> this is caroline hyde and ed ludlow. -- this is bloomberg technology with caroline hyde and ed ludlow. caroline: i am caroline hyde in new york. ed ludlow is off today. this is bloomberg technology. apple and google in talks to use apple's gemini ai -- google's gemini ai in iphones. plus, the woodstock festival of ai kicks off today with nvidia facing sky high expectations for investors. we will have full coverage

ahead. and elon musk's full interview with don lemon is out this morning. we will bring you the takeaways and why elon musk says he is ketamine prescription is in investors' best interests. a technical glitch for the nasdaq. we are higher for technology stocks. we are up 1.6% on the nasdaq and all eyes on a busy week for central banks. the fed and bank of japan, most of the world, central banks are giving us decisions today. we are seeing some strength in the u.s. dollar ahead of that. boj tomorrow. move over to what is happening in the world of crypto and we are seeing perhaps some volatility, off about 1.8%. we are well off some of the highs we saw early in the week.

we will dig and more as to what is happening but more broadly why we have risen to such highs when it comes to bitcoin. now let's get individual company stories. i am going to focus on this one, the most important story of the day when it comes to the future of ai. alphabet shares soaring 6.8% because there are some conversations in the works that gemini will be the ai of choice when it comes to generative ai for apple. what does that mean more broadly? we are 2.6% higher for apple. what does it mean for apple's own generative ai story? so much to discuss. amazing bit of reporting. first, what does this mean from your perspective for apple? where are we in its own generative ai story?

>> this is a sizable moment for the ai industry, a big moment for relations between apple and google and for apple. apple has no choice but to get on the artificial intelligence bandwagon. they are caught flat-footed when all the ai initiative started rolling out about two years ago, so apple has a homegrown artificial intelligence model of its own. you will see several new ai features this year, but most of those are focused on day-to-day productivity proactive intelligence, doing things in the background, not what we think of as ai today, which is invention -- image generation, typing things into a chatbot. to fill that gap, apple is seeking an outside partner and they have talked to two companies primarily.

the two they have talked to our openai and google. openai and apple held talks recently, but active talks are underway between apple and google about licensing gemini to be used in ios 18 for generative ai use cases this year. caroline: that is an interesting take about the microsoft relationship with openai. go back to alphabet and what this means not only for gemini, which has had some hits from ap -- a pr perspective but also some people are reading that this is not completely nvidia's game. >> this is a big moment for gemini and google, depending on how this is brandon. he can turn gemini into more of a household name. talks are not early.

they are not advanced. they are somewhere in the middle. this is not a done deal. the companies have some time before apple needs to make its artificial intelligence announcement. commercial terms have not been worked out yet but this would put gemini on billions more devices depending on where apple does ai integrations. if they slap the gemini name on it, this would be big for google but it is unclear if they will do it. it is unclear if gemini would be the default or one of multiple large language model options for chatbots and other things in addition to apple's own tools. caroline: not to mention what that means from an antitrust perspective. thank you so much for bringing us the breakdown of the overall story that has really infused enthusiasm into stocks today. let's start on what this means

for alphabet and whether this deal can really get done from an antitrust perspective. >> i think it can get done and google needs it. right now, google has had a difficult run. it has been a story most investors are disappointed with the leadership and the ai launches they have come out with, so in terms of the most negative sentiment and any stock i cover right now is on google, so they need a win and they need gemini to be on the front burner . this would be a huge opportunity for them, whether it happens or not. this is a great opportunity for google. right now, all the attention has been on microsoft with the openai relationship, so you're starting to see different

alignments in different ai technology. amazon is now aligning with others in the industry, so you are seeing clear alignment in the industry around different ai leaders and we think this would make sense given what has happened with the search relationship on gemini. the opportunity is great for consumers. a lot of these ai agents are difficult to navigate. so could apple and google seamlessly integrate this into where i can literally open my apple laptop and say, what are my top appointment today? and then the agent can read off what is happening. today, that does not exist, so there is a lot of integration that can make this easy for end users for google. caroline: what does it mean more

broadly on ability for alphabet to maintain its market share? many have worried that openai would steal away search penetration, but it has not so far. >> it is very early. why this is so important is everyone is so worried we are all going to have these little agents asking, what is the weather like, how is traffic? we are going to have these agents doing this and this is why it is so badly needed. if you can put it on one of the top platforms, this would capture those search errors through gemini. so the ai agents need the data and users and information, so effectively if this can front end, versus other chatbots that they can partner with or other

