announcer: from the heart aware of money, power, and technology collide in silicon valley, this is bloomberg technology with caroline hyde and ed ludlow. ♪ caroline: i'm caroline hyde in new york. ed: i am ed ludlow in san francisco. this is "bloomberg technology." caroline: full coverage of nvidia's annual gpu technology conference. they are unveiling their most powerful chip architecture yet. why blackwell will be key to the future of ai. ed: as tiktok faces a divestiture, and outlook on what is to come in the senate with

senator bill haggerty of tennessee. caroline: we will sit down with the ceo of wiz to talk m&a valuations. before we get to private markets let's get to the public ones. a little bit of nervousness ahead of the all-important for decision tomorrow. some chips coming off the table as we try to digest how far and fast the magnificent seven nai has taken us. that's a crowded trade over at bank of america. those majors fall but we are seeing the two year yield come down for basis points. generally the macro picture has been inflationary pressures. where will we see the dot plot, the signaling of have any rate cuts will come this year? three? two? the dollar still stronger versus the japanese yen. finally that era of negative interest rate policy is off the table. arbery seeing rate hikes? that has not been signaled by the boj. the dollar higher by a

percentage point. look it was happening in crypto. from the highs come the lows and we will see a dialing back. flash crashes happening on some exchanges. $62,000 handle on that. it's a volatile ride when it comes to crypto. flows into certain etf's have back. ed: nvidia is what everyone around the world is talking about. next generation ai accelerator blackwell. the stock is down 2%. this is a cell that is kind of move. we have exactly what we thought was coming in the context of blackwell. a lot of the focus is on the performance of the blackwell super chip, two gpu's. they are comparing that to what nvidia said he could do relative to the h 100, the think we have in talking about the for the last 18 months. the performance is better. we will dig into a later. there are stocks that are pushing higher. nvidia's ceo name checked these

names on stage at gdc on monday night. either customers are he was praising where they sit in the ai infrastructure buildout we are seeing around the world in the context of data centers. dell one of those names moving to the upside. caroline: kingmaker of other stocks, not his own. the processor is the showcase of the chip company's gt c conference. it will extend dominance of intelligence computing. >> hopper changed the world. this is blackwell. [applause] caroline: named after the mathematician and game theorist david blackwell. this new platform has multiple times superior at ai models and inference then it's pre-to sesser. he's lining them up --

predecessor. he's lining them up next to the other. antoine chkaiban covers nvidia and ai. it's clear when you look at the market cap position, didn't live up to the third-most valuable company in the world? antoine: yes. thanks caroline. our main takeaways from the keynotes yesterday is at the competitiveness of nvidia's products is getting stronger. blackwell offers up to four times higher performance and 30 times entrance performance than its predecessor hopper. the next time you hear someone announce a chip that is 10 times faster than in nvidia, a year later nvidia will also have a chip 10 times faster. alternatives to nvidia can have an advantage that last at best one generation and a year later

the advantage goes away. last but not least, this advantage often comes at a cost. first giving up on the flexibility that gpus offer and the customer not able to leverage the ecosystem. yes, it lives up. ed: there was a lot more emphasis on inference then there has been historically. the story was around the role h100 played in training fling which models with tens or hundreds of billions of parameters. are you convinced if we are in a world will remove from more training to more inference nvidia continues to lead in that side of the market as well? antoine: yes, i think so. i think jensen demonstrated that well. inference is a complex problem that involves very complex optimization. you have a workload across dozens of gpu's. i think what jensen showed

yesterday is that nvidia's mode is about being able to optimize gpu's to solve the complex problem efficiently. 30 times better than hopper. it clearly illustrates nvidia's very much delivering on that front. ed: what were you most excited about from jensen? he's like being compared to steve jobs. he is the man of the moment. he wears his leather jacket. are you convinced by the things he says about the future when he's on stage? antoine: i think i was most excited about innovation beyond just gpu's. if you look at the fact that nvidia announced material improvements for secondary chips like the gray cpu, tpo, various networking chips, we can conclude only half the performance include vent -- improvement is coming from the

