DeepSeek, the Chinese AI Startup, Roils Markets; Trump Holds Colombia Tariffs

Bloomberg Audio Studios, Podcasts, Radio News. 0:00:10.000 --> 0:00:13.160 Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 0:00:13.200 --> 0:00:14.920 are the stories we're following today. 0:00:15.360 --> 0:00:15.880 Thank Karen. 0:00:15.880 --> 0:00:18.480 We begin with concerns over the impact that a Chinese 0:00:18.600 --> 0:00:22.560 artificial intelligence startup could have on big US tech stocks. 0:00:22.600 --> 0:00:26.200 It is called deep Seek. Buzz grew over the weekend 0:00:26.239 --> 0:00:30.080 about deep Seek's latest AI model being cost effective while 0:00:30.160 --> 0:00:33.360 running on less advanced chips. That's casting doubt on the 0:00:33.440 --> 0:00:37.360 validity of the sky high valuations for companies like Nvidia. 0:00:37.680 --> 0:00:40.120 We get more from Bloomberg Markets reporter Mark Cudmore. 0:00:40.960 --> 0:00:42.800 I think this is probably a game changing moment because 0:00:42.800 --> 0:00:45.560 I think suddenly the whole US stocks exceptionalism of the 0:00:45.640 --> 0:00:48.160 last fourteen fifteen years is probably undermined by this because 0:00:48.159 --> 0:00:50.800 it's simultaneously is good for productivity and growth from the 0:00:50.840 --> 0:00:52.280 rest of the world, good for companies all over the 0:00:52.320 --> 0:00:55.600 rest of the world, and undermines the whole US tech phenomenon. 0:00:55.640 --> 0:00:57.640 So I think it hits from both sides. So I 0:00:57.680 --> 0:01:00.520 think actually last Thursday we probably saw that the long 0:01:00.600 --> 0:01:02.920 term peak in US shaff globle market cap. 0:01:03.160 --> 0:01:06.280 Bloomberg's Mark Cudmore says the AI model from Deepseek is 0:01:06.319 --> 0:01:10.160 widely seen as competitive with open ai and Meta's latest offerings. 0:01:10.760 --> 0:01:13.360 Nathan Chinese, a startup, Deep Seek, is now top of 0:01:13.400 --> 0:01:17.160 the iPhone download charts despite being hobbled by sanctions. Capital 0:01:17.200 --> 0:01:20.199 dot Com senior market analyst Kyle Rada says it raises 0:01:20.319 --> 0:01:23.560 questions about the market and narrative around US tech dominance. 0:01:23.880 --> 0:01:25.920 If anyone's on a sort of group chat with equity 0:01:25.920 --> 0:01:29.160 investors or any kind of equity strategist, phones are running 0:01:29.200 --> 0:01:32.399 hot effectively talking about well, what is this product, how 0:01:32.520 --> 0:01:35.240 they achieved these outcomes, and what does this mean for 0:01:35.280 --> 0:01:37.960 the AI investment boom in the United States. It raises 0:01:38.000 --> 0:01:41.280 concerns about overinvestment in artificial intelligence. It raises concerns but 0:01:41.319 --> 0:01:44.480 perhaps the United States might have the competitive advantage. 0:01:43.959 --> 0:01:45.479 That it has over the rest of the world. 0:01:45.680 --> 0:01:47.920 It raises concerns that chip demand won't be as great 0:01:47.920 --> 0:01:51.120 going forward, either in companies like in Video or overvalued. 0:01:50.720 --> 0:01:54.040 Capital dot Com senior market analyst Kyle Rada several of 0:01:54.080 --> 0:01:56.640 the big tech stocks falling on the news and Video 0:01:56.760 --> 0:01:59.760 shares down ten percent. ISML is off by about eleven 0:02:00.000 --> 0:02:02.760 per Meta and Microsoft are lower by well more than 0:02:02.800 --> 0:02:06.080 four percent. Pall and teer down six percent, super Micro 0:02:06.160 --> 0:02:08.840 and soundhounder off by at least nine percent. 