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23:58A small group of unauthorized users have accessed Anthropik's new AI model, Mythos. It's according to a person familiar with the matter and documentation viewed by Bloomberg News. Now, as you probably remember, Anthropik has said Mythos can enable dangerous cyber attacks. And because of that, the company only gave access to select users to help them probe their own systems vulnerabilities. Let's get the latest of Bloomberg's AI reporter, Rachel Metz. This caused quite the stir when you reported it last night. And what's so extraordinary is who's done it and how they did it. Rachel, these aren't people wanting to wreak havoc.

24:31They want to play with the thing. Exactly. Yeah, these are people that enjoy playing with new AI models. and they had been trying to figure out the names of various AI models for Anthropic in particular through a variety of techniques such as having some familiarity with what the online location of Anthropic's old models looked like, what that URL would look like, and using that to guess as to what it might be in the future.

25:02Caroline Hyde:so being very specific about this Rachel one of the uh of the group which was uh a discord community right had a contractor relationship with anthropic so had some sort of credentialed access but the rest of it was sleuthing right thinking where is the the the source code for this likely to be explain literally the mechanisms by which they found mythos sure so I mean the key piece here is that one of these people has worked as a contractor for a third party, not for Anthropic directly, but for a third party that works with Anthropic. And through that, they had a authentication that they would need in order to access certain models.

25:47With that, and then with some sleuthing that they did, including details that had been involved in data breaches online, and just their past experience. They sort of put these pieces together of what the online address could be for the Mythos model. And all those things together led them to be able to access it on the same day, they say, as when Anthropic announced it. I can't help but feel that this is terribly basic cybersecurity practice 101 that was missed here over at Anthropic. And what can this therefore mean when they're meant to be very carefully through Project Glasswing allowing other people to use it.

26:30Yeah, I mean, I think that's one of the things that the person that I spoke with was really concerned about. They are part of a small group that is just playing around with this. From what they said, they're not doing anything that they shouldn't be doing with it. Obviously accessing it in an unauthorized way, but not doing anything bad with it. they think, well, if it was this uncomplicated for us to get access to it, what does that mean for other people? Are there other people working for third-party contractors who could be nation state actors or something like that, that are using access, legit access seeming to technology and then getting access to mythos?

27:10Caroline Hyde:Right. The most read story across Bloomberg today, unauthorized access to mythos. Bloomberg's Rachel Metch, top reporting. Thank you. Coming up, SpaceX and Cursor are teaming up to, quote, create the world's best coding and knowledge work AI. We have the report next. It's half time. And this is Bloomberg Tech.

27:38Caroline Hyde:Welcome back to Bloomberg Tech. If you're just joining us, there are so many news headlines that are driving individual names in the markets. There's a report from the information that DeepSeek, the China-based Frontier Lab, is thinking about doing a round at a$20 billion value, but that specifically Alibaba and Tencent, who are not yet investors in DeepSeek, are considering participation. Right now, the US-listed shares of Alibaba up 1.3%. It did shoot up in the pre-market after that report hit. Again, that's from the information. We have not yet verified it, but it would be an interesting development, Caro, for China's domestic AI ecosystem.

28:17It certainly would be. And it just thinks about the story that we continue to hear of M &A in ecosystem, in AI ecosystem. And let's discuss that a little bit more closer to home. Elon Musk is moving to catch his rivals in AI coding tools through a potentially$60 billion deal. Now, SpaceX has secured the right to acquire AI startup Cursor, but it's not pulling the trigger just yet ahead of its IPO. But he goes, Natasha Mascarenas joins us now. and Natasha. So after much sort of excitement about Cursor and other companies looking to potentially purchase it, it looks as though SpaceX has got an edge.

28:52It sounds like it. I mean, this is a very unique, a very Elon Musk deal. It's the right to acquire Cursor later this year for$60 billion, like you said. If not, as we exclusively reported yesterday, the$10 billion dollar fee is actually being looked at as a breakup fee. And so in the next six months, what have you, we expect to see some sort of update there. And Cursor no longer need to look at venture capitalists for its compute needs for the short term as well.

29:23Caroline Hyde:So on that point, we had reported that Cursor was in talks to raise funds at a$50 billion valuation. I'm just going to point out the obvious, that SpaceX, which owns XAI now, has filed confidentially for an IPO. And on paper, this is a big piece of M &A, which would materially change the parameters of that S1. Give us the backstory. This is not straightforward, Natasha. Not straightforward at all. I mean, listen, to your point, we're not going to see, we're not expecting to see SpaceX make an acquisition right before the IPO. It would require a huge upheaval. However, I mean, this is a huge change to the SpaceX IPO narrative, right?

