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 a bloomberg headquarters in new york. ed: i'm at the ludlow in san francisco. caroline: attacks to the global

supply chain and what is being used to navigate around them. ed: and is hit by those attacks. it has shut down its berlin plant. caroline: we will sit down with renowned venture capitalist amongst the announcements that he is returning. first, we check in on these markets. there are fiscal headwinds about the strike and implications of the middle east. and it takes the anxiety that is been built into the market. read into that the ppi number, this could be dialing down when it comes to the producer prices and it mpox of the bond market. two year yields crashing to their lowest since may feeling

that the rate cuts will be back on the table. let's take a look at bitcoin, is this a sensitivity to ppi? or are we selling the run-up into crypto more broadly? we are off by 1.4%. ed: we will take deeper into the program. it's a difficult to get a causal link with the data and what is happening. that extends to crypto related stock. everyone from a training platforms that hope to benefit from spots etf. we see don where pressures. onack f what is

playing out in the red sea. >> the biggest thing is the

impact on customers. the transit time as well. you mentioned tesla getting parts to manufacture goods. a huge swath of companies in europe. the price of ocean race has gone up about four x. even from asia to the west coast which you would think it should not be impacted by the suez but it is. the price has gone up by three times. part of that is that the ships have been pulled off of the supply chain. all of these trades depend on containers and if there is not enough containers you have to pay more for the ones there are. ed: we have a great visual to

track those movements of those containers. we talked about tesla as the example of the top of the show but in simple terms, the components they need to feed the assembly lines are not getting through. do you have any industries that have a micro hit from what is happening in the red sea? ryan: anything manufacturing related where you are depending on inbound parts is going to be hit by that. manufacturing done imports that are no longer getting the same service level. we have a company that makes apparel and jordan and the airport authority is in the red sea but carriers would often stop there are not going through the suez at all.

with this customer we are trying to find alternate routes. every ship that gets rerouted has containers in each of those has a journey of its own that needs a new destination. caroline: you are on the cutting edge of technology. but is inflation going to be driven up? you have seen supply chain disruptions before. will this impacted? ryan: if it lost for any period beyond a quarter. they don't want to immediately change the price of what they sell. but it leads you to believe that this will happen for a few

months. you can pass the price through to your customer or make less money. and i think you know which businesses will do. it can be quite significant as we saw in the supply chain congestion. we estimated it was three, 4%. caroline: what is being stressed tested in your technology? you came on a few weeks ago and said a lot of the ships have to turn off their sought allies because they don't want to be intercepted by houthi robles. what new technology are you using for these scenarios. ryan: like you said a lot of them have turned off transponders making it harder

for anyone to track or identify them. you also get sailing schedules and routes. the problem with all data is that it all comes from the same place which is the past. it actually speaks of the approach we have taken which is humans tracking the ships and the carriers, they are editing manually where needed but the system has performed well. to help them visualize that we could tell them which containers have to be delayed. our team updated our carbon

calculator. it takes about 20% to go around. we've had to go through and change all of the estimates of all the carbon. we are working overtime to keep our customers informed. ed: in 2020 of us trying to work out the story with tesla was. and they said get a car and look out of your window and tell me what you see? you were referring to all of the ships parked in waiting to unload. that was the issue of 2021 crisis? what is different this time? and how long will it take to unwind relative to the months and months of that saga? ryan: they are quite different because the 2020 crunch was

driven by an increase in demand. we shipped more containers than ever. there was an increase because customers were unable to spend money on restaurants so they were spending it all goods. we had much more demand and the ports could not keep up. then they became congestion. it was a double whammy in 2020 and 2021. now, it's just a reduction in supply. it is different in that regard and less of a traffic jam than it is to detour. it runs at the same speed but it just takes longer. i think the world will adopt better than a dead. not to say is not a big impact. talking crystal ball, the shipping industry ordered a lot of ships in the peak of those

shipping prices they reinvested in their fleets and they are coming online next year. you have a lot of capacity coming online. we have a decrease of capacity due to rerouting but you will see the ocean markets stabilize and get to a relatively normal pricing environment. it will be higher than it was going to be but i think that it will recover. caroline: ryan peterson, thank you. meanwhile, coming up talking about tesla and the implication on supply but what about demand?

