Nvidia’s $235 Billion Buyback, SpaceX Milestone and Meta’s AI Push

>> "BLOOMBERG TECH" IS LIVE FROM THE HEART OF SILICON VALLEY, WITH ED LUDLOW IN SAN FRANCISCO. ED: THIS IS "BLOOMBERG TECH." COMING UP, NVIDIA BOOSTS THE SIZE OF ITS SHARE BUYBACK PLAN BY A RECORD $150 BILLION, TAKING THE TOTAL AMOUNT TO $235 BILLION. PLUS SPACEX’S ROCKET REACHING TRUE ORBIT FOR THE FIRST TIME, AFTER A BRIEF SCARE DUE TO AN ENGINE FAILURE DURING ASCENT. AND META TAPS ITS PRESIDENT AND C.E.O. TO LEAD A NEW A.I. PLATFORM FOR ENTERPRISE CUSTOMERS IT DEEMS AS THE NEXT MAJOR PILLAR OF ITS BUSINESS. LET’S GET RIGHT TO TODAY’S BIG NUMBER, $150 BILLION. THAT’S HOW MUCH NVIDIA’S ADDED TO ITS SHARE BUYBACK PLAN, TAKING THE TOTAL REMAINING AUTHORIZED AMOUNT TO $235 BILLION, A MASSIVE NUMBER, REFLECTING C.E.O. JENSEN HUANG’S CONFIDENCE IN ITS CONTINUED GROWTH. THE COMPANY EXPECTS TO COMPLETE THE PROGRAM THROUGH FISCAL 2028, ACCORDING TO A STATEMENT. THEY’RE CURRENTLY IN THE THIRD FISCAL QUARTER OF THE FISCAL YEAR 2027. AT THE SAME TIME, NVIDIA SAYS IT HAS A NEW WAY TO REIN IN ROGUE A.I. AGENTS. INTRODUCING NEW SECURITY TOOLS THAT CAN SHUT THEM DOWN IN MILLISECONDS. THE COMPANY EVEN GOING SO FAR AS TO SAY IT COULD HAVE STOPPED THAT RECENT HUGGING FACE BREACH, WHICH INVOLVED OPEN A’S’ MODELS. IT’S KIND INFORM TWO PARTS. EXPLAIN THEM. >> ABSOLUTELY. SO THIS NEW PRODUCT RELEASED HAS TWO LAYERS. FIRST THERE’S OPEN SHELL. THAT IS AN OPEN SOURCE SOFTWARE PROGRAM THAT CAN RUN ON NVIDIA’S CENTRAL PROCESSING UNIT, AND THAT’S DESIGNED SO THAT A USER CAN ENFORCE THOSE GUARD RAILS. THIS WAS FIRST ANNOUNCED IN MARCH BACK AT THEIR GTC CONFERENCE, BEING ROLLED OUT NOW, IN COMBINATION WITH A NEW PRODUCT CALLED NVIDIA CENTURY, WHICH IS ANOTHER SEPARATE SYSTEM THAT RUNS ON NVIDIA’S DATA PROCESSING UNIT, AND ESSENTIALLY IT’S AN ADDED LAYER THAT CAN, LIKE YOU SAID, ISOLATE AN AGENT THAT’S ACTING SUSPICIOUSLY. THE COMPANY SAYS IN MILLISECONDS. ED: THE ANALOGY I’VE BEEN GOING WITH THIS MORNING IS IT’S PUTTING AN A.I. AGENT IN A LOCKED ROOM, WHERE PART ONE CONTROLS WHAT THE ROOM LOOKS LIKE AND THE DOORS IN AND OUT OF THERE. PART TWO IS THE SECURITY GUARD THAT’S ALWAYS OUTSIDE. BUT IT’S KIND INFORM LINE WITH JENSEN HUANG’S -- IN LINE WITH JENSEN HUANG’S SCHOOL OF THOUGHT THAT THIS IS AN ENGINEERING ISSUE. WELL, HE’S GIVEN US AN ENGINEERING SOLUTION. >> ABSOLUTELY, ED. THAT’S THE LINE I’VE BEEN USING. JENSEN HUANG, ONE OF THE BIGGEST BENEFICIARIES OF THE A.I. TRADE, HAS REALLY CONTINUALLY VOICED THAT A.I. PROGRESS NEEDS TO CONTINUE AND THAT THE EXECUTIVES WHO WANT TO SLOW IT DOWN JUST NEED TO FIND A SOLUTION TO THEIR PROBLEM. AND NOW HE’S OFFERING THEM A SOLUTION. IMPORTANTLY, WE DON’T KNOW WHETHER OPENAI AND ANTHROPIC ARE GOING TO ADOPT THIS FOR THEIR TRAINING RUNS SPECIFICALLY, WHICH IS WHERE THEY’VE HAD THE MOST PROBLEMS WITH THESE ROGUE AGENTS. BUT IF THIS REALLY CAN SOLVE THE ISSUE, IT COULD REALLY QUIET SOME OF THESE CALLS THAT WE’VE BEEN HEARING FOR A SLOWDOWN. ED: THERE IS AN ELEMENT WHERE EACH OF THOSE SOLUTIONS RUNS ON OTHER PARTS OF NVIDIA’S ECOSYSTEM HARDWARE-WISE. VERY QUICKLY, WHAT’S THE NVIDIA SCHOOL OF THOUGHT ABOUT WHAT THIS MEANS FOR THE TRAINING RUNS THAT ARE HAPPENING IN INDUSTRY? >> YEAH, I THINK THE IDEA HERE IS THAT NVIDIA HAS SAID THIS POTENTIALLY COULD HAVE STOPPED THE LUGGING FACE INCIDENT -- HUGGING FACE INCIDENT, WHICH WAS AN INCIDENT WHERE AGENTS GOT OUT DURING A TRAINING RUN. SO IF THE TECHNOLOGY WORKS IN THE WAY THAT THEY’RE SAYING IT WORKS, IT COULD ENABLE OPENAI AND ANTHROPIC TO CONTINUE WITH SOME OF THESE TRAINING RUNS THAT THEY’VE BEEN MORE HESITANT ABOUT. WE SAW JUST LAST FRIDAY OPENAI SAID THEY WERE PAUSING TRADING AFTER NEW DISCLOSURES ABOUT GOVERNMENT-RELATED INCIDENTS AND A BREACH OF AN AUSTRALIAN GOVERNMENT WEBSITE. AGAIN, THIS COULD BE A BREAKTHROUGH IF THE TECHNOLOGY DOES WORK THE WAY NVIDIA IS CLAIMING. ED: NVIDIA SHARES UP 2% ON MULTIPLE PIECES OF NEWS. THE A.I. SAFETY COMPONENT. FOR MORE, LET’S GETS TO THE FOUNDER AND C.I.O. OF SCIENCE AND TECHNOLOGY PARTNERS. THIS IS SO INTERESTING, BECAUSE THIS IS NVIDIA ACTING ON THEIR WARNING THAT THIS IS AN ENGINEERING PROBLEM, HERE’S A SOLUTION. WHAT DO YOU MAKE OF THAT, NVIDIA JUST OFFERING THAT TO INDUSTRY? >> GOOD MORNING, ED. NICE TO SEE YOU. IT’S SUCH AN INTERESTING TIME ONCE AGAIN FOR NVIDIA SHOWING AND FLEXING ITS MUSCLE OF INNOVATION. I THINK ONE OF THE THINGS THAT’S SOMETIMES HARD TO REMEMBER IS THAT OVER HALF OF NVIDIA’S ENGINEER ARE SOFTWARE ENGINEERS. THESE ARE ENGINEERS WHO ARE EXPERTS, NOT ONLY IN TERMS OF SOFTWARE EXPERTISE, BUT ALSO IN SIGN E CYBERSECURITY. SO IT MAKES TOTAL SENSE THE DEPARTMENT WOULD BE STEPPING IN TO ALLEVIATE SOME OF THE CONCERNS THROUGHOUT THE CYBERAREA. ED: WHAT’S THE LINK BETWEEN THE SHARE BUYBACK STORY, THIS A.I. AGENT SAFETY STORY, AND THE OTHER DISCLOSURES THAT