from the heart of where innovation, money and power collide in silicon valley and beyond. this is bloomberg technology with caroline hyde and ed ludlow. ♪

caroline: i am caroline hyde at bloomberg headquarters in new york. ed: i'm ed ludlow in new york. caroline: coming up we speak with heather boucher and the impacts of the inflation reduction act. ed: alphabet loses its suit. caroline: true anomaly raises 100 million to ramp up the satellite that can detect threats. the threat over the cpi print running ever so hot has died down and we see .2% up on the nasdaq. we come back down because the

cpi is slowing but there are areas of concern. the dollar index is off .16%. but see the effect on the u.s. dollar and crypto. bitcoin has been carving its own path but is off is 45,000 level 4129. just treading water after the macro print. ed: oracle is the story were watching. the way the market is looking at it, it's the second quarter of decelerating growth. the opposite of what they wanted to see. that puts it back on track.

where they getting enough access to high and gp use in support of artificial intelligence? the jury in san francisco saying that google play is a monopoly based on anti-competitive practices. the shares are down .8%. if the next step is that there needs to be a policy change on the google play store, you can spend money in a different way, that could be a headwind of 1, 2 percentage points of growth. we'll talk about that later in the program. caroline: it will be see how some of the costs go down, what is that due to the cost of doing business? core cpi, the data coming in

matching estimates. the federal reserve will have to keep rates elevated to tame inflation and the longer term but here and now were trying to understand where we are dialing back on inflation. we speak with heather boucher from the white house. the print has come and where the market has seen it. what was your read on today's print? >> as you noted the headline was above market expectations but when you look at the report you see the pace of inflation has been coming down in ways important for consumers. for groceries or slower, that's consistent with the news we were talking about after thanksgiving where thanksgiving was cheaper this year than last year. and as we look forward important

for families, those prices have also slowed. there is good news for consumers and when you look over the last quarter the core inflation is a 2.2. caroline: you said consumer sentiment has been picking out. to use the word of the year, -- what do say is an administration when the consumer does not feel the way that you're talking about this economy? >> the president has been clear we understand high prices have

been hard on families. when i looked at this report today we see that wages have been increasing faster than the pace of inflation and we know it takes time for people's perception to resonate. we are hopeful that as we see wages outpace inflation it will help people get their family budgets under control. more there 80% of workers have fully recovered their wages but we know the path to recover from this virus-induced recession and the challenges we had getting back online, so much work went

into make things function again and as people go back into the holiday season they will see the pace is not as high as last year in help with consumer confidence. ed: our technology audience has one specific question, what areas do you see the inflation reduction act have a substantive impact in lowering inflation? are there any data points that you can give us that can show that the ira has worked? heather: we saw in today's report on inflation that the price of new cars has fallen for out of the last six months. we have been tracking the u.s. auto industry as we made these investments and batteries and electric vehicles.

we are seeing the number of vehicles has been rising in the price of those cars because of the competition has come down. the price of electric vehicles is within 3000 of a car. that's before the tax credit families received to those vehicles. that's one place for those investments are working to bring changes for consumers in creating good jobs here in the united states. ed: what is the white house reaction that ford has cut his production for its lightning because they are matching their output to what they see as being consumer demand. heather: i can't comment on that today but we are seeing historic investments as a result of the inflation reduction that. we are seeing this uptick in

sales for electric vehicles. it is challenging to reshape a new economy. but knowing that the president has done what he can do to make sure businesses have the support to make these investments, that's where our energy has been focused. caroline: there is that tension that inflation has not been helped by geopolitics, trade and we are having to slow those supply trade between the u.s. and china. how much is that a help or hindrance in the chips factor? heather: when you look at the pace of inflation and if you were to overlay price changes along with what is happening in the supply chain index we look to. you will see a big part of why we been able to get prices down when they were out there peek,

when you look at the shift a lot of that mirrors the challenges we saw in the supply chains as a product of the pandemic that upset global supply chains. all the work the president did to make sure goats were transported, that played a key role in where we are today getting prices down. ed: in technology, there are still companies reducing headcounts and at the same time, ai is driving a number of postings which seems to be adding to wage inflation because the numbers are astronomical in order to hire the best talent. does the white house that shows the ai impact on the labor force? heather: at this moment, we

don't have a specific estimate but i can tell you this is an issue that the president take seriously. today his ai council is meeting about this technology. one of the things we've seen in past instances is that people's jobs tend to change as they work its way through the system. so we expect that it will shift the skills workers will need but this is something the administration is focused on as the president is focused on building an economy from the middle down on the bottom up. ed: heather boushey, thank you very much. google loses its fight with fortnite and what that means for

the 200 million per year industry. caroline: apple is trading flat as we see about the repercussions of what this means on the impact of google play and what the readout will be for the apple app store. this is bloomberg technology. ♪

thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance?

ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh ed: google play deliberately weild monopoly power. this is after a month long trial

. fortnite games accuse google and apple of being the duopoly enriching themselves by charging developers excessively high fees. most bring in bloomberg colleagues. what was that they decided on a why? >> they found google operates monopoly power and pay different people and gaming companies and smartphone makers to make the google play store the soul app store on several phones. it's a little different than the apple store. it does not allow any other app stores on the phone and that has

long been its policy. and with google there were all kinds of payments to ensure that the google play store was the best and most accessible access point for people using android phones. those payments are what convince the jury that google was a monopoly but in the apple lawsuit they did not. caroline: we have seen apple in alpha belt think about their business model and how it evolves. >> in the apple games with epic games that's heading to the supreme court in a few months which is steering. the ability to point a user to the web to complete a transaction.

that means they won't have to use apples billing system. now that this jury sided with google that puts this idea in the heads of decision-makers on this last point to sign with epic games against apple. there's a couple of things i want to outline here. i think this came down to optics, pr and the side agreements google had with spotify, google and others. there is a fundamental difference between how app stores work on ios and android. google doesn't have a monopoly on app stores it has a monopoly

on android smartphones. they are paying google play in pushing users towards the google play store. that's a fundamental issue. in terms of how things will change. google will probably have to allow third-party billing platforms because of the digital markets act and the european union. you will see a lot more flattening and third-party app stores getting traction. on the apple side, and the eu you will see the same thing kick off in march. caroline: it looks as those the businesses will have to make some adjustments. we thank you so much for your expertise. we will discuss the state of the chip industry as they warn of

delays. this is bloomberg technology. ♪

ed: time for talking tag. sam altman is touting ai's help to humanity. he appeared out of forum to discuss ai advances. he announced that there will be a new ai ethics chapter based out of atlanta. nvidia has become one of the leading investors in ai companies. they participated in 35 deals, six times more than last year making them the largest large-scale investor and ai.

u.s. commerce secretary says the u.s. is looking into the specifics of three new ai accelerators that are being developed for china. they want to restrict any new chips that give ai technology. caroline: she is warning that the domestic sector could be delayed if they are required to go through environmental reviews. joining us now is the ceo of element solution that produces chemicals and every tv process. to that end, how much is there a domestic supply chain issues? ben: there has been a ramp-up of

semiconductor ability but it's a muscle we have a flex in the long time. were confident will come online and a lot of capital behind it. ed: there is an absolute obsession with gpu,amds and less discussion about the other chips and raw materials needed to supply that infrastructure. what is life like for you? are you through the chaos when there was a chip crunch industrywide? ben: semiconductors have been through a lot of chaos, demand softened incapacity additions were slow down. it's been a roller coaster. were fortunate to see demand recovering and our business is

well poised to benefit from that. we sell small quantities of critical materials, process chemistries used in the fabrication of semiconductors and circuit boards. we have ample capacity to meet the increasing demand we expect next year. ed: you touched so many in markets, smartphones, electric vehicles. are you so far upstream that you don't have the sensitivity to other areas of the market or do you feel the pain of the consumer? ed: we are unit driven and we have been living through a significant drawdown. similarly in the semiconductor and vehicle market. we are starting to see that recover. we are driven not just by units

but content by unit. as cars become computers integument will requirements are associated with that power becomes more challenging. that's a game for us in the margin power associated with it. caroline: how much of is a straight line to that inevitable moved to eb. we had heather boushey on it we were putting concerns to her about the ford lightning being cut down on production. will we be bumpy in the shift to ev? ed: if you think about three years ago, the rate of penetration to the global fleet would have paled in comparison to what we've seen.

automotive electrification has accelerated, there will be bumps in the road as large companies grapple with the changing supply chains but the trend is there. it's not a straight line that the trend is positive. for element, we have differentiated capabilities enabling high-performance electric vehicles. we get 1.5, two times the value for electric cars. we see a lot of opportunities. caroline: the opportunity being marketed boosting. how do you see your investor base changing? ed: our investor base is compelled by the opportunities we have in front of this company and the way we deploy capital. we are seeing more energy and attention towards our company from electrification, from innovation and high and

electronics. you were talking about ai and the proliferation of computng to the edges of th network. thoseareight from us -- ripe for us to benefit from. ed: thank you for talking about the semiconductor supply chains. we will discuss the blockchain with kristin smith. from new york city, this is bloomberg technology. ♪ (announcer) enough with the calorie counting,

carb cutting, diet fatigue, and stress. just taking one golo release capsule with three balanced meals a day has been clinically proven to repair metabolism, optimize insulin levels, and balance the hormones that make weight loss easy. release works with your body, not against it, so you can put dieting behind you and go live your life. head to golo.com now to join the over 2 million people who have found the right way to lose weight and get healthier with golo.

