Palantir Surges as AI Demand Accelerates | Bloomberg Tech 8/4/2026

Bloomberg Tech is live from the heart of Silicon Valley with Ed Ludlow in San Francisco. This is Bloomberg Tech. Coming up, Palantir calls commercial demand otherworldly. We'll break down the data in AI company's blockbuster earnings results. Plus, Apple exceeds $10 billion in annual sales in India for the first time last fiscal year. We'll discuss what's driving surging demand for its devices in that market, and Palo Alto Networks CEO Nick cash, or joins us to discuss the next generation of AI powered cyber defense. You're seeing stocks at all time highs, and it's technology that's leading the way. The Nasdaq 100 up for a fourth straight session, matching its run from the first week of June. And the S&P 500 is at all time highs. There is a big technology earnings story driving that. And that is Palantir. Today's big number $380.1 billion. That's the market cap of Palantir right now. This is a big gain in the stock. The shares up 25% or so on track for their best day since February 2024. Best day since February 2024. These are the key numbers. And it's the US commercial business that's really driving at us. Commercial sales came in $764 million, up almost 150% year to date. Overall U.S. revenue strong. And the big takeaway is the outlook for the year. They're saying that sales will be 8.15 to $8.16 billion. That's a few hundred million dollars even at the low end of the range. Beyond the Street's expectation, what's the biggest story? Let's stick with Palantir joining us now. Mariana Perez Mora, Bank of America Securities aerospace and defense analyst, reiterates buy on the stock with a price target of $255 a share. What's so interesting is the U.S. commercial business is partly being reflected right now. But actually, if you look at some of the bigger contracts that they secured, they don't call it a backlog. But there is a long way to go and there's a big opportunity. And I was reading your note. That's why you've upgraded a lot of your estimates. Yes. The US commercial strength is just a result of what we have been discussing in the past year. Is position of the right place, the right timing to benefit from actually being able to operationalize all this high momentum and all the demand. And US is actually embracing that with the size of the contracts they are saying is also very, very amazing. If you look at the trailing 12 month average, um, spending per U.S. customer that is have like 67%, and it's not just new customers that are ramping faster, but also legacy customers that have been using this orchestration or ontology for a while that are ambitious and they want to actually keep incorporating the benefits of AI into their businesses. Right. I always remind myself, what does Palantir do? Palantir makes AI powered software that helps companies and governments either analyze their data or make decisions on their data, or automate data related processes. Right? Simple as that. But the takeaway in the story that Alex Carbon, Palantir want to tell is owning the means of production in the AI context. Are they showing evidence that they're helping customers do that? Well, actually, when you made other conferences with customers, customers are really happy about it. And the reality is that they have tried they have tried to just implemented themselves. And it's not that easy. Punjab has been orchestrating not not only this data analytics platform, but how the decision making actually works with that and all these human interaction with AI. It's really hard to have that digitalize, and Palantir has been doing that for decades. So customers are happy about it and customers are actually leaning into that opportunity. Palantir's U.S. growth 115%, its international revenues growing at 33%. But Europe is a story that right, Europe's much slower and talented, continues to kind of express open frustration about that. What's going on in that market? I think what's happening in Europe particularly, I'm going to speak about what we do. We hear from the aerospace and defense industry, and we're seeing that a lot. People say Ukraine. There is this urge for European countries to don dependence on U.S. technologies. They don't need to like they need to actually have domestic solutions. So is the two phases soft sovereignty in my way, that is like actually trapping Palantir in the middle. Because while volunteer, utterly gives a really good sovereign AI platform for you to own your IP, for you to be able to benefit from both like Open models and frontier models, and actually have like all those learnings for yourself from proprietary data on the right and of sovereignty. They are a really outspoken American company. So that's part of the noise. And. Mariani you talk about part of Palantir's secret sauce being how they price, they price that they're offering on measurable outcomes. In other words, like, here's what we actually did for you. Not now. Pay us this. How unique is that in this space? I think that's starting to be more popular. And the these and the ontologies are also getting more popular on other software companies approach and go to market strategy. The difference is Palantir actually partners with their customers. They care about their