they are cutting the price on models again. that's up next, on bloomberg technology. ♪

ed: tesla because prices in china again. they lowered prices by 5.3% and markdown the model wide by two point 8%, 30 6000 u.s. dollars. that according to the chinese version of tesla's website. they also said that there

location and berlin would be affected by the red sea situation. this is one of several cuts in china over the course of the last years. >> and 2022 we saw tesla opened the salvo of rice cutting in china and it was relentless for tesla in the broader industry. what must insult to me is the cuts of the two models that tesla has its the model three. there was hope that with updating the sedan and giving buyers a reason to have a fresh look at the car, this is a substantial price cut. only a few weeks removed from the updated model three. this is potentially a cause for

concern if you were counting on the idea the refreshing the lineup with lead to pricing bottoming and stabilizing. caroline: it feels investors feel similarly. it's had a pretty awful run of it. with the story about china and price competition and cdy becoming a challenger with the number of evs sold. they've also had to come against ev demand. craig: the heard story is something we can't forget us well. we think about tesla and china in the u.s. being important. in the u.s., for a big customer at hertz, it's an incredible story to me.

when we think back to when hertz was going to buy a tesla. that made them a multimillion company. and hertz making this sharp u-turn and trying to electrify its fleet. this on a positive development for tesla to say the least. the fact that you are seeing hertz launch this firesale of tesla's not good for the resale value and potentially could hurt demand for new tesla's in the sense that there is a whole supply of used tesla's on the market for people to take a look at. caroline: craig trudell thank you for giving us all the news for a humble week for tesla. ed: european antitrust regulators said the relationship

between microsoft and openai is when they are monitoring closely. i sat down for an exclusive interview. >> we all followed hour-by-hour the situation of openai. the back-and-forth and how it was really opaque and more and more clear. the interesting thing for us is what is the real relationship between openai and microsoft when it comes to control of the business a question? it's preliminary but it is part of a larger endeavor to understand how ai will affect our marketplace. what we are seeing with technology has completely upended how markets are working. additional markets in other markets.

when we put ai into that game, we see this may accelerate some of the behaviors we have seen and have been concerned about. we just launched a probe to participate and give us feedback as to how will ai influence competitively in the market. ed: nvidia disclosed you were looking at its behavior in the graphic cards market. what were your concerns that prompted you to look? >> it may sound very trivial, but it is always the same thing driving us to make sure the market is truly open and competitive. when it comes to everything digital we are in the situation where network effects were scale

really matters. that goes for hardware companies and software. we are driven by what we have seen over the past 10 years that you need to be on the point before markets pivot. if you want to make sure smaller businesses can actually innovate and scale in this environment. ed: i want to go back to a period of time where you ordered on the preliminary basis where google reveal its business. aside model that you can take in your remaining here in this role? >> it all depends on the business. in order to outsource and

suggest something as far-reaching as a breakup. that has to be the only solution. ♪ business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh

caroline: let's talk about those newly allowed bitcoin trader funds. vanguards brokerage will not offer trading and new etf's in bitcoins. so marx found is with us because she has been backing these bitcoin enabled since 2013. perhaps your still getting difficulty accessing them. >> for the spots etf class, we

saw a protected 650 million of flows with blackrock fidelity leading the class. what's important in private markets is the financialization of bitcoins is a pace. we see that reflected in mainstream financial acceptance and adoption of bitcoin. on the private side, innovation is happening as well that further advances bitcoin as an asset. caroline: what problems are they trying to solve? i'm wondering if there's any cannibalization? you can gain exposure through an etf and is so much easier. >> thus will support about the spot etf, it's an easy access product for retail investors an

institution that feel more confident in accessing bitcoin through a regulated product. the marketing that has gone into the launch of these products and supports their continued adoption is consistent with bitcoins core principle which is that it allows investors to hedge against the wedge of inflation which has global concerns for develop markets like the u.s.. what we expect to see from spot etf's is the production of bitcoins will increase because investors have a familiar and easy way to access it. what i expect to see in the longer term is accessing coins and exposure to coins to bitcoin will allow people will the motivation to learn about bitcoin and could lead to direct

accessing and purchasing. ed: there's ease of access and 11 etf psych out improve. they were already flagging those not offered the service. do we need 11 etf's? >> the market will determine that but we do see some breakout performers. on the private side, some of the products that are developed they are also exciting. likely those to purchase spot etf's. the innovation we see in private markets is insurance products. you can hold the policy that's nominated and producing a btc

return. and we see products that help the space mature. ed: this is deep analysis of a grateful for your time but we are out of time. this is bloomberg technology. ♪ how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now. get over here kids.

