00:00Bloomberg's Ryan Gold has been part of the team breaking that story.
00:03He joins us now.
00:04Ryan, great to see you.
00:05What's the thought behind this?
00:06I think this is all about the push into inference.
00:08You and I have spoken a lot about the cost and the need to be efficient in terms of how
00:12you run models.
00:13This is essentially a platform that's going to help take the production, the training of models and put them into
00:17live use.
00:18And how do you lower those costs?
00:20You increase efficiency and this is through the software.
00:23This deal, $4 billion or so in stock, is going to give Qualcomm that crucial software layer that will crucially
00:29help it to
00:30compete with NVIDIA.
00:31This is really the competitive landscape.
00:34You want to compete on both the silicon as well as the software.
00:37And until now, really, Qualcomm hasn't had that crucial software layer.
00:40I wonder how significant it is that it's an all-cash, I mean, an all-stock, rather, deal.
00:46And how much of this deal environment, especially for these AI-adjacent companies, that they need this, I mean, not
00:51a bubble,
00:52but they need this rise in stock that some people would call a bubble in order to fuel the continued
00:56M&A appetite they have.
00:58I think it goes back to really just the cutting edge, you know, the need to get that talent, that
01:03drive.
01:04And, you know, it's really on the cutting edge of AI.
01:06I mean, for Qualcomm, it's, you know, if we don't do this, someone else is going to do this.
01:09And when you think about Grok, NVIDIA, Samba, Nova, Intel, and Vista, I mean, you can clearly see that the
01:15demand is there.
01:17And there are only maybe so few of these companies.
01:19And so it's really like, if we don't do this, someone else will.
01:22And I think Qualcomm sees that.
01:23Well, there's also the Broadcom open AI deal today.
01:26And Broadcom said that they have a chip that's, I think, about 50% cheaper.
01:31So it goes back to where you started this idea of they're trying to get cheaper compute and cheaper access
01:35to this stuff.
01:36But how widespread is this cheaper access when these companies are dreaming up these different deals?
01:41Is it still really isolated?
01:43And are companies still really scrambling to figure out how they can lower their costs?
01:46I think so.
01:47And I think maybe this all goes back to a question, which is, given that we're still at the early
01:51innings here, like, you look at Uber driving through its budget.
01:55I mean, there are many other companies that see this, too.
01:57It's where you have to get to a point where it starts to go down, not up.
02:00Because I think if you have a private equity firm, even, who's also trying to, like, you know, integrate this
02:05kind of technology into their portfolio,
02:06how do you make sure that it's not starting to eat into your return?
02:11This is a crucially expensive business.
02:12I mean, we couldn't live without it at this point, but I think there just really is a bit of
02:16soul-searching going on in terms of, you know,
02:18both the efficiency as well as the, you know, how integral this technology is to running a business.
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