Anthropic's Revenue Jump, Wealthy Bet on SpaceX | Bloomberg Tech 8/17/2026

>> "BLOOMBERG TECH" IS LIVE FROM THE HEART OF SILICON VALLEY, WITH ED LUDLOW IN SAN FRANCISCO. ED: THIS IS "BLOOMBERG TECH." ANTHROPIC'S SECOND-QUARTER REVENUE COMES TO $11.5 BILLION, 14 TIMES MORE COMPARED TO THE SAME PERIOD A YEAR AGO. FAMILY OFFICES AROUND THE WORLD HAVE BUILT UP BILLIONS OF DOLLARS OF EXPOSURE TO SPACEX. BEDROCK ROBOTICS LAUNCHES THE FIRST FULLY AUTONOMOUS EXCAVATOR IN THE U.S. WE WILL SIT DOWN WITH THE CEO TO DISCUSS HOW THE AI BUILDOUT IS SPERRY DEMAND FOR CONSTRUCTION, AND AI IS ANSWERING THE CALL. GOOD MORNING. THERE IS LOTS OF TECHNOLOGY NEWS THIS MONDAY, BUT OTHER THINGS ARE IMPACTING THE TECH SECTOR. THE PRESIDENT HAS MADE TWO STATEMENTS THIS MORNING. THE FIRST ON TRUTH SOCIAL THAT THE ABSOLUTE REDLINE FOR THE PRESIDENT IS IRAN MUST NOT HAVE A NUCLEAR WEAPON. HE ALSO WENT ON FOX NEWS AND SAID THAT OMAN GETS IN THE UNITED STATES' WAY, THEY WILL BE SUBJECT TO BOMBING. AS I SAID, THERE WAS A LOT OF TECHNOLOGY NEWS. LET'S LOOK AT TODAY'S BIG NUMBER, $11.5 BILLION, HOW MUCH ANTHROPIC IS REPORTING FOR THE SECOND-QUARTER 2026 REVENUE BASED ON DOCUMENTS SEEN BY BLOOMBERG, A 14X INCREASE FROM THE SAME PERIOD A YEAR AGO. LET'S GET INTO ALL THE NUMBERS. THESE ARE DATA POINTS PRESENTED IN DOCUMENTS SEEN BY BLOOMBERG AND SHOWN TO PROSPECTIVE INVESTORS. TAKE US THROUGH THE NUMBERS. >> YEAH, SO WE HAVE THIS REVENUE NUMBER WHICH IS MANY TIMES WHAT THE COMPANY HAD REPORTED JUST A YEAR EARLIER, WHICH INDICATES WHAT IS IT DOING, TRYING TO SOLVE SERVICES TO COMPANIES, BUT CONSUMERS ARE BUYING THEM AS WELL. IT'S WORKING. IT IS UP, GOSH, AT LEAST 14 FOLD FROM LAST TIME. IT ALSO IS CLEAR THAT THE COMPANY HAD THEIR ANNUALIZED REVENUE -- RUN RATE CROSSED 47 BILLION IN MAY. IT IS IMPORTANT TO REMEMBER THAT COMPANIES CAN'T DELAY THINGS DIFFERENTLY. ED: I WILL POKE-- CALCULATE THINGS TO FAMILY. ED: I WILL POINT OUT THAT POSITIVE ADJUSTED OPERATING INCOME, WHICH IN ANTHROPIC'S CASE IS MAKING EVERYONE FEEL GOOD THAT LOSSES WON'T BE INFINITE FOREVER. THE COMPARISON TO OPENAI IS REALLY INTERESTING BECAUSE WE PUT THIS IN THE CONTEXT OF TWO POTENTIAL IPO'S IF NOT THIS YEAR, THEN NEXT YEAR AS WELL. WHAT IS THE REPORTING ON THE TIMELINE FOR THAT? RACHEL: OOH. FOR ME, IT FEELS TRICKY TO PREDICT THAT ONE WHAT I WILL SAY IS THAT THESE TWO REPORTS THAT WE HAVE DONE RECENTLY -- THIS MOST RECENT ONE ON ANTHROPIC, AND THEN THE OTHER RECENT ONE ON OPENAI AND HOW THEIR REVENUE IS INCREASING -- IF WE LOOK AT THEM INDIVIDUALLY AND COMPARE THEM TO EACH OTHER -- WITH ARR, THEY ARE CALCULATING THEM IN DIFFERENT WAYS. CERTAINLY NOT AN APPLES TO APPLES COMPARISON. IT LOOKS LIKE EACH COMPANY IS SHOWING INVESTORS AND POTENTIAL INVESTORS BETTER INFORMATION THAN IT COULD HAVE JUST A MONTH OR TWO AGO. THAT COULD BE A POSITIVE SIGN FOR AN IPO. ED: WHAT ABOUT THE TECHNOLOGY SIDE? WHERE DO WE STAND WITH ANTHROPIC AND OPENAI, THE CADENCE OF THEM RELEASING FRONTIER MODELS AND WHERE THE BUSINESS FOCUSES ARE? RACHEL: YEAH, IT HAS BEEN INTERESTING TO WATCH THAT UNFOLD OVER THE LAST SIX MONTHS OR SO AS THESE COMPANIES MOVE CLOSER TO A POTENTIAL IPO. YOU ARE SEEING THEM SORT OF REFOCUS OR FOCUS MORE INTENTLY ON CERTAIN ASPECTS OF THE BUSINESS. WITH OPENAI WE ARE SEEING A CADENCE OF RELEASES, BUT WE ARE SEEING LESS OF AN ARRAY OF THINGS, WHICH IS INTERESTING. IT'LL BE EVEN MORE CLEAR AS WE GO FORWARD THIS YEAR, BUT WE WILL ALSO SEE THE COMPANY CONTINUE TO FOCUS ON THINGS THAT IT THINKS ARE IMPORTANT ON THE CONSUMER AND ENTERPRISE SIDE. THOSE ARE BOTH REALLY BIG BUSINESSES. WITH ANTHROPIC, I BET WE CAN EXPECT TO SEE A LOT MORE ON THE CODING SIDE, SCIENCE SIDE AS WELL. WE MAY SEE BOTH OF THOSE TWO THINGS. I THINK WE WILL SEE A LOT OF THAT STUFF HAPPENING, CODING, PERHAPS SCIENCE, OTHER WORK-RELATED APPLICATIONS WE HAVE NOT SEEN TOO MUCH OF YET FOR THESE CHATBOTS THERE HOPING TO SELL TO PEOPLE. ED: RACHEL METZ, WHO BROKE THE STORY ON ANTHROPIC'S SECOND-QUARTER REVENUE ON FRIDAY MOVING MARKETS THIS MONDAY. OUR NEXT GUEST BELIEVES MARKETS ARE DIGESTING THE LARGEST CAPEX SURGEON HISTORY, DRIVEN BY DEMAND FOR-- SURGE IN HISTORY, DRIVEN BY DEMAND FOR AI COMPUTE. HE IS WITH US IN SAN FRANCISCO ON SET. I WANT TO START WITH THE SIGNAL THAT COMES FROM THE REPORT RACHEL JUST GAVE. ANTHROPIC HAS A REAL REVENUE NUMBER AND AN UPDATED ARR NUMBER, AND LOTS OF DIFFERENT NAMES MOVING THIS MORNING. CHIP NAMES, THOSE