0:02:08.680 --> 0:02:11.760 And Karen This deepseek news comes just as investors brace 0:02:11.800 --> 0:02:14.680 for a slew of earnings from the Magnificent Seven. Bloomberg's 0:02:14.720 --> 0:02:17.000 John Tucker's following this end of the story in John 0:02:17.080 --> 0:02:19.440 and feels like the news couldn't get any more dicey. 0:02:19.680 --> 0:02:23.000 Well it could. The company sharers have been near record highs, 0:02:23.040 --> 0:02:25.920 their valuations are stretched, Nathan and add to this the 0:02:25.919 --> 0:02:29.120 fact that the group's profit growth It's projected to come 0:02:29.120 --> 0:02:31.440 out at the slowest pace in almost two years of 0:02:31.480 --> 0:02:34.440 Profits for the Seven Giants are projected to increase by 0:02:34.680 --> 0:02:37.600 twenty two percent in the fourth quarter from a year earlier. 0:02:37.760 --> 0:02:40.480 That actually would be the smallest jump since the first 0:02:40.560 --> 0:02:43.840 quarter of twenty twenty three. The seven companies announcements they 0:02:43.840 --> 0:02:47.720 start Wednesday. That's when Microsoft, Meta and Tesla are scheduled report. 0:02:47.960 --> 0:02:52.600 Apple follows Thursday, while we get Alphabet and Amazon next week, 0:02:52.639 --> 0:02:55.919 and then chip maker in Nvidia that comes late February. 0:02:56.240 --> 0:03:00.000 Capex also going to be a big theme Microsoft, Alphabet, Amazon, 0:03:00.080 --> 0:03:02.040 ad met It. They're all projected to have spent more 0:03:02.040 --> 0:03:06.440 than two hundred billion dollars combined on capital expenditures in 0:03:06.480 --> 0:03:09.120 their last fiscal year, and they've all pledged to spend 0:03:09.120 --> 0:03:11.320 more in the current year. In New York, I'm John Tucker, 0:03:11.360 --> 0:03:12.200 Bloomberg Radio. 0:03:12.480 --> 0:03:13.520 All right, John, thank you. 0:03:13.600 --> 0:03:17.639 Now, let's turn to the geopolitical dispute that's royal global markets. 0:03:17.680 --> 0:03:21.400 In less than twelve hours, President Trump announced sweeping tariffs 0:03:21.400 --> 0:03:24.640 on Columbia, then reverse this threat after reaching a deal 0:03:24.760 --> 0:03:28.519 on the return of deported migrants. Columbia's President Gustavo Petro 0:03:28.680 --> 0:03:31.840 initially refused to allow two military planes to land because 0:03:31.880 --> 0:03:35.080 the migrants on board were in and shackles, but last 0:03:35.160 --> 0:03:37.640 night the White House declared that Columbia had agreed to 0:03:37.720 --> 0:03:41.360 all of President Trump's terms. Coleman Sachs economist Kevin Daley 0:03:41.440 --> 0:03:43.800 says the tariff threat has not gone away. 0:03:44.240 --> 0:03:46.720 The warfare is that a blank of tariff might be 0:03:46.920 --> 0:03:48.200 introduced immediately. 0:03:49.480 --> 0:03:50.800 We didn't have that. 0:03:51.000 --> 0:03:53.520 And on the back of that, our US economists have 0:03:53.600 --> 0:03:56.720 lowered the probabilities of some of the tariffs. But you know, 0:03:56.800 --> 0:03:59.040 TARIFRESK clearly hasn't gone away, and it's going to be 0:03:59.120 --> 0:04:02.800 with us for a while now. 0:04:03.200 --> 0:04:05.680 And that's Goldman sax economist Kevin Daley, who says the 0:04:05.760 --> 0:04:07.920 use of tariffs as a marketing tool is likely to 0:04:07.960 --> 0:04:10.720 shadow emerging markets for much of the next four years. 