NVIDIA MADE THIS MORNING? >> SO I THINK THAT PERHAPS THE TAKEAWAY IS THAT DESPITE ALL OF THE CONCERNS ABOUT THE AMOUNT OF SPENDING THAT’S GOING INTO A.I. INFRASTRUCTURE AND WHETHER OR NOT THERE’S AN A.I. BUBBLE, NVIDIA IS SAYING NOT ONLY ARE WE STEPPING IN TO BUY MORE OF OUR OWN SHARES IN A VOTE OF CONFIDENCE ABOUT THE FUTURE OF THE INDUSTRY, BUT WE ALSO HAVE THE CASH TO DO IT. WE ARE GENERATING SUFFICIENT CASH FLOW TO NOT ONLY MAKE THESE INVESTMENTS, BUT ALSO TO BE VERY SHAREHOLDER-FRIENDLY. SINK IT’S QUITE A POWERFUL MESSAGE COMING FROM NVIDIA TODAY. ED: THE COMPANY ALSO DISCLOSED THAT THEIR BACKLOG CONTINUES TO GROW. ANTHROPIC IS A CASE STUDY, TO DATE, $180 BILLION OF COMMITMENTS ACROSS ITS DIFFERENT DEPLOYMENTS. YOU’RE A LONG BIAS FUND. YOU FOCUS THE ABSOLUTELY LEADING EDGE OF WHAT’S HAPPENING. WE ARE THROUGH THE THIRD QUARTER OF EARNINGS SEASON, RIGHT? WHAT DID YOU CONCLUDE ABOUT THE A.I. STORY FROM THAT EARNINGS SEASON? >> I THINK THAT THE MOST IMPORTANT TAKEAWAY FROM THE THIRD QUARTER WAS JUST HOW BROAD-BASED A.I. ADOPTION HAS BEEN, WHETHER IT’S A FINANCIAL OR A DRUG DEVELOPMENT COMPANY OR A CONSUMER-FACING COMPANY THAT’S LOOKING TO IMPROVE CUSTOMER SERVICE AND RESPONSE. THE OVERWHELMING ADOPTION OF A.I. TOOLS HAS BEEN PHENOMENAL. AND I THINK THAT THAT REALLY SPEAKS TO THE IDEA THAT INSTEAD OF PRIOR PROBLEMATIC AREAS WHERE CAPACITY WAS BUILT AHEAD OF DEMAND, WE HAVE THE FLIP SIDE, WHICH IS THAT WE SIMPLY DON’T HAVE ENOUGH COMPUTE AND CAPACITY AND POWER AND ALL OF THIS TO MEET THE DEMAND WHICH CONTINUES TO GROW ACROSS MANY, MANY DIFFERENT INDUSTRIES. ED: THE STORY THAT HAPPENED IN PARALLEL WAS THE A.I. SAFETY DEBATE, PACING AT THE FRONTIER, WHAT KIND OF THIRD-PARTY EVALUATION IS NEEDED TO MAKE A.I. DEVELOPMENT AS SAFE AS POSSIBLE. IS THERE ANY DIRECT LINE TO HOW THAT IMPACTS THAT SUPPLY-DEMAND ON THE COMPUTE SIDE THAT YOU JUST OUTLINED? >> I THINK THAT YOU BRING UP AN EXCELLENT POINT, WHICH IS THAT THERE HAS TO BE MORE INNOVATION AROUND THE SECURITY, ESPECIALLY AROUND AGENETIC SECURITY, IN ORDER TO GIVE CONTINUED CONFIDENCE AND ADOPTION OF THESE KEY TECHNOLOGIES. SO I DO THINK THAT THIS PROVIDES AN EXCELLENT OPPORTUNITY FOR MANY OF THE CYBERSECURITY SOFTWARE NAMES, BUT I ALSO THINK THAT THIS NOW WILL BECOME TABLE STAKES FOR OTHER CHIP VENDORS, WHETHER IT’S A.M.D. OR MARVELL OR BROADCOM, HAVING A SECURITY ASPECT TO THE PLATFORM IS GOING TO BE STABLE STAKES. TABLE STAKES. ED: ERIKA, HOW MUCH OF A WARNING SIGNAL WAS THE DEVELOPMENT SURROUND A.I. SAFETY TO YOU? >> I DO THINK THAT THE A.I. SAFETY IS A PROFOUND ISSUE, AND I THINK THAT THE SPEED AT WHICH WE ARE SEEING RESPONSE IS VERY REASSURING. I THINK THE OTHER THING THAT WE HEARD A LOT FROM MANY OF THE CYBERSOFTWARE COMPANIES WAS THAT THEY SAW A FLIP IN TERMS OF TRYING TO GO OUT TO SELL THEIR WARES TO CUSTOMERS, CUSTOMERS COMING IN TO TALK TO THEM ABOUT HOW THEY COULD THWART ANY DINED OF CYBERTHREATS. SO CLEARLY THIS IS A BIG ISSUE, AND WHAT I THINK IS VERY IMPORTANT IS JUST HOW FAST THE RESPONSE TIME HAS BEEN. ED: WE’RE SHOWING NVIDIA AS HIGHER, BUT GENERALLY SPEAKING, TECHNOLOGY SHARES ARE UNDER PRESSURE TODAY. YIELDS ARE AT MULTIYEAR HIGHS. THE HEADLINE THAT HIT JUST BEFORE WE CAME ON AIR IS THE U.S. 10-YEAR TREASURY YIELD HAS MOVED UP ABOUT 10 BASIS POINTS, 5.27%, BACK DOWN 5.26%. JUST HOW CLOSELY ARE YOU PAYING ATTENTION TO THIS U.S. ECONOMY AND THE ACTIONS OF BOTH FISCAL POLICY AND THE FED RIGHT NOW, IN THE CONTEXT OF YOUR INVESTMENTS IN THE TECHNOLOGY SECTOR? >> WELL, I MEAN, WE’VE SEEN A TREMENDOUS CORRECTION IN TECHNOLOGY SHARES SINCE JUNE. IN MANY CASES, THERE ARE COMPANIES, PREMIER COMPANIES THAT ARE DOWN 30%, WHO%, 50%, SO I THINK WE’RE IN THE MIDST OF A BOTTOMING PROCESS AGAINST A BACK DROP OF FISCAL TIGHTENING, AND ALSO WE’RE HEADING INTO MIDTERM ELECTIONS WHERE MANY CONCERNS ARE BEING SURFACED ABOUT THE PACE OF DATA CENTER BUILDS IN THE UNITED STATES AND THE PRESSURE ON THE GRID PRICES AND ALSO ENVIRONMENTAL CONCERNS. BUT WE’VE BEEN ABLE TO NAVIGATE THROUGH MOST OF THOSE. MY SUSPICIOUS IS THAT AT THE END OF THE DAY, EARNINGS WILL MATTER MOST, AND WE’VE SEEN EXTRAORDINARY FINANCIAL RESULTS ACROSS THE BEST IN CLASS A.I. PLAYERS. AND I THINK THAT THIS IS PROBABLY AN INTERESTING MOMENT IN TIME TO REALLY THINK ABOUT SEEING THESE COMPANIES AND BUYING THESE COMPANIES AT EXTRAORDINARY VALUES RELATIVE TO THEIR GROWTH PROSPECTS ON A LONGER TERM BASIS. ED: GREAT TO HAVE YOU BACK ON THE SHOW. THANK YOU VERY MUCH. COMING UP, SPACEX WAS ABLE TO DEPLOY THE V3 STARLINK SATELLITES ON BOARD THE FIRST TRUE ORBITAL TEST FLIGHT FOR STARSHIP, BUT THE MILESTONE DID HAVE SOME CHALLENGES. WE’RE GOING TO HAVE THE DETAILS NEXT. THIS IS "BLOOMBERG TECH." ♪ ED: SPACEX’S STARSHIP ROCKET LIFTED OFF A FEW HOURS FOR ITS 14TH TEST, ITS FIRST TRUE ORBITAL FLIGHT. THE ELON MUSK COMPANY WAS ABLE TO DEPLOY