INVESTED IN OTHER SOFTWARE NAMES. WHERE DO YOU THINK THAT IS? >> 31 YEARS OF BEING IN BUSINESS, WE ARE AT A STAGE WHERE THE PHYSICAL WORLD CANNOT KEEP UP WITH THE DIGITAL WORLD AND THAT IS CREATING INCREDIBLE BOTTLENECKS, AND THAT IS WIDELY KNOWN. NOW YOU ARE SEEING THIS WAVE OF THE COORDINATING. WE SAW--THIS WAVE OF LIQUIDITY. ANTHROPIC, SPACEX, OPENAI. WE ARE HITTING THE STAGE WHERE A WAVE OF LIQUIDITY IS STOKING DEMAND INTO THESE SHORTAGES AND BOTTLENECKS, AND THAT IS CREATING INCREDIBLE EXCITEMENT. FOR INVESTORS, WE HAVE TO BE CAREFUL TO NOT GET TOO SWEPT UP IN THAT AND LOOK AT THE SECOND- AND THIRD-ORDER WINNERS DOWN THE ROAD TO MAKE SURE WE ARE BALANCED AND NOT GETTING AHEAD OF OUR SKIS ON BETA IN THE INVESTMENT LANDSCAPE. ED: I HAVE QUESTIONS ABOUT THE NVIDIA NEWS FROM LAST WEEK, $500 BILLION, WHERE SIX WALL STREET FIRMS GO AND FIND THE CAPITAL. WHAT I WROTE ABOUT IN MY COLUMN THIS MORNING IS THAT THERE IS A DIFFERENCE BETWEEN DEPRECIATION AND THE ECONOMIC LIFE OF A GPU. AS AN INVESTOR CAN HOW DO YOU MODEL THE ECONOMIC LIFE OF A GPU AND DESIGN HOW TO RAISE MONEY AGAINST THAT? TODD: CLEARLY THEY ARE CAUSING AN ASSET CLASS TO BE BUILT AND FINANCED -- ED: YOU DO BELIEVE THAT, IT CAN BE AN ASSET CLASS OF ITS OWN? TODD: I THINK IT CAN, BUT ONE OF THE THINGS WE THE DURATION OF THE INNOVATION. WE WILL SEE INCREDIBLE NEW ARCHITECTURES. WE KNOW THAT MEMORY IS AN INCREDIBLE BOTTLENECK RIGHT NOW. I BELIEVE THAT PEOPLE ARE RAISING SO HARD TODAY, IT IS HARD TO REENGINEER THESE NETWORKS. WE HAVE TO THINK ABOUT THREE, FOUR, FIVE YEARS FROM NOW CAN WE COULD BE REARCHITECTING AND COMPRESSING MEMORY AND NEW STRUCTURES. WHAT IS THE DURABILITY OF THESE ASSET CLASSES THE NEXT TWO TO THREE YEARS? IT IS POTENTIALLY IN THE BAG. FIVE TO 10 YEARS, THERE IS GOING TO BE TREMENDOUS CHANGE. I THINK WE HAVE TO BE A LITTLE CAREFUL ON THE RISK AND THE ADJUSTED RETURN YOU WILL NEED TO PARTICIPATE IN THESE MARKETS IF YOU ARE A LONGER-TERM INVESTOR. ED: ALPHABET HAS LOOKED TO THE BOND MARKET, AND SO FAR EVERYONE SEEMS PRETTY SANGUINE ABOUT THAT. HOW DO YOU FEEL ABOUT THE ACTIVITY, BUT ALSO WHAT YOU SEE IS BEING INVESTOR DEMAND AND RESPONSE? TODD: IT SHOWS WE ARE PUSHING INTO THE MORE RISKIER PART OF THE CYCLE. WHEN CASH FLOW WAS ALL ON HYPERSCALERS, YOU COULD CAPITALIZE THAT. NOW WE ARE GOING DEBT, EQUITY MARKETS. TALK ABOUT CROWDING OUT. WE HAVE A LARGE NATIONAL DEFICIT, HOMES TO FUND FOR THE POPULATION. WE ARE GETTING INTO THAT MORE RISKY PART OF THIS INFRASTRUCTURE INVESTMENT. IT DOESN'T MEAN THERE IS MONEY TO BE MADE. IT IS JUST WE ARE AT A STAGE WHERE IT IS RISKY. ED: IN THE CASE STUDY OF THE $500 BILLION WITH NVIDIA AND THE SIX U.S. INVESTMENT FIRMS, NVIDIA WOULD SAY THERE IS A DEGREE OF SEPARATION BECAUSE THOSE SIX FIRMS CHANNELING THIRD-PARTY CAPITAL. BUT THERE IS STILL THE CIRCULAR FINANCING DEBATE. FOR YOU AS THE COO, WHERE DOES THAT SHOW UP, THAT CONCERN? TODD: WHEN WE LOOK AT IT, WE WANT TO MAKE SURE WE ARE THINKING AHEAD OF THE GAME AND WHERE WE CAN PARTICIPATE AS INVESTORS AND THE TREND WITHOUT TAKING ALL THE LEVERAGE AND RISK. FOR US IN SHORT, IT IS THE SECOND- AND AND THIRD-ORDER WINNERS. IF YOU THINK OF A DATA CENTER, IT STARTS WITH A HOLE IN THE GROUND. WE OWN THESE PURIFIED NATURAL GASES -- THESE ARE 15-YEAR TAKE OR PAY AGREEMENTS. THEY SENT ROCKETS TO SPACE WITH GASES THAT ARE VERY PURE, 15-YEAR AGREEMENTS. THESE THINGS START WITH ATOMS TO A ELECTRONS TO ENERGY. WE START WITH FIVE-, 10-, 1 5-YEAR BOTTLENECKS. AS AN INVESTOR, IF YOU WANT TO SLEEP WELL AT NIGHT, YOU LOOK AHEAD TO WHERE THE INFRASTRUCTURE WILL GO AND THAT IS THE LONG-TERM BANKABLE ASSET CLASS -- ENERGY, POWER, ELECTRONS, INDUSTRIAL GASES, AGGREGATE, MATERIALS, THOSE PHYSICAL PARTS OF AI WILL BELONG BOTTLENECKS, IN OUR OPINION. WE CAN UNDERWRITE THE DURABILITY OF THOSE FOR A LONGER PERIOD. ED: WHEN YOU LOOK AT NVIDIA, WHERE THERE IS A MORE DIRECT A MORE DIRECT CIRCULAR FINANCING CONCERN IS WHERE IT IS INVESTING ITS ON CAPITAL INTO A PROJECT OR CAMPUS WHERE THE PARTY LEASING THE COMPUTE IS A CUSTOMER OF NVIDIA'S. BUT THEY ARE STILL INVESTING IN THE SAME AREAS YOU HAVE JUST LISTED. DO YOU FEEL GOOD ABOUT THAT, OR OTHERWISE? TODD: THINK JENSEN IS INCREDIBLE AND WE LOVE NVIDIA. WE THINK COMPANIES LIKE AMD, WHICH HAS GREAT TECHNOLOGY -- THEIR 450 RAMP LOOKS PROMISING, AND THEY ARE SHOWING UP WITH A WHOLE RANGE OF COMPUTE AND NOT COMPETING WITH CUSTOMERS AS MUCH. THAT IS