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23:34If someone has very high quality data, they get paid more. And we've built a model to figure out what this value is, what this marginal contribution is. And it draws apart from this game-theoretic concept called Shapley Values. Let's talk about the Shapley value. It's contribution to the work performed by an AI agent. So basically, instead of content access crawls or citations, you consider the value. I mean, but where's the monetary number coming from? What are you pegging it against? And how? How do you work out what the NADI agent has eventually learned itself off of? Well, Shapley Values has been my obsession for the last three years as we've been working on this.

24:15So just in a sentence, what Shapley Values is, is about like if a few people decide to collaborate on building something in a positive some way where the whole is bigger than the sum of parts. The question is, how do you divide up this value? And Shapley value is the concept that tells us the way to divide this value so that everyone is incentivized to participate. The net outcome of using this concept to reward content owners, it creates three really nice properties. One, high quality content gets paid more. Number two, content that gets used in high value work gets paid more. And most importantly, as agents do more work and create more value, content owners grow alongside them, which we believe allows content creation on the web to be sustainable.

25:06There are a lot of content creators out there right now. So how do they sign up to Index? How do you make sure that it's not just quite large either individuals who are writing, I think of Alex Heath, or it's actually those that have got a minor substack, but with really valuable content that somehow the agent has managed to access? How do they access that? Yeah, with Index today, we're announcing a collection of launch partners. These span premium news publishers like The Atlantic and Fortune to really draw factual amazing content from the PR newswire, business intelligence and data providers like PitchBook and Traction and ZoomInfo, as well as independent creators like Alex Heath, Azimazar, and several others.

25:51The really interesting part about this is that we want everyone, all content owners, big and small, to be able to participate in this economy. And we want all agents, not just ones built by large providers, to be able to get access to all of this amazing content.

26:08Caroline Hyde:We just have 60 seconds, but can I ask you about X, the platform for me known as Twitter? Of course. You're still using it, your view of it, and as part of XAI, as part of SpaceX. I'm still using it. I'm still calling it Twitter. I think we built a product over a decade that I was there, which endures in value forever. And I'm really proud of the platform that we created. It allows the theme of content access and democratization out in the open versus in permission groups. And that theme is what carries forward into my current company parallel, where the goal is to have as much content as possible out in the open for everyone to have access to.

26:53everyone's agents to have access to instead of just a few. And be compensated. Parallel CEO, Raghagawal. It's great to have some time with you. Thank you for coming on. Now, coming up, we dive into Meta's mega data center plans in Louisiana and some of the hiccups along the way. From New York, from San Francisco, this is Bloomberg Tech.

27:31Caroline Hyde:Welcome back to Bloomberg Tech. There's still a semiconductor story in financial markets. And looking at the stocks of the Philadelphia Semiconductor Index, we're down for a third straight day. A part of this is kind of a breather after what we were calling the melt-up. The performance in chip stocks since the end of March was astonishing. But there's also this element that we are really close to correction territory. In three days, at one point in the session, we're down almost 10%, as Cara pointed out earlier. NVIDIA is a part of it, right? And the idea that post-President Trump's visit to China, we don't really have a net conclusion of what's going on, but we get NVIDIA earnings on Wednesday.

28:09Caroline Hyde:So fresh off his trip to Beijing, NVIDIA CEO Jensen Wang says he's confident the Chinese market will eventually open back up to his company. Dell CEO Michael Dell shared the optimism for economic collaboration as well. Here's what both leaders told me at Dell World in Las Vegas yesterday. The president wants America to win everywhere. Right. The president wants America to lead the AI revolution. And so H200s are licensed to sell to China. The Chinese government has to decide how much of their local market do they want to protect and how much of their local market do they want to expand with more AI capacity?

28:49My sense is that the demand in China is so incredible. Just like it is here, agentic AI is also making enormous progress there. My sense is that over time, the market will open. President Xi was very clear that he wants China to be an even wider open market. Premier Li Chang was very straightforward and to explain very eloquently that China will be in an open market. So I'm looking forward to China being a more open market.