STARLINK SATELLITES ON BOARD, BUT THE TRIP DID COME WITH SOME HECKUPS, WHICH THROUGHOUT THE PREMARKET INTO TODAY’S SESSION, CAUSED VOLATILITY IN THE SHARES. STARSHIP NOW RETURNING TO EARTH EARLIER THAN PLANNED. LET’S GET THE ABSOLUTE LATEST FROM BLOOMBERG’S SPACE REPORTER. OVERALL SUCCESSFUL, BUT WHERE ARE WE AT RIGHT NOW IN THIS 14TH TEST? >> RIGHT, IT WOULDN’T BE A STARSHIP FLIGHT IF IT DIDN’T HAVE A LITTLE BIT OF DRAMA. YES, THE FIRST OR ATAL MISSION, THEY WERE ABLE TO ACHIEVE ORBIT AFTER SOME CONFUSION OR CONSIDERATION OF WHETHER THEY WERE ABLE TO DO SO. ONE OF STARSHIP’S RAPTOR ENGINES DID CUT OUT EARLY DURING THE INITIAL FLIGHT TO SPACE, SO THERE WAS A PART WHERE THEY WEREN’T SURE IF THEY WERE ABLE TO DO THAT ORBIT INSERTION, BUT THEY WERE ABLE TO PUSH AHEAD AS PLANNED AND SUCCESSFULLY DEPLOY ALL 26V3 UPGRADED STARLINK SATELLITES ON BOARD. BUT THEY ULTIMATELY OPTED TO BRING STARSHIP HOME EARLY. RIGHT ABOUT NOW IT’S DE-ORBITING AND COMING BACK HOME, PROBABLY HIT THE ATMOSPHERE SOON. IT WAS SUPPOSED TO BE A NEARLY 10-HOUR TEST FLIGHT, BUT NOW IT’S GOING TO BE ABOUT THREE HOURS INSTEAD. ED: EXACTLY. SO THE BOTTOM OF THE SPACECRAFT PART OF STARSHIP, THE RAPTORS, ONE OF THEM MISBEHAVED IN THE ASCENT. THEY DID REACH OUT ANNALS, 275 KILOMETERS, AND THERE WILL BE PEOPLE WATCHING, LIKE HOLD ON, I’VE SEEN STARSHIP IN SPACE. WHAT’S THE DIFFERENCE? GET INTO THAT. IT’S IMPORTANT FOR TARSHIP TO REACH THAT ORBITAL OUTAGE OF 275. >> YEAH, UP UNTIL NOW, ALL OF STARSHIP TEST FLIGHTS HAVE BEEN SUB ORBITAL, MEANING IT’S BEEN ON A TRAJECTORY WHERE NO MATTER WHAT, THE GRAVITY OF EARTH WOULD TAKE IT BACK. IF THERE WERE ANY ISSUES WITH STARSHIP ON BOARD, IT WOULD COME BACK AND FALL IN A PLACE THAT WOULDN’T HAVE ANY KIND OF ISSUES FOR PEOPLE OR UNINVOLVED PROPERTY. SO GOING TO ORBIT IS A BIG DECISION, BECAUSE IF THERE WAS AN ISSUE WITH THE ENGINES, THEY WANT TO MAKE SURE THAT THEY CAN BE ABLE TO TAKE STARSHIP OUT OF ORBIT SAFELY, WHICH IS HOPEFULLY WHAT THEY’RE DOING RIGHT NOW. BUT YEAH, IT’S A BIG MOMENT, AND WE’LL SEE WHAT THE F.A.A. SAYS AND WHAT SPACEX SAYS FOLLOWING THE DATA REVIEW AFTER THIS. BUT IT COULD POTENTIALLY OPEN THE DOOR FOR MORE ORBITAL FLIGHTS TO COME, MORE STARLINK DEPLOYMENTS TO COME, AND AS WE KNOW, THAT’S A BIG MOMENT FOR SPACEX. ED: LAUREN, THANK YOU VERY MUCH. LET’S TALK TO SOMEONE WHO’S WORKED ON STARSHIP, SCOTT MORTON. HE SPENT NEARLY A DECADE AT SPACEX AS AN ENGINEERING MANAGER FOR STARSHIP FOCUSED ON SOFTWARE, BEFORE LEADING TO FOUND REVEL, WHICH BUILDS SOFTWARE TO HELP COMPANIES OPERATE COMPLEX MACHINES. I THINK WE’D AGREE, SCOTT, STARSHIP IS COMPLEX, MULTIFACETED MACHINE. BUT JUST YOUR REACTION. YOU’VE BEEN INSIDE THE BEAST, RIGHT? YOU UNDERSTAND HOW IMPORTANT THIS MILESTONE WAS FOR TEST FLIGHT 14. >> YEAH, I MEAN, I THINK OVERALL THIS WAS A MONUMENTAL FLIGHT, GOING TO ORBIT. THAT REALLY MEANT THAT SPACEX AND THE F.A.A. THOUGHT THAT STARSHIP WAS READY. YOU KNOW, THEY DID HAVE A HICCUP WITH ONE OF THE ENGINES, BUT IT DEPLOYED STARLINK SATELLITES IN ORBIT. AND THEN THEY’VE ALSO SUCCESSFULLY COMPLETED THE FIRST DE-ORBIT BURN. SO I THINK OVERALL, IF I WERE AT SPACEX STILL, I WOULD BE SEEING THIS AS A MASSIVE SUCCESS. ED: THE TIME YOU LEFT SPACEX, YOU WERE THE PROGRAM, SOFTWARE MANAGER FOR THE STARSHIP PROGRAM, RIGHT? WE TALK A LOT ABOUT THE ITERATIONS ON THE HARDWARE, THE HEAT SHIELD IN PARTICULAR, BUT GENERATIONS, GENERATION, THOSE HARDWARE CHANGES THEY MAKE. BUT SOFTWARE IS ABSOLUTELY CRITICAL, BECAUSE THE LAUNCH SYSTEM AND THE SPACECRAFT ITSELF IS ESSENTIALLY AUTONOMOUS, RIGHT? EXPLAIN THAT PART. >> YEAH, I MEAN, IT’S ACTUALLY AUTONOMOUS, I’D SAY EVEN FURTHER OUT ON THE LAUNCH PAD, GETTING READY FOR FLIGHT. BUT YEAH, IF YOU CAN PLAN FOR EVERYTHING YOU WANT TO DO IN A VEHICLE AND CODE ALL THAT IN SOFTWARE, IT’S MUCH EASIER KIND OF THING TO REASON THROUGH THAN HAVING A LOT OF MANUAL COMMAND, AUTOMATE AS MUCH AS YOU CAN, THAT’S OFTEN THE BEST APPROACH. AND EVEN THE SCENARIO THAT HAPPENED TODAY, THIS WAS DEFINITELY FULLY PLANNED FOR. THERE WAS SOFTWARE ALREADY READY TO GO FOR ALL THESE TYPES OF TENDENCIES. ED: I AM FAMILIAR WITH OVER THE AIR SOFTWARE UPSTATES FOR ANY TESLA VEHICLE, RIGHT? THAT GIVES, WITH EXISTING HARDWARE, NEW CAPABILITIES FOR THE CAR, IMPROVES PERFORMANCE. HOW DOES THAT WORK IN THE CONTEXT OF THE MOST POWERFUL ROCKET AND SPACECRAFT LAUNCH SYSTEM THAT HUMANKIND DEVELOPED? DOES IT WORK THE SAME WAY? >> AT LEAST IN MY TIME AT SPACEX, WE COULD NOT DO OVER THE AIR UPDATES. I’M NOT SURE WHERE THEY ARE TODAY ON THAT. THERE ARE A LOT OF THINGS THAT YOU CAN TWEAK, PARAMETERS AND THINGS THAT YOU CAN UPDATE. BUT GENERALLY, YOU WANT TO HAVE THE SOFTWARE BE QUITE LOCKED DOWN AND NOT BE MAKING CHANGES, ESPECIALLY NOT ON FLIGHT. I ASSUME LONG TERM THEY’LL HAVE SOME KIND OF CAPABILITY FOR THIS WHEN YOU HAVE VEHICLES FOR VERY LONG