Google to Release New AI Chips, Challenging Nvidia

25:22So you can search the web and get summaries of information without it actually pointing you to Google. It'll happen within the Siri interface itself. So if this all works, I think they have a pretty compelling story to tell for their voice assistant in AI, ComeJ. Right. Mark, real quick, it's better to follow this story in aggregate over a number of years. Like think back to two or three WWDCs ago and you reporting like Siri and Apple intelligence isn't going to be the focus then. Looks like it will be the focus now. Summarize where Apple has actually landed with Siri that is AI improved. In terms of the underpinnings of Siri, they're using technology from a Gemini model, merging it with their own model technology.

26:06in order to get it worked more properly. It'll be able to analyze data on your phone to help you take action on it. But big picture, this year's conference is really all about Siri and AI. They've basically hit pause on all non-AI or Siri-related features, lots of bug fixes and performance enhancements. But the focus is on this voice assistant this year. Mark Herman, as always, giving us the hints. We so appreciate it. Let's talk about now humanoid robots for a minute because one has just won a half marathon race for robots in Beijing. But get this, it ran faster than the human world record. The race was held in Beijing over the weekend, showcasing China's really rapid advances in robotics and artificial intelligence.

26:50And the robot strode across the finish line in 15 minutes and 26 seconds to the state-run China Daily, that's according to them. And that beat the human world record holder, Jacob Kiprimo of Uganda, who finished the half marathon in 57 minutes and 20 seconds last month. in Lisbon. What a stunt. I mean, last year it took more than two hours for the robots to win. That's a video of robots running in a race. I mean, that's just literally what it is. 100 teams, 300 robots. The director won't show it, but I'm just grinning and laughing because that's a video of robots running in a race. But it's important.

27:26Liquid cooling that's going to go on in that. Maybe that helps us in other parts of industrial robotics. So many GPUs on fire. Okay. This is Bloomberg Tech.

27:43Welcome back to Bloomberg Tech. We talk about geopolitics now. President Trump says it's, quote, highly unlikely that a ceasefire with Iran will be extended. This is VP J.D. Vance is set to head to Pakistan for deal discussions. Now, Bloomberg's Jeff Mason has just spoken with the president. But a few moments ago, you join us now, Jeff, and this tone seems negative. You know, I'm not going to say negative or positive, just what he said, which was a couple different things. He said that he thought talks could work out well for all parties. But he also said, as you rightly quoted, that he was not intending, or it was at least highly unlikely, that he would extend a ceasefire.

28:23He also said that the ceasefire ends on Wednesday, which is a little bit of news because the two-week period that most people were assuming goes through tomorrow, Tuesday. So that was interesting. The president also made a point in our phone conversation of saying that he was not in a rush to get a deal. And he talked about the length of the Iran war, excuse me, he talked about the length of the Vietnam war, the Afghanistan war, the Korean war. So he was couching this timeline or his own timeline in the fact that many other wars have gone for a long time. And he just said he was not in a rush.

28:58I'm just going over the headlines that were generated from the interview, Jeff. There are several of them. I guess operationally, what happens next? What did the president tell you about what he and his cabinet will do in the coming days? We mentioned J.D. Vance, the vice president, and what he does now plan to do with regards to talks. Well, he gave a little bit of detail about when the talks are expected to happen. He said that they were likely to be on Tuesday night and Wednesday morning. And he said that J.D. Vance was expected to leave later on in the day today, Monday, which contradicted what he said to another reporter at another news outlet earlier where he suggested that the vice president was already en route.

29:38So the next step are these talks. I asked him when we spoke about the ceasefire if he expected that fighting would resume right after the ceasefire concluded if there wasn't a deal. And he said he expected so. So to your broad question, it's kind of a dual track here. He's expecting talks to take place and he showed some optimism about those talks. But he's also clearly holding over the threat of additional attacks to start as soon as this week if a deal is not concluded. And just for a reality check for our listeners and viewers, remember that the last time there was a major peace deal with Iran happened during the president Barack Obama's administration.

