Musk's SpaceX Valuation Takes Off; Ukraine Funding in Jeopardy

Good morning. 0:00:03.080 --> 0:00:05.920 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:05.960 --> 0:00:07.440 stories we're following today. 0:00:08.119 --> 0:00:10.399 We begin with the latest developments on the war in 0:00:10.440 --> 0:00:13.480 the Middle East. Fighting between Israel and Hamas rages on 0:00:13.600 --> 0:00:17.680 in Gaza's second largest city. This as UN Secretary General 0:00:17.760 --> 0:00:22.239 Antonio Guteras dramatically escalates his call for a ceasefire. Guterra's 0:00:22.239 --> 0:00:24.800 has written to the UN Security Council over the issue, 0:00:24.840 --> 0:00:28.960 invoking a rarely used power. Here's this, spokesman Stefan Dujerik. 0:00:29.680 --> 0:00:32.040 In the letter, which has been shared with you, the 0:00:32.080 --> 0:00:35.680 Secretary General urges the members of the Security Council to 0:00:35.760 --> 0:00:40.199 press to avert a humanitarian catastrophe, and he appeals for 0:00:40.240 --> 0:00:42.239 a humanitarian ceasefire. 0:00:41.960 --> 0:00:42.840 To be declared. 0:00:43.159 --> 0:00:45.800 This is the first time a UN Secretary General has 0:00:45.880 --> 0:00:48.160 used this power since the nineteen seventies. 0:00:48.600 --> 0:00:51.200 Meanwhile, Nathan, there is more fallout from the Capitol Hill 0:00:51.240 --> 0:00:56.160 testimony of three university presidents. Hedge Fund Titans, politicians and 0:00:56.280 --> 0:00:59.880 business leaders are railing against the leaders of Harvard, MIT 0:01:00.080 --> 0:01:03.480 and the University of Pennsylvania for refusing to say the 0:01:03.560 --> 0:01:07.240 calling for the genocide of Jews is against school policy. 0:01:07.480 --> 0:01:09.360 Bloomberg's Amy Morris reports. 0:01:09.880 --> 0:01:13.399 Pfizer CEO Albert Burlow took to X formerly Twitter to 0:01:13.480 --> 0:01:16.640 say he was ashamed to hear the university president's testimony, 0:01:16.840 --> 0:01:19.040 calling it one of the most despicable moments in the 0:01:19.080 --> 0:01:22.640 history of US academia. Investor Bill Ackman, who called on 0:01:22.680 --> 0:01:26.120 his alma mater, Harvard to do more to protect Jewish students, 0:01:26.319 --> 0:01:30.000 posted on X quote they all must resign in disgrace. 0:01:30.280 --> 0:01:33.400 Penn President Liz McGill issued a video statement to clarify 0:01:33.440 --> 0:01:34.280 her testimony. 0:01:34.360 --> 0:01:38.920 For decades, under multiple Penn presidents and consistent with most universities, 0:01:39.200 --> 0:01:42.119 Penn's policies have been guided by the Constitution, in the law. 0:01:42.440 --> 0:01:45.240 In today's world, where we are seeing signs of hate 0:01:45.280 --> 0:01:48.840 proliferating across our campus in our world, these policies need 0:01:48.880 --> 0:01:50.960 to be clarified and evaluated. 0:01:51.040 --> 0:01:54.680 Harvard President doctor Claudine Gay issued a statement clarifying the 0:01:54.800 --> 0:01:58.880 university has a staunch position against calls for violence against 0:01:58.880 --> 0:02:01.720 the Jewish community. The critics say she should have said 0:02:01.760 --> 0:02:06.080 that while she was on Capitol Hill. Amymore as Bloomberg. 0:02:05.760 --> 0:02:08.520 Radio, Okamie, thank you, there are new developments this morning 0:02:08.600 --> 0:02:10.720 in the war in Ukraine from here in the US, 0:02:10.880 --> 0:02:12.959 the Senate has failed to get the votes to try 0:02:12.960 --> 0:02:15.560 to pass aid for the country, and Bloomberg's Ed Baxter 0:02:15.720 --> 0:02:16.480 has the latest. 0:02:16.760 --> 0:02:19.280 It's back to the drawing board, not even making it 0:02:19.360 --> 0:02:22.160 for a floor vote with the issue border funding for 0:02:22.200 --> 0:02:26.040 the GOP. President Biden says they have to get something done. 0:02:26.160 --> 0:02:30.440 This cannot wait. Congress needs to pass supplemental funding for 0:02:30.560 --> 0:02:33.919 Ukraine before they break for the holiday. Resource as simple 0:02:33.960 --> 0:02:36.600 as that, Frank, I think is stunning that we've gotten 0:02:36.639 --> 0:02:37.880 to this point in the first place. 