A COMPANY THAT IS VERY WELL POSITIONED IN COMPUTE. CP WAS,MUCH MORE IMPORTANT--- CPU'S, MUCH MORE IMPORTANT, GPU'S. THEY ARE NOT AS INVOLVED IN THE CIRCULAR FINANCING. ED: YOU LISTED VERY INTERESTING NAMES THAT ARE BEING PRESENTED WITH OPPORTUNITY IN THE BUILDOUT. WHAT ABOUT THOSE NAMES THAT ARE MOST AT RISK OF DISRUPTION, PARTICULARLY IN THE SOFTWARE SPACE? TODD: YEAH, SO SALESFORCE, WORKDAY, SERVICE NOW. THESE ARE GOOD COMPANIES. WE ALL HAVE FRIENDS WHO WORK THERE. THESE SEVEN GREAT COMPANIES. BUT THE SEAT LICENSE MODEL WILL BE UNDER A LOT OF PRESSURE. YOU SEE THE TOKEN USAGE, AND THE MINUTE YOU SEE AN ANTHROPIC REVENUE NUMBER, THAT IS COMING OUT OF SOMEWHERE. OPENAI, GOOGLE GEMINI. THE SQUEEZING AND THE PRICING OUT OF THAT SEAT MODEL IS GOING TO BE VERY RISKY. WE WISH THEM WELL, THEY ARE GOOD COMPANIES. I JUST THINK THE LONG-TERM BANK ABILITY WILL BE CHALLENGING. ED: THANK YOU VERY MUCH INDEED. ANOTHER STORY WE ARE TRACKING IN THE MARKETS IS CEREBRAS. IT IS OF QUITE A LOT. WE HAD THE CEO ON THE SHOW LAST WEEK WHEN THE SOCKET FALLEN POST-EARNINGS--STOCK HAD FALLEN POST EARNINGS. THEY ANNOUNCED AN EXPANSION IN MORE DETAIL IN THEIR RELATIONSHIP WITH OPENAI AND YOU SEE IT CARRY FROM FRIDAY INTO THE MONDAY SESSION, UP 15% THIS MORNING. I ASKED ANDREW ANNOUNCED THAT 10 MINUTES AFTER THE SHOW AND DIDN'T JUST SAY IT AFTER THE CONVERSATION, BUT MAYBE ONE FOR ANOTHER TIME. STRIKE MAKES ANOTHER NATURE AI BET, MAKING A DEAL TO BUY OPEN ROUTER. THIS IS "BLOOMBERG TECH." ED: GROQ IS RAISING $350 MILLION IN FRESH FROM THE INCOME THE START UP AT 3.5 BILLION DOLLARS, ABOUT HALF OF ITS PEAK VALUATION LAST YEAR. IT WAS LED BY INVESTMENT FIRM DISRUPTIVE, WITH NVIDIA ALSO SAID TO INVEST. THE COMPANY PLANS TO USE SOME OF ITS RECENT FINANCING TO EXPAND ITS TOTAL DATA CENTER CAPACITY TO MORE THAN 200 MEGAWATTS BY NEXT YEAR. STRIPE IS MAKING A MAJOR A BAT, CLINCHING A DEAL TO BUY OPENROUTER FOR MORE THAN $7 BILLION. THE START OF GIVES DEVELOPERS ACCESS TO HUNDREDS OF AI MODELS AND CAN EXPAND THE STRIPE'S FOOTHOLD IN THE AI SECTOR. THIS WAS A BIG ONE. I SAW LOTS OF PEOPLE SHARING IN REAL TIME, STRIPE, THIS WAS A BIG DEAL FOR THEM. >> IT STRUCK A CHORD. THIS IS A TIME WHEN THE CONVERSATION IS HOW TO MAKE THE USAGE OF AI CHEAPER. OPENROUTER, 2023, HELPED DEVELOPERS ACCESS DIFFERENT MODELS, OPTIMIZE DIFFERENT MODELS. THE STRIPE BUY IS A SIGN OF THE VALUE OF THAT CREATION. A BIG QUESTION IS WHO IS GOING TO CAPTURE THE VALUE, WHO CAN CREATE IT AND SELL BIG NEWS FOR OPENROUTER? ED: $7 BILLION DEAL. DO WE KNOW HOW IT IS STRUCTURED? IS THIS JUST STRIPE FLUSH WITH CASH? >> I EXPECT THIS TO BE A MIX OF CASH AND STOCK, TRACK NORTH OF 7 BILLION. THE LAST VALUATION WAS ABOUT 1.5 BILLION, SO A PRETTY DRAMATIC MARKUP. ED: YOU HAVE BEEN SO BUSY FOR FOUR DAYS. FRIDAY, IT STARTED WITH YOU BREAKING THE STORY ABOUT HOW ONE OF THE BEST FUNDS HAVE PERFORMED AT DERIVE. YOU THEN HAD A FOLLOW ON ON THEM GETTING INTO AMAZON AMONG OTHER STORIES. GO THROUGH THE SITUATION AT DRIVE. -- THRIVE. >> IT WAS GOING TO ANSWER THE QUESTION OF HOW MUCH VALERIE IS BEING CAPTURED IN THIS AREA OF CONCENTRATION AT ALL COSTS. THEY PIONEERED THIS IDEA OF PUTTING 90% OF THE FUND INTO YOUR TOP DOZEN INVESTMENTS. A LOT OF PEOPLE WERE LIKE THAT IS GREAT IF IT IS OPENAI, BUT WHAT HAPPENS IF IT HAPPENS ACROSS A BUNCH OF DIFFERENT COMPANIES? THE NUMBERS SHOW HOW MUCH VALUE THEY ARE SITTING ON TOP OF. THE NEXT THING IS HOW MUCH THEY WILL DISTRIBUTE TO INVESTORS, WHICH IS WHY THE OPENROUTER STORY IS INTERESTING. ED: AMAZON IS A PUBLIC POSITION. >> THRIVE WANTS TO STAY FOCUSED BUT THEY ARE INVESTING AROUND 200 MILLION DOLLARS INTO AMAZON, TWO MONTHS AFTER PUTTING 100 MILLION DOLLARS INTO SHOPIFY. ED: GO ON TO BLOOMBERG.COM TO CHECK OUT THE REPORTING OVER THE WEEKEND. ALPHABET IS TAPPING AUSTRALIA'S BOND MARKET FOR THE FIRST TIME, LOOKING TO RAISE 3.6 BILLION DOLLARS, THE LATEST IN A GLOBAL BORROWING SPREE. AS BIG TECH PILES INTO DEBT, ARE INVESTORS STARTING TO PUSH BACK? FOR MORE, ROBERT SCHIFFMAN IS WITH US. I ASKED YOU THIS MORNING, HOW IS THIS THE SAME OR DIFFERENT TO WHAT ALPHABET HAS DONE IN DOLLAR-DENOMINATED OR OTHER NON-DOLLAR-DENOMINATED MARKETS? IT'S A CONTINUATION OF THE SAME THING. ROBERT: BASICALLY THE LATEST 3.5 MILLION DOLLARS WASN'T MOVE THE NEEDLE, JUST SHOWS THERE IS CONSIDERABLE AMOUNT AROUND THE GLOBE FOR HIGH-PERFORMING HYPERSCALER DEBT. ED: WHY WOULD A COMPANY AS DYING OR MISS AS