30:05About two months ago, Elon Musk announced that XAI and SpaceX were merging. Now we have this deal coming out of the woodwork. It's a huge update. And listen, I mean, I think Cursor shareholders are extremely happy with the news. Around this time last year, Cursor was anticipating being valued at around a$10 billion valuation. Now$10 billion is the breakup fee. And so talk about a huge change in sentiment around Cursor. Natasha, just remind us of the space in Vibe coding or coding more broadly as well, because it's very competitive, but also it feels as though XAI and SpaceX want to catch up here.

30:43Absolutely. I mean, this is the same reason that we saw Windsurf, another competitor, a once a standalone competitor to Cursor last year seek compute partnerships and opportunities with bigger technology companies. Windsurf, of course, saw its co-founders leave to join Google and Cognition, another coding company, acquired up the remaining assets. All of these companies are looking for more ways to secure compute. And so it's a deeply competitive environment. When the deal was announced yesterday on X, understandably, we saw Cursor CEO Michael Truel announce that first and foremost, this is a win for Cursor's agentic coding model.

31:22And so this is very much a response to the competitive environment because they need more and more compute and this solves that number one bottleneck.

31:30Caroline Hyde:Bloomberg's Natasha Mascarenas, thank you very much. Shares of T-Mobile in the US session are down 4%. Deutsche Telekom, which just closed trading in Europe, down 4.65%. Deutsche Telekom is said to be considering a merger with its US arm, a deal that would create the world's largest telecom company. That's all according to sources. For more, Bloomberg's Telekom reporter Kelsey Griffiths is with us. I don't know. I didn't have this on the bingo card, but there is a backstory, a shared history, particularly at the C-suite level. What are we reporting? What do we need to know? I can say I didn't have this on my bingo card either, Ed, but I do think that this is something that has been rumored in the telecom industry for a while.

32:14I had some sources tell me this was an open secret. This is something the T-Mobile parent company had thought about for a while. It comes and goes every few years and we're in one of those cycles. It's really interesting to see what could potentially happen here. According to our great colleagues reporting, there could be a holding company that would essentially bring in both the parent company, Deutsche Telekom, and T-Mobile and unite them under one sort of umbrella. What's wild? Tim Hurtges, who's over at Deutsche Telekom, has been frustrated for a while probably with the fact that Deutsche Telekom is worth less than T-Mobile, even though they own a little bit more than a majority of the U.S.

32:57arm. It sort of comes full circle. How is this going back in history in some ways? Right. We've seen a relationship, a back and forth relationship between the Deutsche Telekom parent company and T-Mobile U.S. The current T-Mobile US CEO, Srinya Gopalan, is actually a former T-Mobile or rather Deutsche Telekom CEO in Germany. So he has a close relationship with the current Deutsche Telekom CEO. They are really aligned on strategy. They're aligned on trying to increase profits, increase market share. And I've been told the two men are very close. So there is an alignment there. What we don't know is the reaction from T-Mobile domestically.

33:44It does seem like the alleged deal or potential deal would allow the parent company to kind of increase their control over this very profitable U.S. branch of the company. There's a lot of question marks, regulatory, about approvals, about whether it would spark more M &A in the U.S. And analysts are trying to get a grip on it as well as investors. Blueberry's Kelsey Griffiths, great to have you on. Thank you very much indeed. Coming up, an exclusive conversation with Vast Data CEO, Brennan Hallack, as the company hits a$30 billion valuation after raising another billion. This is Blueberry Tech.

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37:09Caroline Hyde:Software maker Vast Data has announced it's raised a$1 billion Series F round, more than tripling the company's valuation to$30 billion. Here to discuss is Vast Data CEO, Renan Halak. Some big numbers. Congratulations. You must be pleased. But Jensen Wong talks about this five-layer cake of AI. I think we're trying to understand what vast data does, what it is. You know, you describe yourself as an AI OS, but let's start there. What do you do? Yeah, the five-layer cake, Jensen made this analogy of power, chips, infrastructure, models, and applications. We're that middle layer. we try to fill in that software infrastructure layer of the stack.

37:59And we started from storage, building very large data storage systems. And then we added structure data with a database and a data engine to manage compute. And as we progress, more and more parts of that stack need to be filled out for AI to become widespread.

38:19Caroline Hyde:So here are some of the companies and groups that you work with, right? And there is all kinds of AI infrastructure, but NASA's on there as well. Pick anyone. Give us a case study of the work that you might do with one of those key customers. So, for example, with CoreWeave, they're the biggest AI cloud out there, and they're the way for us to get to these new AI startups, companies like Cursor and a lot of others, as well as the large AI companies out there. They're serving everybody, and we're helping them, again, provide those cloud services by having that software infrastructure layer in place.