0:02:38.160 --> 0:02:41.320 Now the US Heasship more aid to Ukraine, but says 0:02:41.680 --> 0:02:46.320 it could be the last without more funding. Ed Baxter, Bloomberg. 0:02:45.880 --> 0:02:48.240 Radio, all right, and thank you. Now let's get to 0:02:48.280 --> 0:02:51.519 the latest in the presidential race. The fourth Republican debate 0:02:51.639 --> 0:02:54.880 was held last night in Tuscaloosa, Alabama, and with frontrunner 0:02:54.880 --> 0:02:58.600 Donald Trump off this stage, the remaining candidates trained much 0:02:58.600 --> 0:03:01.240 of their fire on Nikki, mainly who's been gaining in 0:03:01.280 --> 0:03:05.079 the polls. Vivek Ramaswami went after the former UN ambassador 0:03:05.120 --> 0:03:08.200 over her ties to Wall Street. Larry Think, the king 0:03:08.240 --> 0:03:11.560 of the Woke Industrial Complex, the ESG movement, the CEO 0:03:11.639 --> 0:03:15.400 of Blackrock, the most powerful company in the world now supporting. 0:03:15.000 --> 0:03:17.240 Nicki Haley and to say that doesn't affect her. 0:03:17.160 --> 0:03:19.600 As false, and Hailey defended her record. 0:03:20.400 --> 0:03:23.079 Look, we will take support from anybody we can take 0:03:23.120 --> 0:03:23.800 support from. 0:03:24.000 --> 0:03:27.079 But I have been a conservative fighter all my life. 0:03:27.320 --> 0:03:30.840 Along with Hailey and Ramaswami, Florida Governor Rondez Santis and 0:03:30.919 --> 0:03:33.799 former New Jersey Governor Chris Christi also took part in 0:03:33.840 --> 0:03:36.880 the debate hosted by News Nation. The first votes in 0:03:36.880 --> 0:03:39.400 this race will be cast in Iowa in less than 0:03:39.480 --> 0:03:40.080 six weeks. 0:03:40.280 --> 0:03:42.600 Turning back to Wall Street, Karen, leaders of the nation's 0:03:42.600 --> 0:03:45.400 biggest banks appeared on Capitol Hill for the Senate Banking 0:03:45.400 --> 0:03:49.000 Committee's annual Wall Street Oversight hearing. JP Morgan Chase CEO 0:03:49.120 --> 0:03:52.480 Jamie diamond told lawmakers he would shudder the crypto industry 0:03:52.520 --> 0:03:53.600 if he had their power. 0:03:53.960 --> 0:03:57.080 I've always been deeply opposed to crypto at coin etc. 0:03:57.640 --> 0:04:00.960 You pointed out going true use case for it criminals, 0:04:01.080 --> 0:04:04.360 drug traffickers, anti money learning, tax avoidance, and that is 0:04:04.400 --> 0:04:06.560 a use case. If I were the government's I close 0:04:06.640 --> 0:04:06.960 it down. 0:04:07.240 --> 0:04:10.040 Jamie Diamonds remarks, ad to his long history of bashing 0:04:10.040 --> 0:04:13.920 digital currencies, He's previously called them Ponzi schemes and a fraud. 0:04:14.120 --> 0:04:18.840 Well Nathan evaluation for Elon Musk SpaceX bless into orbit, 0:04:18.920 --> 0:04:21.920 and we get the details from Bloombergy's John Tucker John. 0:04:21.920 --> 0:04:24.960 Karen Is share a Salefer SpaceX would value the company 0:04:25.000 --> 0:04:28.560 at at least one hundred and seventy five billion dollars. 0:04:29.000 --> 0:04:32.880 SpaceX is considering offering shares at about ninety five dollars apiece. 0:04:33.279 --> 0:04:36.800 The potential valuation would position SpaceX among the world's most 0:04:36.960 --> 0:04:41.480 valuable companies, surpassing Comcast and Disney. It's number one in 0:04:41.560 --> 0:04:43.880 the space race. In the first nine months of the year, 0:04:43.920 --> 0:04:47.880 SpaceX made sixty nine orbital launches. Of SpaceX is on 0:04:47.960 --> 0:04:50.800 track to book revenues of about nine billion dollars this year, 0:04:51.040 --> 0:04:54.880 with sales projected to rise to around fifteen billion next year. 0:04:55.200 --> 0:04:56.680 John Tucker, Bloomberg. 0:04:56.279 --> 0:04:59.760 Radio, Thanks John. Turning overseas, China and EU officials are 0:04:59.800 --> 0:05:03.240 whole their first in person summit in four years in Beijing, 0:05:03.400 --> 0:05:05.880 and we get more from Bloomberg's Jill Lisis in Taiwan. 0:05:06.360 --> 0:05:09.080 What they ultimately talked about was really sort of strengthening 0:05:09.160 --> 0:05:11.760 this idea of the trade partnership. We've gotten to read 0:05:11.760 --> 0:05:14.760 out from state media in China, saying that she was 0:05:14.800 --> 0:05:17.680 really emphasizing this idea of China being willing to be 0:05:17.760 --> 0:05:20.680 a key trade and economic partner for the EU. They 0:05:20.680 --> 0:05:23.040 were talking about they need to work on political trusts, 0:05:23.240 --> 0:05:25.400 this idea of mutually beneficial cooperation. 