30:20That deal took a year and a half to hammer out. So timing here is it would be unusual if they're able to get a deal as fast as Wednesday evening, which is what the president said was the deadline for the end of the ceasefire. Bloomberg's Jeff Mason, who's just off the phone with U.S. President Donald Trump. Thank you very much. There's a lot going on in markets. Much of it relates to the headlines about the war in Iran. But actually, in Bitcoin's case, we're around$75 ,600 per token, Caro. I saw the headline that strategy, Michael Saylor, et cetera, bought$2.5 billion in Bitcoin in the trailing seven days.

30:58And I think that that's their biggest buy since the end of 2024, something like that. Maybe that's a factor in the market. Maybe it's just a risk asset. behaving like everything else. Who knew that Michael Saylor actually still wants to continue to buy Bitcoin? I mean, many would not be surprised by that. It's interesting that in the DeFi space more broadly, there's been that weekend hack draining, what was it,$300 million? Which has outflow consequences, right? It really does. Just negative sentiment around DeFi, but people can separate the two. Bitcoin is not DeFi, DeFi is not Bitcoin. Really quick, in the technology space on single names, Adobe is higher by about 1%.

31:31It announced basically a broader agentic ecosystem with basically everyone in the world of tech, AWS, Anthropic, Google Cloud, IBM, Microsoft, Nvidia, and OpenAI. And an earlier report on that had boosted shares. And then there's the kind of big thing that's happening in aggregate. The NASDAQ 100 is softer and actually pushed to session lows after some of the headlines from the president. But the main thing is it snapped a 13 day winning streak, right, Cara? And that is what we've been talking about in that 13 day period, sort of how tech is unstoppable in the face of what is a sort of a tense situation in the Gulf.

32:03Let's speak to Bloomberg Equities reporter Carmen Reinecke. I mean, that's kind of the story, right? Tech has plowed on irrespective of those geopolitical overhangs. Yeah, we've seen just an incredible rush back into risk assets from investors. I mean, even today, you know, we had this really significant geopolitical news, at least at first. You know, the drop wasn't quite as significant as I might have expected. And there are parts of tech that are actually still holding up today. So I was writing about the IGV, the software ETF last week. It had its best week since 2001. really significant gains there.

32:35Today, it's actually holding up a little bit. It's doing a little bit better than the hardware sector, than the SOX. At least last that I checked in my terminal, it was up a little bit today. It hadn't completely erased all of its gains. Exactly. Exactly. And so we are seeing still some bright spots here. And I think the names that drove the Nasdaq's 13-day streak are really interesting. So we definitely had talked about Intel. It had such an incredible rally. That was the top of the charts there. It was the number one performer over those 13 days. And then the memory names were right after it.

33:06So Marvell, SanDisk, Western Digital. Can we go into Marvell a little bit more? Because the hardware story is basically what's been unstoppable. And Marvell, there seems to be reporting out there that maybe they're going to be working alongside Google. Google broadening out from its TPU Broadcom relationship to some other players. Yeah. Well, and this is one that actually the stock is sort of bucking the trend today, at least in the intraday, was on track to close at a record high. So another record high. Marvell is still looking really strong. And yes, so the news today is that there are reports that it's in discussions to develop two chips with Google.

33:39So one is a memory processing chip and the other is a TPU. And those are both really significant. It's also potentially in talks aimed at designing semiconductors exclusively for Google. so that's a huge deal for a company like Marvell and again you know it's had a really incredible rise so through Friday's close it was up more than 60 % this year it's just extending those days I'd say it all comes down in the session as well right to you both but I'd point out it had an astonishing start to April like every other member of that basket so interesting move yeah we've got to keep an eye on the hardware and we can dig in a little bit more but Carmen Reinecke sets us up perfectly always got her eye on the broader moves let's dig in a little bit more on this Marvell story, Bloomberg Intelligence Senior Analyst Kunjan Sabani, who has been watching the stock positioning itself for maybe taking advantage of custom chip demand.

