00:00Yeah, it really does kind of serve as a quite large appetizer, if you will, in terms of just
00:05the sheer size of it. Again, north of five and a half billion dollars. I don't know if we've
00:09confirmed that they've exercised the green shoe. You have to imagine that happened almost
00:13instantaneously. So this would be the largest chip IPO of all time here in the US. And the
00:17big focus is, again, in a few weeks, what happens with SpaceX looking to raise $75 billion and how
00:24the market can digest that capital. And just thinking through how that does set the table
00:29for an anthropic and open AI potentially later this year, just given that across those three
00:34deals, it's pretty much an entire record year of IPO proceeds.
00:38And there was a lot of drama surrounding this IPO because we had reporting that showed Arm
00:44Holdings and SoftBank, which owns Arm, the majority owner, wanted to buy this company a couple
00:50weeks before the IPO. Yeah, it's kind of unsurprising. For all intents and purposes,
00:55the interesting thing from that reporting from Ed Ludlow and the team is kind of the question around
01:01the cash and stock component. And when you think about the fact that right now,
01:07Cerebros, Cerebros, however you want to pronounce it, is about $65 billion in market cap. Yes,
01:12Arm is $225 billion. But there is an interesting kind of financial gymnastics that would have had to be
01:18kind of accomplished to complete that deal. And the question then going forward is just how large
01:23would the company be? I mean, the selling point Cerebros has, or Cerebrus, Cerebros.
01:29Cerebrus. Cerebrus. Okay, let's just say Cerebrus. The benefit it has is that it's an AI chip
01:35maker. And that like, you know, hits on so many different things right now. Is it a competitor
01:40to NVIDIA? Yeah, that's how they're billing themselves. And there's it actually? Yes, in the
01:46future, potentially. I mean, it goes back to like, what is a TPU? And how does the market kind of
01:50evolve
01:51over time in the big debate? When you talk to folks on the buy side, whether they were interested
01:55not in Cerebrus in 2026, or even back in 2024, when they wanted to go public the first time
02:00was, okay, how large can this company be? If we say NVIDIA is worth $6 trillion? Is there a path
02:09to
02:09$100 billion? Is there a path to $200 billion? And just using essentially basic math is if there is
02:15going to be a real competitor for NVIDIA, and it is Cerebrus, then the valuation can make sense.
02:21Again, based on the trailing data, based on what they've actually attained for now, it is one of
02:26the most expensive, if not the most expensive chips. That's kind of where I wanted to go. I mean,
02:29we've got a $65 billion market cap trailing revenue, $500 million. Yeah. So, I mean, what are we
02:35doing here? Was there any pushback on valuation? I'll answer that. No. No. So we saw them launch
02:40initially with a range of like $115 to $125. As you mentioned, it prices at $185. According to
02:47the people around the deal, they had $10 billion of demand before it formally launched, which is not
02:52something you see. The vision going forward, though, is OpenAI is now a customer. They are
02:58diversifying away from G42, which was kind of one of the bear cases a few years ago for the company.
03:03So if you're buying into the idea that these hyperscalers are going to spend, spend, spend,
03:07then investing in the companies that are actually producing the products that they're selling at
03:12least has the upside because they're not going to bear the cost if we are over-indexing and
03:17over-building like many people are fearing. Is there a cornerstone investor in Cerebrus?
03:21No. Not that I... See, in my day, we didn't do cornerstone investors.
03:24Well, that's a thing in the 2020s. Yeah, we worked for a living. Real quick, SpaceX,
03:29is that a June thing potentially? Yeah. We expect the formal filing to go public next week.
03:34That would set the table. Oh, that's going to be nice. That's going to be a lot of fun for
03:37us.
03:37I will be on vacation starting Wednesday, so I'm getting out of the country. But yeah,
03:41so expecting that formal flip next week, that'll set the stage for a listing likely before Juneteenth.
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