DURATIONS, BUT AT LEAST IN MY TIME ON THE PROGRAM, WE WANTED TO HAVE THE SOFTWARE VERY LOCKED DOWN. THERE’S A LOT YOU NEED TO MAKE SURE, YOU’RE OPERATING WITHIN THE BOUNDS OF WHAT IS EXPECTED AND KIND OF GOING TOO FAR OFF OF THOSE PLANS IN REAL TIME. ED: WHEN PEOPLE QUESTION WHETHER OR NOT A MISSION IS SUCCESSFUL AGAINST ITS ORIGINAL GOALS, ONE OF THE THINGS THAT SPACEX ALWAYS TALKED ABOUT IS THE DATA THAT IS GENERATED FROM WHATEVER THE OUTCOME OF THE MISSION. HOW DID THE SOFTWARE TEAM TAKE THE DATA AND THEN USE IT? IF THERE WAS SORT OF A PROCESS ON SOFTWARE, HOW MEANINGFUL IS THE DATA FROM THE MISSION IT GATHERED? >> IT’S MASSIVE. THEY’RE GOING TO SPEND WEEKS AND WEEKS, PROBABLY MONTHS ON THIS ONE, GOING THROUGH EVERY SINGLE SYSTEM, ALL THE SOFTWARE THAT WAS RUN LITERALLY TELEMETRY POINT BY POINT, TO MAKE SURE EVERYTHING PERFORMED AS EXPECTED. SO YEAH, THE DATA IS THE MOST VALUABLE THING COMING OUT OF THIS FLIGHT. I WAS ON THE PROGRAM FROM THE VERY BEGINNING, I THINK I WAS PROBABLY THE FIRST SOFTWARE ENGINEER DOWN IN TEXAS, DOWN AT STAR BASE. THE FACT THAT IT HAS NOW GONE TO ORBIT IS INCREDIBLY EXCITING FOR ME. BUT YEAH, THE MOST VALUABLE IS ALL THE DATA THEY’RE GOING TO BE GOING THROUGH, I’M SURE THEY LEARNED A TREMENDOUS AMOUNT FROM THIS FLIGHT. ED: TAKE ME BACK AGAIN TO YOUR TIME THERE. THE PROSPECTUS MADE IT CRYSTAL CLEAR THAT FUTURE BUSINESS LINES, THEY WERE PREDICATED ON STARSHIP WORKING, BEING FULLY REUSABLE, RAPIDLY REUSABLE. BUT WHEN THE PROGRAM STARTED, WHAT WAS THE KIND OF VISION FOR STARSHIP? WHAT WERE YOU TALKING TO EACH OTHER ABOUT, HOPING TO ACHIEVE WITH IT AT THAT TIME? >> YEAH, I MEAN, EVEN BACK TO THE VERY BEGINNING OF THE PROGRAM, WE HAD CAD DRAWINGS OF WHAT IT IS TODAY. THIS IS EXACTLY WHAT WE WERE HOPING FOR, AND WHAT WOULD ULTIMATELY HAPPEN, AND OBVIOUSLY MUCH FURTHER BEYOND THAT, THAT STARSHIP WOULD BE, YOU KNOW, IT TAKES PEOPLE TO MARS, THAT IT’S 100% WHAT WE WERE THINKING ABOUT DAY-TO-DAY AS WE WERE PUTTING IN THE EXTREMELY LONG HOURS. SO YEAH, I THINK THIS IS EXACTLY -- FOR ME, THIS IS LIKE ABSOLUTELY INCREDIBLE. STARSHIP HAS GONE TO ORBIT, AND IT HAS NOW, IN THE FIRST YEAR, ONE OF THE MOST CONCERNING PARTS OF THE WHOLE MISSION, YEAH, EXTREMELY EXCITING FOR EVERYONE AT SPACEX AND EVERYONE THAT’S CONTRIBUTED TO IT TO DATE. ED: SCOTT MORTON, FORMERLY OF SPACEX, MANAGING THE SOFTWARE OF THE STARSHIP PROGRAM. GREAT TO HAVE YOU BACK ON THE PROGRAM. THANK YOU VERY MUCH INDEED. COMING UP, META HAS TAPPED MONGODB’S CHIEF TO LEAD ITS NEW A.I. PUSHES FOR THE ENTERPRISE. IT’S BEEN A BIG STORY THIS MORNING. THAT IS NEXT. THIS IS "BLOOMBERG TECH." ED: LOOK AT SHARES OF META AND ALSO MONGODB. MONGODB QUITE CLEARLY DOWN MUCH MORE SEVERELY. IT ANNOUNCED ITS C.E.O. WAS LEAVING TO GO TO META. HE’S STEPPING DOWN, EFFECTIVE IMMEDIATELY. HE’S SET TO LEAD META’S NEW ENTERPRISE PLATFORM, BRINGING ITS A.I. MODELS, AGENTS, INFRASTRUCTURE TO BUSINESS CUSTOMERS. OK, THERE’S A LOT GOING ON HERE. LET’S START WITH THE ENTERPRISE PLATFORM. WHAT IS THAT? >> WE’VE BEEN WRITING ABOUT THE WAYS THAT META HAS BEEN CONTINUING TO INVEST ENORMOUSLY IN A.I. I THINK IF YOU’RE READING THE TEA LEAVES, THIS MAY NOT BE ALL THAT SURPRISING THAT META IS NOW MOVING INTO THIS ENTERPRISE PLATFORM TO OFFER ITS SERVICES, LIKE AGENTS, LIKE A.I. INFRASTRUCTURE, AND OTHER SERVICES FOR BUSINESSES. ED: THE SELL SIDE IS REALLY POSITIVE ABOUT META AND ITS PLATFORM. THE STOCK IS DOWN 4%. LET’S GO TO THE C.J. SIDE PIECE OF THIS. MONGODB DOWN 18%. AT ONE POINT IT WAS DOWN 27% AND ON TRACK FOR ITS WORST DAY SINCE MARCH OF 2025. THIS IS SOMEBODY, A TALENT THAT MARK ZUCKERBERG WANTED FOR THIS. WHAT’S THE STORY? >> YEAH, SO HE’S AN INDUSTRY VETERAN FROM MONGODB. THIS IS A DOCUMENT DATABASE. I THINK AS WE’VE BEEN COVERING WITH OTHER MAJOR RECENT HIRES, INCLUDING ALEXANDRA WAYNE LAST YEAR, THIS IS SORT OF THE NEXT ITERATION OF WHAT ZUCKERBERG SEES AS IS NECESSARY TO REALLY EXTEND SUPER INTELLIGENCE, NOT ONLY TO ALL PEOPLE, BUT ALSO TO BUSINESSES AND DEVELOPERS BEHIND THEM. HE SEES HIM AS REALLY FIT FOR THAT. ED: PEOPLE WILL BE WATCHING GOING, OK, META, THE PARENT OF FACEBOOK, SOCIAL MEDIA, MORE RECENTLY A.I., THIS IS ABOUT DOING BUSINESS WITH OTHER COMPANIES. >> EXACTLY, AND I THINK IT’S IMPORTANT TO LOOK AT WHERE THIS PLANTS META WITH ITS EXESTORS. YOU’VE GOT OTHER GIANTS, LIKE MICROSOFT, AMAZON WEB SERVICES, LIKE GOOGLE, WHO ARE ALREADY OFFERING MANY OF THE SAME SERVICES TO THEIR CUSTOMERS, SO NOT ONLY IS THIS ONE WAY THAT ZUCKERBERG CAN DIVERSIFY THE COMPANY’S REVENUE STREAM, BUT IT IS A STRATEGIC AND COMPETITIVE MOVE AS META SEEKS TO KEEP PACE WITH RIVALS. ED: YEAH, AND WE’RE SHOWING SOME OF THOSE THAT TOOK A HIT THIS MORNING IN THE SOFTWARE SPACE. ALEX, GREAT THANK YOU. COMING UP, NVIDIA IS BUILDING NEW GUARD RAILS FOR AUTONOMOUS MACHINES. WE’LL SPEAK ABOUT THAT NEXT. THIS