problems. They care about their mission. And this is how they price their outcomes and they price their solutions. And this is why they are able to have, well, like 55% cash margins, because as they produce profits for their customers, they can also produce them for themselves by just real quick ontologies. Basically the digital model of how a company's business works in the real world. Um, really, really quick. Your price tag is two, five, five is about $100 to go. This is a turning point for them. Uh, I do think Palante is growing into that valuation. Um, is still like down versus last November peaks. And if you look at the estimates, you continue to actually execute not only in line with expectations, but even faster than I expected. So I think that boats like more than the market rating on general, the rating. And also I think countries outgrowing that. Mariana Perez Mora of Bank of America Securities. Great to have you back on the show. Thank you very much. The two other companies we have our eyes on in the earnings context. Snap and Spotify snaps up 15% and in their case, strong sales projection for a company that over the run of this bull market has not performed well. They see revenue jumping 20% almost to $1.6 billion in the quarter. Um, of course, everyone's kind of treading water a little bit for the launch of that. They are glosses in the debut. Spotify, another stock that we're watching in the earnings context. So users climbed, uh, to 777 million in the second quarter. But basically there's 5 million of you out there somewhere in the world that are not active users of Spotify and Wall Street, things that you should be. And so the stock's up 3%. But, uh, there's a little daylight between what Spotify is posting in terms of its user base and what the street thinks it should be hitting. Nevertheless, the stock is higher now coming up. Earnings continue to grab. The leading Southeast Asian super app reported its second quarter earnings yesterday and grabs. Chief Financial Officer Peter Hui joins us next. System in big tech. Grab released its second quarter earnings yesterday after the closing bell. The Southeast Asian super app boosted its annual earnings and sales forecasts thanks to robust ride and delivery demand in the region, and here's how shares currently go in 3% on the US listed ADR. Joining us is chief Financial officer Peter Hui. Let's start with the like the demand story. Um, you're basically pretty confident about about the state of that demand picture on ride and delivery. My curiosity is around like how recent a change that trajectory is, like what happened short term versus what you were already seeing longer term. So yeah, it actually would have been really interesting was, uh, this momentum that we seeing actually started, uh, well, beginning of the year. And when we entered the second quarter, especially in the March period. But we're actually in Q1 with, uh, the fuel crisis and and the war happening. We were actually revisiting a situation. What was going to happen in the second quarter, given Southeast Asia. We were the hardest impacted with fuel prices. Um, but we didn't actually, uh, see that play out even though fuel prices went up. Uh, we leaned in fairly hard in supporting the driver community. We we also leaned in in helping the consumers with affordable rides. And what we actually saw was completely the opposite. We saw our rides grow at 28% on a year over year basis. One of the highs that we've seen and we saw so our on demand business, both on food and delivery, also on demand GMV grew up 21%. So it was a very robust, very resilient Asean economy. Uh, despite some of the challenges we had, uh, with macro here in Southeast Asia, uh, but also we also saw the marketplace very healthy at the same time and driving the profitability in the business. Peter, at the top of the Bloomberg Tech story on grab talks about the Southeast Asian commuter. What did those transactions look like for you in the period? Like what kinds of trips are these? Are they, from the cfo's perspective, the kinds of transactions that you want to see driving top line. Yeah, it was actually a very balanced the way we saw it. We we saw the domestic commute still very strong, uh, both in two wheels and four wheels. Uh, the rides were up 28%, which is very strong for us. Uh, we saw a lot of the one out of four new users coming in through the what we call the Sabre program, which is more affordable rides. But we also saw the premium rides also were up 90% on a quarter on quarter basis. So it was a really well balanced portfolio by all across the many cities that we're in here today. And I think that really speaks just the the broad range that we have in terms of pricing, uh, capacity for our user base. They can enter through more of affordable rides or more the premium price at their choice, despite also some of the, uh, macros that we were seeing in Southeast Asia right now. Also, if you look at food delivery, very, very similar also that we saw we saw a very real balanced portfolio between what our saber and priority delivery. And also on the technology side, you have AI powered concierge and you've introduced the ability to split the fare if you're riding with friends. The big question is, did that bring new