29:20Caroline Hyde:To clarify, Jesse, you were able to meet with those officials directly to discuss whether or not you can sell to those Chinese tech companies. I didn't discuss directly with them about H200. I was there to represent the United States, and I was honored to do so. I was there to support President Trump, and really glad to do so. But that was really the focus of my trip. President Trump had some conversations with the leaders. And I'm looking forward to what they decide. Michael, you did not go to China. But I think what's interesting is you are a member of the President's Council of Advisors for Science and Technology, as is Jensen.

29:57Caroline Hyde:Your net conclusion on whether or not China will become open to American technology companies to do business there? You know, we have a business in China. Obviously, we comply with all the restrictions and various controls that are in place. But I hope that there's more economic collaboration between the United States and China. That ultimately is what will lead to greater outcomes of prosperity for everyone and a greater likelihood of a successful relationship between the countries and around the world. Dell CEO, Michael Dell, of course, NVIDIA CEO, Jensen Wang, speaking there with Ed yesterday.

30:41And let's just revisit today's big number. With Meta reassigning 7 ,000 workers to new jobs. Of course, they're related to AI. An internal memo from Chief People Officer Janelle Gale, viewed by Bloomberg, reveals employees will move into one of several new groups focused on AI-related products, including agents and apps. The new corporate structure will, quote, be flatter and have smaller teams. Now, this comes as the company is getting ready, of course, to cut 10 % of its staff this week as part of an effort to, as they say, improve efficiency.

31:11Caroline Hyde:Yeah, sticking with Meta's big AI plans, Mark Zuckerberg's plan to build the world's biggest AI facility has enmeshed his company deeply in Louisiana's politics and economy. The project's providing an economic boost to one of the nation's poorest regions, but also bringing a host of growing pains. Thanks. Bloomberg's Riley Griffin joins us more with the big take. And there's big readership on this, a lot of interest. You did what every good beat reporter does. You go there. You see what's happening on the ground. The headline is$200 billion, right? That's the commitment. What is happening with Meta in Louisiana?

31:49Yeah, a really important point here is that$200 billion spend that Meta is thinking about with Richland Parish and its data center there is largely about the chips. This is going to be a five gigawatt of compute capacity data center, another 2.5 gigawatts to support the broader campus, which is spanning nearly 4 ,000 acres. President Donald Trump has said that this is going to be a Manhattan-sized project after speaking with Mark Zuckerberg. But a lot of that spend isn't going directly into the community. It's going into the chips inside the facilities. And we still have to ask the question, what does this mean for the people of Richland Parish in the Louisiana Delta, a region that has struggled for decades and where farmers are really losing$400 on every acre of cotton they sow right now.

32:34Well, let's go to Dustin Morris, because you paint a picture of how his economic reality is currently. He's a soybean, a corn farmer, and he's flying around his own land trying to work out whether it's the right time to be selling out, right? Yeah, it's a story of expected land rush, right? As with all of the data center stories of this size around the United States, many of them shifting into rural regions, particularly in the South. And people are looking around and wondering, you know, do I trade this history? Do I trade this land? Do I trade this crop for a data center? And it was, I mean, it was really an honor to be able to go multiple times to Richland Parish and hear their concerns and think about the way they're looking at Meta as a lifeline.

33:20And I, over years... Let me jump in.

33:22Caroline Hyde:What are Meta saying about that? Like, what's Meta's response to it? And what do people genuinely feel about the company? Are you even aware it's Meta building there? Well, it took some time. Meta hashed out this deal over the course of a year in private. Meta is certainly saying they want to be there in the thick of it with the community. They're investing in the schools. There's actually a school at the corner of the data center. There are discussions about whether it should be moved. I have heard that Meta is reviewing plans. So they're in the trenches. But notably, Meta is only bringing 500 jobs.

33:54This is a community that's looked for 5 ,000 over the years from an auto manufacturer and has been unable to court that. So will 500 jobs be enough to provide that economic lifeline long term? I'm not sure.