IS THE A.I. AGENT SAFETY STORY THAT WE DID AT THE TOP, AND GECKO ROBOTICS IS THE PHYSICAL A.I. CASE STUDY, SUPER INTERESTING. HALFWAY THROUGH THE PROGRAM IN SAN FRANCISCO. THANKS FOR BEING WITH US. THIS IS "BLOOMBERG TECH." ♪ ED: WELCOME BACK TO "BLOOMBERG TECH." META ENTERPRISE PLATFORM IS A BIG STORY THIS MORNING. GENERALLY THEY’RE POSITIVE ABOUT THE IDEA THAT META HAS A MECHANISM TO DO BUSINESS WITH OTHER COMPANIES, RATHER THAN JUST FOCUS ON THE CONSUMER, LEVERAGING ITS WORK IN AGENTS AND A.I. IT HAS TAPPED C.J.DESAI FROM MONGODB, AND THAT STOCK IS DOWN ACCORDINGLY, OFF SESSION LOWS, BUT DOWN 17 PERCENT PERCENT. PRETTY SEVERE REACTION AS HE GOES TO META TO LEAD META’S ENTERPRISE PLATFORMS. AND THEY BROUGHT BACK A FORMER C.E.O. AT MONGODB TO BRIDGE THE GAP WHILE THEY SEARCH FOR A REPLACEMENT. IT’S HAD A LOT OF EFFECT ON THE MARKET IN DIFFERENT WAYS, DIFFERENT STOCKS. THE OTHER BIG KIND OF FINANCIAL MARKET IS NVIDIA, PUTTING ANOTHER $150 BILLION BEHIND ITS OWN STOCK, TAKING ITS REMAINING BUYBACK AUTHORIZATION TOED 235 BILLION. THE STOCK HIGHER 2% OFF ITS SESSION HIGHS. BLOOMBERG INTELLIGENCE SAYS THE SIZE OF THAT COMMITMENT UNDERSCORES NVIDIA’S FINANCIAL BUY POWER, BUT WITH PLENTY OF ROOM TO KEEP BUILDING THE BUILDOUT. ROBERT SHIPMAN JONES US NOW. YOU WERE QUICK OUT OF THE GATE WITH THE REACT. JUST EXPLAIN YOUR THESIS ON THIS BUYBACK. >> I THINK NVIDIA HAS BEEN READING BLOOMBERG INTELLIGENCE RESEARCH, AND THEY REALIZED THAT THERE’S NO A.I. BUBBLE. AND BECAUSE OF THAT, THEY ARE GOING TO BE SO CASH RICH, THEY CANNOT ONLY FUND FRIENDS AND FAMILY AND KEEP THIS A.I. ECOSYSTEM GOING, BUT THEY CAN ALSO SPEND A SIGNIFICANT AMOUNT ON SHAREHOLDER RETURNS, BENEFITING, I THINK BOTH CREDITORS AND SHAREHOLDERS ALIKE, AND THIS SORT OF STUFF I THINK OVER TIME IS ONLY GOING TO GET BIGGER, BECAUSE WE SEE THEIR FREE CASH FLOW POTENTIALLY GOING TO A TRILLION DOLLARS OVER THE NEXT COUPLE OF YEARS. ED: SINCERELY, JUST VERY BASIC TERMS, WHAT IS THE CREDIT ANALYST INTEREST WHEN YOU GET A HEADLINE ABOUT WHAT IS NOW I THINK THE BIGGEST BUYBACK IN U.S. COMPANY HISTORY. >> YEAH, IT’S BIGGER THAN APPLE’S $110 BILLION. IT CERTAINLY SHOWS THEY ARE KING OF THE HILL WHEN IT COMES TO A.I. THESE DAYS. UNFORTUNATELY, THERE’S NOT SO MANY OTHER HYPER SCALERS FRIENDS IN THIS POSITION ANYMORE. I THINK FROM A CREDITOR STANDPOINT, IT DOESN’T REALLY MAKE ANY DIFFERENCE TO THE WAY NVIDIA TRADES. WHAT I DO THINK IS IT SUGGESTS THEY’RE GOING TO HAVE ENOUGH CASH TO GIVE OUT, IN ORDER TO FUND EVERYBODY ELSE. IF YOU LOOK AT WHAT WE THINK CAP EX IS GOING TO BE SPENT THROUGH 2031 FROM THE HYPER SCALERS, IT’S NOW GOING TO REACH $9 TRILLION. THAT’S WITH A T. AND I THINK NEXT YEAR, WE’RE GOING TO SEE I.G. BORROWING PROBABLY IN AND AROUND $500 BILLION. AND TO KNOW THAT THERE’S CAPITAL AROUND TO HELP BUILD THAT SYSTEM, I JUST THINK IT BRINGS CONFIDENCE, PEOPLE HAVE BEEN VERY, VERY CONCERNED THAT THERE’S BOTH AN A.I. BUBBLE, THERE’S A CREDIT BUBBLE. WE DON’T SEE IT AT ALL. WE’VE NEVER SEEN DEMAND STRONGER, AND WE HAVEN’T HEARD ANYTHING DIFFERENT FROM EITHER INVESTORS OR THE COMPANIES THEMSELVES. ED: AS OF THE END OF THE FISCAL YEAR 2027, THE MOST RECENT QUARTER, NVIDIA IS SITTING ON JUST NORTH OF $99 BILLION. YOU, A, DON’T SEE A CIRCUMSTANCE LARK FINANCING CONCERN, AND YOU B, SEE THEIR ABILITY TO MAKE DIFFERENT KINDS OF INVESTMENTS GREASE THE WHEELS FOR THE BUILDOUT. >> YEAH, LISTEN, CIRCULAR FINANCING IS A GREAT MEDIA BUZZ LINE TO TRY TO BASH THIS SPACE, AND I JUST DON’T THINK IT’S WORKING. WHAT THEY’RING TOO IS THEY’RE MAKING EQUITY INVESTMENTS, THEY’RE MAKING CREDIT-STYLE INVESTMENTS, WHERE THEY’RE BOTH LEASING FACILITIES, THEY’RE PROVIDING RESIDUAL VALUE GUARANTEES. THEY’RE PROVIDING SUPPORT BEHIND THE VALUE OF THE CHIPS BEYOND THEIR FRESHABLE LIFE. I JUST THINK WHAT THEY’RE DOING IS THEY’RE JUST ACTING AS A BANK FOR EVERYBODY, WHICH IS NOT A BAD THING. I MEAN, THIS IS THE WHOLE STORY OF ROBIN HOOD. YOU TAKE A LITTLE BIT FROM THE RICH AND GIVE TO THE POOR. THAT’S ALL THEY’RE DOING. IT’S A TIMING DELAY WHEN IT COMES TO MAKING MONEY IN THIS BUSINESS. THOSE THAT ARE COLLECTING RIGHT NOW, THE SEMIS, ARE SHARING THAT MONEY WITH THOSE THAT ARE BUILDING, THE HYPER SCALERS AND THE NEO CLOUDS. THAT IS GOING TO CHANGE IN THE NEXT COUPLE OF YEARS WHEN THOSE COMPANIES HAVE FACILITIES THAT ARE UP AND RUNNING, AND YOU SEE A.I. MONETIZATION START TO BOOM. THEY’RE ALL GOING TO TURN FREE CASH FLOW POSITIVE AND BUYING BACK STOCKS AGAIN, AND I THINK THIS SORT OF REVOLUTION IS JUST GOING TO END UP CONTINUING. I DON’T SEE NVIDIA SLOWING THAT DOWN, AND I DON’T THINK THEY CARE ABOUT CIRCULAR REFERENCING, OTHER THAN THEY’RE ALSO NOW RAISING THIRD-PARTY MONEY. REMEMBER, THEY JUST ANNOUNCED A DEAL WITH THE BIGGEST ALTERNATIVE ASSET MANAGERS OUT THERE TO HELP RAISE $500 BILLION, AND I DON’T THINK THAT MONEY IS GETTING ANY SMALLER. I’M SURPRISED IT WASN’T A TRILLION OR IT’S NOT GOING TO GROW TO A TRILLION IN THE NEXT COUPLE OF YEARS. ED: ROBERT SCHIFFMAN WITH THE PERSPECTIVE ON THIS MASSIVE BUYBACK PROGRAM, THANK YOU VERY MUCH. NVIDIA IS PUSHING ITS A.I. SAFETY EFFORTS INTO THE PHYSICAL WORLD. IT’S WORKING WITH GECKO ROBOTIC TO TEST NEW SAFEGUARDS THAT PUT HARD LIMITS ON WHAT A.I.