users to the platforms? Is there anything tangible that. Yeah. Well, we introduced this new product called Group rides where you can share your ride with friends. Uh, split the bill effectively. We are actually in a food delivery business, and we reported across through our rides. And actually, that really helped some of the, um, affordability as parents, we just grouping right on the way home or going to work or going to a party, etc. and that really also helps the affordable rides, uh, part of our business. Um, and that's great. Uh, but also at the same time, our airport rights also was also very strong in the quarter is despite, um, some of those, uh, travel impacted from cancel flights coming out of the Middle East. Uh, so it was a very, very strong Q2, despite some of these challenges. Peter, just to end the food delivery business in Southeast Asia is is fierce, right? In terms of competition. There are the existing players. You got new entrants coming. What is your plan to kind of keep ahead there on the tech side? We're going to get you double down and on on technology and also uh, featuring a lot of the new products around I capability. Um, one of the things we are focusing on is on grocery delivery. And if you look at our Grab Mart branding portfolio, which is really non-food delivery, that really grew at 54% just from the number of transactions, actually, it was growing at 1.7 times faster than our food. So consumers are really starting to embrace grocery delivery in Southeast Asia here. Still very early bird nation. But yet we are seeing really good momentum, good traction there. Grab CFO Peter Hui back on the show. Thank you very much indeed for your time. Another tech top story. For the first time, Apple exceeded $10 billion in sales in India, underscoring a widening retail push. Bloomberg's Dana Waldman joins us with the details. What's within this $10 billion? Right. For a long time we've been tracking Apple's traction in that market. It's a very different economy to others that Apple prioritizes. Give us all the info we need. So in these numbers, which I should say were previously unreported before Bloomberg reported them, um, it was the iPhone. Um, iPhone products that were leading those sales. Um, it turned out that MacBooks and iPads were up to. But really the iPhone, which is, of course, what the company's most known for, um, was leading that sales surge, up from 9 billion in the prior fiscal year. There's another big report from Bloomberg on Apple, and that is that CEO John Turner, as well CEO as of September 1st, incoming CEO has brought in some some talent, a leader for the management team. But it's somebody that had left that had retired. Who are we talking about? Yeah. So Laura Gross, who was his lieutenant previously when he ran, um, hardware engineering. She was a vice president at that level. And it is unusual for Apple to bring back retired executives, but it will probably serve John turn as well as he settles into this new role to reach towards someone who, um, was so loyal and reliable. Um, in his previous post, and we don't know too much about what she will be doing. She will here to be a vice president, and we know that she'll be working in what is essentially across, um, functional cross-disciplinary um, function. But it will go beyond just, um, beyond her previous realm of hardware engineering. And I think most people around the world of technology will know this. But remind us what is happening on September 1st, the big change in leadership at Apple. So Tim Cook is stepping aside not from the company, but he will, um, hand over the reins of CEO. He will become executive chairman, where he will focus more on things like high level, um, geopolitical relationships with foreign leaders. And that will leave the running of the company itself, the core business to Mr. Tennis. Then they say to Wollman, who is our consumer technology editor at Bloomberg Tech, thank you very much indeed. Let's stay with Apple. The company briefly removed the telegram messaging app from its App store after finding content that violated a ban on child sexual abuse material. An Apple spokesperson said telegram was restored, quote, after the developer promptly removed the content and banned the user who posted it. This year alone, telegram said it removed more than 300,000 groups and channels related to such materials. Coming up, China's concerns are shifting to America's frontier AI models. What it could mean the US and China relations. This is Bloomberg Tech. Let's go over to New York now where Bloomberg's Yu Hara Anand is standing by. You Hara take it away. Thanks, Ed. It's time now for talking tech. First up prediction markets platform Poly Market is looking for capital and valuation topping $20 billion. According to sources, Poly Market is in talks with prospective investors to raise 1 billion. The move comes just months after Polly Market closed an earlier round, with investments from hedge fund D.E. Short and Co underscore underscoring the rapid growth of the prediction markets industry. Plus anthropic struck a $10 billion year for for computing capacity with cloud startup Volta Infra Holdings, according to sources. Volta is a months old infrastructure startup backed by Nvidia and founded by