What does it say about the sector . Ed ai and reddit announce a partnership. Caroline we sit down with core weve weave. Lets check in on a market thats been ramping for four weeks. We are seeing the best month so far for the year. Tentative gains. We pooled gains as the week progressed. Stoxx 600, less optimism on the day. Seeing gains through the week. We are still near or at record highs for a lot of benchmarks. A reassessment of the fed. Some of the data showed a healthy cooling of the u. S. Economy. Crypto on the up and up. Notable risk on sentiment throughout the week. Ed reddit is up, flirting with a record high, 14 since ipo in march. The deal with openai is a two way. Openai licenses reddit to get text data to train models. Reddit is talking about building ai products into the forum on top of the language models. Applied materials makes the machines that makes the chips, like tsmc. It Beat Estimates but the upper range given by the street, it fell short. Where are we at in chip demand . Through the proxy of the companies that by the machines. Caroline is this a bellwether . Maybe not autos or connected devices but all things ai still driving us. What about china exposure . We can go broadly across the sector with joanne. This is a chip Equipment Company but what are you seeing in terms of where we are right now . Better than expected results but their guidance was soft. In this kind of market, that doesnt go over well. They indicated continued demand from and markets except for china. With u. S. Trade policy trying to crackdown on exports that would enable china to have its own leading edge chip business, Applied Materials is in the crosshairs. No surprise. That side will fall sharply. Global demand for equipment because of Global Demand for chips is still going to be robust for many years. Ed monday, im going to speak with jensen wong and michael dell and Bill Mcdermott for 25 minutes. What im trying to get is this idea of when we move beyond ai as a market, just being the hyper scalers . As far as i see, thats the only place it is going. It is largely in the u. S. What is your counter to that . Joanne theres a demand beyond the u. S. Hyper scalers for other entities to have their own ai training and capabilities, notably countries that want to keep data private. We will see entities develop infrastructure to run models and deploy them. Jensen has mentioned that in the past. You can try to get numbers out of him. It shouldnt be the case once the hyper scalers buildup capabilities for training and inference, that we will see the other softer investments or companies specific investments where data is likely to be kept private, become the next buyer. Ed maybe im getting in the weeds. I think about dell. They are good at selling to governments. Nvidia thats the bit. Like everyone else in the world who wants a part of the ai story, how do they do it from there spend and where do you position yourself if they get there . Joanne the others have to build infrastructure. Whether it is through dell, supermicro or ibm, they have to bring in the hardware, which will be powered by chips from nvidia and other startups. We look at the fundamental suppliers that make it possible. The chip guys. Working in conjunction with alphabet and others to bring new chips capable of this computing. Thats a clean way to invest. On the application side, companies that are rolling out capabilities to deploy ai, like service now, its broader, its into industrials and health care. You have to dig deep to find the individual companies being successful at this early stage, starting to deploy ai that is just emerging. Caroline loving this. We are going to pick away at these different ways of telling a story. Coreweave coming on, one of these new entrants offering new data center closer to the companies that need access to the compute. Also this new ai push toward regulation but ultimately standards and investment from the u. S. Government. Chuck schumer wrote that piece. Theres no regulation yet but we are delving. This focuses on the u. S. , and a bit of china. What about europe . Japan . What about other areas you can invest geographically . Joanne thats one of the big trends ongoing. The desire for, lets call it selfsufficient regionally. Countries that have their own capability to manufacture chips. How regulation involves overtime is a hard thing to sort out. We dont try to make bets based on by galatian changes. Its too early to know what that bipartisan groups proposals will actually mean. We can look at the subsidies and how Tariff Barriers are evolving to push the manufacturing of advanced semiconductors around the world. That means we will get more chip manufacturing which is good for equipment suppliers, and probably get some cheaper chips as a result of overcapacity over time. Caroline where do you look at the startups coming in . When you think about where to allocate . Is nvidia ahead of its earnings next week, still at the right point to enter . Joanne nvidia has many years of growth ahead of it. Its valuation reflects expectations about how high the growth will be and for how long it can be men tamed. Right now how long it can be maintained. Right now nvidia is ahead. Asd is coming along. Broadcom is teaming up with google and others. Nvidia has the hardware, the most advanced chips and the most capability for training ai, it also has the software needed to make that work, that it has been developing over decades. It gives them a substantial and defensible lead for many years. That doesnt mean that we wont get news flow that could disturb things. That could cause disruptions in the stock price. In our growth portfolio, nvidia is a substantial position. In our balanced strategy where clients have more conservative views on portfolios, its a smaller position, because of the volatility we are likely to see as expectations can be disrupted at any time. Ed how are you using ai at home and at work . Joanne from talking to the marketing guys, they are using it to create, we just had a conference, for example, they create a lot of background material, the images. I worked with a colleague recently to do a podcast on behavioral finance. Key