Amazon Looks to Raise At Least $37 Billion with Bond Sale

16:10Ed Ludlow:Yeah. Hey, Ed, good morning. Well, as you heard there, Secretary Hegseth said that the U.S. will, quote, not relent until all of its objectives are achieved. After yesterday, President Trump appeared to suggest that the U.S. was ahead of schedule when it comes to maintaining its goals in the region. But then we heard from Iran this morning in a new statement from the country's parliament speaker saying that Iran is, quote, not at all interested in a potential ceasefire deal. And the IRGC released a statement overnight vowing to continue to block oil exports. Now, President Trump yesterday had threatened to widen the list of U.S.

16:47Ed Ludlow:targets to electricity infrastructure if attacks in the Strait of Hormuz and disruptions do continue. I will point out that the president reiterated that he is prepared to send a naval escort into the strait to help those tankers through. But when the Joint Chiefs of Staff Chair, Dan Cain, was asked about this earlier this morning, it does not appear that any of those plans have been put into motion. Bloomberg News is also reporting that electronic warfare is now jamming signals in the critical waterway, which at this point really does remain effectively closed. And in Caroline, within the last hour, we got the headline that G7 nations are now asking the International Energy Agency to prepare scenarios for the potential release of emergency stockpiles as these oil flows continue to be impacted in the region.

17:32Ed Ludlow:And the oil market certainly moves. And despite the news flow, Tyler Kendall, we so appreciate it. Let's stick with defense news because Bloomberg has learned the Pentagon plans to add Google's AI agents to handle unclassified work and is in talks to bring those tools to the classified and top secret cloud. Bloomberg's Katrina Manson has been reporting on this and in fact continues to report at the very edge of AI adoption within the Pentagon. Look, what is Emil Michael talking about in terms of Google? Is this because they're having to force that anthropic? This, I think, is fair to see as separate.

18:06Ed Ludlow:When Emil Michael came in in this senior role, very focused on AI back in August, he told me he was shocked that the Pentagon had adopted so few AI tools. It's brought in chatbots. That's thanks to Gemini. It's had those for the last three months. 1.2 million people in the Pentagon have used those or in the defense department writ large. Now they're adding agents. So that's going to automate some tasks that corporations, of course, across the country are already trying. But it is interesting timing because at this very moment, they're bringing Gemini agents onto unclassified networks and really quite pleased that they have this partner in Google at a time that clearly Anthropic has been cut.

18:47Caroline Hyde:24 hours ago on this program, we broke the news of Anthropic's suit against the Defense Department late yesterday evening. We got more of a detailed response. What is the Pentagon's official position and what does it see in this suit from Anthropik against it?

19:05Ed Ludlow:Emil Michael told me that he was expecting this. He doesn't think that bringing this to the courts is a way to resolve this problem. And he said, Komi, quite simply, we're moving on. So I do think that in this news today, the focus on Google. Of course, they've recently struck deals with XAI and OpenAI to start operating on the classified cloud. The Pentagon is really saying we have three partners now that we feel comfortable with and we are not expecting to go back to anthropic. Can you give us the context of just how much AI is playing a role within the very here and now geopolitical issue of Iran and the conflict there?

19:42Ed Ludlow:From our reporting, we understand that But CENTCOM, the US Central Command conducting the operations in Iran, is relying on a variety of AI tools. And from separate reporting, we understand that means Maven Smart System. This comes out of Project Maven, an AI effort started in 2017. You have a book coming out on. I do. Yes, I do. Yeah, thanks. And that helps narrow down targets. Of course, CENTCOM is hitting, I think they've hit 5 ,000 targets in 10 days now. So an extraordinary number for the U.S. to be churning through. And at the same time, AI is helping with processes that enable fast movement.

20:23Caroline Hyde:Bloomberg's Katrina Manson with the latest reporting deep on what the Pentagon is doing with AI. Thank you very much. Now, coming up, AI startup Lagora raises$550 million, boosting its valuation to$5.55 billion. We speak with the CEO, Max Unistrand, next. This is Bloomberg Tech.