0:05:25.720 --> 0:05:28.880 Bloomberg's Jill Lisis says the meeting lasted only one day. 0:05:29.600 --> 0:05:32.320 And Nathan the European Union is nearing a deal on 0:05:32.360 --> 0:05:35.640 what's foised to become the most comprehensive regulation of artificial 0:05:35.680 --> 0:05:39.160 intelligence in the Western world. Negotiators are still hammering out 0:05:39.200 --> 0:05:42.880 the final details, but sources say delegates agree to a 0:05:42.960 --> 0:05:46.760 set of controls for generative artificial intelligence tools such as 0:05:46.760 --> 0:05:54.440 open ais Chat, GPT and Google's barred. And it's time 0:05:54.480 --> 0:05:56.039 now for a look at some of the other stories 0:05:56.080 --> 0:05:58.120 making news around the world. For that were joined by 0:05:58.120 --> 0:06:00.360 Bloomberg's Amy Morris, Samy goodmane. 0:06:00.680 --> 0:06:03.360 Good Morning Karen. More than six hundred mass shootings in 0:06:03.400 --> 0:06:06.200 the US so far this year twenty twenty three, now 0:06:06.240 --> 0:06:08.359 on pace to be a record year for gun violence, 0:06:08.640 --> 0:06:10.960 and three people are dead in the shooting at UNLV. 0:06:11.560 --> 0:06:15.400 Sheriff Kevin McHale of the Las Vegas Metropolitan Police said 0:06:15.440 --> 0:06:17.920 that shooting originated on the fourth floor of a building 0:06:17.960 --> 0:06:20.720 on campus, and the unnamed suspect was killed by an 0:06:20.760 --> 0:06:22.040 officer at the scene. 0:06:22.240 --> 0:06:26.120 They hadn't been for the heroic actions of one of 0:06:26.120 --> 0:06:29.920 those police officers who responded, it could have been countless 0:06:29.960 --> 0:06:31.279 additional lives taken. 0:06:31.320 --> 0:06:33.560 At least say they know the identity of the suspect, 0:06:33.560 --> 0:06:35.920 they're not releasing his name until after they notify next 0:06:35.920 --> 0:06:39.960 to ken, survivors of gun violence, victims, families, and lawmakers 0:06:39.960 --> 0:06:42.720 gathered at Saint Mark's Episcopal Church in Washington, d c. 0:06:43.240 --> 0:06:46.720 For the eleventh annual National Vigil for All Victims of 0:06:46.760 --> 0:06:50.279 gun violence. Among those speaking at the vigil Senator Chris 0:06:50.360 --> 0:06:52.320 Murphy from Connecticut, we. 0:06:52.240 --> 0:06:54.599 Are here heartbroken by the fact that we continue to 0:06:54.720 --> 0:06:57.320 need to assemble, but we also have to be here 0:06:57.400 --> 0:06:59.800 booie by the fact that this is no longer a 0:07:00.080 --> 0:07:03.200 leap of faith. We have built a movement that will sustain, 0:07:03.279 --> 0:07:06.040 that will continue to win, and we have proven that 0:07:06.080 --> 0:07:09.160 when we build that movement and when we win, we 0:07:09.200 --> 0:07:09.920 save lives. 0:07:10.200 --> 0:07:13.640 The vigil was organized by the Newtown Action Alliance Foundation 0:07:13.760 --> 0:07:16.679 and held ahead of next Thursday's anniversary of the twenty 0:07:16.720 --> 0:07:20.720 twelve Sandy Hook Elementary School shooting. On Capitol Hill, Senate 0:07:20.760 --> 0:07:24.320 Republicans are blocking a Democratic ban on assault style weapons. 0:07:24.600 --> 0:07:28.560 Republican Senator John Barrasso blocked the motion, arguing that the 0:07:28.600 --> 0:07:32.760 bill would label responsible gun owners as criminals. Capitol Hill 0:07:32.840 --> 0:07:36.240 continues to see an exodus of lawmakers, with Farmer Speaker 0:07:36.320 --> 0:07:39.160 Kevin McCarthy the latest to announce that he's stepping down. 0:07:39.200 --> 0:07:41.520 Bloomberg's Nazzy Llons has more on the trend. 0:07:41.640 --> 0:07:45.760 Terry Haynes with Pangaea Policy says, with Republicans Kevin McCarthy 0:07:45.840 --> 0:07:50.080 and Patrick McHenry announcing their departures this week, those left 0:07:50.280 --> 0:07:52.560 seem to have a particular bent, more. 0:07:52.400 --> 0:07:55.440 Of the firebrands, more of the people who think it's 0:07:55.480 --> 0:07:57.400 all about Team Red, Team Blue. 0:07:57.560 --> 0:08:00.640 Former Congressman and former White House Chief of Steph mcmulvaney 0:08:00.760 --> 0:08:02.880 says there could be more departures coming. 