you've got more options time for today's lesson. wow. -whoa. what are those? these are humans. they rely on something called the internet to survive. huh, powers out. [ gasp ] are they gonna to die? worse, they are gonna get bored. [ gasp ] wait look! they figured out a way to keep the internet on. yeah! -nature finds a way. [ grunt ] stay connected when the power goes out, with storm ready wifi from xfinity. and see migration in theaters now.

caroline: welcome back to bloomberg technology i'm caroline hyde in new york. ed: in the nasdaq 100 we are up 1% but on a five day basis. we are on track to have our first positive week of 2024. it's only the second week but it's friday. it is interesting because economic data has been interesting factor. we swung between boosting and cutting.

that impacts the technology sector. everyone is watching whether you are a public or private markets. we will have the conversation later. there is some momentum around meta-. i don't see any catalyst with social media stocker meta-in particular. but it is doing well in the opposite is tesla. it's interesting to see buoyancy and make a cap tech in the day that the news broke that the magnificence of and may not be as budget deficit as last year. caroline: social media is one we want to focus on. x saying it will launch new shows as the platform looks to

add videos. catwalk marriage joins us with the details and it was interesting to see who they were backing. the key focuses that they did have. a guy coming from fox who has decided to go off on his own. >> it feels like they are this home for about a people who had major platforms are looking for a new place to go. don lemon being a prime example, tucker carlson. i couldn't help when i heard this news but think back to the old regime of twitter in 2016. you may remember, they signed a deal with the nfl and different publishers to stream live video. this feels very similar. at the same time this push into

premium video content may provide them with the revamped revenue stream. it's interesting to see this being recycled here. ed: there's video and then there's video. we were discussing behind-the-scenes, the sex become a dedicated video player? you're taking on the likes of reels and tick-tock orders to become a content platform like you are watching shows? my readers that x is not quite decided what it wants to be in the video context. >> these sound similar in that they're both video strategies but they are quite different. if you go into the tiktok/real sprout you will be courting regular creators. people who are lower budget and try to get a small revenue share.

when you go after larger traditional video, those are bigger budgets and bigger commitments. you may be able to sell larger packages. we have heard elon talk about his admiration for youtube and wants x to become more like you two. i think will be interesting to see which of these because they pushed out more. right now it feels like a little bit of both. ed: it is important to know that alex had a big presence the superior this year march 20 years of facebook. mark zuckerberg has become a i

with his original dream deferred. that is the story. social platforms are in the metaverse and now it is all about ai. >> it's funny to think back 20 years ago when mark zuckerberg started facebook and it was all about connecting with friends and family. so much has changed since then. there was crypto in the cambridge analytica scandal and then changes his name to meta- and spends 50 billion on this idea that we would live in this virtual world. obviously, it didn't work. and then chatgpt came out. and now is trying to position to be a leading player in ai. caroline: what i love about your story are the anecdotes in behind-the-scenes.

you take us back to the island co-meeting in 2021 saying congratulations on the feats nai. >> he was so focused on the metaverse that he was not keeping and i that was going on with his ai success. and he had already been around for a decade so a look like oh aha moment. there was a rush that he was up to speed and to his credit he got up to speed quickly. it wasn't until chatgpt came out that they put ai into their products in a new way.

caroline: we didn't even get to discuss macadamia nut eating cows. meanwhile, coming up. the big move. keep it here, next on bloomberg technology. ♪ that your customers need to know about. constant contact makes it easy. with everything from managing your social posts, and events, to email and sms marketing. constant contact delivers all the tools you need to help your business grow. get started today at constantcontact.com constant contact. helping the small stand tall.

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ed: time for talking tech. longtime apple board of directors will be retiring from the company. gore was the longest joining member.

and india's two largest i.t. forms a recovery may finally get underway in 2024. the curry servers are going under a rocky stretch. whether they can live up to the excitement. they put up big bet during the pandemic. caroline: big move set nbc. stay with us, this is bloomberg technology. to worry about things like changing tax rates or filing returns. avalarahhh

ahhh

ed: deal done. let's bring in coast inventors cofounders along with kiefer boyd. i start with you, you have had a back-and-forth on expert who

phoned who? who's idea with this -- was this? >> we have always gotten along and stayed in touch and so when he was thinking of something new we got together and keep and sameer talk to we followed up with dinner and that was it. it was pretty simple. >> is sounds like it was an initiative that came to you first. why did you think of this, what is driving him in this decision. keith: i spent 14 years we had an incredible year where we produced multiple ipo's so we had significant traction today