ALPHABET NEED TO GO TO THE DEBT MARKETS? IS IT AS SIMPLE AS INTERNAL CASH FLOWS CANNOT SUSTAIN THE WILD COMMITMENT OUT THERE? ROBERT: THEY TEACH YOU THIS DAY ONE IN MATH CAMP. SPEND MORE THAN YOU MAKE, YOU HAVE TO BORROW. THAT IS WHAT IS HAPPENING HERE, THEY ARE SPENDING MORE THAN THEY ARE MAKING RIGHT NOW. I THINK IT IS TEMPORARY. WE CONTINUE TO TALK ABOUT A 2028 IN COMPANIES WILL BECOME CASH COWS ONCE AGAIN. THE MORE THE MEDIA, ALL THE SMART MONEY GUYS ON PODCASTS KEEP ON TALKING ABOUT THINGS LIKE CIRCULAR FINANCING, HOW AI IS NOT GOING TO WORK, OPTIMISM CONTINUES TO GET STRONGER AND STRONGER. THE BOND MARKET HAS PROVEN THEY ARE THERE TO SUPPORT THIS BUILDOUT. IF YOU LOOK AT THE LAST COUPLE OF WEEKS, SPREADS ARE MEANINGFULLY TITLE -- TIGHTER. ORACLE, SPACEX, 30, 40. ALPHABET DID A $29 BILLION BOND YIELD A WEEK AGO. THOSE BONDS ARE TIGHTER AS WELL. PEOPLE NEED TO STOP LISTENING TO PODCASTS AND START LOOKING AT THE FACTS. AI MONETIZATION IS ONLY GETTING BIGGER AND THE FINANCING IS IN PLACE. ED: ALPHABET IS TOP OF THE PILE, THEY HAVE DONE 115 BILLION DOLLARS EXCLUDING AUSTRALIA SINCE LAST YEAR, BUT YOU ARE SAYING INVESTOR DEMAND IS THERE AND WILL CONTINUE TO BE THERE. ROBERT: IT'S ACROSS THE BOARD. ALPHABET, IN THE MIDST OF ISSUING $85 BILLION IN STOCK, THEY HAVE DONE $75 BILLION IN DEBT ACROSS CURRENCIES, SWISS FRANC, POUNDS, YEN, CANADIAN DOLLAR. THEY WILL SPEND OVER 300 BILLION DOLLARS IN CAPEX NEXT YEAR, $200 BILLION THIS YEAR. THEY NEED TO FUND IT. EVENTUALLY, BONDHOLDERS WILL WIN IN SPADES. ED: ROBERT SCHIFFMAN OF BLOOMBERG INTELLIGENCE, THANK YOU. SPACEX GETS A BOOST FROM THE WORLD'S ULTRA-WEALTHY. WE WILL SHOW YOU WHAT RECENT 13F FILINGS REVEAL ABOUT THEIR HOLDINGS. THAT IS COMING UP NEXT ON "BLOOMBERG TECH." ♪ ED: IN CASE YOU MISSED IT ON FRIDAY, SPACEX COMPLETED IT $60 BILLION ACQUISITION OF CURSOR, A KEY PART OF ELON MUSK'S BID TO GAIN GROUND ON ANTHROPIC AND OPENAI. THE DEAL BECAME EFFECTIVE ON FRIDAY ACCORDING TO A REGULATORY FILING TWO MONTHS AFTER SPACEX AGREED TO TAKE OVER. THE DEAL IS ONE OF THE LARGEST EVER IN THE TECH INDUSTRY. THE INVESTMENT FIRMS FOR ULTRA WEALTHY INDIVIDUALS HAVE BUILT UP A EXPOSURE TO THE ROCKET AND AI COMPANY. MORE THAN A DOZEN FAMILY OFFICES HELD STAKES TOTALING AT LEAST THREE POINT $8 BILLION IN THE FIRST HALF OF THE YEAR, ACCORDING TO FILINGS. THIS IS SO INTERESTING. THE POWER OF THE FAMILY OFFICE, AND NOW THE POSITIONING OF THESE FAMILY OFFICES. WHO ARE WE TALKING ABOUT GETTING INTO SPACEX HERE? DEVON: WE ARE SEEING A HUGE SLOT OF NAMES, NICHOLAS PRITZKER OF THE PRITZKER DYNASTY, THE ROYAL FROM THE UAE, MICHAEL PLATT, VERY WELL-KNOWN U.K. HEDGE FUND BILLIONAIRE, GINA REINHARDT, ONE OF THE RICHEST PEOPLE IN AUSTRALIA. SHE IS A MINING MAGNATE. JUST A WHO'S WHO OF BILLIONAIRES AROUND THE WORLD. ED: $3.8 BILLION IS A LOT OF MONEY. IN THE CONTEXT OF FAMILY OFFICE POSITIONS, OTHER PUBLIC EQUITIES, OTHER BIG NAMES IN THE AI SPACE? >> WITH THE SHA IKH, HE HAS MANY POSITIONS, BUT THAT IS NOT THAT CONSEQUENTIAL. FOR SOMEONE LIKE NIT PRITZKER, HIS POSITION WAS ONE POINT $8 BILLION. IN THE CONTEXT OF HIS OVERALL PORTFOLIO, PROBABLY AROUND 6 BILLION AT MOST. THAT IS REALLY SIGNIFICANT. THAT SHOWS HE IS AMONG THOSE BILLIONAIRES WHO ARE REALLY BULLISH NOT JUST ON SPACEX BUT MUSK'S ENTIRE EMPIRE. PRITZKER IS ALSO AN INVESTOR IN TESLA. A GOOD NUMBER OF FAMILY OFFICES OUT THERE WHO ARE VERY LONG ON ELON MUSK AND THE WHOLE EMPIRE. YOU CAN BET HE IS A LONG-TERM HOLDER. ED: SPACEX'S IPO IS JUNE 11, FIRST DAY OF TRADING, JUNE 12. THAT $3.8 BILLION IS AROUND A DOZEN FAMILY OFFICES. REMIND US THE METHODOLOGY. HOW DO WE GET ACCESS TO THIS DATA? DEVON: THESE ARE FROM 13F FILINGS, FILED AT THE END OF EVERY QUARTER. THEY ARE SHOWING THE POSITIONS OF MONEY MANAGERS THAT HAVE TO REPORT, DISCLOSE BECAUSE THEY HAVE MORE THAN 100 MILLION DOLLARS IN U.S. PUBLIC LISTED STOCKS. OF COURSE THIS IS JUST A SMALL NUMBER OF THE FAMILY OFFICES OUT THERE. MANY DO NOT NEED TO FILE BUT THEY STILL HAVE VAST EQUITY HOLDINGS. WE JUST DON'T HAVE VISIBILITY INTO THEM. THIS IS JUST A SLICE OF THE FAMILY OFFICE UNIVERSE THAT WE GET TO SEE. IT PROVIDES LOTS OF INTERESTING DATA. WE CAN EXTRAPOLATE FROM THERE WHAT FAMILY OFFICES ARE LIKELY INVESTING IN. WE SEE AN INTERESTING CROSS-SECTION OF FAMILY OFFICES FROM ALL OVER THE WORLD WHO HAVE MADE THEIR MONEY IN DIFFERENT WAYS. IT REALLY IS JUST A SNAPSHOT. ED: SPACEX UP 5.5% ON THE DAY. DEVON