0:08:03.000 --> 0:08:05.080 If you're a Republican who has a better offer right 0:08:05.080 --> 0:08:07.440 now on the table, you are seriously considering it, looking 0:08:07.480 --> 0:08:08.080 for a way to leave. 0:08:08.160 --> 0:08:11.160 Mlvaney tells Bloomberg sound on from what he's hearing, it's 0:08:11.200 --> 0:08:15.080 a toxic atmosphere now on Capitol Hill in Washington. Nancy 0:08:15.160 --> 0:08:17.880 lyons Bloomberg Radio global news twenty four hours a day 0:08:17.880 --> 0:08:20.240 and whenever you want it. With Bloomberg News Now, I'm 0:08:20.280 --> 0:08:22.240 maybe Morris send this as Bloomberg here. 0:08:22.360 --> 0:08:24.120 All right, Amy, thank you. We do bring you news 0:08:24.160 --> 0:08:27.400 throughout the day right here on Bloomberg Radio. But now 0:08:27.480 --> 0:08:29.840 you can get the latest news on demand, and that 0:08:29.920 --> 0:08:33.280 means whenever you want it. Like Amy said, you just 0:08:33.320 --> 0:08:35.839 subscribe to Bloomberg News Now and you can get the 0:08:35.880 --> 0:08:38.960 latest headlines at the click of a button. Get informed 0:08:39.000 --> 0:08:42.480 on your schedule. You can listen and subscribe to Bloomberg 0:08:42.679 --> 0:08:46.040 News Now on the Bloomberg Business app, Bloomberg dot Com, 0:08:46.080 --> 0:08:54.520 plus apples, Spotify, and anywhere else you get your podcasts. 0:08:54.520 --> 0:08:57.600 Time now for the Bloomberg Sports Update. Here's John stash Hour. 0:08:57.840 --> 0:09:02.120 John Jaron the Yankees for through an uncharacteristically down season 0:09:02.160 --> 0:09:05.640 in twenty twenty three, making sure it doesn't happen again. 0:09:05.720 --> 0:09:09.040 The day after acquiring one left handed hitting outfielder Alex 0:09:09.160 --> 0:09:12.680 Verdugo from Boston, they've acquired another one and it's a 0:09:12.679 --> 0:09:15.839 big star. Juan Soto comes from San Diego with another 0:09:15.840 --> 0:09:19.800 outfielder Trent Christiam. The Padres in return yet pitcher Michael King, 0:09:19.960 --> 0:09:23.959 three other young pitchers, and veteran catcher Kyle Higashioka. The 0:09:24.040 --> 0:09:27.720 Yankees may have Soto for just the twenty twenty four season. 0:09:27.720 --> 0:09:31.680 He's going to be a free agent after that. Eduardo Rodriguez, 0:09:31.720 --> 0:09:35.680 the veteran lefty leaving Detroit. He signed a four year 0:09:35.720 --> 0:09:39.040 deal with Arizona. Big fourteen of the NFL begins tonight. 0:09:39.120 --> 0:09:43.280 The lowly struggling two to ten Patriots in Pittsburgh. Stealers 0:09:43.320 --> 0:09:45.560 come off a bad home loss to Arizona, but they're 0:09:45.559 --> 0:09:47.520 in it for a playoff spot. Not sure if they'll 0:09:47.520 --> 0:09:50.920 have running back Najie Harris, he's questionable with a knee injury. 0:09:51.080 --> 0:09:54.040 Joe l Mb fifty points in Philadelphia's won thirty one 0:09:54.040 --> 0:09:56.520 to one twenty six at Washington. That drops the Wizards 0:09:56.520 --> 0:09:59.480 to three and seventeen. The Warriors are ten and eleven. 0:09:59.640 --> 0:10:02.439 They until the fourth quarter, but Steph Curry bail the 0:10:02.480 --> 0:10:05.280 Mouth scored thirty one. Golden State be Portland won ten 0:10:05.360 --> 0:10:08.160 to one oh six. Luca Donzi's played only thirty two minutes, 0:10:08.400 --> 0:10:11.959 scored forty at a triple double by halftime Dallas won 0:10:12.040 --> 0:10:16.600 by fifty over Utah. Cleveland beat Orlando. Donovan Mitchell thirty 0:10:16.600 --> 0:10:19.400 five points on the win, Paulo bonkeo forty two and 0:10:19.480 --> 0:10:23.400 the loss, and Desmond Bain scored forty nine in Memphis's 0:10:23.400 --> 0:10:24.240 win at Detroit. 0:10:24.440 --> 0:10:24.959 John Stash. 0:10:25.000 --> 0:10:26.679 That were Bloomberg Sports. 0:10:28.920 --> 0:10:31.920 From coast to coast, from New York to San Francisco, 0:10:32.240 --> 0:10:37.319 Boston to Washington, DC, nationwide on siriusxam, the Bloomberg Business 0:10:37.320 --> 0:10:42.720 app in Bloomberg dot Com. This is Bloomberg Daybreak. Good morning. 