ai agents, this is going to be a huge removal of that overhang if that happens. today, i think many of the ai agents cannot really solve real-world problems. they are starting to show that. they are getting better. i think this would help, but that fear is not going to go away for google. many of these systems -- i was in the atlanta airport last week. i did not know where chick-fil-a was. you can ask. the agents are getting smarter. i do not think it would have known that six months ago, but these agents are getting smarter, so that will be an ongoing concern for google. the bigger issue right now is who is going to be the cfo? are they going to be shareholder friendly?

and then ai relevance is weighing on investor minds now. caroline: so still worried about a replacement as she moves to a different part of the business. you also have a buy rating on how much this means for the attraction of openai in partnership with microsoft and what being -- bing represents. are you worried that it has not automatically pushed out alphabet? brent: i am not worried. it would make sense that apple and google online over a microsoft alignment, so i think that alignment makes sense. the thing is that you are going to have multiple vendors that win. there will not be a lot of winners in ai on large-cap's, only a few. but they are all going to have an alignment and it does not concern me for microsoft relationship if you think about

where microsoft is. they have gotten incredible adoption everywhere we turn. they are getting adopted left and right. it does not concern me, but i think you will see formation around different ai platforms from all the big tech leaders and that formation has started, so i would think the apple-google relationship would make more sense. it is not a thesis crusher for microsoft given their presence in insurance, health care, government. they are doing fine. there are plenty of contracts to go after outside this one. caroline: so good to catch up with you this monday morning. if you want to trade either of those stocks, you might have had a problem in earlier market

hours. the nasdaq exchange announcing it has a result of the technology glitch that disrupted premarket trading for almost three hours. the nasdaq spokesperson said the issue did start shortly after 4:00 a.m. but was resolved and the disruption was the second in about three months. it must be said issues with the nasdaq are few and far between. coming up, we will talk to nvidia. what can we expect from the first day of the semi conductor company's annual conference? it is called the woodstock of ai. we will tell you why. maybe not many people are buying these vr hardware as had been expected and sony still up 2.2% on the day but it has hit pause on its playstation vr 2 production. it has too much inventory.

from new york, this is bloomberg technology. ♪

>> all eyes on nvidia today. its overall technology conference is kicking off in san jose today. some 10,000 people will be watching live. last time, 22,000 -- 22 million watched virtually. expectations are high for the amount of people tuning in. you can see the stock rally over the course of the year. let's bring in a bloomberg intelligence analyst for more. it is 1:00 p.m. on the west

coast. what will be here -- will we hear? >> a significant announcement should recharge the already strong rally, first the announcement of the new chip, which we believe will be the first in the package. should it have a performance update, we believe 2.5 x. second would be an upside. 300 billion being the size for the markets of the chips and hardware. since then, the estimates have kept rising and they are likely to announce a higher number. finally, what we think would be an ideal update would be more clarity and visibility on software business execution and the monetization and revenue. caroline: so you want a lot of transparency on pricing and speed and addressable market. i am interested on the pricing

side of things because we see such ability and power being brought to the market as what you insinuate, are they going to be able to charge more for it? >> they should be able to. it should help them widen their technology performance gap even higher, so they should be able to charge more with that. >> the risk for you, is it that we do not get enough of these numbers? is it that expectations are too high going in? >> is mainly the headline risk. we are hearing customers might think about, should i adopt right now or wait? that might mean a lower magnitude of phrases but the other thing to remember is it will be a new supply chain stack, so it could be supply

constraint limiting nvidia's ability to deliver. caroline: thank you. let's talk about some of those risks and opportunities more now . i feel as though this is something you have mentioned time and time again. the supply side is the issue, not the demand side. the supply chain has to be re-amped even more. >> is going to be a complicated process, but nvidia has been there before. the challenges on the packaging side. it has been a constraint to get more out the door. now they will have more to work with. they will have the 200 coming out, so i suspect different customers will get different sorts of chips and that will help ease supply constraints, but they knew one toward the end of the year is going to be a