0:04:10.960 --> 0:04:13.200 Karen, big tech companies are getting a warning from Vice 0:04:13.200 --> 0:04:16.400 President JD. Vance when it comes to content moderation on 0:04:16.440 --> 0:04:17.240 their platforms. 0:04:17.600 --> 0:04:22.240 We believe fundamentally that big tech does have too much power, 0:04:22.480 --> 0:04:24.120 and there are two ways they can go about this. 0:04:24.279 --> 0:04:29.160 They can either respect America's americans constitutional rights. They can 0:04:29.200 --> 0:04:32.160 stop engaging in censorship, and if they don't, you can 0:04:32.200 --> 0:04:35.760 be absolutely sure that Donald Trump's leadership is not going 0:04:35.839 --> 0:04:37.279 to look too kindly on them. 0:04:37.440 --> 0:04:40.120 Vice President Jade Vance appeared on CBS's Face the Nation 0:04:40.279 --> 0:04:43.279 Heard Sundays on Bloomberg Radio. Tech CEOs have been making 0:04:43.320 --> 0:04:46.080 pilgrimages to President Trump's Mar A Lago Club since his 0:04:46.120 --> 0:04:48.880 win in November, and they donated millions to his inaugural fund. 0:04:48.920 --> 0:04:51.680 Meta Platforms moved to end third party fact checking on 0:04:51.800 --> 0:04:54.320 its platforms this month. That was a move the President 0:04:54.320 --> 0:04:55.600 applauded well. 0:04:55.640 --> 0:04:58.040 In Sports, Nathan, it could be history in the making. 0:04:58.120 --> 0:05:00.560 The Chiefs are once again going to the Super Bowl. 0:05:00.640 --> 0:05:02.920 Let's get the very latest of the Bloomberg Sports is 0:05:03.080 --> 0:05:05.800 John stash Hour. John, Good morning, morning Karen. 0:05:05.800 --> 0:05:07.960 There's never been a Super Bowl three peete. In fact, 0:05:07.960 --> 0:05:09.800 there's never been a team win two in a row 0:05:10.000 --> 0:05:12.120 and go back with a chance for three straight. But 0:05:12.200 --> 0:05:14.440 in New Orleans in two weeks, Kansas City, we'll have 0:05:14.480 --> 0:05:17.359 the opportunity in the AFC Championship game with Buffalo that 0:05:17.480 --> 0:05:19.760 She's blue, an eleven point lead and trailed in the 0:05:19.760 --> 0:05:20.320 fourth quarter. 0:05:21.000 --> 0:05:23.560 First down play, Mahomes keeps it on an RPO at 0:05:23.560 --> 0:05:25.840 the five. It's a lead plot pick use of the 0:05:25.960 --> 0:05:32.360 uns on this hide touchdown Chilzas City, Patrick Mahomes a 0:05:32.440 --> 0:05:37.760 sixteen yard run, his second rushing touchdown of the games. 0:05:37.839 --> 0:05:40.560 Radio the call KC one thirty two to twenty nine, 0:05:40.560 --> 0:05:42.360 and will now, like the Super Bowl two years ago, 0:05:42.480 --> 0:05:45.719 take on Philadelphia. The Eagles won the NFC over Washington 0:05:45.800 --> 0:05:48.440 fifty five to twenty three. I'll be back shortly with 0:05:48.560 --> 0:05:49.760 more in sports karnon Nathan. 0:05:49.880 --> 0:05:51.000 All right, John, thanks for that. 0:05:51.040 --> 0:05:53.360 Now let's get to the latest on the wildfires in 0:05:53.400 --> 0:05:56.719 Los Angeles. The ravaged region is finally getting its first 0:05:56.839 --> 0:06:00.760 rainfall in months, but that's posing a new risk landslides. 0:06:00.920 --> 0:06:03.080 Brett Pasqua is a battalion chief with cal Fire. 0:06:03.839 --> 0:06:06.320 This rate right now is really good. It's going to 0:06:06.440 --> 0:06:09.240 soak the ground for us. It's gonna you know, any hidden. 