gpu and the other half is from the rest of the hardware stack and system level integration. nvidia's mode is not just about designing great gpu's, it's great systems optimized to unleash the capabilities of this gpu's. that is what i was excited about when i looked at the keynote yesterday. caroline: it is perhaps an impact on rival chip companies. md is one of the worst performance of the day. does this mean to have it all locked up? with the new paradigm shift to inference and the hyper scalars ought to be making their own chips, does that longer term competitive issue? antoine: i think nvidia's competition will thrive because demand is so strong at the moment. everybody will continue to buy as much as they can until the end of next year. that does not mean they will challenge the dominance of nvidia. that will make room for

alternatives. at this point in time we step aside in both nvidia and amd. the uncertainty beyond 2025 means the risk-reward ratio is getting thinner and thinner as the stocks keep having a run. what happens beyond 2025 nobody knows. it depends on the performance of next generation, larger models, and adoption and monetization of ai. i would say there is room for challengers like amd to also gain a lot of share in the market. probably in the 10% to 20% region is something we would see as reasonable. caroline: i want to dwell on the supply-side issues. packaging is being highlighted time and time again. are we going to see an issue never with the man but with how much can be made, how quickly it can be made, and who by? antoine: i think demand is

something we will have to look at. we have to look at many dimensions. we are on the lookout observing the industry on all fronts. i don't think at this stage anyone can determine what is going to happen beyond 2025. between now and 2025 we have strong visibility. all data points suggest nvidia is going to do very well. amd is going to be well. broadcom will do well. we see the industry shaping up. supply capacity for instance doubling again this year. all the data points to everything remaining strong until 2025 but there is no way to determine what happens beyond 2025 yet. we have leading indicators on that front like adoption and monetization of ai. ed: i love caroline's question. blackwell has 208 billion

transistors.in the tentacle so many it is actually two chips and a multi-di format. tmc will make them. something you said, the forecast and fiscal 2025 is $110 billion of revenue, up from $61 billion in 2024. do you have a sense of how quickly blackwell will be revenue-generating? i think they said it would be launching later this calendar year. antoine: yes. when you look at nvidia's prior cycles, hopper that launched in late 2022 represented maybe mid-single digit of sales. mostly in the fourth quarter. that quickly ramped in 2023. maybe to about half of sales. we expect a similar trajectory to play out for blackwell. ed: antoine chkaiban, great to

have you on the program reacting to the end of the year so far. we will bring you the latest on the other big story, the tiktok divest or ban. why critics are saying congress needs to think a lot bigger. that conversation is next. another chip mover. caroline: let's go back to the ai hype. we are seeing supply coming into action for super micro computer. down 11%. they are offering to sell more shares, 2 million more in a public offering they could raise as much as $2 billion. this computer server maker has been on a tear. 1000% gain amid this wave of ai enthusiasm. this is bloomberg technology. ♪

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caroline: senior officials from the justice department and other agencies will be holding closed-door briefings in the senate to advance legislation that would allow tiktok to continue its u.s. operations after being severed from its chinese owner. these briefings are likely to be held today and tomorrow. this is an ongoing lobbying battle over the divest door ban tiktok will after a very quick passage in the house last week. i sat down with her public and senator bill haggerty of tennessee to get his thoughts on the legislation earlier today. sen. haggerty: it has to move through the comments committee and is controlled by maria cantwell. not certain what the pace will be but i'm can tell you what the concerns are. the bill is trying to address a

real concern with the national security laws from china. any company that is chinese owned is subject to their data being surveilled by the chinese communist party. there are no exceptions to that rule. that is data collected wherever it is around the world, including america. a concern the bill is try to get is the concern about the privacy of americans' data and not be surveilled by the chinese common's party. the -- communist party. there's another concern or take elite it is well. the last thing we want to see is more power shifted to the hands of companies like meta that have demonstrated a willingness to censor american voices, particularly conservative american voices. what we are talking got is who owns tiktok and whether divestiture can be achieved. caroline: you would want tiktok to remain as a competitor test under different ownership? sen. haggerty: that is what the bill contemplates. we will see what the bill looks like in the senate but that is

what i expect to see. caroline: there's been some heavy lobbying coming from tiktok on the hill. it was notable that almost the person who first got the ball rolling on analyzing the ownership of tiktok and its persistence in the u.s. was former president trump. then he changed his opinion. he went on the concern around meta. was that to do with loving? -- lobbying? sen. haggerty: it probably has to do with what we saw come out in the x-files and the twitter tapes and the degree of censorship taking place between the biden administration and companies like meta and their willingness to get involved in elections. everybody was deeply surprised and shocked with the suppression of the story but hunter biden suppressed from the new york post, the degree by which this government and this white house has been flagging posts of concern. that feels like censorship to most americans. that is the point in the concern president trump is highlighting. caroline: to go the other route