generated notes using ai. All these great notes. Its impressive. He said he did it in 15 minutes. Its a timesaver for folks who need to generate content or get quick answers to questions, or to generate materials. Ed great to have you back. Coming up, all the details on the openairead it relationship. Stay with us. We will be right back. Ed openai unveiled a partnership with reddit that will bring the social Networks Content to chatgpt. Bit of a scramble last night. The market reacted. Reddit shares high. Give us the basics. Reporter openai, the insatiable desire for data. They will now have access to posts through the api. Whatever people post, openai now has the legal right to use that in its products. Reddit is presumably getting a financial benefit. The terms have not been disclosed. Caroline perhaps they fold in the large language model and applications within the use of reddit, it seems there will be advertising involved. What do they get that is different versus the google agreement . We know the amount of money they got from alphabet already. Why embed openai from an architecture perspective and not googles . Shirin these social Media Companies are looking to get the most value they can out of the data they have. The deals are similar. We have more information about how much the value of the google deal was. On the advertising front, there was a mention in the release, i clarified with openai. Openai will place ads on reddit as part of the deal. We are not seeing a deeper integration. Caroline fascinating. Remember the history of reddit and sam altman even though it says it was brad who forged the deal, certainly was one of the key investors in reddit, ipo, those ties go deep. Thank you so much. The space race upon us. Elon musks starlink has launched a frenzied competition for space dominance. Largest single constellation of satellites orbiting the planet is run by a mercurial individual who needs no introduction. This guy. It achieves this by maintaining a vast Relay Network in lowearth orbit, the area higher than a jetliner but below a gps satellite. Starlink has 5600 satellites in orbit. It accomplished this in less time than it took James Cameron to make a second avatar movie. 42,000 satellites. This speed and success has raised eyebrows in government and in the board rooms of rivals. Its a company trying to disrupt a complacent marketplace. Ed you can catch the full original at bloomberg. Com. The relative success of starlink has encouraged rivals like jeff bezos and blue origin which is slated to resume space tourist flights after it stopped operations two years ago following a midflight mishap. Out to chicago, kyle porter. Starlink. That was one minute but its longer. Tell us about the other items. Reporter we covered quite a bit of ground in those seven minutes. How the service performs. The growth of the service. Potential rivals. And difficulties geopolitical and technical with the service. Caroline theres been launches that have been delayed of late. We are anticipating the relaunch, read galvins asian of blue origin this weekend. Regalvanize asian gal vinization of blue origin this weekend. Doing things in lowearth orbit is fantastic. That increases the latency. However, you need to think about more satellites in the air to stop the service slowing down. They are not doing it as quickly as they would like. Ed you and i are under orders to be awake very early this sunday because blue origin will try to launch the toryism offering again after two years. Kiel the plan is, after 2022, there was a mishap on an unmanned flight. This will mark the resumption, i think its the seventh flight to carry a crew. Ed white was part of the original nasa program, he would have been the first africanamerican in space. Caroline boeings first cruised spaceflight, maybe using its star liner craft. Theres a lot going on in space. I hope you both dont have to get up too early on sunday. After a volatile week of trading, the meme stock rally is coming back down to earth. I could have used all the puns to the moon, but i wont. Do you want to close out . Should i . Normally id hold. But. Taking the gains is smart here, right . Feel more confident with stock ratings from j. P. Morgan analysts in the chase app. When youve got a decision to make. The answer is j. P. Morgan Wealth Management. You know whats brilliant . Boring. Think about it. Boring is the unsung catalyst for bold. What straps bold to a rocket and hurtles it into space . Boring does. Boring makes vacations happen, early retirements possible, and startups start up. Because its smart, dependable, and steady. All words you want from your bank. For nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled. Which is pretty unboring if you think about it. Ed these are some other stories we are following. Reka is a producer of Large Language Models and would enable snowflake to offer ai capabilities. It was valued at 300 million in 2023. Ingram micro is preparing to move to ipo, that could raise 1 billion. They are considering seeking a valuation of 10 billion. The company has been working with Goldman Sachs and morgan stanley. Microsoft avoids a u. K. Antitrust probe for its partnership with mistral ai. A Watchdog Group reversed their decision saying microsoft does not have the ability to materially influence mistrals commercial policy. Caroline quite the frenzy at the start of the weekend, the meme stocks. Thats coming to a halt. Gamestop falling for a third conservative day. Lets break it down. Gamestop and amc really soaring at the beginning of the week. Amc made the most of it and now gamestop is trying to make the most of it. They were able to capitalize that, raising money through sales of new shares. They announced a debt for equity swap. Gamestop, to be fair, doesnt really have debt. It seems like gamestop is trying to move to capitalize on the rally. Not up the 270 it was at the start of the week, tuesday. Caroline fundamental news, unlike what has driven this rally. They preannounced their earnings. Ed missed what wall street had penciled in. Its not like we can say there are dozen analysts sharpening their pencils. It is slowing. They are focused on getting back to