former executives from Brookfield Asset Management. The deal will provide anthropic with computing resources from a data center in Norway, managed by Volta and Reuters, reporting that the FCC is drafting a ban on imports of some Chinese data center components to protect the US industry infrastructure. The proposed ban on components, which hyperscalers of course, heavily rely on to run and train AI programs, is aimed at preventing Chinese firms from installing malware or stealing data critical to the I boom at. Thank you. You hire the US China tech rivalry is moving beyond chips, according to sources. Officials in Beijing are growing increasingly concerned about anthropic frontier AI models, all ahead of a planned September meeting between President Trump and China's XI Jinping. Bloomberg senior tech editor Mike Shepherd joins with the latest. I mean, the direction of travel in this story is slightly different to those we've been covering in recent weeks and months. But this is China being worried about the leading us, frontier Labs and their models. Well that's right. And what we are seeing is almost the other side of the coin. Some of the arguments that officials in Beijing are raising really echoes some of the arguments that we've heard in previous years from U.S. officials when they've complained about certain tech products, including TikTok, for example, and the national security risks that they pose to data collection and other means of sharing information with an adversarial government in this case. The concern from Chinese officials is that anthropic mythos and other powerful AI models could be used as offensive weapons against their economy in some fashion. And they didn't offer any specifics, but this is an issue that will be on the table very clearly. They have some misgivings over not having access to this model, but those are concerns that were shared by a number of U.S. allies in the weeks and months after anthropic made that disclosure that its mythos system in April was so powerful that it could only be shared with a small handful of trusted partners. And access has since been expanded, but it's still remains small, and it is continued to be denied to China, of course. If you go back to when President Trump visited China, you know that the hope of America's chip industry was that he would get some result for them so that they could more freely export lead edge chips to China. America's concern on the chips has been, well, we don't want China's military to have access to that technology that will help them in their own national interest or in their own national security context. What was the net result of any of that? Was it discussed in China? Will these topics be discussed in September here in the States? Well, there will be a meeting ahead of whatever summit takes place between President Donald Trump and his Chinese counterpart, XI Jinping. And at that, the lower level officials, probably cabinet level for the U.S., are likely. Treasury Secretary Scott Benson, who has taken an increasingly point position when it comes to matters of artificial intelligence and negotiations more broadly with China. They will discuss some of these parameters before the two leaders actually sit down here in Washington and the concerns will all be on the table. It will be everything related to AI, including the chip curbs, that the US has gradually been easing, but perhaps not to the extent that China would want. While the US is allowing sales of invidious to hundreds, for example, to Chinese customers. China so far really has not given the green light in the other direction for those purchases. So we will see some questions raised there. There will also be questions about whether Chinese AI companies themselves are engaging in unfair practices. Anthropic, for example, has accused Alibaba, one of China's biggest tech companies, of using a process known as distillation to unfairly gain an advantage and essentially copy some of their models. And of course, it's important to note that in singling out anthropic said, China is pointing to a company that does not do business in China, mainly because the CEO, Dario Ahmadi, has singled out China as a US adversary and a threat to national security. So all of this dynamic will be on the table as the two sides meet. Uh, before that, uh, even before the leaders sit down, will be wanting to see how they actually negotiate out a lot of these intense differences over the way Chinese models have been developed, and also some of the export and other curbs in place, including our rare earths. Index. Mike Shepherd. Thank you very much. Coming up, we're going to get back to Wall Street's expectations for this week's big earnings space. AMD both coming off to the bell. Let's go back to the tech earnings story of the morning. To stock up 27% on track for its biggest jump. Its best day since February of 2020 for $380 billion. Now in market cap, big raise in sales and net income expectations for this year. And it's the US commercial business that's driving absolutely all of it. okay. It's half time here in the beautiful city of San Francisco and the Bay area. Don't go far. This is Bloomberg Tech. Welcome back to Bloomberg Tech. There is some momentum in technology. I'm looking at the