20:49Ed Ludlow:nagora an ai platform built for lawyers has just raised a massive 550 million dollars in a series defunding round pushing its valuation to an excess of five and a half billion joining us now to talk about the raise the company's growth and the future of ai and law is the nagora ceo max unistrand max this is only a few months after you just raised your previous series i mean what are you going to be using this money for?

21:11Antonio Neri:We are investing in the United States. We landed in New York a year ago. This was the first week in 2025, New York Legal Week, when Lagora launched in the United States. Now we're open in New York. We're open in Denver, Chicago, Houston. We're investing in the product, in the infrastructure, in customer support teams to support the astronomic demand that we're seeing from the US.

21:34Ed Ludlow:And that is what the VCs are responding to here, the fact that you are signing more and more legal professionals to come and join your platform. But yesterday, we just had Harvey AI on. And word has it that they're a competitive force out there. How are you seeing your space in the world? How are you unique versus a Harvey, for example?

21:53Antonio Neri:So I think legal tech has for a long time been sort of stuck in the pre-digital era. With LLMs, we're seeing a wave of companies come and automate tasks, build new systems. And it's a It's a renaissance for the industry. So there's lots of companies growing very quickly. There's a lot of greenfield opportunity. We started in Stockholm, Sweden just three years ago. And now we've landed here. We're expanding with big law firms, with big enterprises. I think the reality is that this market has only done zero to one. Now we are on the journey of one to 10 and 10 to 100. There's so much left to build.

22:29Caroline Hyde:And that's our opportunity and our challenge. Max, what's interesting about what you just outlined? is different jurisdictions, right? You're talking about American law, Nordic law, European law. Take us inside building Lugora and the necessary data sets to be able to service the legal profession in those different markets where laws and filings are completely different. So in order to build systems and agents that perform real work,

22:59Antonio Neri:there's really two different types of data that you need to work with. As you said, it's the local jurisdictional data, the case law, the legislation, and then it's the firms and the enterprises' own data. And it's the combination of the two within a platform like Legora that becomes incredibly valuable. Because I think these systems used to kind of feel like co-pilots. You were working together with them on small tasks. But now you're actually able to offload entire end-to-end, I mean, agentic workflows, and the systems are performing end-to-end work for you. So when we started out in Stockholm, Sweden, I mean, that market is smaller than one of the big law firms here in New York.

23:35Antonio Neri:So we really practice that muscle. And now that we're here,

23:39Caroline Hyde:I'm an engineer, we really lead with a product. Max, I suffered through law school, and I'm the son of two lawyers. And I brought that up yesterday, so I'll be consistent. And I know from that context that lawyers bill by the minute, sometimes scanning barcodes for five minutes of work, 15 minutes of work. How do you charge and structure your revenues for the platform? So we charge on a seat basis today.

24:06Antonio Neri:I think that is the easiest way for some of these customers to buy. But as we move towards this world where Legore is performing more end-to-end work, I think both consumption and outcome-based pricing models will make a lot of sense for our clients and also, in turn, their clients, right? The way that law firms are charging for tasks that AI can perform together with them will have to move from a billable hour model to more of a fixed fee or outcome-based system.

24:33Ed Ludlow:Can you just set the scene here? Because you're building upon, in many ways, the innovations of Anthropic. But Anthropic is also doing its own claw plug-in for law. How does this competitive environment unfold for the future businesses you want to sign on? How do they decide between you, Anthropic, Harvey, what they already have as point solutions?

24:56Antonio Neri:Yeah. So, I mean, Legora wouldn't exist without the LLMs. We were founded in late spring of 2023 off the back of the release of GPT 3.5. That was the first time the models became good enough to build any real software. In the beginning, there were so many issues around the models. You had to reduce the hallucinations, you had to guardrail them, we had to build a lot of systems around them. Today, we are very focused on bringing the capabilities of those models into an enterprise legal setting. So when we work with a law firm like White & Case or Cleary Gottlieb, they are deploying Legora, and they're turning over billions of dollars using our system.

25:34Antonio Neri:And the interesting thing for us is every quarter, the ground shakes a little bit. The new models are capable of doing new things, which needs to be reflected in our product roadmap. We cannot plan for a year ahead because three months in six months, the capabilities might have changed.

25:53Caroline Hyde:So our product has to change. Max, we just have 20 seconds, but I think what Caroline's question is, what is your moat? Do you have a moat? I think we have a real moat, of course.