0:10:42.760 --> 0:10:43.720 I'm Nathan hager Moll. 0:10:43.760 --> 0:10:46.079 It's taken more than a decade, but it finally looks 0:10:46.120 --> 0:10:49.760 like the first ever spot bitcoin ETFs will arrive in 0:10:49.800 --> 0:10:52.319 the US soon. On the most recent episode of the 0:10:52.360 --> 0:10:56.480 Bloomberg Trillions podcast, Bloomberg's Joel Weber and Eric Balcuna spoke 0:10:56.520 --> 0:11:01.080 with ARC Investment founder Kathy Wood. They discussed spot bitcoin 0:11:01.120 --> 0:11:04.199 exchange traded funds, getting approval for them from the Securities 0:11:04.200 --> 0:11:08.760 and Exchange Commission, and convincing crypto doubters like JP Morgan, Chase, CEO, 0:11:08.840 --> 0:11:11.800 Jamie Diamond, and Senator Elizabeth Warren. So we want to 0:11:11.800 --> 0:11:13.400 bring you part of that discussion right now. 0:11:14.120 --> 0:11:18.880 You're still having to wrestle with a version of haters, right, 0:11:18.960 --> 0:11:21.600 And I think the haters actually, for a while within 0:11:21.640 --> 0:11:24.360 the last year and change kind of gained a little 0:11:24.360 --> 0:11:27.559 bit of an upper hand with the carnage that came 0:11:27.600 --> 0:11:32.240 out of the SBF fallout. So how do you wrestle 0:11:32.320 --> 0:11:36.319 with that sentiment that still remains, which is like, there's 0:11:36.320 --> 0:11:38.720 no point to this, why should I even bother? 0:11:39.600 --> 0:11:44.000 So I'll start there. I had to defend what we 0:11:44.000 --> 0:11:49.120 were doing throughout last year, so Tera Luna Celsius, three 0:11:49.280 --> 0:11:55.440 arrows FTX, and when FTX blew up, I basically said, 0:11:55.520 --> 0:11:58.600 and I think it's now clear that wait a minute, 0:11:58.679 --> 0:12:07.480 this prove the value of bitcoin and other cryptocurrencies. Bitcoin 0:12:07.720 --> 0:12:20.120 completely transparent, decentralized, no counterparty risk, whereas FTX completely opaque, centralized, 0:12:20.320 --> 0:12:23.400 and fraudulent. So that was the first step. But even 0:12:23.600 --> 0:12:28.640 more provocative, I thought, was during the regional bank crisis 0:12:28.679 --> 0:12:34.120 in March, as you pointed out earlier, Joel, bitcoin went 0:12:34.200 --> 0:12:37.840 up fifty percent as the KRE the Regional Bank index 0:12:37.960 --> 0:12:42.280 was imploding, an SVP and signature went under, and we 0:12:42.280 --> 0:12:45.400 were able to say to our clients, wait a minute, 0:12:46.240 --> 0:12:50.480 Bitcoin is not just a risk on asset. It is 0:12:50.600 --> 0:12:54.920 now showing its stripes as a risk off asset when 0:12:55.000 --> 0:12:59.280 there's a financial crisis and counterparty risk becomes a question, 0:12:59.360 --> 0:13:02.280 because that is a question with the regional banks. 0:13:02.840 --> 0:13:03.800 I think that. 0:13:03.760 --> 0:13:06.880 Has gotten a lot of people's attention, as well as 0:13:07.640 --> 0:13:11.760 others in the industry who were negative. And you're right, 0:13:11.800 --> 0:13:16.040 it's so interesting to see Jamie Diamond and Elizabeth Warren 0:13:16.200 --> 0:13:19.680 on the same side of the agreeing with each other. 0:13:20.120 --> 0:13:24.960 Kind of what But someone like Larry Fink coming around 0:13:25.120 --> 0:13:31.160 after years of focusing on the environmental issues that he 0:13:31.320 --> 0:13:35.640 thought were a part of the bitcoin ecosystem. And you know, 0:13:35.720 --> 0:13:37.920 I think one of the most important things that happened 0:13:37.960 --> 0:13:42.679 actually happened five years ago when Cambridge Associates published its 0:13:42.720 --> 0:13:46.559 first report on crypto and focused on bitcoin in particular 0:13:46.960 --> 0:13:51.840 and basically said to its foundations and endowments, look, you 0:13:51.960 --> 0:13:56.400 may not like this instrument, but you should get to 0:13:56.440 --> 0:13:58.640 know as much as you possibly can about it, because 0:13:58.640 --> 0:14:02.640 this seems like it's a new asset class with a 0:14:02.760 --> 0:14:07.600 very low correlation of returns to other assets. And so 0:14:07.800 --> 0:14:12.800 I think, but one by one, these points are I 0:14:12.840 --> 0:14:18.240 think are hitting home, hitting a responsive cord, and I 0:14:18.320 --> 0:14:23.480 do think the SEC coming around and blessing a bitcoin 0:14:23.560 --> 0:14:28.240 spot ETF is going to check the box for a 0:14:28.240 --> 0:14:29.320 lot of institutions. 