Nasdaq 100 up for a fourth straight session, matching the run of gains that it saw in that first week of June. Uh, 2.6% gain on the Nasdaq 100. A big driver of that is Palantir. Literally the biggest points driver to the upside. Post earnings, Palantir itself having its best day since February 2020 for the S&P 500, by the way, is at all time highs. And technology is a big part of that story. But earnings continue. Chips and rocket. So let's get to Bloomberg Tech's equity reporter Carmen Reinecke in New York with what to expect later today. Hi, common. Hey, Ed. So it's the moment we've all been waiting for. Since June, at least. SpaceX will report its first quarterly earnings as a public company after the bell today. So we know the stock is down from that 135 IPO price. It's about 10% below even though there's some green on the screen here today. And so what will really be watching for After the Bell today is what the company says not only about what it saw in the quarter, but it's forward guidance. So much of SpaceX's valuation hinges on what it sees in the future. One thing we'll be watching for, in particular is what it says about AI. Analysts on Wall Street have projected huge growth for its AI unit, and see it taking up 80% more than 80% of revenue over the next decade. So we'll see what the company has to say about this if that matches up and if these models change at all. We'll also be watching for results from AMD. And really what I'm curious about here is if the stock can keep its rally going. So shares are up about 20% in the last week. We saw some weakness in the semiconductor space in the about a month prior. And so AMD has a really high bar set for it after its last earnings result. It had solid projections and the stock rocketed to a record high. So the setup here is super important. We're going to be looking to see if it's made any market share in sort of its competition with AI processing and Nvidia. That's what's top of mind, at least for me. What I'll be watching tonight. Thanks, Ed. I think that's coming. Reinecke, thank you very much indeed. Our next guest says that cloud revenue growth last quarter by hyperscalers like Microsoft and Amazon justifies continued heavy spending. It's the AI build out, and we'll probably learn more about that with AMD's earnings later today. Let's get more. Celine Wu, portfolio manager on the global robotics and automation team at Lazard Asset Management, also PM on Lazada Next Gen Technology ETF, ticker tech Y. Welcome back to the show. Great to be back. I mean, at the end of the day, if the spending is Justified and the spending is going to continue to grow. AMD will be a beneficiary of that. You know, I find the chronology of earnings interesting. What do you think we learn from AMD about the future? Yeah, I mean obviously the hyperscalers earnings that we have seen so far has laid out the groundwork that all the relevant hardware, semiconductor Elliott team will tremendously benefit because we continue to see that demand cannot. You know, basically there's a supply that cannot meet the demand. So definitely really interesting to see how they are evolving that in terms of their revenue and their addressable market, they're seeing, especially for the CPU that can benefit as a core driver of the growth in the inference demand. CEO Matt Goldman was on the show yesterday, and I tried to push him on what the CapEx number for next year will be. You know, whether it will be higher in simple terms, that's on the spending side, on the growth side also what's driving it. And he's he was pretty clear it's a shift to inference you know training load still there but inference is now the driver. Do you see that in your research? Yeah, absolutely. Like a lot of companies are highlighting that the shift to more inference workload, especially on the back of the growth in the I think workload has been a boon for the demand in the grows. Um, not just as I like to highlight that the same pattern has been seen in the other two other important hyperscalers, including Google and then Microsoft as well. I mean, it's truly impressive how the three companies have delivered combined 50% rate of growth just this quarter, which was a double the rate that we have seen just five quarters ago. Very strong validation for ROI, continued commitment to spending because they're seeing extended backlog of the customer visibility, which is a really important barometer for for the investing in AI. Uh, all three of those. alphabet, Amazon, Microsoft members of THQ tech. Why? If you were going to do a scorecard from last week's earnings across the hyperscalers in the week prior, who came out on top of those three? Um, well, it's hard to pick, but I would say Microsoft and Amazon, definitely relative to the expectation, this quarter was truly impressive because older three delivered something much better than expectation. That was pretty impressive in my view. And then I think people have to be comfortable and understand that by nature, this large spending commitment has to be taking place upfront. But over time you are going to see the tangible numbers flowing through their core businesses in this quarter was fantastic to prove that point. Selena, if there's something in aggregate across all of