PENDLETON, THANK YOU VERY MUCH. SNAP IS DOWN 3.8%. IT WAS DOWN AS MUCH AS 15% IN THE PREMARKET. TO BE HONEST WITH YOU, WE DON'T KNOW WHY. WE ARE TRYING TO FIND OUT. THERE IS SOME SQUISHY TRADING GOING ON WITH THE SOCIAL MEDIA NAME. CXMT IS LEADING THE WAY FOR CHINA'S NEW TECH ERA. WE HAVE THAT NEXT. BEAUTIFUL PICTURES OF SAN FRANCISCO. THIS IS "BLOOMBERG TECH." ED: WELCOME BACK. THERE IS OUTPERFORMANCE IN TECHNOLOGY IN LARGE PART BECAUSE A BLOOMBERG'S REPORT ON THE SECOND QUARTER REVENUE WHICH WE WILL GET MORE DETAILS ON. ALSO HEADLINES FROM THE PRESIDENT OF THE WAR IN IRAN WITH BRENT CRUDE, OIL HOVERING AROUND $89 A BARREL. ALL FACTORS TO START THE WEEK. PIECES OF TECHNOLOGY NEWS SPREAD LET'S GET MORE OF THAT WITH ISABELLE LEE NEW YORK. ISABEL: WE HAVE TO TALK ABOUT ANTHROPIC. NAI FUELED RISK PARTY THIS MORNING. A LOT OF THE AI CHIP NAMES ARE UP. IT IS STILL THE BIG NEWS. WE HAVE A FANTASTIC SCOOP FROM OUR REPORTERS THAT THEY TOLD PROSPECTIVE INVESTORS THEY SAW A 14 FOLD INCREASE IN THEIR REVENUE COMPARED TO THE PREVIOUS QUARTER AND THIS IS REALLY A BIG DEAL BECAUSE IT SHOWS TO THE RAPID PACE OF DEVELOPMENT AND THEIR ANNUALIZED REVENUE RUNWAY. THAT'S COMPARED TO OPENAI WHICH IS AN ANNUAL RUN RATE OF 40 BILLION DOLLARS. AUTHORITY -- THE CLAUDE CHATGPT EVERYONE SEEMS TO BE USING. IT JUST REALLY SHOWS A STUNNING PACE OF GROWTH. I WANT TO TALK ABOUT NVIDIA OF COURSE THE SHOW WOULDN'T BE COMPLETE WITHOUT NVIDIA. THEY WILL INVEST ONE HALF MILLION AND ALSO AN EXCLUSIVE AI COMPUTE INFRASTRUCTURE PROVIDER AT A TECH CAMPUS IN OHIO. IT JUST MEANS NVIDIA HAS MOVED FROM SELLING GP USED IN OUR FACTORS THAT PRODUCE GPU'S ALSO A REALLY BIG STORE YOU'VE BEEN FOLLOWING CLOSELY. LASTLY I WANT TO TALK ABOUT OKTA. IT IS THE THING THAT ALSO BACKS A LOT OF THESE COMPANIES. THE STOCK IS DOWN AROUND ONE HALF PERCENT EVEN AS WELLS FARGO UPGRADED THE STOCK WITHOUT PERFORM SAYING IT IS IMPROVING THE END MARKET DEMAND AND EXECUTION TO GENERATE POTENTIAL GROWTH PROFILE WITH A LIMITING DOWNSIDE TO THE STOCK NOW LOWER BY ONE AND A HALF PERCENT. THE PRICE WAS ALSO RAISED. SO THE REAL OUTS OF TECH NEWS TODAY ON THIS MONDAY MORNING BACK TO YOU. ED: THANK YOU VERY MUCH. SHEIN OF THE COUNTRY THE ONES TRAILED IN HARDWARE MANUFACTURING IS EXCHANGING A BREAKOUT MOMENT FOR ITS CHIP INDUSTRY PROPELLED BY THE SUCCESS OF CSM T. THE TECH AIR IS UNFOLDING. OUR EXECUTIVE EDITOR LEADS OUR COVERAGE OF ASIA TECHNOLOGIES WITH US. WE CONTINUED TO WRITE ABOUT THE MOMENTUM THAT THEY HAVE. IT'S A CASE STUDY OF WHAT CHINA WANTS TO DO WITH ITS MESSAGING SECTOR. >> WE SPENT SO MANY YEARS TALKING ABOUT THE BIG TECH COMPANIES IN CHINA BEING ALIBABA AND TENCENT, BAIDU FOR EXAMPLE AND NOW WE ARE SEEING THIS CHIPS COMPANY WHICH IS NOT THAT WELL KNOWN OUTSIDE OF THE COMPANY -- OUTSIDE OF THE COUNTRY GO PUBLIC AND IT'S ALREADY SURGED BEYOND THOSE COMPANIES. ITS MARKET CAP HAS GONE UP TO ABOUT $613 BILLION AS OF TODAY'S THAT'S $100 BILLION MORE THAN TENCENT. AND AS YOU SAY, SIGNALS A CHANGING OF THE GUARD WE HAVE THESE SOFT WE HAVE THE SOFT WHERE COMPANIES, SERVICES COMPANIES AS THE LEADERS IN THE TECH INDUSTRY FOR MANY YEARS NOW YOU'RE SEEING THIS FROM THE HARDWARE SIDE. THEY HAVE BEEN ONE OF THE COMPANIES TALKED ABOUT BY APPLE IN PARTICULAR WITH ITS MEMORY CRUNCH WE HAVE SEEN OUT THERE WANTS TO BE ABLE TO BUY CHIPS NOT JUST FROM SAMSUNG AND SK HYNIX AND MICRON. THE COMPANY HAS GOT VERY STRONG DEMAND FOR ITS MEMORY CHIPS. IT'S A BIT BEHIND THOSE LEADERS BUT IS GAINING MOMENTUM. THE PRICES ARE SO HIGH AND WE ARE SEEING OTHER ELEMENTS IN THE SPACE. ED: CHINA'S FOCUSED ON MULTIFACETED AREAS. THERE IS THE CHIP MANUFACTURING COMPONENT TRYING TO GET THE CHAMPION IN THE SAME DESIGN AS CSM C. THE LOGIC SIDE AS WELL. FOCUS ON THOSE TWO COUNTERPARTS, WHERE CHINA IS REALLY PUSHING? PETER: IT IS MULTIFACETED SO SEE XMT IS THE LEADER IN MEMORY CHIPS. IT OPERATES LIKE TSMC. IT HAS MADE SOME PROGRESS BUT BECAUSE THEY CAN BUY THE LATEST MACHINERY FROM ASML THEY ARE NOT ABLE TO MAKE CHIPS AS SOPHISTICATED AS WE SAW OUT OF TSMC. IT'S IMPORTANT TO LOOK AT SOME OF THE OTHER ASPECTS. THIS WEEK WE WILL HAVE THE IPO OF THE LEADER OF OUR ROBOTICS SPACE. THIS IS MANY COMPANIES MAKING HUMANOID ROBOTICS COMING OUT THERE PUBLICLY SELLING QUITE A BIT OF THEM. 95% SHARE IN THIS ROBOTICS SPACE. THAT'S ANOTHER INITIATIVE THAT IS A PRIORITY FOR BEIJING RIGHT NOW. THEY WANT TO ESTABLISH THEMSELVES IN THESE HARDWARE AREAS