0:14:29.880 --> 0:14:33.560 Let's say that it approves. What happens to the price 0:14:33.600 --> 0:14:38.640 of bitcoin when that headline moves that SEC has approved 0:14:38.640 --> 0:14:40.680 a spot bitcoin product. 0:14:41.080 --> 0:14:43.880 Some of it's happening right now, and. 0:14:43.840 --> 0:14:44.160 There's this. 0:14:45.640 --> 0:14:49.840 Room building for that moment. But what happens that moment? 0:14:49.960 --> 0:14:52.800 Yeah, very often, very often you will get a sell 0:14:52.840 --> 0:14:55.120 on the news because and I don't know where it 0:14:55.160 --> 0:14:57.720 will go between now and then. And you could have 0:14:57.760 --> 0:14:59.960 a sell on the news and you know you'll get 0:15:00.000 --> 0:15:04.840 but maybe some week holders in kicking and screaming and 0:15:04.880 --> 0:15:08.720 they may sell. But when you think we're at roughly 0:15:08.880 --> 0:15:12.800 nineteen and a half million bitcoin outstanding and we're only 0:15:12.880 --> 0:15:17.360 going to twenty one million, and I really do believe that, 0:15:18.560 --> 0:15:21.440 knowing the core some of the core developers the way 0:15:21.480 --> 0:15:27.480 I do, then I think this institutional push in will 0:15:27.520 --> 0:15:32.320 be the biggest reason that our target, which the base 0:15:32.400 --> 0:15:35.360 case is six hundred and fifty thousand and the bowl 0:15:35.440 --> 0:15:39.400 case is one point five million. One of the reasons 0:15:39.720 --> 0:15:43.040 that we have a shot that those numbers are close 0:15:43.080 --> 0:15:47.280 to the mark is the institutional interest in a new 0:15:47.440 --> 0:15:49.280 asset class. 0:15:48.760 --> 0:15:51.840 And that was the founder of our investment management. Kathy 0:15:51.880 --> 0:15:54.880 Wood speaking with Joel Weber and Eric Balchunis on the 0:15:54.880 --> 0:15:59.280 Bloomberg Trillions podcast downloaded on Apple, Spotify or wherever you 0:15:59.320 --> 0:16:02.400 get your podcasts, and of course on the Bloomberg Business 0:16:02.400 --> 0:16:05.960 app as well. Sticking with the tech space, Advanced micro 0:16:06.080 --> 0:16:09.880 Devices has unveiled new so called accelerator chips that it 0:16:09.920 --> 0:16:13.320 says will be able to run artificial intelligence software faster 0:16:13.760 --> 0:16:18.160 than rival products. At a launch event in San Jose, California, 0:16:18.240 --> 0:16:21.480 a m d's CEO Lisa Sue sat down with Bloomberg's 0:16:21.560 --> 0:16:23.520 Ed Ludlow to explain the truth is. 0:16:24.120 --> 0:16:28.360 We've all experienced over the last twelve months, this incredible revolution, 0:16:28.600 --> 0:16:31.840 right you know, chat rept has has really changed the 0:16:31.840 --> 0:16:34.480 way we think about what tech can do. And the 0:16:34.600 --> 0:16:38.320 underlying capability of that is GPUs, and you know, very 0:16:38.440 --> 0:16:39.800 very capable of GPUs. 0:16:40.480 --> 0:16:41.280 You know, we made some. 0:16:41.240 --> 0:16:43.720 Very very good decisions, you know a few years ago 0:16:43.880 --> 0:16:47.160 about how to put together this technology, and that includes 0:16:48.480 --> 0:16:51.800 both being very good for training, so training large models, 0:16:52.360 --> 0:16:55.800 but also very good for answering questions or inference so 0:16:55.880 --> 0:16:58.560 when you ask, you know, the chat rept a question, 0:16:58.840 --> 0:17:00.640 it takes sometimes a little bit of time for it 0:17:00.680 --> 0:17:01.880 to respond to an answer. 0:17:02.000 --> 0:17:02.760 Some latency. 0:17:02.880 --> 0:17:04.000 There's some latency there. 0:17:04.200 --> 0:17:07.200 And you know we've found, you know, really a great 0:17:07.240 --> 0:17:11.399 technological solution by adding you know, lots of high bandwidth 0:17:11.400 --> 0:17:12.760 memory or memory capacity. 0:17:13.200 --> 0:17:15.760 Fish and video will not have into H two hundred 0:17:15.880 --> 0:17:17.080 second quarter of next year. 0:17:17.840 --> 0:17:18.560 That is correct. 