2025 story and by then we should see the increase in packaging being made available now by some specialty packaging companies and even intel, with whom nvidia will work for advanced packaging needs. caroline: this is what is so interesting about the space. it is one big club, dependent on one another. when we think about the demand side, there are for enemy -- frenemies there too. read is alphabet is starting to make its own chips. how much of a concern is competition for nvidia at this stage? >> it is a little early, but what they say this week later today will help frame expectations on the competition front. there are two areas, a training side which requires the best possible accelerator trips and

then decide which is less intensive, just where you ask the question and it gets answered. that is not as demanding and that is where we are seeing more competition. google has chips they make, which is one of the reasons we continue to like broadcom as a stock pick and you also have startups starting to get into this space, whether private companies or older source of companies, so there is a lot of competition but it is no easy trick to build a highly computationally capable chip like the ones nvidia has worked on. caroline: let's dig into the software side. we heard where is the ongoing growth from a revenue perspective? what are you seeing for growth there?

>> the software side will become increasingly important. the chips do not work in isolation. the software platform works tightly with chips and makes it easier to run these models and to build the code. the code is now trained on many programmers, so they have a huge advantage in the coordination between hardware and software. we expect the software side to become a bigger driver of revenue and that is why we think there is room for more margin over at nvidia. it is one of the reasons earnings have outpaced revenue growth. we do think it will be able to push harder for the next couple years. >> i love how you -- margin.

tell us about where nvidia sits in your portfolio, whether you add to these levels or go more broadly. >> we have held nvidia for a while. we have always liked the ai story. the role depends on the client. this is a growth company. it is going to be more volatile than some other companies in terms of stock, so it is not suitable for everyone but we see it as a core holding in growth strategy and we see opportunity for it to continue to grow. we see 80% revenue this year built on the fact they hit $22 billion in revenue last quarter, so you just run that forward and you get to 110 billion in revenue. but going forward, people have to recognize we are going to see more like 20% growth. >> at the moment, valuation of

35 times market cap, extraordinary. thank you so much. this is bloomberg technology. ♪ you know what's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space? boring does. great job astro-persons. over. boring is the jumping off point for all the un-boring things we do. boring makes vacations happen,

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or college, since you like to get schooled. that's a pretty good burn, right? got him. good game. thanks for coming to our clinic, first one's free. caroline: intel back to semi conductor company raises eyes here as they invest a frenzy around ai continues to rage. according to a statement filed, the company and investors now plan to sell 19.8 million shares , meaning the offering would raise as much as 673 point $2 million. plus, alibaba has appointed a new head of its grocery arm in a restructuring effort the cfo

will replace the company founder . they will retire but serve a senior advisor to the company. that is the former founder, according to sources. the considering a review of how widely businesses use chips from china. they are joining the united states and flagging a potential risk to national security and supply chains. the you is weighing whether to investigate how deeply -- e.u. is weighing whether to invest get how deeply they are in networks. next up, let's look at what we are watching in terms of publicly traded companies. cloud flare, we have seen stephanie cohen, the leader behind the rita offering, now the latest executive to step down. where has she gone? cloud flare.

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>> welcome back to bloomberg technology. i am caroline hyde. we had back on track and we are seeing the nasdaq back up. after that market issue that stopped market trading, we are up 1.5. the hope is that stocks just finished reading and are actually down. not being built into what is happening globally. this is a big week for the macro picture. think of japan is coming tomorrow. bitcoin is just lower against

the u.s. dollar. off by another 2%. we will dig into that in a moment. we will have a look at individual companies. this is the story of the day. alphabet shares at 7%. it looks like apple is already in talks to use generative ai. what does that mean for adoption and penetration and holding market share when it comes? 1.23 percent higher. finally, the deal is done. the ceo and the former ceo joined bloomberg earlier today to discuss how the iteration is going to continue. take a listen. >> there is an area called

observability that is effectively trying to help our customers understand application performance, what is going on in the infrastructure in this world where you have hybrid cloud, private cloud, that is one big area. the other area is security. if you think about the utilization of ai by bad actors, we have to do a better job of real-time analytics, detection and response. we have to take three or four different things and those independently may not indicate a problem but together there is a problem. the data platform and all of our sources of intelligence that we have with our massive amount of intel, it brings our customers the ability to do that in real time. >> there is also the narrative