0:06:09.000 --> 0:06:11.120 Howkspots that we're still out there tackling, it's going to 0:06:11.200 --> 0:06:11.680 help with that. 0:06:12.120 --> 0:06:13.080 It's when the rate. 0:06:12.960 --> 0:06:15.840 Goes up and we start getting it really quickly that 0:06:15.920 --> 0:06:18.000 you're going to see that mud. 0:06:17.720 --> 0:06:20.520 Flows and that's what we don't want. CalFire Battalion Chief 0:06:20.560 --> 0:06:21.360 Brett Pasqua. 0:06:21.440 --> 0:06:24.320 Right now, floodwatch is in effect for Los Angeles County 0:06:24.320 --> 0:06:27.120 and several roads are closed due to mud flows. The 0:06:27.160 --> 0:06:30.159 Palisades Fire that's charred more than twenty three thousand acres 0:06:30.240 --> 0:06:33.120 is now ninety percent contained, while the Eaton fire that 0:06:33.200 --> 0:06:36.839 destroyed much of Altadena is ninety eight percent under control. 0:06:40.360 --> 0:06:41.720 And it's time now for a look at some of 0:06:41.760 --> 0:06:44.240 the other stories making news in New York and around 0:06:44.240 --> 0:06:46.839 the world, and for that we're joined by Bloomberg's Michael Barr. 0:06:46.920 --> 0:06:48.640 Michael, Good Morning, Good morning, Karen. 0:06:48.800 --> 0:06:52.359 Israel is allowing Palestinians to return to the heavily destroyed 0:06:52.480 --> 0:06:55.599 north of the Gaza Strip for the first time since 0:06:55.680 --> 0:06:58.719 the early weeks of the fifteen month war with the 0:06:58.760 --> 0:07:04.080 Moss and accordance with a fragile ceasefire, thousands of Palestinians 0:07:04.080 --> 0:07:06.840 headed north to day after waiting for days to cross 0:07:07.000 --> 0:07:11.680 in exchange. Two more Israeli hostages will be released this week. Meanwhile, 0:07:11.800 --> 0:07:15.520 Israel and Lebanon have agreed to extend their ceasefire until 0:07:15.560 --> 0:07:19.800 February eighteenth to allow Israeli troops more time to withdraw, 0:07:20.360 --> 0:07:23.440 and Israeli Prime Minister Benjamin at and Yahoo released a 0:07:23.520 --> 0:07:27.760 short message thanking President Trump. It comes after Trump ordered 0:07:27.760 --> 0:07:31.520 the resumption of shipments of two thousand pound bombs to Israel. 0:07:31.800 --> 0:07:35.240 Thank you, President Trump for keeping your promise to give 0:07:35.320 --> 0:07:38.360 us the tools it needs to defend itself, to confine 0:07:38.400 --> 0:07:42.800 our common enemies, and to secure future of peace and prosperity. 0:07:43.560 --> 0:07:46.679 Former President Joe Biden had put the shipments on hold, 0:07:46.760 --> 0:07:50.480 citing concerns about the use of the weapons in areas 0:07:50.480 --> 0:07:55.440 with high concentrations of civilians. The UN General Assembly has 0:07:55.480 --> 0:08:00.880 designated today as International Holocaust Remembrance Day. You Every twenty 0:08:00.920 --> 0:08:04.360 seventh is the anniversary of the liberation of the Auschwitz 0:08:04.480 --> 0:08:08.680 concentration camps. The day will honor the six million Jewish 0:08:08.800 --> 0:08:12.160 victims of the Holocaust. It comes as law enforcement notes 0:08:12.200 --> 0:08:16.240 a rise in anti Semitism around the world. Jocelyn Getchen 0:08:16.360 --> 0:08:19.680 Kestenbaum is a professor of law at the Benjamin N. 0:08:19.840 --> 0:08:21.320 Cardozos School of Law. 0:08:21.680 --> 0:08:25.640 There are significant number of survivors who are no longer 0:08:25.720 --> 0:08:30.400 with us, and therefore there is an increasing Holocaust denial. 