-POWERED ROBOTS CAN DO AND STOP THEM WHEN THEY CROSS BOUNDARIES. THE GECKO C.E.O., THIS WAS OUR TOP STORY TODAY. PART ONE, MAKE AN AGENT FIT WITHIN PARAMETERS THAT YOU SET, IN A BOX, RIGHT? PART TWO, A SECURITY GUARD FOR WHEN THAT AGENT MISBEHAVES OR ACTS SUSPICIOUSLY. HOW DOES THAT WORK IN YOUR PHYSICAL A.I. WORLD? >> THANKS FOR BEING ABLE TO HAVE ME ON TO TALK ABOUT THIS. WHAT WE’RE TALKING ABOUT TODAY IS THE CRITICALITY OF THESE AGENETIC TOOLS BEING ABLE TO BE DEPLOYED IN THE REAL WORLD, ESPECIALLY IN SUCH IMPORTANT ENVIRONMENTS, BUT DOING SO IN A WAY THAT’S SAFE AND ENSURES WE HAVE THE UTMOST STANDARDS RELATED TO SAFETY, QUALITY, ESPECIALLY WITH SOME OF THE MOST CRITICAL SECTORS, WHETHER IT BE MILITARY OR COMMERCIAL SIDE WITH ENERGY, MINING AND MANUFACTURING. AND THAT’S EXACTLY WHAT THIS PARTNERSHIP IS ALL ABOUT, ENSURING THAT WE KEEP HUMANS IN CONTROL, BUT ALSO SUPERCHARGE THE BENEFITS OF THESE AGENETIC TOOLS COME OUT OF THE FOUNDATION LABS. REALLY EXCITING ANNOUNCEMENT, AND IT PUTS SAFETY AND HUMANS FIRST T.. ED: THIS IS A PARTNERSHIP THEY HAVE WITH 1100 DIFFERENT ENTITIES ACROSS SOFTWARE, HARDWARE ROBOTICS COMPANIES. GIVE ME A CASE STUDY MAKE IT REAL. IT SO E DOES SOUND ABSTRACT, AN A.I. AGENT IN THE CONTEXT OF SOMETHING LIKE A ROBOT IN THE INDUSTRIAL AND DEFENSE SETTINGS THAT YOU WORK IN. >> WELL, WHAT’S BECOMING VERY CLEAR IS THAT I THINK IMPRESSIVE AND CRITICAL THESE MODELS ARE TO AN INCREDIBLE ECOSYSTEM, IT WAS BECOMING REALLY CLEAR THAT DEPLOYMENT TO THE REAL WORLD ON THE PHYSICAL INTELLIGENCE SUED, THAT’S WHERE IT’S COMING FROM, GATHERING INFORMATION BEFORE TO POWER THESE ABILITIES TO MODEL AND SIMULATE WHAT THE REAL WORLD LOOKS LIKE AND HOW TO MAKE SURE IT OPTIMIZES FOR BETTER. A WAY TO UNDERSTAND ONE OF THE USE CASES IS ACTUALLY WHAT THE MILITARY CONTRACT THAT WE HAVE. ONE OF OUR ROBOTS, KOMODO, IS USING THIS PARTNERSHIP AND SYSTEM THAT’S THE OPEN AGENT SAFETY PROGRAM TOO ENSURE WE’RE GATHERING INFORMATION IN DATA SETS BY LETTING AGENTS RUN THE ROBOTS, BUT ENSURING THEY’RE SET AND HUMANS ARE ABLE TO CONTROL CERTAIN SORTS OF ACTIONS THAT THE ROBOTS ARE TAKING IN THE REAL WORLD. AND SO THE AGENTS NEED TO GATHER AND SUPERCHARGE WHERE THEY’RE TAKING ACTION AND GETTING DATA, BUT DO SO IN A WAY THAT DOESN’T SAFETY STANDARDS THAT HUMANS PRIORITIZE. THIS IS THE KEY TO ENSURING THAT WE CAN GET AS MUCH INFORMATION AND DATA AS POSSIBLE AT LOW COST AND DO SO IN A WAY THAT KEEPS HUMANS IN CONTROL AND SAFETY PARAMOUNT. ED: TAKE ME TO THE BACK STORY HERE. PART OF THIS PLATFORM, NVIDIA TALKS ABOUT EARLIER THIS YEAR, RIGHT? THERE’S BEEN SO MUCH IN THE HEADLINES ABOUT A.I. SAFETY, MODELS MISBEHAVING, AGENTS GOING ROGUE. WAS THERE A FRANTIC PHONE CALL FROM JENSEN HUANG LAST WEEK SAYING, OK, THIS IS WHAT WE’RE DOING, EVERYONE GET ON BOARD? >> YEAH, I’LL KEEP THE PHONE CALLS BETWEEN THE TWO CONFIDENTIAL, BUT YOU’RE 100% RIGHT. YOU NEED TO PRIORITIZE SAFETY, BUT YOU ALSO NEED TO BE USING AT A PACE THAT’S REALLY BRINGING TO BEAR THE BEST TECHNOLOGY IN THE WORLD FOR THE PEOPLE KEEPING OUR BORDERS SAFE AND KEEPING FREEDOM FOR THE WORLD. IT’S SO EXCITING THAT JENSEN HUANG AND MYSELF AT GECKO ARE BEING ABLE TO DO THE PARTNERSHIP LIKE THIS FOR THE MILITARY AS THE FIRST EXAMPLE OF MANY TO COME AS IT RELATES TO THE TECHNOLOGY THAT’S BEING DEPLOYED TO ENSURE THAT WE KEEP CHIPS OUT OF DIE DOCK AND -- DRY DOCK AND IN THE FIGHT TO DETER CONFLICTS AROUND THE WORLD, AND THIS IS PUTTING SUCH A POSITIVE SPIN ON THE BENEFITS AND IMPACT THAT THIS TECHNOLOGY STACK IS ABLE TO HAVE, AND ALSO THE GAME PLAN OF HOW ROBOTICS HAS TO BE USED TO GIVE US THE ADVANTAGE IN THE WEST. SO IT PUSHES THE FRONTIER AND MAKES AND ENSURES THAT TECHNOLOGY COMPANIES LIKE GECKO AND NVIDIA ARE LEADING THE WAY AND CREATING THE RULES. ED: JENSEN HUANG’S SCHOOL OF THOUGHT IS THAT THE SAFETY OF A MODEL, AND AN ISSUE OF ALIGNMENT, DOES THE A.I. DO WHAT IT’S INTENDED TO. THAT’S AN ENGINEERING PROBLEM. IS THAT WHAT YOU SEE IN YOUR PHYSICAL A.I. REALM, JUST AN ENGINEERING PROBLEM THAT YOU CAN NOW SOLVE FOR BECAUSE WHAT NVIDIA HAS MADE OPEN SOURCE? >> YEAH, IT ALSO IS ENSURING THAT WE PUT INTO PERSPECTIVE THE POWER OF THESE TOOLS. I MEAN, WE HEAR SO MUCH CONVERSATION FROM CERTAIN C.E.O.’S ABOUT THE DOOM OF A.I., BUT I THINK WHAT’S IMPORTANT IS THIS PARTNERSHIP HIGHLIGHTS HOW THESE TECHNOLOGIES, ROBOTICS AND ARTIFICIAL INTELLIGENCE MODELS, ARE ACTUALLY BEING USED FOR GOOD, FOR KEEPING HUMANS OUT OF HARM’S WAY, TO ENSURING THAT IT