26:02Antonio Neri:I mean, the way that we're deployed within these enterprises, connected to their data, the way that we've set up the permissions, the way that we work with delivering work. For instance, Debovois just launched their client portal on Legora where they are connecting their work to their external clients.

26:17Caroline Hyde:So there's a real network effect within our product too. Max Jundstrand of Legora, thank you very much for your time here on Bloomberg Tech. Now coming up, Apple's latest product is delayed as it awaits the debut of its new AI Siri. We have more on that Bloomberg reporting and some supply chain coverage as well with what's going on with Apple. It's halftime. Don't go anywhere. We'll be right back. This is Bloomberg Tech.

26:47Caroline Hyde:Welcome back to Bloomberg Tech. Technology stocks actually in particular are now pushing higher. Having seen the Nasdaq 100 lower earlier in the session, actually that chart tells the story pretty well. But a lot of the story is still what's happening with the war in Iran, the movement in oil, general risk sentiment around geopolitics. After the bell, we get Oracle earnings. And so once again, we kind of focused on the AI story and capital expenditures. Amazon is up by almost half a percentage point. The big story of the day that we hit earlier in the program is them looking at a bond sale, US dollar denominated and euro denominated of up to$42 billion.

27:26Caroline Hyde:And we had the details in the program earlier. Oracle's treading water, of course, ahead of of its print later today. But that is the AI story once again. The credit conditions, the capital expenditures, and whether this build-out is intact, Cara.

27:39Ed Ludlow:We've got plenty more on the AI story and supply chain stories now because Apple's manufacturing pivot to India and away from China. It's picking up momentum. iPhone production in the country surged 53 % in 2025 and now accounts for roughly a quarter of all iPhones made globally. For more, Bloomberg's consumer tech and Apple managing editor Mark Gurman joins us now. And Mark, Let's start with the supply chain element of things. They've done this swiftly and effectively.

28:06Antonio Neri:Yeah, our colleagues in India are reporting that now about one in four iPhones are produced in India. This is a bit of an acceleration. About a year ago, it was one in five iPhones. And a lot of the phone production in India, that pivot happened because of tariffs about a year ago. So Apple looking for ways to produce the phones without that potential tariff hit for devices built in China and then imported into the United States. And they're going to continue doing more in India. They've got AirPod development happening there at some point, more accessory development happening there, more underlying component development happening there.

28:45Antonio Neri:So India, not only big for Apple in terms of growth in retail, but also for underlying manufacturing, not only in India, but in other parts of the world as well.

28:56Caroline Hyde:The other piece of reporting you have out this morning, Mark, is about the Apple smart home display. Now, in my house, I right now have a lot of Amazon Echo devices. And so my understanding is that the Apple smart home display is like most akin to Amazon's Echo show. what are you learning? Why delayed? What's behind it?

29:22Antonio Neri:Yeah, this device very much based on the new Siri and the new AI features Apple has been working on. Those features have yet to come to market. Those continue to be delayed. And as those features get delayed, the hardware gets delayed because, as you know, Apple's very much a hardware and software and services integrated company. it's all one kit it all comes together so if one piece is not working you can't release the entire thing it's a pretty nifty device you could walk up to it and it can know who you are and give you personalized content and that very much relies on those new siri features that the company announced a couple years ago they're now aiming to roll them out before the end of the year and so this device instead of launching this month likely to launch around september

30:03Caroline Hyde:boomers mark german and all things apple the apple summary thank you very much there's a lot more news out there, Carrie.

30:09Ed Ludlow:Now here's Ed, and it's time now for Talking Tech. And first up, BYD is exploring options to enter the world of F1 racing, according to sources, in a bid to boost the EV maker's global appeal. Now, the move would mark a rare attempt by a Chinese manufacturer to take on a sport dominated by European and US teams. Plus, China's enthusiasm for all things OpenClaw is igniting a stock rally among local tech firms moving swiftly to embrace the open source AI program. Now remember, OpenClaw is an agent that leverages LLMs, including Anthropics Clawed, to perform daily functions. And the tool has garnered a cult-like status in China.