39:02The money, Renan. What is it that you need the money for, and why, potentially, do you need even more money? You're considering potentially an IPO by the end of this year. So we don't need the money, is the honest answer. in parallel to tripling the business roughly year over year. We've been very efficient in the way that we build the company. We've been generating quite a bit of cash. In fact, on the rule of 40, we have a rule of 228 as of last year. The funding round is partially primary, partially secondary. And we expect to continue to grow the business with a very, very strong balance sheet to give our customers confidence that they can make very large bets on us.

39:48A lot of American-focused customers that we just saw, but you have been going global. And it's interesting that you've taken funds from UAE, from Singapore. How are you seeing the global expansion of fast data? So wherever AI is, that's where we see very fast growth. It's been surprising at times. The Middle East, Singapore are places that are moving faster. than some of your more traditional markets. Still, still the Middle East is running at this moment where people perhaps question how much they can focus in on investing on AI, particularly in the UAE, when we're concerned about geopolitics and war.

40:27I think that's a temporary thing. Hopefully we come out of the other end stronger and safer. Definitely the last couple of months have been challenging, but if I look at five years out, ten years out, I still think the UAE can leapfrog over a lot of other countries.

40:43Caroline Hyde:Dear Bloomberg Tech audience member, the rule of 40 is something that software companies do, where they think their revenue growth and their profit margin should combined be above 40%. But you know, Renan, the other type of company that talks about the rule of 40 is one that thinks about going public. Is that in your plans? We don't have a timeline. We've definitely been preparing. Amy, our CFO, she came about 18 months ago from Shopify, and she's been working very diligently to make us ready to be a public company. My best guess is that sometime later in this year, we will be ready for IPO, and then we'll need to decide if and when to pull that trigger.

41:28Caroline Hyde:In your world generally, particularly the data layer of what's happening in AI, or Cursor, that was a nut story, SpaceX, the right to acquire Cursor. What do you think it is that the market's assigning value to? What is it that they see in companies like yours and say, wow, yeah, this is worth the premium? So SpaceX, Cursor, amazing examples, XAI, all of which have been longstanding customers of ours. We love to see this type of consolidation happen when AI companies and AI teams work together to build even faster and even bigger things. And that's what we enable. Our system enables very, very large scale, very large capacity and ability to store vast amounts of information and give access to that information to the largest GPU clusters in the world.

42:22It allows our customers to organize their data, to make sense of it, to generate insight from it, and to build these new workloads in a way that could not be built before. Renan Halleck of Vast Data, raising a billion at a$30 billion valuation and mulling an IPO by the end of the year. We really appreciate you coming on. Come back soon. Have a feeling you might. Meanwhile, a new global report from KPMG finds that nearly three quarters of business leaders say, look, AI will be a top investment priority, even if recession occurs over the next year. Look, while the average global firm plans to invest about$186 million in AI in that span, there's a significant value gap.

43:01Nearly all have an AI strategy, but only 8 % are seeing a clear return on that investment. Rahsaan Shias, KPMG principal and AIQ program lead, joined us now to discuss this data. And you're going around surveying big companies with big revenue flows. And no matter what, they're all still all in on the AI investment, even without an ROI. Absolutely. We see spend, if we look at the survey results, are double what we saw in Q1 2025. And in the U.S., that's$207 million. If we look out in Asia-Pac, it's over$240 million. And so there's no turning back. Everyone is all in. And what you just heard earlier today on the show is there are new capabilities that are coming out that allow our clients and companies to expand from pilots who are across the enterprise.

43:50And that requires this level of spend. This level of spend needs to be met with capability and with training. And, Rahsaan, when people are spending that amount, what are they actually spending it on? Yeah, we are seeing them do everything from take agents to reimagine workflows across the enterprise to upskilling their professionals, right? They are hiring some, but really it's about upskilling their existing resources because they have the depth of knowledge about their organizations to allow them to get the most from AI. And so we're calling this the great skill reset because there's so much investment and so much focus on the human element to optimize AI in this day.

44:32Additionally, there's lots of focus on governance and making sure that organizations are addressing the risks associated with the expansion of AI across the enterprise, from data privacy to security to the ability to actually deliver their products to their clients in a way that their clients will trust.

44:54Caroline Hyde:a conclusion of the survey which is of 2100 c-suite names and and the report is that ai agent adoption is accelerating but what i found interesting within the data is to me it seems like from a low base you're saying 32 percent of those surveys are actually deploying agents does that come across to you as a low base it's not a low base because what we saw in earlier results was that everyone was in this pilot mode. And actually, we see a dip of those companies that are piloting only from 61 % down to 30%. And so what you see in this is this shift. And so we're excited for next quarter's results because we expect with the introduction of new capabilities, the increase in available compute, that we are going to see this number continue to grow at a very rapid clip.