0:17:18.680 --> 0:17:21.680 We are industry leaning, so you know, best in class 0:17:21.720 --> 0:17:23.920 in terms of inference performance and. 0:17:24.119 --> 0:17:26.359 What is the side by side lisa on training and 0:17:26.480 --> 0:17:29.399 performance three hundred x versus H one hundred. 0:17:29.520 --> 0:17:31.560 Yeah, so if you look at we showed some of 0:17:31.560 --> 0:17:34.560 the benchmarks earlier today, if you look at training performance, 0:17:34.880 --> 0:17:36.440 we're very very competitive. 0:17:36.040 --> 0:17:38.000 Let's call it. You know, it's a toss up. 0:17:38.320 --> 0:17:41.359 When you look at inference performance, we're one point four 0:17:41.400 --> 0:17:44.160 to one point six times better. And you know what 0:17:44.200 --> 0:17:46.680 that means is, you know, if you're running these models, 0:17:46.680 --> 0:17:48.960 you can actually run more models, or you can run 0:17:49.080 --> 0:17:53.200 larger models. You know, with I three hundred and right now, 0:17:53.560 --> 0:17:54.480 you know the key. 0:17:54.280 --> 0:17:56.440 To AI is GPU compute. 0:17:56.520 --> 0:17:59.080 I mean that is absolutely what everybody says, and so 0:17:59.080 --> 0:18:01.320 we're here to provide lots of GPU compute. 0:18:01.520 --> 0:18:06.680 You've had the confidence to dramatically alter your your forecast 0:18:06.760 --> 0:18:10.159 for this market for AI accelerators. You're saying a total 0:18:10.280 --> 0:18:14.160 addressable market of four hundred billion US dollars in twenty 0:18:14.200 --> 0:18:17.159 twenty seven. In August, just in August, you said it 0:18:17.200 --> 0:18:18.760 was one hundred and fifty billion. 0:18:19.160 --> 0:18:22.960 What has changed, Yeah, And you know, really the way we. 0:18:22.920 --> 0:18:24.760 Look at these things is we usually look at these 0:18:24.760 --> 0:18:27.360 things on an annual basis, and so you know, when 0:18:27.400 --> 0:18:30.160 we were, you know, doing our plan for twenty twenty 0:18:30.240 --> 0:18:33.959 three and beyond last year, we thought that you know, 0:18:34.000 --> 0:18:36.320 this year there would be about a thirty billion dollar 0:18:36.359 --> 0:18:39.840 market and it would grow you know, fifty percent compound 0:18:39.840 --> 0:18:42.040 annual growth rates, so be about one hundred and fifty 0:18:42.040 --> 0:18:45.720 billion in twenty twenty seven, which frankly was very very large. 0:18:46.359 --> 0:18:49.040 But what's changed is we can all see what's changed, right, 0:18:49.080 --> 0:18:50.639 People need more compute. 0:18:50.680 --> 0:18:51.880 They're installing more. 0:18:52.440 --> 0:18:55.199 You know, the numbers for this year are probably closer 0:18:55.240 --> 0:18:58.720 to forty five billion. And when we talked to customers, 0:18:58.760 --> 0:19:01.879 when I spend time with our part partners, and what 0:19:01.920 --> 0:19:05.320 they tell us is the technology. 0:19:04.680 --> 0:19:06.120 Requires more compute. 0:19:06.520 --> 0:19:09.040 And so we now believe the total market for this 0:19:09.520 --> 0:19:12.040 it's upwards of four hundred billion and twenty twenty seven. 0:19:12.080 --> 0:19:12.720 It's huge. 0:19:13.200 --> 0:19:14.920 There's no one size fits all. They're going to be 0:19:15.000 --> 0:19:19.240 multiple solutions. There are lots of good solutions out there today, 0:19:19.320 --> 0:19:24.280 but we believe the AMD capability is very significant, and so. 0:19:24.240 --> 0:19:25.200 We're excited about it. 0:19:25.200 --> 0:19:28.600 It was interesting to see on stage how MI three 0:19:28.680 --> 0:19:30.840 hundred x manifests itself in the real world, but you'd 0:19:30.880 --> 0:19:34.360 already guided us that it will likely be the quickest 0:19:34.400 --> 0:19:37.680 AMD product to one billion dollars. There were sections of 0:19:37.720 --> 0:19:40.280 the market in the street that said your forecast of 0:19:40.640 --> 0:19:42.720 two billion dollars of sales for MI I three hundred 0:19:42.880 --> 0:19:46.719 x in twenty four was conservative. If you're saying that 0:19:46.760 --> 0:19:50.000 the total addressable market by twenty twenty seven is now 0:19:50.160 --> 0:19:54.240 four hundred