30:44Ed Ludlow:And Polymarket is enlisting firms, including Palantir, to help police its forced contracts. This is a prediction market faces really intense scrutiny over insider trading. It's all according to the sources who say that the firms will prevent and report suspicious activity with a monitoring system that Polymarket is building out. Ed.

31:03Caroline Hyde:Okay, coming up, a three-month-old startup founded by AI pioneer Jan LeCun has raised over a billion dollars in seed funding. We'll tell you about the company called Advanced Machine Intelligence. That's next. This is Bloomberg Tech.

31:25Caroline Hyde:A startup founded by French AI pioneer Jan LeCun has raised over a billion dollars in its initial funding round. Advanced Machine Intelligence, or AMI, is focused on building world models that use visual and spatial data. Bloomberg's venture reporter, Natasha Mascarenas, broke the story and joins us now. The Internet has kind of reacted by, oh, another one? And what is it that they do? But, you know, there's a history with Jan LeCun and his work with Meta in particular. Let's start with the vision for AMI. What is it they're seeking to break through on?

31:56Ed Ludlow:Sure. I mean, Jan LeCun has been a long critic of LLMs being the best way to advance AI. So Ami is a new company that's focused on world models. The idea is that they are going to be able to integrate with enterprises like robotics companies or car manufacturers and help build AI that can operate in the real world versus being something that consumers, everyday consumers, interact with via chatbots. And so less focused on text and think more around spatial data, visual data, and trying to operate, again, in real world and real industries. And maybe even the future of defense. There are so many interesting parts to this story, Natasha, that I want to dig in on.

32:39Ed Ludlow:But what caught my eye is someone who sat in New York. They're not going to be in Silicon Valley. This is because they really feel that there's, what did he call it, that they've been LLM-pilled there. This is a European story at its heart, but it's also a non-Silicon Valley one. You're exactly right. I mean, this is one of the largest venture rounds raised ever in Europe. And it is actively one that has not included a lot of the traditional Silicon Valley investors. When I asked Jan about that decision, he said that Silicon Valley investors were looking for really high ownership in the business.

33:13Ed Ludlow:And he believed that it was important to try and attract talent that wasn't just focused on building within the large language models, which means not going to where people are working for Anthropic, OpenAI, even his former employer, Meta, and trying to go to different geographies. Now, I did ask if he will have to raise from Silicon Valley eventually, and he said he's definitely open to that for his next round.

33:37Caroline Hyde:Lacoon was at Meta for almost 15 years, well, more than 10 years at least. Is there any evidence or reporting that that's the way they go, some kind of relationship with Meta, some collaborative work, something like that?

33:52Ed Ludlow:Yeah. So at this point, Meta was not listed as an investor in the new business, but we did ask him about possible partnerships, which he did confirm. So while the average consumer may not interact with his new company through a chatbot, there's not too far of a world where we could see it showing up in the Meta Ray-Bans or other AI wearables that Meta is working on. So we're definitely tracking the possible partnership. and he confirmed that there are ongoing discussions there. Natasha Mascarenas, just scoop after scoop. We so appreciate you coming on with that reporting. Let's now talk about another funding or indeed relationship.

34:28Ed Ludlow:NVIDIA is investing in Thinking Machines Lab. It's an AI startup founded by OpenAI executive Mira Mirati. Now, NVIDIA is set to provide its Viral Rubin systems to power Thinking Machines' AI models as part of a multi-year agreement. Bloomberg AI reporter Rachel Metz joins us some more. So what is Thinking Machines Lab doing? Yeah, so this company, they are building their own AI models and they have a deal that they just announced with NVIDIA. They're getting investment from NVIDIA and they are also going to be using quite a lot of NVIDIA's chip power to train and run their AI models.

35:07Caroline Hyde:I posted your story on X and, you know, noting that up to a gigawatt of Verirubin or a minimum of a gigawatt, sorry, Verirubin systems, like that's a lot of compute. But the unknowns are, is NVIDIA making this investment in cash or chips in lieu of cash? We just don't know. And the response that everyone gets back is, so what does Thinking Machines do? What is Thinking Machines other than AI?