the companies that you track and that you include, it seems to be that demand is still running ahead of supply. Be that cloud capacity supply literal chip supply on the basis of the compute. Is that a good thing? And how long do you see that lasting for? It's a great thing, but at the same time, it's a balancing act. That entire supply chain has to work around to make sure. Yes, when there's a strong demand visibility, they have to make sure that they can supply all the necessary components in time so that close does not taper off. I think it's often underestimated how much amazing job this entire supply chain is doing just to make that happen. Um, if, for example, the LTA that is taking place in memory space, for example, I think it's a great example to make sure that that long trajectory for demand and the growth should be there and that there is something truly different and unprecedented as times. So let's linger on that for a second. Long term agreements in memory are atypical against history, right. What's happening? You know, based on the conversations I've had recently with with SK Group and and as well with Jensen Wong is its the customer saying, hey, let's do a five year deal. That hasn't happened historically. Just again, what does that signal to you? Why is that noteworthy? It is noteworthy because it basically proves the point that there's extended visibility from the customer demand. And there's, um, a basic pre-emptive act to make that happen so that supply and demand go hand-in-hand in balance to make that that's truly impressive. Once in a generation, growth opportunities is coming from I. We have to remember that older visibility is actually coming from the upstream. If you think of a TSMC, for example, the largest foundry in the world, I would argue that this is the company company that has the best visibility when it comes to customers. And guess what? They just announced committing to additional $100 billion in CapEx to expand in areas and in the U.S. in conjunction with hyperscalers. I don't think they're spending money blindly. They're talking about they can actually see the that in the end they can stretch out 2 to 5 years. That's why they're committing to spend today, and that's why they need to make sure all of the supply chain, including the memory companies, to just paste together to make that supply and demand come in balance. Celine Wave, portfolio manager at Lazard Asset Management. Great to have you back on the show. And here in San Francisco. Thank you. Now coming up, we're going to speak with Palo Alto Network CEO Nicasio Aurora about the next generation of AI powered cyber defense. But actually, I think a whole lot more than that to the CEO of Hugging Face. We'll also discuss the risks posed by rapidly evolving AI models. This is Bloomberg Tech. Sometimes we ask agents to think outside of the box, but we don't want them to think outside of the sandbox. Does I make cyber attacks faster? More sophisticated. Palo Alto Networks is launching pad OS 12.2 series, a major software update featuring advanced virtual patching. An AI powered tool designed to identify vulnerabilities and stop attacks before traditional software patches are available. Joining us now, Palo Alto Networks Chairman and CEO Nick Aurora. This is basically like an AI powered, uh, series of network agents, right? Let's start with like, what they do. But, uh, I found in the last 12 months where AI and cyber crossover. The best question is, what is the problem you're trying to solve for here in the cache? Great. Well, nice to see that. Look. First and foremost, as you've seen, there's a lot of conversation in the market of AI's capability in the space of cybersecurity. What we're doing is very effectively sort of rebuilding the operating system of network security for the future. I mean, imagine having a car in the past and imagine wanted to create the next Tesla. We're basically creating the plumbing in our network products, which allows to build a desktop like experience for cybersecurity, where our product will start to do a lot of things for you. Using agents, using AI. And that's kind of what the fundamental of series, uh, launch is. In addition to that, I think one of the biggest features we have as part of series is, as you've all heard about all the AI models beginning to show vulnerabilities and start allowing attackers attack faster, while the average time it takes to patch vulnerabilities is 55 days, right? We don't have 55 days. When I find the vulnerability, I want to attack or exploit the vulnerability as soon as I can. So this release allows us to take a lot of the patches of vulnerability to be found and build patches in minutes and hours, so we can provide patching capability to our customers in a short period of time to eliminate that 55 day wait. That has traditionally been sort of the industry average in what you published this morning. There's a lot of background and research into what you were looking for. And in one case, in a review of open source software, your team took about sort of 14,000 vulnerabilities. What you were just talking about as essentially zero day vulnerabilities. Right? The window between, um, discovery and exploiting a vulnerability is now zero. Um, that is insurmountable