GETS CRITICAL ASSETS AND COMPONENTS BACK UP AND RUNNING, ENSURING THAT THEY’RE DETEARING CONFLICT OR KEEPING LIGHTS ON, EMPOWERING -- POWERING HOMES FOR HEATING AND COOLING. THIS IS THE WAY WE WANT TO IMAGINE THE FUTURE LOOKING LIKE AND NOT SOME DOOMERRISM THAT CAN BE SOLD TO ASSIST WHATEVER IS TRYING TO BE PUSHED BY THESE COMPANIES. AND SO SIMILAR TO JENSEN, WHAT WE’RE TALKING ABOUT IS SUCH A POSITIVE IMPACT THESE TECHNOLOGIES ARE HAVING FOR REAL PEOPLE ANDEN SURING THAT WE KEEP THOSE REAL PEOPLE WITH THOSE WITH EXPERTISE IN CONTROL, AND WE’RE BUILDING TECHNOLOGY SETS RIGHT ALONGSIDE THEM, AND THAT’S WHAT’S LEADING TO SUCH INCREDIBLE OUTCOMES. ED: JAKE, GECKO ROBOTICS C.E.O. ON THE TECHNOLOGY PARTNERSHIP WITH NVIDIA, THANK YOU VERY MUCH INDEED. LET’S TALK ABOUT SPACEX AGAIN. WE’RE SEEING SOME LIVE PICTURES NOW. LIVE PICTURES, THIS IS STARSHIP RE-ENTERING EARTH’S ATMOSPHERE. IT DID REACH AN ORBITAL ALTITUDE OF 275 KILOMETERS, BUT SPACEX MADE THE DECISION TO BRING STARSHIP BACK TO EARTH AND BACK HOME EARLY. IT WAS ORIGINALLY, THE MISSION GOAL WAS TO DO IT SIX ORBITZ OF THE PLANET, AND THEN AFTER ABOUT NINE HOURS AND 50 MINUTES, BRING IT BACK. BUT THEY CAME BACK EARLY AFTER SUCCESSFULLY DEPLOYING 26V3 STARLINK SATELLITES. THE FEED BREAKING UP THERE AS IT PASSES THROUGH EARTH’S ATMOSPHERE. MISSION SUCCESSFUL, MOSTLY. COME UP, ANTHROPIC’S C.E.O., DARIO AMODEI, MET WITH PRESIDENT TRUMP AS THE DEBATE AROUND A.I. SAFETY CONTINUES. WE’LL HAVE THOSE DETAILS NEXT. THIS IS "BLOOMBERG TECH." ♪ ED: PRESIDENT TRUMP AND ANTHROPIC C.E.O. DARIO AMODEI TAKING THE A.I. SAFETY DEBATE FACE TO FACE. THE TWO MET FOR DINNER AFTER AMODEI CALLED FOR SLOWING THE DEVELOPMENT OF THE MOST ADVANCED MODELS AS A GROWING NUMBER OF A.I. SECURITY BREACHES ADD URGENCY TO THE FIGHT OVER GUARD RAILS. BLOOMBERG’S SENIOR TECH EDITOR IS WITH US. WE KNOW THE DINNER WHAT HAPPENED. WHAT ELSE DO WE KNOW? >> WE DO KNOW THAT DINNER HAPPENED. A WHITE HOUSE OFFICIAL HAS CONFIRMED THAT IT TOOK PLACE, IT WAS LATE LAST NIGHT HERE IN WASHINGTON. BUT WE DON’T KNOW ANYTHING MORE BEYOND THAT RIGHT NOW. THERE’S BEEN NO READOUT FROM EITHER SIDE. AND ED, THE KEY TAKEAWAY IS THAT THIS MEAL WOULD HAVE BROUGHT TOGETHER TWO MEN ON OPPOSITE ENDS OF THE A.I. SAFETY DEBATE. AS WE KNOW, DARIO AMODEI HAS FOR YEARS WARNED OF THE POTENTIAL EXISTENTIAL RISKS FROM THE TECHNOLOGY. AND ON SEPTEMBER 12, HE PUBLISHED THAT HIGH-PROFILE ESSAY PROMISING TO SLOW DEVELOPMENT OF THE MOST ADVANCED MODEL. PRESIDENT DONALD TRUMP, ON THE OTHER HAND, HAS PUSHED BACK AGAINST THOSE DOOMSDAY FEARS, CALLING THEM A HOAX AND REJECTING CALLS FROM AMODEI FOR MORE REGULATION AS A GLOBALIST CONSPIRACY. SO WE’LL BE EAGER TO SEE WHETHER THE TWO MEN WERE ABLE TO MEET SOMEWHERE IN THE MIDDLE. AND WE MAY GET SOME DETAILS ON THAT FROM PRESIDENT DONALD TRUMP DURING A POLICY ANNOUNCEMENT LATER THIS AFTERNOON. AND WE’RE ALSO, OF COURSE, OUT TO ANTHROPIC FOR ANY READOUT ON THEIR SIDE. ED: OVER THE WEEKEND, I THINK AHEAD OF THIS MEETING, THE PRESIDENT DID SPEAK TO REPORTERS, AND HE BASICALLY SAID HERE’S MY POINT OF VIEW ON A.I. CAN YOU SUMMARIZE WHAT THE PRESIDENT’S STANDING IS ON IT? >> WELL, FOR WEEKS, HE HAS BEEN IN RESPONSE TO A LOT OF THE SAFETY FEARS THAT HAVE BEEN SURFACED BY LEADERS IN SILICON VALLEY, INCLUDING AMODEI, BUT SOMEWHERE ELSE HIS ARCHRIVAL, SAM ALTMAN, THAT SOMETHING MUST BE DONE ON A GLOBAL BASIS TO CREATE SOME STANDARDS TO ADDRESS THESE RISKS, THAT A.I. AGENTS COULD GET OUT OF CONTROL. BUT THE PRESIDENT HAS PUSHED BACK AGAINST THAT. HE IS INTERESTED IN TWO THINGS. HE WANTS DEVELOPMENT OF THIS TECHNOLOGY TO PRECEDE LARGELY UNFETTERED BECAUSE OF ITS ECONOMIC IMPORTANCE TO THE UNITED STATES, AND, OF COURSE, ALSO TO THE IMPORTANCE TO THE U.S. OF STAYING AHEAD OF CHINA, THE TOP GEOPOLITICAL RIVAL IN THIS TECHNOLOGY. AND THAT WAS REALLY ONE OF THE CENTER PIECES OF THE CONVERSATION BETWEEN THE PRESIDENT AND HIS CHINESE COUNTER PART, XI JINPING, HERE IN WASHINGTON LAST WEEK. A LOT OF OTHER TECH C.E.O.’S WERE AT THAT STATE DINNER FOR XI JINPING ON THURSDAY EVENING, BUT ONE ABSENCE NOTABLY WAS DARIO AMODEI, SO PERHAPS WE WILL SEE A LITTLE BIT OF MOVEMENT IN THE DEBATE HERE IN WASHINGTON, INCLUDING WITH THE PRESIDENT HIMSELF. ED: THE PRESIDENT IS DUE TO MILWAUKEE A STATEMENT IN A COUPLE OF HOURS’ TIME. MIKE SHEPARD, THANK YOU VERY MUCH INDEED. LET’S GET OVER TO NEW YORK. YAHAIRA HAS THE NEWS. YAHAIRA: IT’S TIME FOR TALKING TECH. FIRST UP, SHARES OF SK HYNIX FELL 5% IN SOUTH KOREA AND ITS ADR’S ARE FALLING HERE AS WELL ON REPORTS ITS U.S. SUBSIDIARY COULD GO PUBLIC AS SOON AS NEXT YEAR AT A VALUATION OF UP TO $100 BILLION. AN I.P.O. WOULD ADD ANOTHER LAYER TO THE BROADER SK GROUP, ALREADY COMPLEX OWNERSHIP STRUCTURE, RAISING CONCERNS FOR SHAREHOLDERS. PLUS CHINA EXPANDING OVERSEAS TRAVEL RESTRICTIONS TO FAMILIES OF TOP