34:06Caroline Hyde:That's Riley Griffin with the big take, top of the website and the Bloomberg Terminal. Caro, there's plenty more news out there today. There is. It's time now for Talking Tech Ed. And first up, Chinese AI pioneer Moonshot is restructuring to secure its path to public markets. Now, the developer of the popular Kimi chatbot has informed investors it will revamp its corporate structure to comply with Beijing's rules and pave the way for a highly anticipated Hong Kong IPO. Speaking of which, Chinese robotics unicorn Linkobot is exploring a Hong Kong IPO that could launch as early as this year. and the maker of highly dexterous robotic hands is targeting a$6 billion valuation and counts Samsung, Tencent, among its clients.

34:44And China's demographic time clock is triggering an unprecedented automation boom. A new report from Barclays shows humanoid robots could offset as much as 60 % of that labor decline by 2035, turning what is a structural crisis into a hardware gold rush. Ed.

35:03Caroline Hyde:Coming up, we're going to go live from the JP Morgan Tech Media and Communications Conference, and we'll hear from Laurie Beer, JP Morgan, Global, CIO. That conversation next. This is Bloomberg Tech.

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37:25Caroline Hyde:Let's get out to the J.P. Morgan Tech Media and Communications Conference in Boston, where Bloomberg Surveillance co-host Lisa Abramovitz is standing by. Lisa. Thank you so much, Ed. I am here at the J.P. Morgan Conference for Technology, Media and Communications. And I'm here with Laurie Beer, the Chief Information Officer for J.P. Morgan. And Lori, wonderful to speak with you. In many ways, you are the woman of the moment because you have to understand how to oversee change that seems to be happening at an accelerating pace. Can you give a sense of just how quickly it has accelerated from, say, six months ago, a year ago to right now?

38:02Yeah, I think it's an amazing moment, first of all, to be in technology and to be in financial services. And we definitely saw the Gen 1 tools come out a couple of years ago. the last six months have rapidly accelerated. Not only new models getting created, but how we're able to apply them. And so it really ties back to how do we think about driving and adapting change so quickly? Yeah. One thing, it's created a lot of nervousness, a lot of anxiety. There was a story that was out this morning about Standard Charter CEO coming out and saying he was going to cut 50 % of staff, support staff, and removing lower value human capital and replacing it with AI tools and investment in AI.

38:46What's real, what's not when it comes to sort of the mass job cuts? What's been your experience? Yeah. So overall, we've seen definitely productivity opportunities. So even when we think about technology, we've seen 10 to 20 to 30 % improvement just from the initial generation one tools. As you look to a Gentic, you're going to see even more, but there's a huge demand. There's a huge demand to create new products and services and experiences for our customers. We're using AI to figure out new products to offer. And frankly, when you think about the other side of it, the AI is also creating increased cybersecurity risks.

39:21So how do we think about also accelerating the investments to protect our customers and clients too? So the demand remains significant and we're able to get a lot more done than we have historically. How scary is mythos. So with mythos, AI in general, but it's really good on both sides of the equation. One, to understand vulnerabilities. And so the key with that and any other AI is how do we capture those? How do we clearinghouse those? How do we update those in a safe and secure way? But on the other side of this, as you apply these models into the software development process, we're going to have safer and more secure software.

40:06On the flip side, our cyber teams can use the power of these models to be able to protect, defend, identify fraud, identify issues more quickly. So there's really two sides of this equation to think about. Based on how quickly you see technology shifting and what tools are really coming to the fore, how does the mindset have to shift of the people who work for you? Yeah, I think it's a great question. The technology is amazing. I think this is truly a shift, a transformational shift in technology where this is getting embedded in horizontally across all layers of the stack. The harder part is the change management and the leadership.

40:44And I think really thinking about where are things going, we don't know all the answers. So how do you navigate change in an uncertainty? It's still very early innings. So it's really had to shift from how do we help guide our teams, How do we make sure our software engineers understand what's coming? My management team spends a lot of time on the weekends building their own apps. Pick your favorite coding, authentic coding tool. But it helps them understand what's coming. And I think this is a moment where leaders, in addition to software engineers, truly have to understand the change. And we have to understand, you know, how do we actually create an environment that allows us to pivot and navigate when times are uncertain and really make sure we don't lose track of what's really important.