billion, then is that two billion forecasts for 0:19:54.320 --> 0:19:57.439 next year, specifically for MI I three hundred x conservative 0:19:57.480 --> 0:19:59.760 as the market thinks it is, Well. 0:19:59.480 --> 0:20:01.280 I think you'll have to take a step back and 0:20:01.400 --> 0:20:04.600 just look at how this technology is evolving. So, you know, 0:20:04.640 --> 0:20:08.240 we did update in our last conference call to an 0:20:08.240 --> 0:20:11.879 expectation about two billion in twenty twenty four for our 0:20:11.960 --> 0:20:16.240 data center GYPUS. It's a very early estimate, I would say, 0:20:16.280 --> 0:20:17.879 you know, we have clear line of sight to that. 0:20:18.440 --> 0:20:20.560 But you know, what people ask me is like there 0:20:20.640 --> 0:20:25.320 is much more customer demand, definitely, and there's also significantly 0:20:25.320 --> 0:20:28.160 more supply because we've had to prepare the supply chain 0:20:28.240 --> 0:20:29.480 so that we're ready to ramp. 0:20:29.800 --> 0:20:31.600 So we'll update as we go along. 0:20:31.680 --> 0:20:34.560 You know, we are, you know, definitely on this path 0:20:34.640 --> 0:20:38.040 to ramp m I three hundred, the fastest is anything's 0:20:38.040 --> 0:20:41.159 ever ramped at AMD. And you know, I view this 0:20:41.359 --> 0:20:44.120 as a multi year opportunity for US. 0:20:44.240 --> 0:20:47.199 I mean, supply is a key question because when you 0:20:47.240 --> 0:20:50.240 say about two billion dollars, about could mean less or 0:20:50.280 --> 0:20:53.040 more than two billion dollars. But what is the state 0:20:53.040 --> 0:20:56.240 of supply right now? Has it improved such that actually 0:20:56.320 --> 0:20:59.960 you could exceed your expectations because you have visibility on 0:21:00.119 --> 0:21:03.320 great volume of GPUs to hand over to customers. 0:21:03.520 --> 0:21:04.399 Yeah, for sure. 0:21:04.560 --> 0:21:07.600 When we plan, we plan for success, and so our 0:21:07.720 --> 0:21:11.959 planning has the capability to be significantly higher than two billion. 0:21:12.680 --> 0:21:15.639 We have, you know, customer demand, you know, serve lots 0:21:15.640 --> 0:21:18.200 and lots of interest for I three hundred, and I 0:21:18.240 --> 0:21:19.920 think the key for us is, you know, one step 0:21:19.920 --> 0:21:21.919 at a time. Right Today was a huge day in 0:21:22.000 --> 0:21:25.040 terms of the launch We're actively in deployment with a 0:21:25.119 --> 0:21:29.600 number of the customers and partners. You know, Microsoft on Stage, Oracle, Meta, 0:21:30.080 --> 0:21:32.919 our OEM partners, Dell, Lenovo, super Micro. 0:21:33.680 --> 0:21:38.160 Everyone is really doing just phenomenal. HPE on them I three. 0:21:38.160 --> 0:21:41.400 Hundred a side, So a great, great set of partners 0:21:41.440 --> 0:21:45.000 and great partnerships for us to ramps as fast as possible. 0:21:47.640 --> 0:21:50.560 This is Bloomberg day Break Today, your morning brief on 0:21:50.600 --> 0:21:54.280 the stories making news from Wall Street to Washington and beyond. 0:21:54.440 --> 0:21:57.200 Look for us on your podcast feed at six am 0:21:57.280 --> 0:22:00.959 Eastern each morning, on Apple, Spotify, and anywhere else you 0:22:01.000 --> 0:22:02.040 get your podcasts. 0:22:02.280 --> 0:22:05.000 You can also listen live each morning starting at five 0:22:05.040 --> 0:22:07.680 am Wall Street time on Bloomberg eleven three to zero 0:22:07.680 --> 0:22:11.160 in New York, Bloomberg ninety nine one in Washington, Bloomberg 0:22:11.160 --> 0:22:14.160 one oh sixty one in Boston, and Bloomberg ninety sixty 0:22:14.320 --> 0:22:15.280 in San Francisco. 0:22:15.640 --> 0:22:18.800 Our flagship New York station is also available on your 0:22:18.840 --> 0:22:24.280 Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus. 0:22:24.320 --> 0:22:27.880 Listen coast to coast on the Bloomberg Business app, seriusxmb 0:22:28.040 --> 0:22:32.120 iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager. 0:22:31.880 --> 0:22:35.000 And I'm Karen Moscow. Join us again tomorrow morning for 0:22:35.160 --> 0:22:37.680 all the news you need to start your day, right 0:22:37.680 --> 0:22:39.359 here on Bloomberg Daybreak