35:30Ed Ludlow:Okay. So, so far, Thinking Machines has released one product and it is called Tinker. and it came out last year. And that is a software that companies can use to fine-tune AI models. What they're working on as well is some AI models. It's not quite known yet what the details of those are. It sounds like they will be things that will be useful to a range of enterprises, but it's not entirely clear yet if they're going to be focused on specific uses or if it's going to be a more general kind of thing like the models that underpin, say, ChatGPT or Claude. To have just issued or developed a model called Tinker and already be talked of as in the realm of a$50 billion market capitalization, it's on us to remind ourselves why Mira Morati is taken so seriously by this market.

36:21Ed Ludlow:For a hot second, she led OpenAI, but really she was the CTO, right? Yes, she was the CTO of OpenAI. She's worked at a number of tech companies over the years. So she's been in the industry for quite a long time. I think the challenge that she's facing here with this company is, can she build large language models? Not just can she build them. A handful of companies can build them. They require, obviously, a lot of money, a lot of expertise, and a lot of data. But also, can she then convince companies or some other form of customer to pay for them? Tinker is an effort to help people fine-tune models.

37:03Ed Ludlow:So it's not quite up to having, it's not the same as having a model and then having people use it. But that was sort of their first step into business and they do have customers for that. So it'll be interesting to see over the next year or so what happens with their business.

37:19Caroline Hyde:We'd reported at the end of last year that Thinking Machines was going out doing an early round at like a$50 billion valuation when it was basically a handful of people. And then what followed was all kinds of media reports about internally things not being well, right? People leaving. We never really got to the bottom of it. I mean, this is a big piece of news for them, but do we have a sense of how it's going otherwise beyond getting the backing of NVIDIA?

37:47Ed Ludlow:Yeah, that is a bit of a question mark. We know that the company has about 100 employees. And it has, as you mentioned, it recently lost some employees who went back to OpenAI. Initially, when Mira Moradi started this company, she started it with a quite a number of people that came from OpenAI. So that was certainly a signal that people were going back to that company that they had come from. But I mean, I think this is still a very new company. And sometimes these things take time to get going, get off the ground. And we'll see what happens throughout the rest of this year.

38:23Caroline Hyde:Bloomberg's Rectal Metz, top reporting. Thank you very much. Now, coming up on the show, HPE exceeds expectations on its forecast for the current quarter. It's all about AI demand and all about AI hardware demand. We're going to discuss what's driving that outlet next with HPE's CEO, Antonio Neri. This is Bloomberg Tech.

38:50Antonio Neri:Stretch out and enjoy spacious accommodations and home-like amenities designed to help you settle in and stay productive or relaxed for however long you need. And when you're a Sonesta Travel Pass member, staying at Sonesta ES and Simply Suites means earning points toward free nights, upgrades, and more with every eligible stay. Go to Sonesta.com to book your stay and unlock the best rates with Sonesta Travel Pass. Here today, roam tomorrow. Join now at Sonesta.com. Terms and conditions apply. Support for the show comes from Public. Lately, it feels like there are two types of investing platforms.

39:25Antonio Neri:Some are traditional brokerages that haven't changed much in decades, and others feel less like investing and more like a game. Public is positioned differently. It's an investing platform for people who are serious about building their wealth. On Public, you can build a portfolio of stocks, options, bonds, crypto without all the bugs or the confetti. Retirement accounts, Yep. High yield cash. Yes, again. They even have direct indexing. Public has modern design, powerful tools, and customer support that actually helps. Go to public.com slash market and earn an uncapped 1 % bonus when you transfer your portfolio.

40:01Antonio Neri:That's public.com slash market.

40:15Antonio Neri:See complete disclosures at public.com slash disclosures. So there's a lot of noise about AI, but time's too tight for more promises.

40:22Caroline Hyde:So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions. Not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off.

40:43Antonio Neri:deep in the work that moves the business. Let's create smarter business, IBM.

40:55Caroline Hyde:Shares of HPE modestly higher up, about six-tenths of 1%. Been chopping around in the session, but the company gave a strong sales and revenue projection for the current quarter. What's driving it? Demand. Demand for AI hardware in particular. Let's discuss with HPE CEO Antonio Neri. And let's start with that. You know, clearly there is some staying power in that demand at RAC scale. You know, crystallize it for us. What are you seeing in real time?