to get to. Sure. Yes, yes yes, please. No, I think look right. The the the possibility that I shows you whether it's the new models you've seen from OpenAI or from anthropic, uh, you see that? Yeah. Agents are able to discover value, discover vulnerabilities, come up with attack bots, figured out how to concatenate a bunch of vulnerabilities and attack a customer's infrastructure. Now we need to figure out how to respond to that at the same speed at which AI is discovering these vulnerabilities, we don't have time to patch. So what we've done is we basically build the capability in our software, and we have a research team researching for vulnerabilities, that we build patches as fast as we can. We build we've kind of gotten the patch process down to four hours. We expect to bring it even shorter with products like what it allow you to create sort of instant batches, but that shortening from 55 days to four hours is a big step, which is what part of the release that we just launched allows us to do. The biggest story of recent weeks is to advance open AI models, escaping a sandboxed environment, gaining internet access and mistakenly accessing hugging faces, platforms and lots of people in your face. Mistakenly, I you know, I'm being careful with my choice of words that, you know, people in your industry basically put this is a watershed moment for AI in cyber. I really want to know what you feel about it. Like, as you can see, a lot of a lot of frontier model companies are flexing. They're showing the immense capabilities of what I models can do. And this is true that we had an incident where an AI model, using a genetic capabilities, was able to escape a sandbox and be able to go ahead and attack sort of infrastructure of effectively hugging face to go look for, uh, exploit Jim sort of capability. So I think what it tells is one eye models are going to be more and more capable over time. From a cybersecurity perspective. I think, too, it's a lesson for our friends at Frontier Alarms to make sure that before they're create capture the flag exercises to go find something in their external infrastructure, they should probably make sure that their sandboxes are secure and they are not suffering from any vulnerabilities before they start pointing them. All of that time. I think from a more industry perspective, as you saw, what we have to do is we have to start fighting this notion of eye with the eye on the defense side. So a lot of work has happened on the offense side, and offense is always easier. I think we have to spend a lot more effort on making sure that there's defense capabilities. And this I've said that in the past. I said six months ago, four months ago that I expect this capability to be around in six months. Well, looks like it showed up in four months. So we have now seen attackers can actually effectively take these models and the capabilities that Frontier Alliance provide, Which I think is going to become commonplace over the next three months, or we will be able to find open source models out there which will have similar capabilities as you see those models getting distilled. So I think the sort of incumbent upon us to make sure we build a defensive capabilities while we have the time to be ready for these sort of attacks to get faster, more efficient. And more, more, more, more quicker. Now, what is the token economics consideration, where AI is increasingly used in the form of swarms of agents in defense, like tokens? I've said, I said a few weeks ago that I think tokens are overpriced. I think part of the challenge is that the whole host of AI infrastructure for consumer is being paid for by enterprise. I think token prices need to come down to the tune of 80 or 90%, which will allow all of us to both use AI effectively for products that we're building for our customers, or perhaps for doing drug research or for perhaps making organizations, organizations more efficient. So I think we'll see that we already saw this past week that some some of the frontier models have given us better pricing from a token economics perspective now. You will see a lot more tokens being used. You will see a lot of us use tokens in our products. You'll see us use them in our business processes. I started somebody yesterday. I think it's not unreasonable to expect that 10 to 15% of our opex in the next ten years is going to move towards I or IT or tokens. So that's a big number. 15% of topics will effectively move, and I think that's where we're headed from a token economics token math perspective. Uh, Nick cash, finally, before we let you go, there are reports that you are leading a group or a consortium to purchase an NBA franchise in London. Uh, what can you tell me about your plans for that, please? I think it's very important. Balance. Work in play at not getting any younger. I need to make sure that while we're working hard, to make sure we do what we do in our daily life, we have to make sure we find time to be able to follow our passions. My sons passionate about basketball. I'm fashionable. Basketball. Uh, I have we have a cricket team in London. Me and a bunch of my my friends. I think part of the conversation was, can we actually see it as another opportunity to make sure that we can make