that you are trying to remake cisco and lessen your reliance. how do you see this deal pushing it forward? >> that is an accurate narrative. we have been moving into more software. hit a milestone that we sent to try to get to 50% of our revenue. we did that and the other thing is combined, they bring 4.2 billion. and combined, we have almost 29 billion. we are over 25 billion in software sales in the company. when we add software sales to it. i think we have made a lot of progress. >> both of your companies have

announced layoffs in the recent months. as you integrate them, would you expect there to be further headcount reductions? >> it was built on revenues energies. it was built on the integration and what we can bring to our customers. that was never part of the plan as we were putting it together. >> you mentioned that when it comes to ai, there is concern. i'm curious what you are seeing in your data when it comes to cybersecurity attack. >> you just see more sophisticated attacks. we are seeing more sophistication and it is a new set of tools. we feel very good about coming together and what we can do collectively, driving great outcomes through the use of ai

>> if i could add really quickly, we have a company that sees threats every day. one thing that we can do is take on that intelligence and injected into the platform and give them real-time visibility. >> the former ceo now part of the business. let's move away from moment and talk. investors earning exchange products during the past month alone. it has been added in the past year. let's get up to speed about why crypto has pulled back in terms of a sale point. for more, the height has been

real in the flows have been real. any reason? >> absolutely. we saw a height of $72,000 reached last week. we did finally clear that level. we are hearing a rumor that led to the crash heading into the weekend. the rumor is it is roughly a billion dollars of the strategy spread trade. it set up as a spread trade shortly below -- shortly before the approval. the idea behind it was that microstrategy was going to fall. however, as you will see in the market, microstrategy actually outperformed bitcoin.

it necessitated closing the position. there was a mini rally there. that is really the rumor going into why. caroline: some rumors that we little check in on. down a little bit. when we move away from rumors what facts are there? you have not just seeing -- there is a rumor around the spot etf in the u.s. as well, but brought the, some well loved protocols. are they going to keep rising? >> with regards to the kueng trend, we are really seeing

solana look like ethereum. you are seeing mean coins come out with presales that looked very much like ico presales. you are seeing that this ecosystem has so much activity. they have overtaken etherium on google trends. you are seeing a lot of the activity outside the u.s. like robin hood europe. tearfully, rising tide lifts all boats. there are some rising much faster than others. they were very much unfazed by that, so it is interesting to watch. tear point, a lot of eyes on at the area. -- he tear him -- etherium. caroline: how much is that being jumped on i those who understand

that fundamentals are a basis of this, but this is a value creation like you have not seen before. >> it will be much -- very much retail driven. it is a sense of community and engagement. we saw this with the reddit community. you had your robin hood traders and insane engagement on med. also engagement on twitter around people building communities. you saw david launch his own meme coin. elon musk continues to push doge coin. these are very large communities of people who are engaging and

can find a way to engage in the market today. but it is very much retail driven. there are few institutions who see the value here come a long opposed to trading in and out. caroline: it is an extremely online community wanting to show love. going back to where institutional money is, bitcoin with some of the outstanding protocols. maybe the pullback is because the leverage has gotten too heady again. >> p.r.c. leverage again but we saw funding we set over the weekend. it leaves us in a very healthy spot to move forward. when the funding does go out of hand, we tend to see pretty volatile moves. i will emphasize that liquidity

on exchanges is very thin. you are seeing people huddle or hold their bitcoin and you are seeing very big price moves and market moves because of that liquidity. at large, the technology is building. at the rem did have an upgrade last week, which meant that transaction costs envelopes built on at the rem are now lower. you are getting a lot of interesting technology being pushed. caroline: coming up, we will have more of other parts. out with a new book.

meanwhile, let's have a quick look at some of the public trading companies. fedex and amazon. an interesting report coming from the wall street journal, discussing partnership as the competition is returning with deliveries. they discussed fedex accepting returns at retail locations. from new york, this is bloomberg technology. ♪

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caroline: you are looking at a live shot of the principal room. this is bloomberg. ♪ caroline: today, index ventures is launching a new book.