0:08:30.480 --> 0:08:35.160 It's something that we must counter, and eyewitness testimonials have 0:08:35.480 --> 0:08:39.000 always been a powerful way to combat such denial. 0:08:39.679 --> 0:08:45.000 Law Professor Joscelyn Gretchen casting Bomb. The first report on 0:08:45.320 --> 0:08:49.360 last month's Jedu air crash in South Korea has confirmed 0:08:49.400 --> 0:08:53.320 traces of bird strikes in the plane's engines. Officials, though 0:08:53.360 --> 0:08:56.240 have not determined the cause of the accident that killed 0:08:56.240 --> 0:08:57.960 all but two of the one hundred and eighty one 0:08:58.000 --> 0:09:01.000 people on board. Global News tenty four hours a day 0:09:01.120 --> 0:09:03.520 and whenever you want it with the Bloomberg News Now. 0:09:03.640 --> 0:09:06.359 I'm Michael Barr, and this is Bloomberg Karen. 0:09:06.480 --> 0:09:13.480 Ray, Michael Barr, thank you time now for the Bloomberg 0:09:13.559 --> 0:09:16.640 Sports Update, brought to you by Tri State Audie, and 0:09:16.640 --> 0:09:18.120 we welcome back John stash Hour. 0:09:18.200 --> 0:09:19.320 Hi, John, Hey Karen. 0:09:19.360 --> 0:09:22.360 Super Bowl fifty nine in New Orleans, same matchup as 0:09:22.360 --> 0:09:25.680 the game two years ago, Kansas City against Philadelphia Conference 0:09:25.760 --> 0:09:28.880 Championship Sunday began with the NFC in Philly, and here 0:09:29.000 --> 0:09:30.560 was the Eagles first play. 0:09:31.480 --> 0:09:33.679 It hurts under settling the first down. 0:09:33.760 --> 0:09:36.960 He pitches it out to Barkley, takes off to the outside. 0:09:37.120 --> 0:09:40.160 He's at the fifty, he's at the forty, he's. 0:09:40.000 --> 0:09:40.720 At the thirty. 0:09:41.080 --> 0:09:48.640 He's gonna down fifteen ten touchdown sake one. Barkley sixty 0:09:48.760 --> 0:09:53.720 yards on his opening touch He touched it and he took. 0:09:53.559 --> 0:09:54.240 It to the house. 0:09:54.520 --> 0:09:56.360 It's a simples wip. 0:09:56.600 --> 0:09:59.160 Barkley seventh touchdown run of the season that went at 0:09:59.240 --> 0:10:03.079 least sixty extending his NFL record. The ex Giant, who 0:10:03.080 --> 0:10:05.960 had scored two more touchdowns, Jalen Hurt, scored three times. 0:10:05.960 --> 0:10:10.000 The Eagles overwhelmed Washington fifty five to twenty three. It's 0:10:10.000 --> 0:10:12.200 the most points ever scored in a conference championship game. 0:10:12.200 --> 0:10:14.120 Philadelphia went to that Super Bowl two years ago, but 0:10:14.160 --> 0:10:17.120 finished last season going one in six. They started this 0:10:17.200 --> 0:10:20.240 year just two and two. Since then, they are fifteen 0:10:20.280 --> 0:10:24.160 and one. The Chiefs this season, with Patrick Mahomes playing quarterback, 0:10:24.440 --> 0:10:27.720 are seventeen in one. Mahomes led KC pass Buffalo in 0:10:27.720 --> 0:10:30.800 the AFC thirty two to twenty nine, which makes Kansas 0:10:30.840 --> 0:10:33.360 City twelve and zero this season in games decided by 0:10:33.679 --> 0:10:36.040 one score. They led Buffalo twenty one to ten, then 0:10:36.080 --> 0:10:39.120 trailed by a point. A Mahomes TV run gave them 0:10:39.120 --> 0:10:41.160 the lead back the Bills