basketball relevant in Europe as part of the NBA's effort? So we have, uh, we have an aspirin bed in there. We'll see that are many people are interested in the asset and hopefully the best team will win, uh, in the cash. Just asking for, I guess, the Bloomberg Tech audience. How much does an NBA franchise in London set one back? I think, uh, what does it say? What's the price of something? What somebody is willing to pay for it. We'll find out the cash or, uh, Palo Alto Network CEO and chairman, it's great to have you back on Blu ray tech. Thank you very much. He didn't say no. Uh, let's stick with cyber security. Hugging face. CEO Clem DeLong told Bloomberg that the recent OpenAI linked cyber attack could have been much worse, and that the use of open weight models was crucial to defending the platform. We defended ourselves with an open model. Right. Uh, and some of the guardrails prevented us from, uh, using 20 APIs to defend ourselves. So kind of like improving the tools or defenders, you know, instead of obsessing about not giving them to attackers. I think, uh, would be a good thing in the future to, uh, to make sure these incidents are not too harmful. Okay. Coming up, another tech focused hedge fund sinks as results of July's AI linked selloff. We'll discuss what's weighing on Goto's funds next. This is Bloomberg Tech. We're still keeping an eye on shares of Palantir, up almost 27% on track for their biggest jump since February of 2024. A big raise the outlook both on the top and bottom line for this year. Lots of strength in the commercial business in the United States. In fact, most of the growth coming from the United States internationally, a little slower, 33%. Um, but there's a lot of potential here for talent here in the market. Very excited about it. Uh, let's talk about hedge funds. Last month's I selloff has hit. Another tech focused hedge fund. Coterie management's fund plunged over 8% in July, its worst month in a year. But the fund remains up 14.3% year to date, according to a source. Let's get more on what's driving it and the impact from that hedge fund. Reporter Emma Palmer. You know what happened in July? Uh, I and chip stocks sold off pretty heavily. Is that the story here? Yes, exactly. It's, uh, an a concentrated. I bet Co two has long been bullish on the sector. And four of its biggest holdings in the, uh, in the trade have worked against it. You're seeing huge declines on Taiwan Semiconductor of GE Ivanova Lam Research and Applied Materials. Some of them sinking as much as 29%. So this is part of what, you know, pull down the funds performance to the worst performance in over a year for the month. Uh, but yes, as you mentioned earlier, the fund is still up 14% on the year. The Phillipe Lafont, uh, thesis is that there is a supercycle in I coming. Yeah. Uh, any deviation from that after July? I can't imagine that he would have changed his perspective, which has held onto for quite some time. He has experienced volatility earlier this year. Uh, they were down 5% in March. Given the tumult in the Middle East, they also posted, uh, a return in May, its best return in like 25 years when they gained 14% in that month alone. So, look, it's been a roller coaster for investors in this fund. But you do know what you're getting when you invest in Co two. And it is the sort of long held vision that the future will be AI driven, that there is this supercycle to come. And I can't imagine that this one month would have changed his perspective. Who knows, he may have bought the dip as well. Right. Let's go back to the year to date gain 14.3%. Like where does coach sit in this sort of group of other hedge funds that you've been able to track? Yeah. Good question. So when we look at the the spread of the sector, we have Tiger Global Co two Viking Lone Pine. We call these firms the Tiger Cubs because they came from Julian Robinson's Tiger Management and have spawned their own firms. And so when we look at say there is some divergence right Viking Global for example a lot more cautious on the IE sector really pulling back those shares not as exposed that would have helped them in a month like last month. Uh, but they've also said that that's meant some missing out on some games that other firms have really taken advantage of, like Co two like Tiger Global and to some extent like Lone Pine conversation for another day. But also point out we see Kota a lot on the on the cat table and some private rounds of private companies to Bloomberg. Sam Obama. Great job. Thank you very much. That does it for this edition of Bloomberg Tech. We have more earnings after the bell today. AMD SpaceX its first quarterly earnings as a public company and first call. Uh, a real big focus on Elon Musk and whether the question of a SpaceX Tesla merger gets posed. Uh, also paramount. And then tomorrow, Uber and Disney, uh, ones that we're watching as well. It is a section that's kind of been dominated by Palantir's earnings. But basically stocks at all time highs on the S&P 500. Technology is leading the way. How does earnings impact that. Uh, so much to recap on on the pause. You know where to find it on the Bloomberg platforms uh as well as online on Apple iHeart and on Spotify. Let's keep it going. This is Bloomberg Tech.