AND PUT THIS FOUNDATION FOR THE INDUSTRY GOING FORWARD. ED: WHAT'S THE POLICY STORY HERE? HOW ARE THEY SUPPORTING THE INDUSTRY? PETER: IN A A LOT OF DIFFERENT WAYS. THE ECONOMY IS VERY DIFFERENT FROM WHAT WE CAN SEE IN THE UNITED STATES. WHERE THERE IS MUCH MORE GOVERNMENT INVOLVEMENT. THEY FOCUS COMPANIES ON THESE KEY AREAS THEY SEE AS STRATEGICALLY IMPORTANT TO THE COUNTRY SO MANUFACTURING IS VERY CRITICAL. SEMICONDUCTORS IS AN AREA WE ARE BEHIND WHAT YOU GET FROM THE WEST AND TAIWAN IN PARTICULAR BUT THEY WANT TO BE ABLE TO BUILD THAT FOUNDATION, ROBOTICS IS ANOTHER AREA AND WE HAVEN'T EVEN TALKED ABOUT THE AI MODELS. MANY OF THOSE ARE GETTING SEED BACKING. BEIJING SEES THE STRATEGIC IMPORTANCE OF AI AND YOU HAVE NOT JUST DEEPSEEK AND MOONSHOT WHICH WILL GO PUBLIC BY THE WAY BUT YOU HAVE A WHOLE HOST OF OTHER COMPANIES COMPETING THERE WHO ARE COMPETING QUITE AGGRESSIVELY IN THIS OPEN SOURCE SPACE WHICH IS NOT JUST GOOD FOR THEM, IT HELPS THEM OFFER AT VERY LOW PRICES. BUT IT IS ALSO PRESENTING QUITE A COMPETITIVE CHALLENGE TO THE LIKES OF ANTHROPIC AND OPENAI DESPITE THE REVENUE FIGURES WE SAW EARLIER. ED: REFLECTING ON THE DEEPLY REPORTED STORY. BLOOMBERG EXECUTIVE EDITOR DETAILS, WE THANK YOU VERY MUCH. ALIBABA LAUNCHED THE DEBATE VERSION OF A MUSIC GENERATION MODEL BUT CAN TURN A SINGLE TEXT PROMPT INTO A FULLY PRODUCED SONG. THAT BOOST -- TO BOOST ITS PIVOT THEY WILL SELL ITS GAMING ARM. THE FIRM IS UNDERGOING A REORG LED BY EDDIE WU. MAKING AI AND CLOUD COMPUTING A STRATEGIC PRIORITY TO REACH 100 BILLION DOLLARS IN AI REVENUE IN THE NEXT FIVE YEARS. COMING UP, FULLY AUTONOMOUS EXCAVATORS GET TO WORK ON SITES IN THE U.S.. THIS IS BLOOMBERG TECH. ♪ LET'S GET OVER TO NEW YORK WHERE Y AHAIRA IS STANDING BY. >> CHRISTOPHER COULD BASIC AND IT IS A SURPRISE SHAKEUP AFTER FINDING PRODUCT THAT WAS NOT CONSISTENT WITH THE VALUES OF THE COMPANY. A LONGTIME AEROSPACE EXECUTIVE WAS APPOINTED CEO AND MEMBER OF THE BOARD. EFFECTIVE IMMEDIATELY. RAYTHEON WANTED 22.9 MILLION DOLLAR CONTRACT TO SUPPLY THE NAVY WITH TOMAHAWK CRUISE MISSILES. IT COMES AMID MOUNTING CONCERNS THAT HAS DEPLETED THE MILITARY'S INVENTORY OF PRECISION STRIKE MUNITIONS. VIA STATS ANNOUNCED IT SELECTED ROCKET LAB TO BUILD A HIGH EARTH ORBIT SATELLITE FOR THE U.S. SPACE FORCE. THE PAIR WILL JOIN FORCES TO DELIVER RENEWABLE ANTISHIP SATELLITES FOR NATIONAL SECURITY MISSIONS. >> FOR THOSE WHO SEE THE FUTURE WILL BE BUILT BY ROBOTS, HERE IS A SIGN FOR YOU. THE START UP BED ROCK ROBOTICS HAS LAUNCHED THE FULLY AUTONOMOUS EXCAVATOR IN THE UNITED STATES AT THREE SITES. THE AI BUILDOUT AND OTHER FACTORS ARE SPURRING DEMAND FOR CONSTRUCTION SO AI IS KIND OF ANSWERING THE CALL. BEDROCK ROBOTICS CO-FOUNDER JOINS US. LET'S GET TO THE BASIS OF WHAT WE ARE TALKING ABOUT. EXCAVATORS, DUMP TRUCKS, CONSTRUCTION EQUIPMENT THAT THERE IS NO DRIVER IN THE CAB. >> THANKS FOR HAVING ME ON. THIS IS A SUITE OF SENSORS COMPUTE AND SOFTWARE THAT TRANSFORMS EXISTING HEAVY MACHINERY SUCH AS EXCAVATORS AND ENABLES THEM TO BE FULLY AUTONOMOUS AND OUR CUSTOMERS ARE THE CONTRACTORS TO BE ABLE TO BUILD FASTER, SAFER AND MORE PREDICTABLY. ED: LET'S GET TO THE TECHNOLOGY. ANALOGOUS WITH AN AUTONOMOUS VEHICLE, A ROBOTAXI OR SELF-DRIVING TRUCK THERE'S A SUITE OF CENTERS. TELL ME ABOUT THEM. WHO OFFERS THEM, PRODUCES THEM AND THEN YOU MUST HAVE YOUR OWN SOFTWARE PLATFORM. BORIS: WE USE ACCOMMODATION OF CAMERAS AND LIDAR. IT'S INCREDIBLY VIABLE FOR CONTINUITY AND SAFETY WHICH IS ONE OF THE BIGGEST CHALLENGES IN THE SPACE. WE HAVE COMPUTER THAT IS ON THE MACHINE THAT IS THE BRAIN BEHIND OPERATING THE SYSTEM. ED: WHO PROVIDES THE COMPUTER? BORIS: WE USE NVIDIA CHIPS FOR THE COMPUTE AND WE USE OUR OWN SYSTEMS AROUND IT. ED: I'M NOT SURPRISED BY THAT. BORIS: THERE STILL PRETTY INCREDIBLE. WHAT'S NICE IS THAT ECOSYSTEMS MATURED A LOT SO YOU'RE ABLE TO FOCUS OUR ENERGIES ON THE SOFTWARE THAT BRINGS A LEVEL OF PRECISION AND CAPABILITY THAT WAS PREVIOUSLY IMPOSSIBLE IN THE SPACES. ED: THE NEWS HERE IS THAT THIS IS REAL. YOU'VE DEPLOYED OF THREE COMMERCIAL SITES. HOW REAL? ARE YOU ABLE TO BOOK REVENUES ON THESE THREE SITES. SOMEONE'S ACTUALLY PAYING YOU FOR THIS AND WHAT'S THE SCALE OF THE DEPLOYMENT? BORIS: WE ARE ON THREE DIFFERENT SITES WITH THREE DIFFERENT MARKERS. ZACHARY CHAMPIONS. THREE DIFFERENT PROJECTS. EVERYTHING FROM WATER TREATMENT FACILITIES TO OTHER TYPES OF INFRASTRUCTURE. THESE ARE PAID