41:23Antonio Neri:Yeah, good morning, Ed, and thanks for having me. We saw tremendous demand throughout the quarter. I think the momentum in AI continues in the build out of the data center. But what I'm really pleased is the momentum we see in enterprise. In fact, most of our revenue in AI that we recognize in Q1 came from the enterprise segment, which shows you two key elements. One is the adoption of agentic AI into the company's workflow, and second is the growing of inferencing. A lot of focus is always around the training and training these new models, but for us, our focus being both the sovereign space and the inferencing and the enterprise space.

42:04Antonio Neri:But in our portfolio, we saw tremendous momentum in networking. Our strategy with Juniors has paid off. And that's why we see double digits year over year growth in the order intake.

42:16Caroline Hyde:You know, post Juniper networking is upside for you, right? I think you have a lot of confidence that growth will come in networking. For the audience that doesn't understand what it is you do in that space, Why is networking on the rise in parallel with just kind of the broader AI hardware demand that you're seeing?

42:36Antonio Neri:Well, I do believe, Ed, and this was the core thesis of the Juniper acquisition, that the next inflection point in terms of disruption will come from the networking connectivity layer. Think about when you build a data center, you have to connect this data center to other data centers through the Internet. And that's what we call data center interconnect. Juniper has one of the most innovative products in the routing space. By the way, this past quarter we grew mid 20 % in order intake. And then once you are inside the data center, you need to be able to connect large amounts of GPUs and CPUs together.

43:14Antonio Neri:And that's why you need the data center switching portfolio in addition to some of the other core tenants of the technology. And there, you know, the Juniper portfolio grew mid 40 % in the order intake. So I will say for us, that has been a core tenant. That's why, you know, now they represent almost 30 % of the company revenues, but more than half of the profit. And for us, that's also an ability to raise the outlook for the remainder of the year and also the outlook in free cash flow because the structural margins of that business and the working capital efficiency are very, very different than the rest of the portfolio.

43:53Ed Ludlow:I mean, you actually said that you're not done raising prices. You talk about discipline in what is a very dynamic environment, Antonio. Talk to us about how you're weathering the supply chain issue, in particular, the cost, the memory costs at the moment. How do you navigate that?

44:09Antonio Neri:Yeah, I mean, obviously, the demand in supply has a huge mismatch. And you actually need to go back all the 22, 23 timeframe to understand how we got here, accelerated by the hypercycle we see in the AI space. But fundamentally, in our guidance, the new guidance, the new outlook that we raised for 2026, we included our ability to see the supply that we need to convert that into revenue and profit. But the reality is that we do not have enough supply against the order intake and the backlog because otherwise we'll have even a higher outlook. So what we're doing, we have taken three very unique steps.

44:52Antonio Neri:Number one is securing as much supply as we can. But again, we don't have all the supply that we would like to have. Number two is taking a very agile posture when it comes down to pricing. And as I said yesterday, we are not done raising pricing. I think that that cycle will continue well into 2027, although we will hope that we will reach some sort of elevated pricing stability in 2026. And number three, you know, my experience has taught me that ultimately you need to have direct, transparent conversation both with customers and our partners. Last week I was in Europe. I met more than 20 customers at the Mobile Congress in London.

45:34Antonio Neri:And they appreciate that level of transparency, understanding the environment we're in.

45:38Ed Ludlow:I mean, you're actually foregoing supplying some equipment to mobile service providers. So you're being choosy with who you work with. At this time of geopolitical angst, and when we question how much the Middle East is going to be able to build out the data center capacity as we'd once thought, has the Iran conflict impacted your view on the world or indeed the supply of the world and chips?

46:00Antonio Neri:Not on the supply side, Carol, and obviously our first priority, because we have businesses in that region, whether it's EUE, Qatar, Bahrain, South Arabia, Israel, right, is the well-being, the safety of our employees. We have approximately 1 ,000 employees in that region, and the good revenues all are doing well at this point in time. But from a supply perspective, no. But obviously as the conflict may get elongated, it may have other implications, particularly on the logistics side of the equation. You know, look, air freight routes are a little bit more complicated. We don't use boats or ships for transporting our equipments.

46:42Antonio Neri:But over time, we have to assess if there is a revenue impact. What I can tell you right now, there is even more demand than we saw, particularly three, four months ago. So we have to navigate that together and we have to be smart about it.