tight it scored with six 0:10:41.200 --> 0:10:43.720 minutes to go. Chiefs went back ahead on a field goal, 0:10:44.000 --> 0:10:47.040 more heartbreak for the Bills and their fans. Kansas City 0:10:47.080 --> 0:10:49.160 has been made a slight favorite to win the Super Bowl, 0:10:49.360 --> 0:10:51.600 and if they do win, they've become the first to 0:10:51.679 --> 0:10:54.880 win three in a row. At the Garden, Rangers twice 0:10:54.960 --> 0:10:57.280 came back to the two goal definsite, but Colorado scored 0:10:57.320 --> 0:11:00.559 with fifteen seconds left as beat the Rangers five to four. 0:11:00.679 --> 0:11:03.240 Yonick Center. Since the start of last year eighty and 0:11:03.360 --> 0:11:06.839 six nine tournament wins, three majors. He one a second 0:11:06.840 --> 0:11:10.600 street in Australia than John Stashell. Bloomberg Sports karnon even 0:11:13.200 --> 0:11:17.760 coast to coast on Bloomberg Radio, nationwide on Sirius XM. 0:11:17.480 --> 0:11:19.920 And around the world on Bloomberg dot. 0:11:19.760 --> 0:11:21.640 Com and the Bloomberg Business app. 0:11:21.840 --> 0:11:23.439 This is Bloomberg Daybreak. 0:11:23.600 --> 0:11:26.040 Good morning, I'm Nathan Hager. We are seeing a route 0:11:26.040 --> 0:11:29.280 in tech stocks this morning. Chinese startup Deep Seek is 0:11:29.360 --> 0:11:31.440 driving a lot of buzz around the idea of a 0:11:31.480 --> 0:11:35.520 low cost artificial intelligence model running on less advanced chips. 0:11:36.000 --> 0:11:38.760 Capital dot Com senior market analyst Kyle Rada says it 0:11:38.800 --> 0:11:43.199 could mark a narrative shift for the US led AI boom. 0:11:43.360 --> 0:11:46.280 That kind of proverbial arms rice in technology investment in 0:11:46.280 --> 0:11:48.839 an AI investment has taken a very very interesting turn 0:11:48.880 --> 0:11:51.600 when now China looks like a very viable competitor, and 0:11:51.640 --> 0:11:53.800 a competitor that you know, perhaps might catch the ire 0:11:53.840 --> 0:11:54.840 of the Trump administration. 0:11:55.040 --> 0:11:57.439 It's Kyle Rada of Capital dot Com and for more. 0:11:57.480 --> 0:11:59.960 We're joined by Bloomberg Radio and television news anchor crit 0:12:00.240 --> 0:12:03.440 gooped Cret. Good morning. What is it about Deep Sek's 0:12:03.520 --> 0:12:05.640 model that we're hearing about right now that Scott Tech 0:12:05.640 --> 0:12:07.560 investors clearly so spooked this morning? 0:12:08.200 --> 0:12:09.360 Well, good morning, Nathan. 0:12:09.400 --> 0:12:12.280 This is kind of the worst nightmare for a tech 0:12:12.360 --> 0:12:15.680 bowl in that we know so much money has been pumped, 0:12:15.679 --> 0:12:21.079 specifically from the hyperscalers like Amazon, Microsoft, Apple, et cetera, 0:12:21.320 --> 0:12:24.160 who are sitting on trillions of dollars of cash just 0:12:24.160 --> 0:12:27.800 getting pumped into the future of artificial intelligence. And this 0:12:28.040 --> 0:12:30.400 of course was created this massive stock market rally. The 0:12:30.480 --> 0:12:33.520 concern here now is that maybe all of that money 0:12:33.920 --> 0:12:36.840 didn't necessarily need to be put into the extent that 0:12:36.960 --> 0:12:38.679 it has in the stock market. Let me walk you 0:12:38.679 --> 0:12:40.840 through some of my math here and Nathan. For example, 0:12:40.960 --> 0:12:44.320 one Nvidia Blackwell chip is expected to go on the 0:12:44.320 --> 0:12:45.439 market for somewhere. 