 5: I mean, the hazard seem quite clear here. Is there
[13:53] Speaker 5: potentially a case to be made for government investment in AI,
[13:56] Speaker 5: just because the economy has become so dependent on it,
[14:00] Speaker 5: such an expensive thing to try to build out. Is
[14:03] Speaker 5: there possibly a case to be made for an investment
[14:06] Speaker 5: like this?
[14:08] Speaker 7: I think there's an extremely strong case to be made
[14:10] Speaker 7: for the government. You for the government profiting from gains
[14:14] Speaker 7: in AI, and for being taking those gains and using
[14:17] Speaker 7: them to sort of provide public goods for the whole,
[14:20] Speaker 7: for the whole the United States, and that benefit the
[14:21] Speaker 7: economy of the siety as a whole. That case is overwhelming.
[14:24] Speaker 7: But the mechanism for executing that is taxes. And if
[14:28] Speaker 7: the United States government wants to benefit from AI, it
[14:30] Speaker 7: should tax profitable AI companies. That's the way we should
[14:33] Speaker 7: do it. And to tax the individuals who make billions
[14:36] Speaker 7: of dollars off AI, that's the right way to do it.
[14:39] Speaker 7: This equity thing.
[14:40] Speaker 3: Is not.
[14:42] Speaker 2: Where where is open AI in its IPO process? I think,
[14:46] Speaker 2: you know, the feeling on the street is maybe it
[14:48] Speaker 2: might slip into next year, maybe Anthroomic might get out first.
[14:51] Speaker 3: Is that your understanding?
[14:53] Speaker 7: You know, That's what I'm hearing. And I'll just say
[14:55] Speaker 7: that the more you look at the finances of open AI,
[14:58] Speaker 7: you know, as a front of the Financial Times just
[15:00] Speaker 7: were able to get some of them. These look really bad,
[15:03] Speaker 7: Like I mean, I know that what with SpaceX, we've
[15:06] Speaker 7: sort of decided that traditional metrics for an IPO don't
[15:09] Speaker 7: apply anymore. But it's really kind of hard to make
[15:13] Speaker 7: a case for how these companies are going to some
[15:15] Speaker 7: pay back, you know, pay the gigantic capital investments they're making.
[15:19] Speaker 7: And I think a lot of people are starting to go,
[15:22] Speaker 7: you know, you can have an extraordinary revolutionary technology, one
[15:26] Speaker 7: that changes the world, that changes the way we do
[15:28] Speaker 7: the way we do work, and the peak companies that
[15:31] Speaker 7: are doing it don't make money. Because we saw that
[15:33] Speaker 7: with the airlines and with biotech for two generations. These
[15:36] Speaker 7: were incredibly important technologies and they just weren't profitable for
[15:40] Speaker 7: the companies that were doing it.
[15:42] Speaker 5: Do you see Opening Eye as in a good position
[15:44] Speaker 5: right now? It seems like it was way out in
[15:46] Speaker 5: front at first and had all of the public's imagination
[15:51] Speaker 5: and a lot of money, and now it seems like
[15:53] Speaker 5: it's losing its shine a little bit.
[15:56] Speaker 3: Yeah.
[15:56] Speaker 7: I mean, as I'm one of the people who sort
[15:58] Speaker 7: of switched from using using chat GPT to claude just
[16:01] Speaker 7: because you know, the experience was so much better, and
[16:04] Speaker 7: I think a lot of people are having are sort
[16:06] Speaker 7: of saying that where the the in terms of usage,
[16:09] Speaker 7: open ai is still on ahead, but in terms of
[16:12] Speaker 7: the I would say the more sophisticated an AI user is,
[16:15] Speaker 7: the less likely it seems to be that they are
[16:17] Speaker 7: that they are open ai dependent. But beyond that, I
[16:20] Speaker 7: think that the questions about their leader are also just
[16:23] Speaker 7: you know, their questions about is this sustainable, the level
[16:27] Speaker 7: of the commitments that they've made for data centers and
[16:31] Speaker 7: sort of the spending commitments they've made, aired with the
[16:33] Speaker 7: fact that the construction of these data centers is not,
[16:36] Speaker 7: from what I can tell, going nearly as quickly as
[16:40] Speaker 7: it would have to be to make sort of these
[16:41] Speaker 7: compute these demands are commute, these contracts full out. I
[16:44] Speaker 7: think a lot of people are starting to look at
[16:46] Speaker 7: this and going, wait a sec, how does you know,
[16:49] Speaker 7: how does this story end? Does it really end with
[16:51] Speaker 7: you spending one and a half trillion dollars on data
[16:54] Speaker 7: centers when no one of the United States sort of
[16:56] Speaker 7: wants you to build them in your neighborhood, when there's
[16:59] Speaker 7: so many construction bottlenecks, and when you know when the
[17:02] Speaker 7: demand for them is starting to get a little iffy.
[17:04] Speaker 7: That's it's not clear to right.
[17:06] Speaker 1: This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,
[17:11] Speaker 1: and anywhere else you get your podcasts. Listen live each
[17:14] Speaker 1: weekday ten am to noon Eastern on Bloomberg dot com,
[17:18] Speaker 1: the iHeartRadio app, tune In, and the Bloomberg Business app.
[17:22] Speaker 1: You can also watch us live every weekday on YouTube
[17:26] Speaker 1: and always on the Bloomberg terminal

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