46:56Caroline Hyde:Antonio, you have never let me tear apart an HPE server and that's okay. But if I got my hands in the compute tray, you'd have the high bandwidth memory around the GPU, wherever it comes from. You'd have the DDRs around the CPU and somewhere you'd have the SSDs, NAND, flash memory. Be very, very specific. Of those three, what's the biggest impact to you right now in constraining your sales and your outlook?

47:22Antonio Neri:Very simply, it's DDR and NAND, or the SSDs. HBMs, less constrained, but obviously a lot of the allocation on the capacity has moved there. And as you know, there is also transition from the prior generation of HBMs to the new generation of HBMs, because you need more memory channels. But it's really the DDR4, which now nobody almost uses, but DDR5 and the NAND part, which is SSDs.

47:52Ed Ludlow:You said just earlier, look, one of the three key steps you took was to get as much supply as you could and to ensure that that was locked in. You wish you could have more. Who is it that you need to push more? Who is it that you need to have more security for? How can you perhaps get hands-on further supply going forward?

48:09Antonio Neri:Look, we have a long-standing relationship with the three core suppliers that provide DDR memory and HBMs. And there is a little bit larger ecosystem for the NAND space. But we're having weekly engagements with them. We are looking to swap components, driving different configurations. But the reality, all of them are significantly constrained, Caroline.

48:36Caroline Hyde:Antonio, just 20 seconds. What's the dollar figure, dollar terms of what was left on the table? How much better the outlook could have been?

48:45Antonio Neri:Yeah, it's pretty sizable, I will say. We guided five pennies on the midpoint of the range. And then we raised our outlook for free cash flow by almost 200 million at the midpoint. But the backlog is very, very large at this point in time. If you think about the AI system backlog, it's over 5 billion. we raise again the networking for networks for AI goal for the end of the year so it's a very sizable backlog so we hope we make progress as we go along but we categorize, we level this as a prudent guidance at this point in time

49:23Ed Ludlow:Antonio Neri, CEO of HPE thanks for the candid conversation, we appreciate it now that does it for this edition of Bloomberg Tech Ed

49:30Caroline Hyde:great interviews, great Bloomberg reporting, recap it on the podcast you're aware to find it on the terminal and online on Apple, Spotify, and iHeart. This is Bloomberg Tech.

49:42Caroline Hyde:With the Venmo debit card,

49:44Antonio Neri:a taco in one hand and ordering a ride in the other means you're stacking your rewards. Nice.

49:50Caroline Hyde:Get up to 5 % cash back with Venmo Stash on your favorite brands when you pay with your Venmo debit card. From takeout to ride shares,

49:57Antonio Neri:entertainment and more. Pick a bundle with your go-tos and start earning cash back at those brands. Do more stash, get more cash. Venmo Stash Bundle Terms and Exclusions Apply. See terms at venmo.me slash stash terms. Max$100 cash back per month. Ryan Reynolds here from Mint Mobile. I don't know if you knew this, but anyone can get the same premium wireless for$15 a month plan that I've been enjoying. It's not just for celebrities. So do like I did and have one of your assistant's assistants switch you to Mint Mobile today. I'm told it's super easy to do at mintmobile.com slash switch.

50:29Ed Ludlow:Upfront payment of$45 for a three-month plan, equivalent to$15 per month required. Intro rate first three months only, then full price plan options available. Taxes and fees extra. See full terms at MintMobile.com.

50:41Antonio Neri:Friends Like These, The Murder of Skylar Nees is now streaming on Hulu and Hulu on Disney+.

50:46Caroline Hyde:911, do you have an emergency? I have a 16-year-old daughter.

50:49Antonio Neri:Can't get a hold of her. I am scared to death.

50:51Caroline Hyde:We wanted to talk to Skylar's friends.

50:54Antonio Neri:They're not telling the full story. The truth is gruesomely horrific.

50:57Ed Ludlow:How could you do this to your best friend?

51:00Antonio Neri:There's a darker secret that's not been said. Watch the new Hulu original series, Friends Like These, The Murder of Skylar Nees, on Hulu and Hulu on Disney+. For bundle subscribers, terms apply.