45:46And that's what our clients are coming to us and saying they need to enable in their organizations in order to actually, which you mentioned earlier, get to that value and see that value at scale across their enterprise.

45:59Caroline Hyde:Because a company like Salesforce, for example, which is just one example, but they are at the forefront of at least marketing the virtues of an AI agent. They get criticized for actually converting that into sales and then have customers do something meaningful with it. So the other data point is that 27 % of those you surveyed have multiple agents. It's more than one. Where are you seeing the sort of economic benefit being generated? People making revenues from the investment they've made. Yeah, it's absolutely from either enabling new services. So we're seeing lots of that where they're able to enter new markets.

46:36The second is allowing for vertical integration of services with other providers. to be able to deliver things in a different way. And then lastly, looking at the key economic levers of any organization and how they can take not only costs out of that, but actually increase speed. Right now, the currency is speed to execute. And so it's either to get new services out or to deliver what you do today in new and different ways. It's what we're doing as an organization. It's what we see our clients doing that is driving the ability to get to that value. Rahsaan, this is a B2B conversation, and rightly so.

47:13I want to talk to the disconnect that's happening at the moment. You talk about the skilling of the workforce. I just think about what's happening online, Reese Witherspoon daring to dip her toe into the idea that the women should be using AI in their everyday lives, and the hate, the disgust coming from many around it. What do you see in business? Is there a pushback? Is there a concern about environmental impact, about royalties, about the impact of AI writ large on jobs? Yeah, absolutely. And most companies that are leading the path, those that are at the front, they are addressing these challenges head on, talking about what they're doing to be responsible with their AI use and how they are holding their vendors responsible to do the same and really addressing the known things and the things that are unknown, particularly around sustainability and what the impacts are to the environment, as well as the impact to the human experience as it relates to work.

48:12And so I think being responsible and addressing those within a governed framework allows enterprises to be able to move forward with confidence and hold themselves accountable to what they're doing. The other thing I would tell you is, in this day, the access to AI capability is very advanced for consumers. And, you know, the pushback, Therese, she's absolutely right. Everyone should be out there trying to build their AI capability, their AI skills. And no matter how you start, that's okay. If it's helping you pick out an outfit, if it's helping you manage your schedule, if it's creating a new capability that the world has never seen, whatever you do, the key is start.

49:00Because the gap between those who are leading and those who are just joining is widening. And so there is no better time to make sure that you're upscaling yourself.

49:09Caroline Hyde:Rahsaan Shears of KPMG, thank you very much for joining us on VTech. Coming up, we're going to look ahead to Tesla's earnings, which are after the closing bell. That's next. This is Bloomberg Tech.

49:24Caroline Hyde:Tesla reports earnings after market closed today, but a blowout might not be enough for the stock, which is down nearly 13 % so far this year. The EV maker doesn't really trade on the serve cars anymore anyway. Investors focused on AI and robotics. Bloomberg's EV reporter, Cara Coulson. So it doesn't really matter what they say, right? RoboTaxi, Optimus, keeping everyone looking to the horizon? What do we need to know? Yeah, so there's, as you mentioned, a lot of people are very much looking ahead. They're looking at RoboTaxi, which is still kind of getting off the ground for the most part for Tesla.

49:57They're looking way ahead to Optimus, the humanoid robot. But there's also a lot of near-term concerns that people are looking for, including, you know, cash burn and whether Tesla can keep up, you know, keep putting revenue out to kind of counter that a bit. And no one's expecting huge Cybertruck sales, but where are we thinking about RoboCab or about things getting into customers' hands in the near term in terms of supply chain? Yeah, so Tesla is, you know, expected to put out their start doing volume production of their Cybertruck, which will primarily be used within their own RoboTaxi. There's not a lot of near term catalysts as far as their current lineup.

50:40They really have the Model Y, the Model 3, Cybertruck. So sales are becoming increasingly less relevant to a lot of analysts and a lot of investors in the near term. All the questions about humanoids and optimists. Bloomberg's Cara Carlson, it's great to have you. You'll be busy tonight, as will Ed. That does it for this edition of Bloomberg Tech. But remember, all the earnings after the bell. Tesla, IBM, we've got Texas Instruments.

51:04Caroline Hyde:Yeah, it really starts in earnest, and we will get a good global lens of the health of that industry. Don't forget, it was a huge news dump this morning. Recap all of it on the podcast. You know where to find it. Apple, Spotify, iHeart, and of course, on all of our Bloomberg platforms. From New York City, this is Bloomberg Tech.

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