of many people feeling what they want to see happen is a lack of freedom of speech, and lack of an ability to use the platform. if it were to remain in the u.s. who should own it? sen. haggerty: i preferred americans to own it. that is the needle this legislation is trying to thread right now. caroline: should it be a social media company or individual investors? your background is such. sen. haggerty: it will be a large price tag. it is hard to predict. i think legislation should dictate who that buyer might ultimately be. we will see what happens. caroline: should have ban on divestment on tiktok be significant to the u.s. public? sen. haggerty: i think it would be quite significant because of the number of users, 170 million users of tiktok. there is great interest in what happens here. congress is trying to thread the needle on balancing our security concerns and concerns about data privacy with concerns of free speech.

caroline: have you received calls from people within your -- within tennessee wanted to see tiktok remains? sen. haggerty: we have received calls on both sides. it is hard to say where the american public lies on this. i have not seen polling on it. the concerns are both very real. the national security concern that are dated with the exposed to surveillance for the chinese communist party and weaponization by the communist party is something americans don't want. also we concerned we not put too much power in the hands of those large media companies that have shown their desire and willingness to censor conservative voices in america. threading the needle is where the legislation needs to go. caroline: the republican take from senator bill haggerty as the bill begins to slowly move through the senate. let's look at some of the overall concerns. the opponents, the critics, the issues thinking that it should

not just be a divest or van legislation -- ban legislation but privacy oversight coming to every single social media platforms. alex rinker is here. as many republicans might try to articulate they have been concerned with other platforms and their voice within. should there just be a broader privacy oversight here, a broader log rather than targeting one individual company? alex: that is what is interesting. what the senator laid out, the concern about data privacy is the impetus for the bill. some folks are looking at that saying we need to go bigger. the bill is not about data privacy. it's about ownership and ownership by foreign adversaries like china. we talked to experts for a story coming out in businessweek magazine. they are saying why don't we think bigger about this and not just focus on one company or one

country? actually set federal data privacy regulations in the u.s., which the u.s. does not have. i chatted with folks at epic like a general counsel who's been lobbying for broader privacy regulation for a while. she had a really great comparison. she said if the internet is a colander, plugging tiktok -- plugging one hole is the equivalent of this tiktok bill. it is one small hole and data is slipping it elsewhere so let's address this on a broader scale. ed: it's important on what we reported last week. tiktok is not promising to divest at all. they are saying we put forward a user data solution that we will stick with. listening to caroline's interview, this seems to be a political group saying is just about tiktok. ownership of tiktok.

there is a group that says this is much bigger, it's about censorship via social media platforms and a blanket controlled by government. which choice is loudest right now? -- voice is loudest right now? alex: it's a bit of both. the department of justice is briefing senators this week, encouraging them to vote for the bill and also tiktok's passing out a one pager that i was able to review batting down some of those concerns on data privacy. the doj is putting out they collect names, addresses, phone numbers. tiktok says that the same information any social media company, particularly the ones lobbying them like meta and x and the like, those rivals collect the same amount of data. when i think about the social media industry it is not lacking for infractions when it comes to user data getting out. what has been lacking is actual

legislation. we have seen the ceos come through for hearing after hearing. think about mark zuckerberg, how many times he's arrived on the hill the talk about this stuff. we have yet to see any kind of data privacy regulation. that is why folks like elizabeth warren have in the past few days said we like some of the ideas behind this bill. we need to be protecting american users data. let's set up a framework that does that holistically and does not just target one company and a bill that the language of it could actually be deemed illegal has tiktok will probably take this to a legal fight of the passes. ed: i think it is worth saying it is a divest door van bi -- or ban bill, not sweeping regulation. thank you. coming up, reddit is up for its ipo this week. we will break down what to expect. that conversation is next. this is "bloomberg technology." ♪

ed: social platform reddit gearing up for its ipo this week. for more what to expect this bringing lynn down. we have been waiting years. what are you looking for? lynn: i will give you an idea of what we are expecting here at the new side. a lot of details dropped this week. reddit and some of its existing stakeholders are planning on selling a total of 22 million shares of the total. 15 million shares are respected to be sold by the company itself. they see them going for as much is $34 each at the top range. it could end up with a market value of $5.4 billion, making it what i think would be the biggest ipo so far this year.