profitability. The net loss was more narrow than this time last year but there are fundamental pressures. They need a new game cycle, a new console cycle. People now download games. They dont go to stores. That has been the case well before 2021. Ed happy friday. I was talking to someone interesting last night. Lets call them a market participant. I asked about Roaring Kitty. Has a yet worked out what it was trying to communicate through social media . This person, lets call them a participant was like, do we even know it is Roaring Kitty . Bailey we dont. That is scary. We havent seen the person, keith gill hasnt been on social. He used to be streaming back in 2020. He hasnt physically appeared. The handle is back to posting videos. No one has confirmed or talked to him himself to see if he has resurfaced after three years of being away from social or to read between the lines. It could be other actors but no one really knows. Ed loads of people tried to play this week. People have taken to social media. I made a small amount of money by selling shares. Is there a sense it was something bigger than that beyond retail traders playing the moment . Bailey when you look at trading close on the likes of fidelity or interactive brokers, it is a small portion compared to 2021. Fidelity, over the past week, the number of orders has been matched. When you look at the hundreds of millions of shares traded in gamestop, and north of one billion at amc, the underlying factors point to this is some sort of momentum trading. Ed what a week it has been for you. Coming up, coreweave receives 75 billion in private debt. We will be right back. what took you so long . Im sorry, there was a long line at the thai place. You get the sauce i like . Of course youre the man i wish. The future isnt scary. Not investing in it is. Nasdaq100 innovators. One etf. Before investing, carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus lifes daily battles are not meant to be fought alone. Were not powerless. So long as we dont lose sight of whats important. Dont be afraid to seize that moment to talk to your friends. Cloud, you okay . Because checking in on a friend can create a safe space. The first step on our new journey. You coming . Reach out to a friend about their mental health. Seize the awkward. Its totally worth it. Her uncles unhappy. Im sensing an underlying issue. Its tmobile. It started when we tried to get him under a new plan. But they they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. You sing about price lock on those commercials. the price lock, the price lock. so, if you could change the price, change the name its not a lock, i know a lock. So how can we undo the damage . We could all unsubscribe and switch to xfinity. Their connection is unreal. And we could all unexperience this whole session. Okay, thats uncalled for. Ed welcome back. Caroline its been a week. Macro week. That appoints shining a light the fed could cut. Benchmarks near record highs. We are wavering on the day. Stoxx 600 not as strong a week, still up for two straight weeks, near a record high. Longest winning streak in the u. S. Since february. Bitcoin having a good week. Individual names on the move. Taketwo was one of the best performers on the nasdaq 100. Delaying again, the latest grand theft auto. We are getting a timetable. Investors seem forgiving. Pdd, teemu, ubs upgrading, saying we are over exaggerating the limitations into geographical diversity on the back of geopolitical threats. They think it will still be a winning formula. We get there numbers may 22, also nvidia. Ed a name closely tied. One of the largest private financing to date, coreweave gets 7. 5 billion in private debt. 7. 5 billion is a lot of Debt Financing. Its a large number. You are an unusual company. You are doing something with pace but closely tied to nvidia. Our audience would appreciate you explain how you got the Debt Financing and how it is structured. The cost is also unusual. Thank you for having me back on again. Appreciate the opportunity to speak with you. This is exciting for us. It follows closely on the coattails of a 1. 1 billion equity round we completed last week. Its been an active time in the capital markets. The syndicate, a whos who of private lending, including blackstone, magna tar, code2, digital bridge, blackrock, wonderful names, great supporters that have a deep understanding of the business and provide in coordination with the equity round, a deep validation for the solution we are delivering to the market, our approach to building ai and cloud infrastructure. Its been a wonderful few weeks here for the company as we push toward enormous scale. Caroline this is big money. 1. 1 billion, now 7. 5 billion more. Its about infrastructure. You want to be doubling your footprint when it comes to data centers. Youve expanded into london. Where will you put data centers . Michael in total over the past 12 months weve raised 12 billion. Thats representative of an incredibly capitalintensive buildout of infrastructure, initially across the u. S. Now we are pushing into europe. We have two centers in london. One in spain will be in the works. In total we will have 28 by the end of this year that we will be providing our clients infrastructure from. We try to build data centers proximate to population centers. The nfl strategy. Trying to put centers where they are relatively load maintenance, providers of infrastructure. Our footprint is getting larger quickly. This capital is really focused on physical infrastructure that we have to build in order to deliver our products to clients. Ed a lot of people are starting to become concerned or inquisitive about energy and power consumption. Clear strategy for sourcing in the geographies you outlined . Michael we do. Its a work in progress. The rate at which we are scaling, we are continually addressing that. My background is from energy. Thats where i grew up. I focused on environmental commodities. It is near and dear to me and the company. We have a team internal building a strategy with that in place by 2030, as we go through this ramp. We understand there is a moral imperative to take responsibility for the Ene