00:00What we heard from them was that they expect both Anthropik and OpenAI to become their most
00:06important customers, you know, eclipsing Google. And, you know, that's significant because it kind
00:13of it shows you that there's kind of substance behind the plans and capital raising that these
00:19companies are undertaking. But, you know, see that that kind of midterm runway does
00:24is really contingent on the current momentum continuing. And, you know, I think what we're
00:33seeing and the opportunity for Broadcom is very much that these big hyperscalers don't want to be
00:40purely reliant on NVIDIA for their technology. They're looking to diversify and Broadcom is going
00:47to be an incredibly important partner for them in that technology diversification.
00:51Yeah. Hawk Tan, the CEO, is saying we have six customers and four of them are just simply going
00:55to be huge. So these hyperscalers, when they kind of spread out their needs across different suppliers,
01:02how broadly, how widely can they spread that out? I mean, they don't want eight suppliers for their
01:06chips, do they? They want to limit it to, you know, a handful.
01:11Yeah, I think there's a balance. And we'll see that there are also some compete risk factors. You
01:15know, Google as well as being a hyperscaler competitor is also a technology competitor too.
01:22So there's a balance to be had. You know, I think maybe kind of two or three key suppliers is
01:29probably going to be sufficient for most of them. But you want those two or three suppliers to be
01:33genuinely, you know, kind of independent and robust. Obviously, we've had a lot of supply
01:41constraints in the recent past and, you know, that they continue to kind of impact the growth of
01:46the industry. So I wouldn't be surprised that in the short term there's even some kind of broader
01:52diversification beyond the two or three. I think there'll be a core two or three,
01:57but they'll be looking at innovative technology around the edges just to kind of make sure that
02:02they've got as much supply coming through as they can get their hands on.
02:06Matthew, as this, I guess, AI theme continues to ripple through the technology space writ large,
02:13one of the potential losers was called out, you know, like a year, year and a half ago,
02:17certain software companies that might be displaced by AI. I mean, one of them that doesn't appear to
02:23be at all is Snowflake. They reported some really, really good earnings. And they talked about using AI
02:30assisted coding tool, how that's been a big hit for that. I mean, so there's an example, I guess,
02:34of a software company adapting AI to making their products even better. What did you make of the
02:40Snowflake earnings?
02:42Yeah, I mean, if I'm honest, I'm surprised at quite how much the Jets have reacted to the results,
02:48because obviously there's a beat on the earnings that they reported and an upgrade to the guidance
02:55for the full year. It's not that big, if I'm honest, but I guess, you know, it's kind of what
03:01you
03:01kind of mentioned here is that, you know, I think there's been a lot of scrutiny around
03:06software companies and their ability to adapt to the AI opportunity rather than being replaced by
03:13it. And I think what we've seen today in the Snowflake numbers is that their execution against
03:21AI and adopting it and integrating it into their software is going incredibly well. And so I think
03:27probably what you're seeing in the share price today, that it's not just so much about the
03:31the next two or three quarters or even the next 12 or 18 months, it's the view that actually,
03:37yeah, you know, they're grasping this opportunity and it's going to create a kind of mid to long-term
03:42opportunity for them that's not fully appreciated in the numbers yet.
03:45Yeah, it feels like a little bit of a really for Ali trading today up 20%, up 60% over
03:50the year to
03:51date. But it's almost like even a similar thing happened to Microsoft and they reported their last
03:55quarter, people said, oh, these guys can grow and adapt and use AI and all that, you know,
04:01so I think that's case by case, you put up the numbers and boom.
04:05Also depends on the mood of the market at any given point, you know, there's been a lot to
04:08be worried about. And that kind of casts a pall over everything. You got to consider all the macro
04:13factors too. Before we let you go, Matthew, just a quick comment from you on NVIDIA acquiring
04:19this AI platform hugging face. NVIDIA getting into software, is that a good idea?
04:26Yeah, I think obviously NVIDIA is playing this role of kind of key cheerleader, if you like,
04:35for the whole AI industry. And they're looking to use their financial and technological
04:40clout to kind of really make sure that the industry continues to develop in every direction.
04:46I think the kind of critical thing here has been a lot of talk about open source and that your
04:52hugging face is kind of really the home for open source AI software. And I think NVIDIA kind of
04:58looks to the kind of mid to long term and thinks, well, you know, if we don't play a role
05:02in making
05:03sure that the open source community remains strong and vibrant and grows, then we're going to be left
05:10with an industry that's dominated by a very small number, a very large, very powerful,
05:15closed source businesses, you know, the likes of OpenAI, the likes of Anthropic. And that's
05:22A, not good for the industry as a whole, and B, probably wouldn't be good for NVIDIA because it
05:27would create a lot of concentration of their customers. And as we were talking about earlier
05:32with Broadcom, you know, potentially if they're diversifying away from NVIDIA technology,
05:37that potentially limits the NVIDIA opportunity. So I think it makes a lot of sense for the industry as
05:43a whole, and it definitely makes a lot of sense for NVIDIA in terms of protecting the midterm opportunity for
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