34:28And here we have it, maybe some reporting showing that they can be really relied upon by the likes of Alphabet's Google chip design. What do you make of the reporting coming out of the information in this particular instance? Yeah, this reporting really validates what we have been talking about for the past two quarters, that the noise prior to six months in Marvell was all about Amazon Tranium 3. But we think they are really expanding beyond just the number one, number two hyperscalers. And what's more important is here is that MPU, which falls in their XPU attached portfolio. This is the areas where sophisticated hyperscalers like Google, Amazon, Microsoft are now optimizing custom chips beyond just the core powerful TPUs or accelerators.

35:12So this is where we think Marvel can gain significant share. And this comes at higher gross margins, by the way. Yeah, in inference, memory is more of a bottleneck, right? And so the MPU just moves data. You know, that's its purpose. I think the thing that we try and reiterate is that Google owns the design and architecture of TPU either way. So in that case, what is it that Broadcom to this point and potentially Marvell actually do, Kunjan? What's the value add of partnering with someone like that? So when you think about beyond that core digital logic, it's the IP set surrounding. How do you connect to the memory?

35:46How do you do your packaging? How do you have your interconnect IOs? This is where these companies come in with their own IP portfolio and add value. One more thing to add here is the inference hardware stack is changing. It's not just one hardware stack fits all size. So we are going to see multiple players. There's also talks about MediaTek also participating in one of Google's sort of TPU versions. So we are going to see this diversification when it comes to ASIC now. And by the way, on the Marvell side of this, Google declined to comment to Bloomberg on any of the reporting. But it's not Google.

36:19It's Broadcom or Marvell that phones TSMC and gets those things fabbed. Kunjan Sabani from Bloomberg Intelligence with the research. Really appreciate it. Now, coming up, the conversation with Greg Martin of Rainmaker Securities as markets get set for some mega IPOs. This is Bloomberg Tech. Support for the show comes from Public. Lately, it feels like there are two types of investing platforms. 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.

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39:00The Cincinnati insurance companies. Let them make your bad day better. Find an agent at CINFIN.com. AI chipmaker Cerebra Systems is back in the IPO spotlight. The company filed publicly for a US IPO on Friday, just six months after pulling its previous attempt. Sources say the deal could raise around$2 billion, testing investor appetite for large-scale listings. The company's filing shows gross margins slipped to 39 % in 2025 from 42 % a year earlier, highlighting some of the pressures even high-profile AI names are facing, Karen. But at least it's not loss-making on this year versus last year.

39:41Well, revenue certainly doubled. Let's talk a little bit more about the IPO landscape and join with Greg Martin, managing partner at Rainmaker Securities. And Greg, What is the appetite likely to be? Say we go into Cerebris and we think about how, yes, they've suddenly galvanized revenue growth, but the margin has been hit, as Ed articulates. Are people just going to be betting still on this desire for AI compute, the rampant bottlenecks that we see in terms of just access for AI iterations and innovations? Well, it's a great question. And clearly, this is going to lead off what could be a big AI infrastructure year.

40:17There's already some public companies like CoreWeave and Nebius who have had nice run-ups recently. So there's clearly demand for AI infrastructure and Cerebrus numbers. They've grown revenues. I think the biggest question mark with Cerebrus was customer concentration. Now they've added OpenAI, but they still have customer concentration. And so it's also a very high valuation. The company did$510 million in revenue last year. Their last round was at$23 billion, which was just done in February. And so, meantime, the secondary market for Cerebris is actually traded down to about$10 billion recently.

40:55And so, there's a big question mark of whether they can hit a big enough number in the IPO pricing such that their last round investors won't have a down round. So, I think the market will be watching Cerebris closely. It's not the marquee name like SpaceX, Anthropic, or OpenAI. But it'll be interesting to see if the market really is open again for a company like Cerebris with such customer concentration. And this is why we go to you, Greg, because we think about the liquidity that you can see, you can tell our audience about in the secondary market. Just how hot is it for the really exciting names?