0:12:45.160 --> 0:12:47.720 Like thirty to forty thousand dollars per unit. 0:12:47.760 --> 0:12:50.240 I remember we're talking about a chip alone, and of course 0:12:50.600 --> 0:12:54.480 a ton basically of units used for one individual AI 0:12:54.559 --> 0:12:57.240 data centers as so many of these companies are trying 0:12:57.280 --> 0:13:00.240 to build out of course hundreds of data centers around 0:13:00.280 --> 0:13:02.040 the world. So you can see very quickly how the 0:13:02.160 --> 0:13:05.839 argument of just how much one chip is valued can 0:13:05.920 --> 0:13:09.440 kind of skyrocket into almost an unknown positive figure. And 0:13:09.480 --> 0:13:12.319 that's the sentiment at least that's been fueling the stock 0:13:12.360 --> 0:13:13.040 market rally. 0:13:13.360 --> 0:13:15.360 But the low and behold deep seek. 0:13:15.440 --> 0:13:19.880 This Chinese startup around AI that's using technology very similar 0:13:19.960 --> 0:13:22.280 to that of open Ai, which is already kind of 0:13:22.320 --> 0:13:27.360 on the front of the latest inn AI. They are 0:13:27.400 --> 0:13:29.320 now saying that they can do it on a much 0:13:29.400 --> 0:13:31.280 cheaper cost. So if you're talking about the things you 0:13:31.360 --> 0:13:34.280 need to get to artificial intelligent intelligence. 0:13:34.320 --> 0:13:35.480 Think of it as a recipe. 0:13:35.679 --> 0:13:39.360 You need chips, you need engineers, you need software kind 0:13:39.400 --> 0:13:41.480 of talent who are thinking about this. You need a 0:13:41.559 --> 0:13:45.080 data center, you need an electricity grid, you need things 0:13:45.120 --> 0:13:47.959 like natural gas or oil to power that data center, 0:13:48.040 --> 0:13:50.160 even solar for example. For the folks that are looking 0:13:50.160 --> 0:13:54.480 into that, imagine if that one element of that recipe 0:13:55.000 --> 0:13:58.560 is now able to be significantly cheaper. That's what Deep 0:13:58.600 --> 0:14:01.920 Seek has basically shown over the weekend and in going 0:14:01.920 --> 0:14:03.800 into last week as well, that they can do that. 0:14:03.800 --> 0:14:06.360 They can provide the same sort of technology for a 0:14:06.480 --> 0:14:08.800 much cheaper price. So the reason you're seeing the market 0:14:08.800 --> 0:14:11.040 reflected is saying, well, hold on a second. If you 0:14:11.040 --> 0:14:14.319 can do this for not as expensive of the price 0:14:14.400 --> 0:14:17.840 as previously thought, then why have these stocks been rallying 0:14:17.880 --> 0:14:19.680 to such an extent. And that's kind of the sentiment 0:14:19.920 --> 0:14:22.440 that's driving this global tech route today. 0:14:22.440 --> 0:14:24.480 And it's a sentiment that had driven you know, so 0:14:24.560 --> 0:14:26.720 much of the rally as you mentioned up to now 0:14:26.840 --> 0:14:30.480 that puts a focus of pretty bright spotlight. Now, doesn't 0:14:30.520 --> 0:14:33.000 it on the tech earnings that are coming up as 0:14:33.040 --> 0:14:36.120 soon as Wednesday For a lot of these big hyperscalers. 0:14:36.520 --> 0:14:37.200 It absolutely does. 0:14:37.240 --> 0:14:39.520 And I think context is everything here, Nathan, because remember 0:14:39.560 --> 0:14:42.440 these hyperscalers. I mean, we talk about just a handful 0:14:42.480 --> 0:14:43.960 of companies that are powering and video. 