you never know was going to happen with these things. we are told the ipo will start trading today after tomorrow. that will be the big moment of truth. caroline: the moment of truth in the final innings. incomes nokia was some legal patent issues. lynn: yeah. that surprised us all to see that. i was talking to a colleague about it earlier this morning. i thought, gosh, all these are heading so close to the ipo. we were thinking this is also the moment when companies tend to drag all the skeletons out of the closet and disclose everything upfront and say you need to know what you are in st forore --in store for. that patent infringement complaint is something worth watching. i don't think the company would have disclosed it if it was not material. that being said --

caroline: we have to leave. sorry to cut you off. this is bloomberg. ♪ 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: welcome back to bloomberg technology. caroline connan let's get a check on the markets. we have been selling ahead of the meeting. nasdaq is off by .6%. big tech is under pressure. this is a crowded trade. of course, after nvidia's all-important tech event is upon us, the woodstock of developer conferences. maybe there is a little bit of chips on the table. ending the policy negative interest rate.

we still anticipate where they will go later in the year. bitcoin up by almost 7% certain -- and seeing concerns. tensions still bubbling up with tiktok, but there could be a margin of improvement. of course, the design is up. perhaps we do see some other companies singled out. so, amd on the downside. it is getting so tough as nvidia shows its dominance within the world of training and entrance. i want to get years -- you are

take on the scope of offerings. what do you make of it? >> it is a -- ed: it is a different technology. those numbers on the screen tell the story that they upped the performance levels and in aggregate, the bond point is really important and it is much more energy efficient. in the context of the environment and climate, it is important as well. caroline: 30,000 per one. when you are thinking about the scale that they have to invest in, we see the price rack up. when you're thinking about the power offset, and shows you the power it will cost for the centers.

ed: the reality is that blackwell will serve a design and go into banks of racks. the scale is just enormous and the power consumption relates to that. we are talking of hundreds of square miles of days with many hundreds, if not thousands of these. it is basically a server farm. caroline: i loved reading your newsletter yesterday because he made it so straightforward for us. let's talk about how straightforward ai is right now. we also have to think about where it is being applied across industry groups. they were live. take a listen.

>> we would never have been able to do this five or six years ago. we would not have the capability. >> not have data that you can use intelligence straight from your smartphone, leveraging in all those ways. >> we are looking at 69 million accounts. that is not sending someone a survey in the mail and getting them to respond. real-time data. i think this is a wonderful thing with ai. >> you are seeing the chips and the servers being bought and deployed. >> is ai. everybody owns the ai plays. caroline: they are updating their understanding of it. let's dig into how ai is changing every industry with

page. you just put out a state of i.t. report that i'm sure you are going to a few fretful leaders across every industry group, going, how and i'm now the ai leader and asked? how do i deploy this? >> absolutely. many believe that they are personally responsible and that is a high bar and creating a lot of stress for i.t. leaders. ed: talking about this new age of computing, i grew up with a dell desktop. i think we are talking about something completely different. do you think everyone watches that keynote and inks, my goodness, i need to start hiring people who know what he is talking about so that we can know what we are talking about

an about? >> -- about? >> yes. they will be thinking, how do i use ai to be a more effective player? one of the things that we are observing is anticipation and some level of fear because there is real curiosity of can we add one more thing? can we ask and make demands? that is one of the contentious zones right now. ed: are the people available that are needed? >> what i think is most amazing is that it is not necessarily about the people. the technology supports the people and what they are trying to achieve. i recommend driving clarity.

what is compelling is actually putting ai in the hands of the team and executives. to answer normal questions of strategic initiatives and reason about it and how do we connect workflows across the work data to make decisions about what to do next and how to stay agile in the current. actually one in four leaders are fretful about making technology selections. caroline: i.t. leader at health care company. how do i ensure that i have everyone beneath me wanting to do the same thing?

how are you seeing not being enacted? >> the biggest thing is data activity. it is only as good as the data that you feed it. they are effectively islands that require employees to figure out how to create value for the team and the company. there is no top-level connectivity. you cannot sing from the same song sheet if you do not know what the plan is or how to execute it. they need to know how you want to get work done. first cios, it is first about data and connectivity and then safe and secure rollout that is mindful and cognizant of your goals. ed: great to have you on the

program. chipmakers are racing to feed the glowing -- growing ai boom. a new research lab designed to designing an entirely new type of semiconductor. it is a long-standing aspiration in aspiration. the competitor got a head start, tailored for the use of nvidia's chips. caroline: let's go from ai to cyber. we sit down with the ceo of to discuss everything. 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?

