Latest / What the Flux / Atlassian's acquisition spree | Nvidia becomes BFFs with Intel | Cocoa prices fall

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Atlassian's acquisition spree | Nvidia becomes BFFs with Intel | Cocoa prices fall · What the Flux

• 0:05
  Speaker 1: This is what the Flux I'm brand, I'm justin and
• 0:08
  Speaker 1: it's Monday, the twenty second of September.
• 0:09
  Speaker 2: Dozey boy. Australia's unemployment rate has remained steady at four
• 0:12
  Speaker 2: point two percent, but the reason is actually because there
• 0:15
  Speaker 2: was a big drop in the proportion of people looking
• 0:18
  Speaker 2: for work. In fact, the labor four shrank by more
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  Speaker 2: than twenty two thousand people last month. And you can
• 0:23
  Speaker 2: bet the RBA will be looking at this very closely
• 0:27
  Speaker 2: before making their big decision on the thirtieth of a September.
• 0:30
  Speaker 1: At fluxam you can guarantee that Flux will be there
• 0:33
  Speaker 1: covering the RBA cash rate on the thirtieth of September
• 0:36
  Speaker 1: from all angles and it is going to be a
• 0:38
  Speaker 1: very juicy decision by the RBA. So if you want
• 0:40
  Speaker 1: the latest on the RBA cash rate, make sure you've
• 0:42
  Speaker 1: downloaded the Flux app and ready to.
• 0:44
  Speaker 2: Go three sugary stories today, Juzzy boy, let's do it
• 0:47
  Speaker 2: for our first at Lassian has dropped a lazy one
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  Speaker 2: billion US dollars to acquire US startup DX, which makes
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  Speaker 2: it at Lassian's biggest acquisition ever.
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  Speaker 1: Acquisition season for a Lassian be man so what is
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  Speaker 1: going on here?
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  Speaker 2: So at Lassian is the Aussie found software giant behind Jira,
• 1:01
  Speaker 2: Confluence and Trello.
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  Speaker 1: The tech software that developers a love to hate.
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  Speaker 2: It listed on the Nasdaq in December twenty fifteen and
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  Speaker 2: has more than five times its market value since then.
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  Speaker 1: Now, Beman, the other week we spoke about it Lassian
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  Speaker 1: acquiring the Browser Company for nearly six hundred and ten
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  Speaker 1: million US dollars.
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  Speaker 2: And now it's going one better because at Lassian is
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  Speaker 2: acquiring DX, a five year old US start.
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  Speaker 1: And what does DX do?
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  Speaker 2: Exactly well in simple English Chazi boy, it helps companies
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  Speaker 2: measure developer productivity and satisfaction.
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  Speaker 1: And Biman, DX already has Dropbox and Pinterest and Blockers
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  Speaker 1: customers who are also at Lassian clients.
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  Speaker 2: Now, interestingly, at Lassian's Coto said that buying Dx was
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  Speaker 2: a faster way to scale AI capabilities rather than building
• 1:42
  Speaker 2: it all in house.
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  Speaker 1: And as we know, at Lasin is dead set on
• 1:45
  Speaker 1: building its AI capability and it wants to do it fast. Interesting,
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  Speaker 1: So what is the key learning here? When a company
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  Speaker 1: needs to level up? There are two main parts, organic
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  Speaker 1: growth like building something valuable yourself, or inorganic growth which
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  Speaker 1: is buying someone else now.
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  Speaker 2: At Lassian's one billion US dollar deal for DX is
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  Speaker 2: a classic case of choosing the latter, buying someone else's goodness.
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  Speaker 1: Organic growth can often mean slower progress, but it often
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  Speaker 1: leads to deeper integration into the culture and the products.
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  Speaker 1: Inorganic growth can accelerate time to market and add instant
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  Speaker 1: expertise and potentially even bring in a ready made customer base. Yep.
• 2:18
  Speaker 2: Alassian admitted dx's dashboards were better than what it could
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  Speaker 2: have built quickly, but be man.
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  Speaker 1: It seems, though, what Lacian is doubling down on inorganic
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  Speaker 1: growth to stay competitive in the AI space. YEP.
• 2:29
  Speaker 2: At Lassians share price is down twenty nine percent just
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  Speaker 2: this year.
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  Speaker 1: And they've wrapped up three and a half billion US
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  Speaker 1: dollars in cumulative losses since they listed.
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  Speaker 2: So building this from scratch would mean a whole lot
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  Speaker 2: more time to get a product live to market, and.
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  Speaker 1: At Lassian doesn't have time on its side to impress
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  Speaker 1: customers and investors right now.
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  Speaker 2: For our second story, in Nvidia is investing five billion
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  Speaker 2: US dollars into its longtime rival Intel and will now
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  Speaker 2: flip a decades long rivalry into a collaboration tables.
• 2:56
  Speaker 1: Have officially been termed b Man, So tell.
• 2:58
  Speaker 2: Me more, well, Jazzy boy, We've spoken a lot about
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  Speaker 2: the rapid growth of Invidia.
• 3:02
  Speaker 1: Yeah, it's gone from designing GPU chips for gaming devices
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  Speaker 1: to the world's most valuable chip maker, and not.
• 3:08
  Speaker 2: Just most valuable AI chip maker. We'd be talking the
• 3:11
  Speaker 2: world's most valuable company, worth over four trillion US dollars.
• 3:14
  Speaker 1: I get this, be Man. As recently as twenty twenty two,
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  Speaker 1: Intel's revenue was double in videos. But now in Video
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  Speaker 1: makes more per quarter than Intel does in a whole year.