0:14:43.960 --> 0:14:44.360 I remember and. 0:14:44.440 --> 0:14:47.760 Video over about fifty percent of their kind of gains 0:14:47.760 --> 0:14:50.280 and their customer base is really just from a handful 0:14:50.320 --> 0:14:53.400 of the mag seven names, your Amazon's, your Microsoft's. 0:14:52.840 --> 0:14:53.280 Et cetera. 0:14:53.680 --> 0:14:55.920 And they're able to invest that much because they are 0:14:55.960 --> 0:15:00.000 still sitting on trillions of dollars of cash post pandemic 0:15:00.360 --> 0:15:02.920 and things that haven't really been able to be deployed 0:15:02.960 --> 0:15:06.080 in acquisitions. And this is something that the tech playbook 0:15:06.360 --> 0:15:08.120 is known very well for that you know, you kind 0:15:08.160 --> 0:15:11.240 of bolt on some of these deals you buy new technology. 0:15:11.280 --> 0:15:14.440 Think of a Facebook, for example, buying Instagram back in 0:15:14.480 --> 0:15:16.840 the day. It's a similar playbook. They haven't really been 0:15:16.880 --> 0:15:19.560 able to do that and use that cash. Instead, they're 0:15:19.600 --> 0:15:22.120 spending a lot of that cash and investment in research 0:15:22.360 --> 0:15:25.400 and of course in AI. Now basically the element here 0:15:25.480 --> 0:15:27.200 is that maybe you don't need to do that. But 0:15:27.240 --> 0:15:29.320 I'm going to caveat all of this, Nathan by simply 0:15:29.360 --> 0:15:31.920 saying this is still experimental technology. 0:15:32.000 --> 0:15:33.440 This is still just one example. 0:15:33.680 --> 0:15:35.640 And we also don't have the full figures on what 0:15:35.760 --> 0:15:38.360 kind of chips they use, just how much it's costing, 0:15:38.640 --> 0:15:40.360 and whether or not there are others like it, or 0:15:40.360 --> 0:15:42.720 if this is just kind of a one hit wonder. 0:15:42.840 --> 0:15:45.280 Those are still the questions that remain in this market. 0:15:46.520 --> 0:15:49.960 This is Bloombery Daybreak, your morning podcast on the stories 0:15:50.040 --> 0:15:53.040 making news from Wall Street to Washington and beyond. 0:15:53.320 --> 0:15:55.720 Look for us on your podcast feed by six am 0:15:55.760 --> 0:15:59.120 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:15:59.360 --> 0:16:02.040 You can also us in live each morning starting at 0:16:02.040 --> 0:16:05.200 five am Wall Street time on Bloomberg eleven three to zero. 0:16:04.960 --> 0:16:06.840 In New York, Bloomberg. 0:16:06.320 --> 0:16:08.920 In ninety nine to one in Washington, Bloomberg ninety two 0:16:09.040 --> 0:16:13.040 nine in Boston, and nationwide on serious XM Channel one 0:16:13.080 --> 0:16:13.640 twenty one. 0:16:14.040 --> 0:16:14.360 Plus. 0:16:14.400 --> 0:16:16.960 Listen coast to coast on the Bloomberg Business app now 0:16:17.000 --> 0:16:19.600 with Apple CarPlay and Android Atto interfaces. 0:16:19.840 --> 0:16:22.880 And don't forget to subscribe to Bloomberg News Now. It's 0:16:22.880 --> 0:16:25.600 the latest news whenever you want it in five minutes 0:16:25.720 --> 0:16:28.840 or less. Search Bloomberg News Now and your favorite podcast 0:16:28.880 --> 0:16:33.040 platform to stay informed all day long. I'm Karen Moscow. 0:16:32.800 --> 0:16:35.320 And I'm Nathan Hager. Join us again tomorrow morning for 0:16:35.400 --> 0:16:37.320 all the news you need to start your day right 0:16:37.360 --> 0:16:38.800 here on Bloomberg Day Ray