ed: welcome back to bloomberg technology at the in san francisco. caroline: caroline hyde in new york. tomorrow we will look at the cpi print today. a bit of an knee-jerk reaction,

the nasdaq 100 .28%. new inflation numbers came in. the two year yield is flat at 4.7 no. let's move on to micro moves. alphabet shares are up by .9% after a legal defeat. it dictates how we all use our cellular phones. this is on the back of barclays signing demand concerns with their ability to be traveling and airbnb and their outlook.

ai has been all we've been talking about and in 20 it was all about crypto. we wanted to get into bitcoin with kristin smith. all eyes have been on the price of bitcoin and a lot of altcoins as well, whether that's driven on the federal reserve and inflation. what's dictating trade for you? >> the bitcoin etf, there's a lot of around that. grayscale had a report that forces the sec take this more seriously.

we are hearing a lot of applicants are having productive conversations with the sec said there is a lot of hope that we will get it done. 2023 was not a great year for crypto and i think there is this sense the bad actors within the industry have been weeded out and what is left is to focus on the technology. so we see a lot of optimism around crypto returning to the technology of crypto, what it can do and how it can improve not only just finance but the way we interact on the internet. caroline: rather than talk about blockchain we talk about the trading of the assets. to go back to bitcoin, with etf are you having discussions with

how quickly that could be enacted? how many days, months until you can get it to start? kristen: i know most of the applicants can turn this around quickly, they have the infrastructure in place to do so. it's really just getting the sign out. that will be something to look for when the sec makes its announcement. ed: at the fourth republican debate they talked about crypto. it feels like of 2023, the bad actors have been weeded out, 2024 the legislative factors may come into do things for your industry. kristen: the politics around crypto are shifting in favor of the technology. we have presidential candidates how to debate in new hampshire

on this issue last night and it came up in a debate with a question for vivek ramaswamy and ron desantis. there are politicians with crypto policies and their platforms and we will see more representatives selected more familiar with this technology and why it's important to be competitive with this. i think the tide will turn. not to say that we don't have those in congress that are excited about crypto. but increasingly, the trend is in favor of the technology, community and ecosystem. i think 2024 will be a turnaround year for the industry. where excited about that. ed: does the blockchain association have a scenario for each outcome? by dennis or is not reelected, a

new administration, do you see different fast-forward? kristen: we think there are a couple of key factors. a lot is personnel and policy. a lot of people nominated and confirmed by the senate to run agencies have an incredibly important role to play. whether a is by then or someone else, gary sucker will not be at the sec forever. if the senate flips, that could have a huge impact, if the house flips that could have a huge impact. the most important thing we are focused on is getting the education across to policymakers. this is an incredibly complicated space.

you need to know what the technology can do. regardless if democrats or republicans or a control, there is a pathway forward to successful policy and the key to that is having the right kind of education. caroline: how hard is that education made when one of the biggest leaders like jamie dimon said he would shut it down. kristen: it's hard to see see e dimon on the same side as elizabeth warren. the fact that he said that --

it's getting the attention of the policymakers. there's an opportunity for that. caroline: blockchain industry leader. ed: cathie wood tied to artificial intelligence. our which is beaten the s&p index, coming up on the program, there is a new satellite in town. a contract national threats from orbit. we will speak to ewan rogers, up next. this is bloomberg

technology.

caroline: time now for around that. airbnb, depending on market position. the chinese company has called off its debut after volatile market conditions. the company will use ai for corporate functions like data

analysis and automating monotonous tasks. ed: true anomaly designing u.s.-based recognizance systems raised a hundred million to ramp up the funding for satellite that can detect national threats from satellite. joining us now is true anomaly ceo ewan rogers. ewan: this is an autonomous vehicle designed to fly close to other satellites. it has its own onboard propulsion system and cameras to maneuver safely. it can move in any orbital condition.

it's designed at a cost point that allows the system to be proliferated at a scale that has been unachievable thus been supporting the space force today. ed: how do i get access to? and what are the threats of trying to gather data on? ewan: we want to transact in a way that aligns incentives. we want to target margins reported for defense investors. space forces nominated cleared what they intend to transact on a transact on a firm fixed contract for government operations. space forces working on a

strategy and we hope to be part of the conversation. ed: what was the experience like working with spacex? ewan: they've been a fantastic partner. they have provided a launch at a cost where we can get access to space at a price point but doesn't a debate -- break the bank. this system did not exist in this supply chain has been matured. caroline: working with spacex and the u.s. government, what is the u.s. government as an institution like to work with? ewan: is a complicated

relationship. the dod has responded positively. this company was founded by ford cofounders who spent time in the air force and we saw the transition of the dod talking about it as a peacetime domain. so we see a domestic partner thinking about protecting the infrastructure and space that we've spent hundreds of billions on and is the backbone of global commerce. they've responded positively and at the end of the day, is a combatant on us to show that we can successfully build. caroline: it's unnerving the picture you paint of a warrant space.