41:27Like we were just reporting, Ed and team, about how Anthropic basically is turning away more money in terms of a capital raise that could drive its valuation up to$800 billion or so. Yeah, Anthropik's one of the hottest companies we've ever seen. Unbelievable demand on our platform at Rainmaker. Obviously, the company added 10 billion of ARR in one month. They're now up to about 30 billion of ARRs reported publicly. So, people are starting to value Anthropik as a share of the economy, not in sort of traditional metrics that you might see. And, of course, their growth actually does start to rationalize the valuation that they've had.

42:07and we're starting to see them, you know, enter into just about every software category. So Anthropic is about as hot a company as we've seen. They raised money at$350 billion just in February. We're now seeing potential$800 billion. We're seeing unlimited demand on our platform. So clearly Anthropic is the hottest company we've seen in a long time. You know, with those names, SpaceX, OpenAI, Anthropic, people always ask when we report something, how do I as an everyday person invest into those companies? And the first thing I say is we don't do that. I don't do financial advice, just read my reporting.

42:42But the second thing is I say, oh, but we have reported that SpaceX, OpenAI and Anthropic are all likely to go public in 2026. And with that flood into the market of three names at that scale, how does that translate to activity on the secondary market? Do people try and position themselves in anticipation of a big listing or public debut moment like that? Yeah, absolutely. These three companies in particular, there are obviously enormous market caps, 800 billion, 2 trillion potentially for SpaceX. So we're seeing a ton of demand pre-IPO because people do think that there's going to be a run-up in the markets.

43:24All of these companies are oversubscribed in the secondary markets. And as companies get closer to IPO, there's a feeling that, hey, now I'm going to have liquidity. Now I'm going to have access to more information. But we've seen in the past IPO allocations get cut back substantially. And so if you want to get into these companies with any kind of scale, you may have to come into the private markets and buy it via secondary or primary. So we're seeing rabid demand for all three of these companies in the secondary market. Greg, really quick, we had lots of little IPOs last week. Many of them came on this show.

43:55What did that signal to you? not a lot uh you know i'm much more focused on the bigger uh ipos there's clearly a massive backlog and so companies there are companies that just need to go public i don't think there's a lot to be you know learned from from what we saw last week listen we have the potential for one of the biggest ipo years in history the three companies you mentioned are going to potentially raise up up close to 200 billion between them um which which could suck the entire oxygen out of the market for a while. So I think what's really going to be interesting is how those three companies, SpaceX, Centropic, and OpenAI perform.

44:33And of course, it's a function of whether the IPO market is truly open because I don't think the market's open until the Straits of Hormuz are open. God, if that's what you're banking and waiting on, we'll be here a while. Greg Martin of Rainmaker Securities, secondary market broker who sees what's happening in terms of liquidity interest ahead of IPO. Now coming up, Nick Steronsky, co-founder and CEO of Revolut, discusses the digital bank's future plans on this week's David Rubenstein show.

45:04Nick Steronsky built Revolut into one of the world's most valuable fintech companies now worth around$75 billion. The co-founder and CEO speaks to David Rubenstein about the company's future. I think it's obviously much easier for us given a new administration, plus that we have so many other banking licenses, plus we have a banking license in Reca now. So for us, it became much easier compared to two years ago. So in the United States, what do you hope to be able to do with your banking license if you get it? What is the market gap that you think you can fill that maybe others aren't doing? So basically, I mentioned already our retail business.

45:41So it's one simple app where you can do everything what you need for your financial life. And then second direction, we also provide the Revolut business accounts for businesses. And again, it's end-to-end services that you need to run your business. So payments, banking, credit will come as well, wealth management or treasury, we call it treasury, and then acquiring as well. So for example, right now, if I'm American company, I'll need to start, say, Stripe for acquiring, then J.P. Morgan for my business banking, than, you know, something else for payouts, something else for payroll. So we provide all the services in one product.

46:19Well, if you conquer the U.S. the way you've conquered the U.K. and Europe, is China next, or you're not going to focus on that? Asia, we're definitely focusing. So spending a lot of time studying Asia. And then as a search, we applied for multiple banking licenses in Asia as well. And then some of them we got already. And then China is on the list as well. One day I hope we can set up a business there. Now, some people have written that your bank, Revolut, is worth$75 billion. Have you ever thought of taking your organization public? Well, the way I think about it, we kind of will be ready probably in two years' time.

