Dan Ives Previews Nvidia Earnings

**SPEAKER_1** (0:02)
Bloomberg Audio Studios, Podcasts, Radio, News.

**SPEAKER_2** (0:07)
Joining us now, Sir Dan Ives joins us here with Yorkville. And I said, well, let's start with this, because Tom Secunda, founder of Bloomberg, cornered me one day in a food court, you know, over the Cheez-Its. And he said, hey, stupid, get perplexity.
It changed my life. Dan Ives, what is perplexity?

**Dan Ives** (0:28)
Yeah, when you think about it from a model perspective, I think perplexity is one of the best out there, especially for someone like Kean. You know, when it comes down to like heavy analytics, a lot of sort of numbers, I think perplexity is probably one of the best out there. And that's why when you look at what Nvidia is potentially doing, it would make actually a lot of sense relative to where we see this AI revolution.

**SPEAKER_2** (0:49)
In what way would perplexity help Nvidia?

**Dan Ives** (0:53)
Well, for them, look, they're essentially taking stakes across the whole ecosystem, whether it's infrastructure on the model side. And it's a way, given anthropic and open AI, that have really had a duopoly to some extent in terms of AI, this would enable them to diversify. Because Nvidia, and Jensen's talked about it, even from an open source or other models, the cheaper the models get, the more pervasive that gets, it's better for AI spend because the cheaper that gets, you're going to have more and more demand.

**SPEAKER_4** (1:26)
So we are going to hear from Nvidia after the close Wednesday. What should the market be listening for?

**Dan Ives** (1:31)
No one has a better perch around demand than the godfather of AI, Jensen and Nvidia. I think it's really about when you look, they'll probably talk about that price increase that report over the weekend from a memory perspective driven. But I think it's really about what they're seeing from customers in terms of acceleration. We think overall AI demand, we've seen an acceleration 20% the last few months, and there's one chip in the world fueling the AI revolution. So I think that this is a huge piece of the puzzle. When you're at demand, especially after what we saw from an earning season, that was extremely strong, especially from the hyperscalers.

**SPEAKER_4** (2:12)
You write, Dan, that the biggest tug of war in the tech space is around AI sovereignty. What do you mean by that?

**Dan Ives** (2:18)
What that means is, and it's becoming more and more of a debate, really, a hot button issue, is that the data, I'm not gonna give that data, if I'm a company, to the model player, to an open AI, to an anthropic. I can maybe use them, but there's gonna be a sort of cordon off where I want control as a company over that data.
And that's something where Nvidia, Palantir, there's a big focus, especially from Carton Palantir, on sovereign AI data. Because the view is that eventually, if you have my data, then ultimately competitive wise, could I marginalize your model? So I think it speaks to what's starting to happen is, as you're hearing more maturity now in the AI space, where enterprises are focused more on who has access to their data and should they have more control.

**SPEAKER_2** (3:12)
Dan Ives, with us folks, for a quick tech brief here. We'll talk Canada here in a moment. Good morning across America on Sirius XM, Channel 120, morning across all of Canada as well. The House is fired up about Apple announcements after, I believe, Labor Day.
What will we see from Apple and what's it mean for their free cash flow and stock price?

**Dan Ives** (3:37)
I think for Apple, and I think investors now are starting more and more to recognize, we've talked about a lot on the show, is that the consumer AI revolution, that highway, they're a toll collector on that, and that's going to continue to go through them.
I think it's really, it's about not just the AI strategy, but now as you get to the latest iPhone that they release, what that's going to do to ultimate demand, because it lays out the foundation for, everything we're talking about in AI is about enterprise. Comes down to consumer, what are devices going to look like? Where is most of that going to go through? Apple has, when you think about 1.5 billion iPhones, so that's why there's such a focus to see as they come out with their latest iPhone, not necessarily that there's going to be so many changes from a hardware perspective, but Tom, it's really also related more to the AI strategy that they finally actually have one now with Gemini.