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12:30 eastern, 9:30 pacific. this is bloomberg. caroline: time for the spotlight. wiz has already raised from investors and is set to be making more acquisitions in the space. joining us to discuss the state of the rapid growth. it has been what feels like a whirlwind to everybody else. building, how do you show -- what has made ways so successful since he launched during covid? >> we have a journey ahead of us

to be truly successful. it is just the beginning for us. i think the cyber market is definitely exploding. this is like the ultimate election-year. the geopolitical crisis is rising. all of that pushes for more and more need for cybersecurity tools. looking at 2023, we had more than 3200 reported data breaches. this is the peak that we had. there is definitely a huge demand. you build a simple solution for a complex problem. caroline: the numbers were made

public last year. that helps guide you towards an ipo. what sort of companies you need other than organic growth? >> it our core focus. it is not unrelated. a lot of them in israel. definitely, we are seeing nonorganic opportunities are there. threat detection, super important for us to grow. ai is another focus area for us. this is a focus for us.

it will be the year of acquisitions. ed: good morning. you are raising more money at evaluation above $10. there were a lot of reports that you are raising money and again in may. are you raising money? at what valuation? not every day -- >> not every day. having said that, i would say joining with the publication of the fortune 100 and the exploding security that attracts attention. when we have something to

publish, we will share. ed: let's go to where the value lays. it is relative to your competitors. >> what we are doing is helping organization. it is one of the most complex in the world. it is not only centralized by security but developers. it poses new challenges to our organization. with that, we need a new approach. they have super good technology and network security. you need the cloud security company. you cannot solve with legacy solutions new problems and investing in new initiatives with cloud security.

ed: what is the biggest tailwind to the industry? >> i definitely think the tailwind in cloud security is ai . we are talking a lot about that. not only new challenges, but new surface. looking at the pipeline, the data and the model that you are using. that is one focus area. it is being leveraged. they are doing a better job leveraging generative ai then assess the defenders. caroline: what is the hardest

part of your job right now? >> since the beginning, it has been attracting the best talent. it is all about the talent. we are expanding. we are about to recruit more people to find amazing people. caroline: you are based in new york now. >> we are a local company. definitely a lot of focus here. we have a huge presence in california. i think unlike other market, cloud and cloud security -- caroline: i'm sure that's enough

to keep you up at night. hopefully we will have you back when you can articulate. thank you so much. coming can our conversation with the chief officer. ♪

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caroline: google has announced a slew of initiatives, health in particular. a partnership to improve screenings. just take a listen. >> such an exciting time. it is capable of being an adjunct to augmenting what people need to do and extending the reach of the clinical practice to expand access of care. they have this new tool in their toolbox that they can use across their career. when penicillin was discovered,

it was a new tool in the toolbox. we are doing work to extend the ability, to diagnose cancer earlier so that they can reach people who normally would not have access to care. it makes the practice more efficient but also gives more access to it. caroline: can you give us an example of how google is able to use its own innovations and products that it has already brought into the field? >> we talked about it, about how we are working with partners and how we are directly helping consumers.

we are working with consumers. people already talk about steps, sleep or nutrition. we are creating a new ai that is personalized to you. they can give you personal coaching. i'm personally very excited about this as well. it is so exciting to have that personal ai coach built into fitbit. caroline: what have you got? ed: time for talking about tech. cutting about a quarter of its

workforce as it retreat from the space. the company is eliminating staff to become more focused and self sustainable. they plan to buy back after recording its first ever profit. the stock buyback is the first ever to slow confidence even as competition intensifies. george lucas said he would support bob iger in his battle. a significant shareholder when he sold his production company to disney. full faith and competence -- confidence, driving long-term value. the force is with bob iger. caroline: that does it for this

edition of bloomberg technology. ed: thank you to everyone for listening people the podcast around the world. this is bloomberg. ♪

>> welcomes a bloomberg crypto. shaping the world of decentralized finance. >> bitcoin falling more than 12% in the last to be. the latest in venture capital. >> we will talk to delta blockchain funds. >> google talk about the millions being spent.