DEPLOYMENTS. THEY ARE DOING WORK ON A CRITICAL PATH FOR THESE PROJECTS. AND THESE ARE PROJECTS THAT ARE DOING MULTIPLE MILLIONS OF CUBIC YARDS OF EARTHWORK AS A PROJECT. >> NOW IS THE BIG QUESTION. WHY IS THERE A NEED FOR AUTONOMOUS CONSTRUCTION EQUIPMENT? BORIS: THERE IS AN UNPRECEDENTED NEED TO BUILD SO WE ARE ON SHORING MANUFACTURING AND SHORTAGES. THE DATA CENTER BOOM. WATER TREATMENT FACILITIES. ALL OF THESE ARE PUSHING ON THE INCREDIBLY STRAINED INDUSTRY AND THE LABOR SUPPLY IS CONTINUING TO FALL WHERE SOME OF THE CONTRACTORS WE PARTNER WITH ARE SEEING HUGE RETIREMENT RATES. SO THERE IS AN OUTSIZE BOTTLENECK IT BECOMES A RADIATION ON THE WHOLE ECONOMY. ED: IN SIMPLE TERMS ARE NOT ENOUGH DRIVERS OR OPERATORS TO BE INSIDE THE CAB OF ANY PIECE OF CONSTRUCTION EQUIPMENT. BORIS: SOME OF THESE ARE CLEARLY COMPLEX PIECES OF EQUIPMENT. BUT ACTUALLY OPERATOR NEEDS YEARS BECAUSE THESE ARE INCREDIBLY COMPLEX SOPHISTICATED >>. >>WHAT ABOUT THE UTILIZATION RATE. WHAT CAN YOU ACHIEVE IN A 12 HOUR SHIFT. WITH AN AUTONOMOUS PIECE OF EQUIPMENT. RELATIVE TO HUMAN DRIVEN. >> WE ARE ALREADY CLOSE YOU NAILED IT. WE ARE ALREADY CLOSE TO HUMAN PRODUCTIVITY, WILL REACH HUMAN. TO BE SOON. THE VOLUME OF EARTH MOVED IN A PERIOD OF TIME. YOU NAILED A REALLY IMPORTANT POINT THAT ALREADY THESE MACHINES ARE OFTEN TIME SITTING IDLE, CONTRACTORS ARE TURNING DOWN WORK BECAUSE THEY PHYSICALLY CANNOT REACH THE DEMAND WITH THE CAPACITY THEY HAVE. THIS ALLOWS YOU TO NOT ONLY FULFILL THAT, YOU CAN ACTUALLY START COMPRESSING SCHEDULES AND DOING MORE WORK IN A PHYSICAL POCKET OF TIME BUT EXCEEDING WHAT WOULD TYPICALLY BE ONE SHIFT, WORKING LONGER STRETCHES PAST SCHEDULES. ED: LET'S BRING THE PICTURES BACK UP. YOU CANNOT GET ENOUGH OF SHOWING IT IN ACTION. THAT IS A WELL-KNOWN BRAND OF CONSTRUCTION EQUIPMENT. I'M SURE OTHERS ARE AVAILABLE. BUT IT REMINDED ME OF A PERIOD OF TIME WHERE I WAS COVERING THE EV INDUSTRY, A SECTION OF THAT INDUSTRY THAT JUST WANTED TO RETROFIT THE POWERTRAIN OF EXISTING COMMERCIAL VEHICLES. YOU MUST HAVE TO PARTNER WITH THOSE OEMS AND ADD YOUR TECHNOLOGY STACK ON TOP. BORIS: THE INTERESTING THING IS THESE MACHINES ARE DESIGNED INCREDIBLY WELL TO BE TRANSFORMED INTO AUTONOMOUSLY KICKBALL, TO DO IT SAFELY WITHOUT A MAJOR REDESIGN. THAT IS NOT THE CASE IN PUBLIC ROAD CARS AND TRUCKS. THERE ARE SPECIFIC ASPECTS OF THESE MACHINES THAT ACTUALLY MAKE THEM MUCH MORE SUITABLE FOR THE SORT OF AUTOMATION. ED: WHAT IS THE CONSTRAINT ON YOUR ABILITY TO BUILD A FLEET THAT YOU CAN THEN DEPLOY? THE NUMBER OF PROJECTS TO TAKE ON WILL BE DICTATED BY HOW MANY OF THESE AUTONOMOUS MACHINES CAN BE DEPLOYED. BORIS: THIS IS WHERE IT HELPS TO HAVE MILLIONS OF THESE MACHINES ALREADY OUT THERE THAT BECOME PART OF THE POOL THAT YOU CAN PURSUE. JUST LIKE WE SAW IN OTHER BIG WAVES OF TECHNOLOGY SUCH AS AUTONOMOUS DRIVING, THERE IS A DEEP CHALLENGE IN THE ZERO TO ONE WHERE YOU ARE TRYING TO DEPLOY SYSTEMS SAFELY AND PRODUCTIVELY, ANOTHER SUITE OF CHALLENGES WHEN YOU SCALE INTO THE HUNDREDS AND THOUSANDS AND BEYOND. NOW, IT'S A MATTER OF MATURING THE AUTONOMY CAPABILITIES, STARTING THIS FLYWHEEL TO MOVE INTO NEW CAPABILITIES AND MACHINES, AND THEN BE ABLE TO ORCHESTRATE THEM WHEN YOU CAN COMPLETE MORE COHESIVE SETS OF WORK. ED: IN SIMPLE TERMS, YOU TAKE THE DELIVERY OF EQUIPMENT, RETROFIT IT WITH YOUR STAT, AND PUT IT OUT IN THE REAL WORLD. BORIS: EVEN BETTER, WE DO IT ON SITE, IT IS 100% REVERSIBLE, AND READY TO GO ONCE COMPLETE. IT'S A REALLY GREAT ABILITY TO START DEPLOYING SCALE. ED: THE WAY WE DESCRIBE THE FLYWHEEL, THERE IS AI DRIVEN DEMAND FOR THE MACHINERY, AI IS ANSWERING THE CALL. TALK ABOUT THE DATA CENTER PROJECTS, THE HYPERSCALERS THEMSELVES THAT END UP RENTING OR OWNING THE CAPACITY DIRECTLY LOOKING TO YOU, OR IS THERE STILL A DEGREE OF SEPARATION WITH THE CONTRACTOR? THEY MUST HAVE AN INTEREST IN THIS FIELD. BORIS: OUR DIRECT CUSTOMERS ARE THE CONTRACTORS. WE PURSUE THE WORK THAT IS MOST VALUABLE TO THEM. THAT HAPPENS TO HAVE A BIG COOL IN DATA CENTERS BUT WE ALSO SEE PRODUCTS OF ALL SORTS, HIGHWAYS, WATER TREATMENT FACILITIES, HOUSING DEVELOPMENTS. WE END UP ENABLING THEM TO TAKE ON MORE OF THIS WORK, BE ABLE TO SCALE WITH THOSE DEMANDS. I OFTEN TIMES, WE SEE THIS PUSH NOT FROM OUR DIRECT CUSTOMERS THE CONTRACTORS, BUT FROM THE END OWNERS THAT GET A HUGE BOOST IN TERMS OF PROJECT ABILITY. ED: IS THERE ANYONE IN PARTICULAR AT THE MOMENT? BORIS: THERE IS A