the book is called scaling through chaos, navigating a new era of innovation. it explores the challenges of investing in leadership and so much more. joining us is a partner. you moved from europe to new york and have been setting up a hub. i'm interested as to why they need a blueprint. the idea of start ups is that they are never seen before, completely new. >> they are launching a new set of resources to have them scale from zero to 1000 employees. we call it scaling through chaos to reflect the nature of the beast. there is a lot of uncertainty. it is the most in-depth research on the topic. some of the most fastest growing companies of the decade.

more than 60 founders to bring the data to life. the result is the blueprint that you mentioned. an absolute page turner, i can guarantee. and a companion that is free. caroline: having a business of any sort is chaotic and then you throw in the huge valuations. companies that you backed in an extraordinary journey and continue to build, no matter what, even when you think you have a massive deal on the table. what was one of the most surprising things that you heard about? >> a lot of pages and a lot of findings. the ones that resonated with us, the first one is the time spent on people, where it matters. we quantified it in the book.

the cross stages are zero to 1000 employees. it is quite surprising. we think that the people that matter, it is a tax on their time, but it is not. the nature of the time you spend is a little bit different. later on it is more about learning people and running the team. the second finding that we thought was really telling was the importance of emphasizing performance. by 50, only five of the first 10 employees are still with the business. when a company reaches 1000 employees, only two or three. it is not a failure, it is the nature of the beast, the natural lifecycle. it is important for founders to realize that and embrace it as

part of the journey. these companies on average are growing four to five years. more than half of the team will be new to the business. there is an inherent level of chaos and uncertainty that will happen. you cannot tame it entirely. you have to learn to live with it, grow with it. that is what this will be helping us to do. caroline: what is interesting is it is called navigating a new era. i'm interested how much that changes the game. i think, are they going to up in that amount of people or the types of people that you are adding to? how are you seeing the new types of chaos?

>> we may update the different companies, but the way we think about innovation is that it happens through waves. it builds on top of it. that is why the pace is happening faster because you are leveraging what happened before, but the reality of building a business? i do not think we change. the time spent on people will remain across the entire lifecycle. the type of people you hire and how you retain them and motivate them, if anything, this will make it even more important. caroline: you will be speaking about this at an event you are hosting later. you so much for joining us today. coming up, we will get back to don the and's interview.

days after the social media platform itself canceled that partnership. why? we will get you details on exactly what was said. this is bloomberg technology. ♪ elp you reach your goals. i can make this work. it can help you reach them with confidence. no wonder more than 9 out of 10 of our clients are likely to recommend us. ameriprise financial. advice worth talking about. you know what's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space? boring does. boring makes vacations happen, early retirements possible, and startups start up. because it's smart, dependable, and steady.

all words you want from your bank. for nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled... which is pretty un-boring if you think about it.

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jan musk and charles them and's interview. in it, the interviewed kind of discussed a wide range of topics. take a listen. >> i'm on the platform because you say you are a free speech absolutist, no conditions, right? >> free speech as much as possible come within the bounds of the law. >> the reason i say that is that there are no conditions on this interview. i welcome that. let's get into it. caroline: i am on the platform and not on the platform. let's bring in kurt wagner. from a get -- the get go, it was an awkward conversation. investors, the way that he is indicating his use of ketamine,

for example. >> that was a very tense exchange. yvonne talked about his prescription for ketamine. he said he does not abuse it. he uses it because of a dr.'s advice. he said he suffers at times from depression or sadness. he pushed back very briefly and said, asking somebody about a personal prescription is a very personal thing. it was interesting to see him pushback back on this reported drug use and lemon asked, will this impact your tweeting? it was a rather tense exchange early on in the conversation. it sets the stage for a tougher conversation. caroline: don the men has given his own views.

elon musk is saying that basically, this is not what we envision. it is just cnn but on social media. what does this mean for their push to be a video first platform and getting top talent? >> don lemon was probably the headline of this entire push. they came out and announced a small handful of new shows and how they were pivoting to video, making not a priority. when they are making that, the most well-known partnership falls apart before it gets going, and when john lennon is saying that the reason it fell apart is because i cannot ask hard questions of the sources that i want to ask, it does not bode well for one who pushed for

the video in general but also yuan musk's dance on free speech. caroline: that does it for this edition of 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

>> welcome to bloomberg etf iq. >> we are staying down a big week. >> we also have earnings, so it will be a lot of fun. let's get to the biggest stories . we start with the spot etf equine. the token itself, off record highs as some ways persist.