-- together. we knew about the potential of ai, robotics, low-cost rockets into space. i knew a lot about a lot of things is technology that i was getting a free education and every partner meeting so that was exciting. it made so much sense to go back. we have been working together for five years and it feels like i never left. i work closely with sameer. the interaction is substantial going back to 2013 with the firm. up-and-coming companies, open

store and barda. the natural over the made this so pleasurable. caroline: i can see the pole but what was the post? why did you think he wanted something different? keith: you are always wondering how to be happier or more successful. you realize which environment to thrive in and what environments are for other people. where i do really well is mentoring for founders that have high impacts and achieving those ambitions. and so, that was a deal for what i like to do and how i like to compete at the world.

caroline: where then to put his expertise? you have these overlapping investments. will he be on the ground or building out miami? vinod: we are in what we call assisting to build large companies. that is part of his skill set that's extremely valuable. one thing to realize, we have a diversity of skill sets and keep adds to it and the more diversity you have your skill sets the better decisions you make. most people in the investing business really don't know company building and keep those. that is why i think -- and k

eith does. ed: the word he used with you is mentoring. i am interested mechanically, there must be portfolio companies khosla that were there when you are around and new ones. you have the opportunity to get involved in new companies. i wonder if you have a wish list ? specifically, does openai make that list? you could do some work there given recent events. keith: i want to find ambitious challenges that will change the world that have an impact on lives and society. there are a few companies that i invested in five years ago.

there is a lot of continuity there. there are some founders that i invested in back of my day, 2013 that want me back. but really, we want to look forward to the future of technology and who are the iconic founders that have the potential to do that. i've to apply them before other people do. caroline: you have all the money to put to work. khosla has been the most active employer for venture capital, is that where you will look at first as well? vinod: we don't look at the rates at which we are investing. we look at the rate in which we are getting great companies to work with us. we don't have a base or strategy , our focus is very much on

where do we run into a great entrepreneur how do we convince them to work with us and how can we help them as a company? we don't keep track of industry metrics in terms of rate of investing. it is very much focused on when we see the right opportunities. what is surprising from 2021 and 2022, our rate of investing did not change very much. the industry went through real up cycles and out cycles. but if we look at the number of major investments we made, our rate has stayed relatively constant. we did not increase dramatically and we did not decrease significantly from 2021-2023. caroline: i'm interested in cultural differences.

you have spoken about when you were khosla the monday morning, the stress testing of ideas and everyone had their many business models, portfolio managers. is that more autonomy for you at khosla. keith: we had spirited debates behind the quality of thinking behind investments. it was ultimately my decision but listening to vinod or sami made me a better investor. they encouraged me to be even more aggressive. it was very helpful to me as a person.

vinod: i just want to add to it. our strategy is very much bold, early beds and societal impactful bets. what that means in practice is we have to invest in outliers, not what everybody else's investing in. because of that we have an unusual practice. any to decide to make any decision but they have to listen to all of their opinions first. we operate as a group but we want them to believe in what they're doing and independently decide to invest or not. i don't make that call for others and they don't make it for me. the other half of the administration of the firm is inanimate.

were quite different in how we make decisions from most other major firms. ed: you will have a lot more cash to play with. you close 3.1 billion at three different funds from seed to growth. how are you going to assess ke ith's performance? vinod: it's very simple. the one thing that is unusual for khosla we don't have companies or investments assigned to people. we don't measure individually. we have no measuring system for how much profit did you make because everything is a team effort. we even transfer opportunities, one person may be on the board of accompanying them when they get to a different stage we

assign someone else. i personally mostly look at the next level. what kinds of questions do investment partners ask? how insightful are those questions? evaluations are much more about the questions and the answers. keith: i remember when i first joined khosla and they said you are the first person the founder calls. if you are so helpful, insightful and trustful that the founder when they have problems or challenges call you before anyone else, you will do pretty well at venture. ed: it is an election year. how does that factor in or do

you even pay attention to elections? keith: obviously i pay attention as an immature politics. vinod: are you paying attention. on an independent. i used to be a republican except for climate issues then it became an independent. i feel the face-off will be between bided and trump. -- biden and trump. keith: i love miami but i'll be staying in the bay area. i wanted to attend partner me etings because i think they are helpful. caroline: we thank you both for

joining us today. that does it for this edition of bloomberg technology. ed: you can get the conversation on the podcast, wherever you got your podcast. this is great technology. ♪ ♪

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