ed: science fiction is a complicated use of imagination. ewan: our adversaries have built weapons to destroy satellites that puts our allies ability to project globally at risk. everything from missiles designed to be launch from the surface. nobody wants a conflict that extends into space. that conflict needs to be in a way that doesn't generate debris. we can't have a pyrrhic victory. the ideal is deterrence. understand the next generation

of systems that needs to be built and deterred. ed: i know you are yet to reach your status but what is the cash for? ewan: we want to deliver on the contracts that we have signed today. we have exciting announcements of will come out in the next couple of months around that. ed: true anomaly ceo and cofounder, ewan rogers thank you for your time here. jeff is pushing to resume on the new shepard rocket that has been sidelined since 2022. caroline: we are going to space

again but this time virtually. virtually, vr this is based. dan o'brien joins us. this is bloomberg technology. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh

ed: dictionary.com is out with

the word of the year. the word of the year is a hallucinate. much like artificial intelligence, it is on the upward trajectory. caroline: i feel like ai has dominated our lexicon. this go back to spacex. missions can be physical and mental toll. that is why they have sent a virtual headset on the international space station. here to tell us about bridging the gap between mental health and technology is dan o'brien.

what is difficult about sending this to space? dan: we use gravity for all of our technology on the ground and in space we had to account for zero gravity and have a point of reference so we don't have things like drifting inside of the space station. the technological achievement to send something like this in the space was amazing. but on the mental health side, the rigors of spaces isolating. and it's very challenging for the astronauts. they are dealing with stress and minutes the way we would deal with that for years. we wanted to put this product out there so we can measure how to make it a more efficient and proactive environment for astronauts. ed: i have spent hours using vr with my feet planted on the

ground. are there differences from the experience that the astronauts going through a virtual reality environment is zero gravity? what have they relate to you? ewan: they're doing a lot of video experiences. dan: you can see that they do a lot of on ground training. the commander in that video was doing the spacewalk experiences before he went into that environment. we do a lot of training and simulation with our health care applications, a lot of high stress training we can use across a lot of articles not just from s above first responders, health care, defense and education. we have a lot of ways we can use it on earth but we can bring

those astronauts a lot of experiences that will bring them a lot of calm and serene they can use in that environment. ed: how does htc get out of sending up a headset? dan: there's a lot for us to learn. we delve into hardware, software and delivering new technology for the industry for several years. we were the first company to bring out a touchscreen device in the first company to bring you a full room virtual environment. it is always about being the innovation leader in every aspect and what we are learning in space and being able to have an object in space teaches us about different environment so we can break virtual scenarios to and it's also about training simulation. caroline: leaders does not

always mean winter. when we think of vr, one goes to meta-and apple. do you feel market share will be yours? dan: it's always good to be first but we are the reference design for those other companies. they are usually a year behind us when it comes to wireless connectivity. even apple, there has set is already behind what has already come out. mehta, a completely different business model. they look as the user as the product. they are looking at selling ads. we are a company that stands for humanity. what we're trying to accomplish is to bring products and solutions that will benefit humanity. caroline: cutting.

we thank you for that. dan o'brien talking about the marketing list get -- landscape for vr. there has been about space. ed: 50% in orbit, 50% on earth. listen to us on the podcast wherever you get your podcast. we appreciate the feedback. from san francisco and new york city and planet earth, this is bloomberg. ♪ 202 pounds on golo.'ve lost so the first time i ever seen a golo advertisement, i said, "yeah, whatever. there's no way this works like this." and threw it to the side. a couple weeks later, i seen it again

after getting not so pleasant news from my physician. i was 424 pounds, and my doctor was recommending weight loss surgery. to avoid the surgery, i had to make a change. so i decided to go with golo and it's changed my life. when i first started golo and taking release, my cravings, they went away. and i was so surprised. you feel that your body is working and functioning the way it should be and you feel energized. golo has improved my life in so many ways. i'm able to stand and actually make dinner. i'm able to clean my house. i'm able to do just simple tasks that a lot of people call simple, but when you're extremely heavy they're not so simple. golo is real and when you take release and follow the plan, it works.

jon: kailey: welcome to bloomberg crypto. coming up, a bit of the bitcoin boom fades a head of the fed as investors grow increasingly confident that spot bitcoin etf's are just around the corner. plus we talk to the ceo of the chamber of digital commerce