41:31How do we deliver products and services and experience for our customers and clients? How do you balance innovation with risk? And the idea of the tried and true, you need to do this project versus moonshot projects. Yeah, I think this is one of the most interesting times when you have to think about the balance of innovation and risk-taking. We wouldn't be in business as long as we have been if we haven't driven a lot of innovation historically. but we're also in the business of managing risk. And so I think in this moment, you have to really think about going at the appropriate speed of innovation.

42:04Some of these moonshots are becoming real. And so you have to move aggressively at the innovation front, but we obviously are a business of trust and we have to make sure our customers, our clients, the bank is protected every day. And so finding this balance and actually, again, using these capabilities to also protect ourselves. And so it's this really interesting time. While along with that, you don't necessarily know who's going to win in the end. And so making sure we're not locking ourself in to one provider or one scenario. And we're constantly testing, sandboxing what's on the horizon in the future.

42:44Does it change your decision whether to build or buy in terms of different software solutions? You know, it's been interesting because over the last several years, we've made sure that we're really focusing our engineering community. And we have a large engineering community on building the things that are competitively differentiating and create value for our customers and clients. And over time, you have to balance where that still makes a lot of sense and where we focus our energy on those unique products and services for our customers and clients. And so when you think about the balance of trade and the fact that software engineering overall is increasing in speed and it is more cost effective when you look at the end to end product development lifecycle, you know, there are different tradeoffs you would consider in making those build versus buy decisions.

43:33but you're always going to have some of those enterprise software solutions, frankly, that aren't competitively differentiated, that sort of help us run the bank without delivering those unique products and services. Just 20 seconds. Do you think that we're going to be able to recognize what banking looks like, say, in 10 years? I think we're watching it transform as we speak right now. At the end of the day, we have to maintain that trust with customers and clients, and we have to make sure that their unique needs are served across the over 100 countries we operate in. But how we do it and the products and services will absolutely evolve over the next several years.

44:09Caroline, that is Laurie Beer, the Chief Information Officer at GPMorgan. I'll send it back to you. What a great day. What a great set of interviews. Thank you, Bloomberg Surveillance co-host Lisa Abramowitz there. And we've got some breaking news in the meantime.

44:23Caroline Hyde:Yeah, some breaking news on the terminal about Apple. Apple Chief Hardware Officer Johnny Shrugy is reorganizing hardware development and shifting oversight of key functions such as product design, part of an effort to speed up work on future devices. Sources say the hardware shakeup is also meant to better integrate teams working on in-house silicon with those that are creating products. And, of course, Bloomberg's Mark Gurman, the one carrier that broke the story. Some other details, Shelley Goldberg, Dave Pakula are now going to oversee product design. maybe not names as familiar to the Bloomberg Tech audience, but in this new era for Apple, a lot of focus on who's right at the top and running the show.

45:03They'll become known. Ed, thanks. Meanwhile, coming up, look, we're going to be speaking with Armada CEO Dan Wright as the company raises$230 million in a Series B funding, boosting its valuation to$2 billion and some new strategic investors and big projects for the hyperscaler for the edge. This is Bloomberg Tech.

45:26Caroline Hyde:Some more breaking news crossing the Bloomberg terminal. OpenAI founding member Andrei Karpathy says he's joined rival Anthropic. In a post on X, Karpathy says he will be working on R &D with Anthropic and be focused on helping train new AI models. Karpathy previously helped lead the team behind Tesla's autopilot system before then returning to OpenAI. He left the ChatGP maker for a second time last year and had launched a startup focused on AI and education. In that post, Carrey, he says that he's still passionate about education, plans to resume his work on that. But in the market of AI talent, this is a bit of a wow.

46:02Caroline Hyde:This is a big story that I didn't see coming breaking this morning. It certainly is. The wows keep coming. Meanwhile, let's talk about a fundraise now. Armada has just raised$230 million in an oversubscribed Series B round, boosting the company's valuation to a cool$2 billion. The company is also announcing a partnership with Johnson Controls to produce modular data centers. And they're at scale. Joining us now, Armada CEO Dan Wright. What's a modular data center? How are we going to be making it? Yeah, thanks so much for having me on. A modular data center is a full stack AI factory that you can deploy anywhere.