A.I. PROFESSIONALS. RELATIVES OF EXECUTIVES WHOSE WORK IS CONSIDERED CRITICAL TO STATE SECURITY NOW REQUIRE BEIJING’S APPROVAL BEFORE TRAVELING ABROAD. THAT’S ACCORDING TO SOURCES. THAT’S TO PREVENT SENSITIVE A.I. EXPERTISE FROM LEAVING FOR THE U.S. AND OPENAI’S C.E.O., APPLE SALTMAN, AND ANTHROPIC’S C.E.O. DARIO AMODEI WILL NOT APPEAR IN AUSTRALIA INTO A HEARING IN A.I. THE HEARING COMES AFTER AN OPENAI MODEL HACKED A GOVERNMENTEN WITH SITE. BOTH COMPANIES WILL SEND OTHER EXECUTIVES INSTEAD. ED? ED: THANK YOU, YAHAIRA. COMING UP, WE’RE GOING BACK TO NVIDIA’S BUY BACK PLANS, ONE OF SEVERAL NVIDIA STORIES THAT ARE IMPACTING THE SHARES TODAY. THE STOCK UP 2%. THERE’S ALSO BEEN SOME DISCLOSURES ON THE BACKLOG, HOW MUCH NVIDIA IS USING, AND THEN THERE’S THE A.I. AGENT SAFETY OFFERING THEY OPENED THIS MORNING AS WELL. ALL TO COME. THIS IS "BLOOMBERG TECH." ♪ ED: LET’S GET BACK TO OUR TOP STORY. NVIDIA’S RECORD BUYBACK. SHARES 2%, OFF SESSION HIGHS. THERE WERE SEVERAL PIECES OF NEWS. THERE’S A REACTION, SAYING IT’S POSITIVE, BUT NOT THESIS-CHANGING. SPECIFICALLY WHEN IT COMES TO THAT $150 BILLION BUYBACK, INCREASE. IT’S SUCH A BIG NUMBER, AND THEN IN AGGREGATE, BIGGER NUMBER STILL. WHY IS IT NOT THESIS-CHANGING FOR YOU? >> IT DOES HAVE SOME POSITIVE RATES. BUYBACK IS ALWAYS. IT ALSO SIGNALS THAT THE COMPANY BELIEVES THE STOCK IS CHEAP AND ALSO HELPS INVESTORS CONCERNED THE COMPANY IS DEPLOYING TOO MUCH CASH INSTEAD OF TURNING BACK. DEFINITELY DON’T WANT TOP SHARE THE POSITIVE. HOWEVER, DOESN’T DO ANYTHING TO ADDRESS THE FUNDAMENTAL RISK THAT CAN THE CAP EX HYPER SCALERS OBTAIN, THE RISING COMPILATION FROM THE BASIC AREA, AND AGAIN, PEOPLE ARE CONCERNED ABOUT THE CIRCULAR FINANCING. SO ON ONE HAND, DOES DO POSITIVELY TO A LOCATION, BUT ON THE OTHER HAND, DOESN’T SWAY THE RISK THAT HAVE BEEN HAMPERING THE STOCK MARKET. ED: THERE’S BEEN A LOT OF DISCUSSION ABOUT NVIDIA, OPEN AGENTS, AND SAFETY PLATFORMS. YOU TALK ABOUT SECURITY, THE IDEA THAT NVIDIA IS OFFERING MORN JUST G.P.U.’S. LIKE IN A VERY REAL SENSE, YOU’RE SAYING YOU HAVE A CONCERN, HERE’S AN ENGINEERING SOLUTION TO IT. WHAT DID YOU MAKE OF THAT? >> THAT WAS A MORE FUNDAMENTAL POSITIVE WAY. YOU LOOK AT ALL THE TALK ABOUT SECURITY SAFETY, WITH ALL THE ATTACKS ABOUT SLOWING DOWN TRAINING PROGRESSION, REMEMBER, ALL OF THAT WILL REQUIRE MORE COMPUTE. EVEN IF YOU SLOW DOWN DEVELOPMENT TO ADD MORE COMPLIANCE SAFETY SECURITY, YOU STILL NEED MORE COMPUTER, AND GUESS WHAT, WHERE ARE PEOPLE GOING TO TURN FOR THAT COMPUTE? TO THE LIKES OF NVIDIA. THAT IS DEFINITELY A FUNDAMENTAL, LONG-CARE CARE FOR THE COMPANY. ED: THAT WAS THE REACT TO A LOT OF WHAT HAPPENED WITH NVIDIA THIS MORNING, THANK YOU. STICKING WITH NVIDIA, LOCKHEED MARTIN’S C.E.O. SAYS THE CHIP COMPANY HAS BEEN A PARTNER OF THEIRS FOR TWO DECADES NOW. AS A.I. KEEPS PLAYING A GROWING ROLE IN LOCKHEED’S ROAD MAP. LISTEN TO THIS. >> OUR CHIEF ENGINEER, WHEN I STARTED AT THE COMPANY IN MANAGEMENT SIX YEARS AGO, SAID A.I. IS REALLY CRITICAL, AND, OF COURSE, ASKED FOR A BUDGET TO UNVEST IN OUR OWN A.I., CONTAINERIZED INSTANCE, WHERE WE WOULD NOT BE USING DATA SETS OFF THE INTERNET. WE WOULD NOT BE USING MODELS AND FEEDING OUR INFORMATION BACK INTO THE SYSTEM. WE WOULD HAVE A CONTROLLED ENVIRONMENT FOR OUR A.I. WORK LOADS, AND ONE OF OUR PARTNERS IN THE TECHNOLOGY SPACE HAS BEEN JENSEN HUANG. BACK IN 2001, HARDLY ANYONE HAD HEARD OF NVIDIA, IF YOU WEREN’T A GAMER. WE WERE TEAMED WITH NVIDIA TO GET G.P.U.’S, AND THAT RELATIONSHIP CONTINUES TODAY. ED: THAT WAS LOCKHEED MARTIN’S C.E.O. TUNE IN ON FRIDAY FOR MORE OF THAT CONVERSATION DURING BLOOMBERG’S DEFENSE TECH SPECIAL, 11:00 A.M. EASTERN, WE’RE GOING TO BE LIVE FROM LOCKHEED MARTIN’S SKUNK WORKS. THAT’S LOCKHEED MARTIN’S ADVANCED AIRCRAFT DEVELOPMENT FACILITY IN SOUTHERN CALIFORNIA. A REALLY RARE, INCREDIBLE ACCESS TO WHAT’S HAPPENING IN DEFENSE TECHNOLOGY. LET’S GET BACK TO THE LIVE PICTURES OF STARSHIP. RE-ENTERING EARTH’S ATMOSPHERE. IT DID ITS DEAL TO REACH ORBITAL ALTITUDE, 275 KILOMETERS. THAT MISSION GOAL ACHIEVED. IT DEPLOYED 26 STARLINK V3 SATELLITES, COMMERCIAL, OPERATIONAL, REVENUE-GENERATING FOR STARSHIP. THAT WAS A FIRST. BUT SPACEX DECIDED TO RETURN STARSHIP IN ITS 14TH TEST FLIGHT HOME EARLY. THE ORIGINAL MISSION DESIGN WAS TO DO SIX ORBITZ OF EARTH OVER ABOUT A 10-HOUR PERIOD, BUT IT DECIDED TO COME BACK. WE STILL DON’T KNOW WHY. WE WILL FIND OUT. THE PLAN IS FOR SPACECRAFT, WHICH YOU ARE SEEING LIVE ON YOUR SCREEN, SPLASH DOWN WEST OF THE COAST OF CHILE, SOUTH AMERICA. OUT OF THIS WORLD. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECH." LOTS OF CONVERSATIONS IN THE SHOW, MANY MARKET MOVES ON THE HEADLINE, RECAP ON THE PODCAST. YOU KNOW WHERE TO FIND IT ON THE BLOOMBERG TERMINAL, AS WELL AS ONLINE ON APPLE, SPOTIFY AND IHEART. WHAT A WAY TO START THE WEEK. THIS IS "BLOOMBERG TECH." ♪