LARGE NUMBER OF THE BROADER ECOSYSTEM. BOTH CUSTOMERS AND DEVELOPERS, YOU CAN IMAGINE, ONE OF THE INTERESTING IMPACTS OF THIS, IF YOU CAN COMPRESS SCHEDULES, THE TYPES OF PRODUCT THAT DID THE PENCIL OUT, SUDDENLY THEY DO. THIS BECOMES INCREDIBLY EXPANSIONARY FOR COMMERCIAL AND HOUSING DEVELOPMENT'S THAT WERE PREVIOUSLY OUT OF REACH. ED: IN AUTONOMOUS TRUCKING, YOU CAN DO AN EASY COMPARISON DOLLAR PER MILE AGAINST HIS HUMAN DRIVEN TRUCK. WHERE ARE YOU IN TONS A VOICE MOVED, OR IS IT DONE BY OURS OPERATING THE MACHINE? BORIS: SOMETIMES IT IS DONE BY OURS, WHERE YOU BRING AN OPERATOR TO JOIN YOUR FLEET. SOME HAVE DONE IT BY PRODUCTIVITY, VOLUME OF CUBIC YARDS MOVED. WHAT IS NICE IS ONE OF THE BIGGEST CHALLENGERS CONTRACTORS FACE IS THE UNCERTAINTY OF THE LENGTH OF PROJECTS. THIS ALLOWS THEM TO TIGHTEN THAT UP, WHICH GIVES THEM HUGE FLEXIBILITY IN GETTING MORE WORK, TIGHTENING UP THE WINDOWS IN WHICH THEY DO IT. ED: BEDROCK ROBOTICS COO, BORIS SOFMAN, THANK YOU VERY MUCH. TWO GROUPS BUT VERY DIFFERENT IDEAS ON HOW TO REGULATE AI ARE BACK IN THE SAME CANDIDATE FOR FLORIDA GOVERNOR. WE WILL HAVE THE DETAILS, NEXT. THIS IS "BLOOMBERG TECH." ED: THE CFTC IS TAKING A CLOSER LOOK AT ONE OF AI'S NEWEST MARKET, TRADABLE COMPUTING POWER. THE MARKETS WATCH DON'T WANT TO TAKE PUBLIC COMMENT ON CONTRACTS TALK TO COMPUTE CAPACITY ACCORDING TO A POSTING MADE PUBLIC MONDAY. THE MOVE SIGNALS THERE IS STILL LINGERING QUESTIONS ABOUT THE NEW TRADABLE ASSET CLASS AND IT COULD DELAY PLANS FOR A FUTURES MARKET, ONE OF AI'S MOST CRITICAL RESOURCES. A BATTLE TO INFLUENCE AI REGULATION IS PLAYING OUT IN FLORIDA IN AN UNUSUAL WAY. GROUPS WITH A RIVAL VISION FOR AI OVERSIGHT ARE BOTH BACKING REPUBLICAN GUBERNATORIAL CANDIDATE BYRON DONALDS. HE LEADS IN THE POLLS FOR THE PRIMARY TOMORROW AND THE GENERAL ELECTION COMING IN NOVEMBER. EMILY BURN BAN JOINS US NOW. REALLY SIMPLE. THERE ARE TWO GROUPS WITH EACH THEIR OWN VISION ON HOW TO REGULATE AI, BOTH BACKING THE SAME CANDIDATE. HOW DOES THE CANDIDATE FEEL ABOUT IT? >> THE CANDIDATE REALLY INTERESTINGLY HAS STRUCK AN AMBIGUOUS TONE, SO THE BIG DIFFERENCE BETWEEN THESE TWO AI SUPER PAC'S IS ONE BELIEVES EACH STATE SHOULD BE ABLE TO REGULATE AI AS INTENSIVELY AS THEY ARE ABLE TO. THE OTHER BELIEVES THERE SHOULD BE ONE NATIONAL LIGHT TOUCH STANDARD. SOMEHOW, BYRON DONALDS, I GUESS ARE PRETTY GOOD POLITICIAN, HAS BEEN ABLE TO SPEAK IN A WAY THAT MAKES BOTH SIDES FEEL HE IS ON THEIR SIDE. ESSENTIALLY, HE HAS SAID, HE BELIEVES THE U.S. CONGRESS SHOULD BE THE WAY ON PASSING AI REGULATION. BUT BECAUSE THE U.S. CONGRESS IS SO DYSFUNCTIONAL, STATES DO HAVE SOME ROLE TO PLAY ESPECIALLY WHEN IT COMES TO PROTECTING CHILDREN FROM POTENTIAL AI HARMS. ED: THE LOGIC HERE IS THAT WERE HE TO WIN, HE WOULD BE INFLUENTIAL, ABLE TO HAVE AN IMPACT AT WHATEVER LAYER IN GETTING THESE THINGS MOVE FORWARD. . EMILY: HE IS GOING TO BE, IF HE WINS, FILLING THE ROLE OF CURRENT FLORIDA GOVERNOR RON DESANTIS, WHO HAS BEEN A LEADING CONSERVATIVE VOICE IN FAVOR OF AI REGULATION. DESANTIS TRIED TO PUSH FORWARD WHAT HE CALLED AN AI BILL OF RIGHTS, FAILED IN THE FLORIDA LEGISLATURE. BYRON DONALDS WILL CHOOSE WHETHER HE WILL CONTINUE WITH THAT VISION AND CONTINUE TO BE A PRO AI REGULATION REPUBLICAN, OR WHETHER HE WILL STRIKE A MORE BUSINESS FRIENDLY TONE. ED: LET'S SHOW THAT TABLE OF THE BACKERS OF EACH ORGANIZATION. BOTH ORGANIZATIONS HAVE SPENT SOME SERIOUS MONEY IN SUPPORT OF BYRON DONALDS. ON THE FAVORING WHITE REGULATION SIDE, MARK ANDREESSEN, GREG BROCKMAN. ON THE AI SAFETY SIDE, THE CEO OF ANTHROPIC. HOW SERIOUS ARE THESE CAMPAIGNS? EMILY: THEY ARE VERY SERIOUS, SPENDING TENS OF MILLIONS OF DOLLARS ACROSS THE COUNTRY, GOING HEAD-TO-HEAD IN SOME INSTANCES, PLAYING IN DIFFERENT STATES AND OTHERS. THEY BOTH SEE THIS MIDTERM CYCLE AS KEY TO THE FUTURE OF AI REGULATION. THEY ARE NOT AFRAID TO SPEND. ED: TERRIFIC REPORTING ON WHAT IS HAPPENING IN THE FLORIDA RACE. THANK YOU VERY MUCH INDEED. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECH." TECHNOLOGY ARE PERFORMING. THE PRESIDENT'S COMMENTS THIS MORNING ON IRAN AND OMAN BOTH FACTORS. OIL HOVERING AROUND $89 A BARREL. THEN THERE IS THE IMPACT OF THAT ANTHROPIC REVENUE NUMBER FOR THE SECOND QUARTER WHICH IS DRIVING UP SIDE IN SOME AI STOCKS. RECAP ON THE PODCAST. YOU KNOW WHERE TO FIND IT, ON THE BLOOMBERG TERMINAL, AS WELL AS ON APPLE, SPOTIFY, IHEART. HAVE A GREAT WEEK. "BLOOMBERG TECH."