46:35And we can do it with the three S's. We call it speed, scale, and sovereignty. You can deploy these within weeks. You can scale up with demand versus traditional data centers. Sometimes you end up overbuilding or building the wrong thing. And then modular data centers also have the benefit that you can get sovereignty down to the site level. People used to talk about data sovereignty in terms of countries, but with increasingly sophisticated cyber attacks, now you want data sovereignty at the site level.

46:59Caroline Hyde:This is all about speed, movement, building. Funding, this helps you move even quicker, or what's the plan here? Yeah, so this round was co-led by Overmatch, 8090 Industries, as well as BlackRock, and really what it allows us to do is scale up to accelerate deployment of the USAI stack. As part of this, we're also announcing a global agreement with Johnson Controls, where starting with Galleon Forge 1 in Arizona, we're going to do continuous manufacturing of these modular data centers. And if you look at them, they kind of look like shipping containers. So they're easily transportable anywhere in the world.

47:36You can deploy them wherever you want. And the nice thing is you can use any source of power. And that's obviously important. Power is a big concern when it comes to data centers. Energy is distributed. We're saying compute should also be distributed. Where's the demand coming from exactly? Who wants these? Yeah, so energy companies, we're working with many of the largest energy companies in the world. All of them have a hard segregation between IT and OT, meaning that the only way to do anything with AI is to deploy the infrastructure on the rigs, on the refineries, and run those models behind the firewall at the edge.

48:09We're enabling that. They're all trying to be fully autonomous over the next few years. You need compute locally in order to enable that. And then also defense is a huge driver for us. For example, with the conflict in the Middle East, we got a call from an ally. They said, hey, we need one of these. Like immediately we were able to deploy within days. They called back, said we need more. We were able to ship more out. And who are your partners within this data center? I can understand that you're helping with the construction of it all, but still you need the chips from someone. You need the servers from someone.

48:36How are you bringing this all together? And how open are you to different types of partners? Well, I think that's actually part of the magic of Armada is that we built this ecosystem of amazing partners. And it's kind of like actually what the hyperscalers did 20 years ago, is you're bringing all of these different services and you're making them accessible to more people. That's what Armada is doing for the Edge is the hyperscaler for the Edge. And a good example of this, we just announced a partnership recently with Microsoft to bring Foundry, bring Azure Local, allow them to run, these customers to run services that they love from Microsoft, models that they run from Microsoft, at the Edge AirGap.

49:13Same thing, we announced a partnership with OpenAI. We announced one with NVIDIA, Dell, as well as Palantir,

49:19Caroline Hyde:bringing all those capabilities to the edge. So, Dan, real quick, I was with Michael Dell and Jensen Wong yesterday. The bigger theme is on-prem. People want, at the edge, their facility close to them. Is that an addressable market for you? We just have 30 seconds. Yeah, absolutely. I mean, that's what I believe is going to happen, is you're going to have sovereign AI factories. And really what that means is that every country and every company is going to have its own AI factory. and I know that Michael and Jensen would agree with me on that because they've been saying that publicly. And in order to do that, you need both the chips, you need the servers, and then you also need the infrastructure and that's what Armada's enabling as the hyperscaler for the edge.

49:57Caroline Hyde:Dan Wright, Armada CEO, back on Bloomberg Tech after a big fundraise. Great to have you back. Thank you very much. That does it for this edition of Bloomberg Tech, Caro. Yeah, you don't want to forget to check out this podcast. What a rich podcast we're going to be having. all eyes as we build up towards NVIDIA's earnings after the bell tomorrow. You can find it on the terminal as well as online on Apple, Spotify and iHeart. Ed, still a phenomenal interview from yesterday as well. Yeah. And, you know, the market is waiting. Anticipation for the NVIDIA print Wednesday night, post melt up in chip stocks.

50:30Caroline Hyde:Wow. This is Bloomberg Tech.

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