00:00And Intel down almost 5% of the pre-market. It's raising $15 billion through a common stock offering, though,
00:07not debt, to help keep up with growing demand for its AI products.
00:11Let's begin right there and bring in Bloomberg Tech's Ed Ludlow in San Francisco.
00:15So it's choosing to go the stock route, Ed. You might say, well, obviously the stock has tripled.
00:21At the same time, this is going to dilute and investors are clearly not happy. Why?
00:26Yeah, I mean, well, the stock down 5% on that dilution factor, clearly.
00:30You know, this is timing and being opportunistic for Intel. You're right that the stock has tripled year to date.
00:37And it helps them to fund a $20 billion CapEx program. So it is a $15 billion equity offering.
00:42But there's a 30-day underwriter option, which could add another $2.25 billion. So the total $17.25 billion.
00:49And if you just go back to what we learned last quarter, the data center business is growing 59%.
00:56It's a CPU story, but they're basically saying there's a great opportunity here in the AI world for Intel.
01:02And so knowing that their CapEx commitment for this year is $20 billion and it will go up in the
01:08coming years, this is them funding them.
01:10And so, you know, we're going to get to the end of the year.
01:10And so, you know, we're going to get to the end of the year.
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