46:57But then again, it depends on how good the market is. Since you don't have an IPO, how do people who work for you make some money? Do you make a market for people to sell their shares internally? Yes, so we do secondaries every one or two years when people can sell certain portion of their stocks to excellent investors. So you've done secondary sales for your employees. So employees can then get some liquidity. Do you expect before you go public you'll do any more of those or you just want to wait to go public before you liquefy any more stock? Yeah, I think so. We might do secondaries as well before we do IPO because we do it every one or two years.

47:35So we might do secondary as well. All right. Well, if anybody wants to sell their shares to me, let me know. And have any investment bankers told you why they're the best to do the IPO for you? Yeah, obviously, every single one is the best. Everyone is the best. You're not in a rush to do it. You don't need the money. So we're a bank. And then for the bank, it's super important to have trust. And then public companies are trusted more compared to private companies. Go see the full interview with the Revolut co-founder and CEO, Nick Staronsky. Watch the David Rubenstein Show, peer-to-peer conversations on Wednesday, April 22nd at 9 p.m.

48:07in New York. Only on Bloomberg Television. Now more on digital banking. JP Morgan, Citigroup, are taking their rivalry onto the blockchain, competing to define the next frontier of global payments. Just take a listen to what they told us in a recent joint interview. The real client problem that we were looking to solve is the ability for large multinationals, big banks and broker dealers and fintechs to be able to move their money around, make payments seamlessly around the world 24-7. We want to keep building on the public chain stuff. We have now tokenized money market funds with our asset management business through Connexus.

48:41We have tokenized deposit tokens. We have a full tokenization engine. We have core infrastructure. So we basically want to battle hard net. Rivals on screen. And the two banks are building competing systems. But taking slightly different parts, Bloomberg's is here with one of the most read stories on the terminal today as well. How are they doing it differently? One likes stablecoins, one doesn't so much. Exactly. So it's interesting to see Wall Street raise into this space, and it's even more interesting to see their approach. So for Citi, they've signaled an openness to stablecoins. They've partnered with Coinbase to really push into this digital asset space, and they want tokenized securities.

49:15Around 500 clients have been enabled in that platform, and they process around$1 billion already. But JP Morgan... A day, isn't it? Yes. JP Morgan has been a little bit more reticent when it comes to stablecoins because for them the KYC is a little bit less. What they prefer is to build their in-house infrastructure, their in-house blockchain called Kinexus. And Kinexus is really already processing over$3 trillion in volume with each average daily block being$5 billion. So to be sure, this isn't really grand yet in the larger scheme of things. They process trillions and trillions in their traditional payment system, but it's growing.

49:51So they're preparing for a world in which everything is tokenized, right? So we're playing up the kind of frenemy, I suppose, angle of it. But what they are doing is laying groundwork for the state of the financial system that doesn't quite exist yet. That doesn't quite exist yet. We have the IMF, I think, two weeks ago, warning that if we build too much into this space, we might see actually a great crash. Because in theory, everything works. Send a token from 2 a.m. in Maldives to your friend in New York. But in practice, it's still a little tough. And especially if a lot of these, from the Nasdaq to the New York Stock Exchange to JP Morgan to Citi, build their own worlds, it's going to be even more fragmented than what we see today.

50:29So lots to still parse out in this space. But it's exciting to see these big banks really push into tokenized. Tokenized. Real-world assets. Real-world assets. Yes. Bloomberg's Isabel Lee with the story that JP Morgan and Citi is squaring off on the next payments frontier. That does it for this edition of Bloomberg Tech. Yeah, don't forget to check out our podcast, Why Not? You can find it on the terminal. If you're online on Apple or Spotify or iHeart, Ed is here in New York for the entire week. What a lucky lady, Ed. 56 minutes into the show, if you've just worked that out, congratulations, I'll be here for a few more days.

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