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  Speaker 2: And now in Video will invest five billion US dollars
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  Speaker 2: into Intel by buying common stock, and.
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  Speaker 1: This will give in Video just below a five percent
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  Speaker 1: steak in its new frenemy.
• 3:33
  Speaker 2: Yep, the two companies will co develop chips for PCs
• 3:35
  Speaker 2: and data centers.
• 3:36
  Speaker 1: A little bit of scratch my back end, I'll scratch yours. Yep.
• 3:39
  Speaker 2: A few minutes later, Intel shares jumped as much as
• 3:42
  Speaker 2: twenty six percent when this news broke, And be.
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  Speaker 1: Man, it is a rare wind for Intel, who's been
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  Speaker 1: losing ground to AMD and in Video and TSMC as well.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: Sometimes enemies become teammates when survival is on the line.
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  Speaker 2: For decades, Intel looked down on in Video as a
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  Speaker 2: niche player for those gaming nerves. But in Video's dominance
• 4:00
  Speaker 2: in AI has flipped the power balance of big time.
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  Speaker 1: And now Intel is swallowing its pride and teaming up
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  Speaker 1: with its former rival to regain relevance.
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  Speaker 2: Because between them they dominate in GPUs and CPUs, which
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  Speaker 2: are both critical computing engines. In Video dominates in GPUs,
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  Speaker 2: and this is the stuff mainly used for AI.
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  Speaker 1: In fact, they men in Video had a ninety two
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  Speaker 1: percent share of the GPU market in the first quarter
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  Speaker 1: of twenty thirty five.
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  Speaker 2: With AMD second and then Intel.
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  Speaker 1: But Intel still has dominance and scale in CPUs and
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  Speaker 1: manufacturing two.
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  Speaker 2: So while the tables have officially turned, it seems like
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  Speaker 2: this partnership gives Intel a last chance to become the
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  Speaker 2: big dog chip player that it wants to be.
• 4:37
  Speaker 1: Yep. For our third and final story, chocoholics may finally
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  Speaker 1: be catching a break because cocoa prices have started to
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  Speaker 1: fall after their all time highs in late last year.
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  Speaker 2: Genuinely taking out a mortgage for a block of old
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  Speaker 2: gold almond, Duzzy Boy tell me more.
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  Speaker 1: Okay, So, coco is the core ingredient in chocolate for
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  Speaker 1: many of our favorite brands. We'd be talking your Cadburys,
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  Speaker 1: You're Wittakers, your Linz, your Old Goals. Yep.
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  Speaker 2: And sixty percent of the world's cocoa supply it comes
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  Speaker 2: from West Africa.
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  Speaker 1: We're talking Ivory Coast and Ghana being the two main countries.
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  Speaker 2: Now a little bit of context for you, Jusey boy.
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  Speaker 2: In the middle of twenty twenty two, the price of
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  Speaker 2: coca was about two thy three hundred US dollars per ton.
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  Speaker 1: But beman then came unusually heavy rain in West Africa.
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  Speaker 2: And also an outbreak of a cocoa pod disease when
• 5:22
  Speaker 2: it rains a pause uh huh. So by late twenty
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  Speaker 2: twenty four, the price of coco hit twelve thousand US
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  Speaker 2: dollars per time.
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  Speaker 1: Or five times the price of coco from mid twenty twenty.
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  Speaker 2: Two, And of course, Jasey boy, these prices then flow
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  Speaker 2: onto us as consumers of the chocky delicacy.
• 5:35
  Speaker 1: But the good news is that cocoa prices have officially
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  Speaker 1: hit the peak and are now sliding to blow seven
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  Speaker 1: four hundred US dollars per Ton.
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  Speaker 2: We're talking to better weather in Ivory Coast and growing
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  Speaker 2: production in Ecuador, all boosting supply.
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  Speaker 1: But also the demand for chocolate has actually suffered, not
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  Speaker 1: in my household, so be man. Hopefully given the drop
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  Speaker 1: in commodity prices of cocoa, the price of chocolate box
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  Speaker 1: will be coming down too.
• 6:00
  Speaker 2: Be called juzzy boy. So what is the key learning here?
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  Speaker 1: With supply shocks collide with growing demand, prices can often skyrocket.
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  Speaker 2: And for coco this means it's followed straight into your
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  Speaker 2: supermarket chocky aisle.
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  Speaker 1: In fact, man Man, a standard one hundred and eighty
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  Speaker 1: gram milk chocolate block has jumped twenty five percent over
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  Speaker 1: the past two years.
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  Speaker 2: You see, prices of commodities like cocoa are driven by
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  Speaker 2: a tug of war between supply shocks and of course,
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  Speaker 2: changes in demand. The challenge is that agriculture crops can
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  Speaker 2: take years to grow, so supply can't instantly service demand.
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  Speaker 1: But the other challenge is that once customers have adjusted
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  Speaker 1: to a new price of chocolate, brands don't want to
• 6:33
  Speaker 1: give up that margin.
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  Speaker 2: So while coco market is easing juzzy Boy, we may
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  Speaker 2: not get the same sweet relief at the checkout, But.
• 6:41
  Speaker 1: Dam if you're enjoying listening to the pod every single
• 6:43
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• 6:45
  Speaker 1: smarter every single time, one little request from us. Please
• 6:48
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• 6:50
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• 6:51
  Speaker 2: Thanks for listening, and we'll see you on or Wednesday.