from the hardware 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 world headquarters in new york. ed: and ed ludlow in san francisco. we will have full crypto

coverage as bitcoin retreats. caroline: openai raises 6 billion. let's go to the public markets. there is a lot to digest this week. a shortened trading week. we are up .52% on the nasdaq. home sales were covering what does the fed do? for now, we are pushing long technology in the face of hawkish sentiment. two year yield down point 0172. for now, we see yields take lower. new york crude up 2.21% this is because of geopolitical risks. let's look at bitcoin.

down under pressure, it is noticeable 67,000 try to factor into that 9 billion held by creditors when we start to see the movement. will we see creditors finally able to sell? ed: there will be a really big focus on semiconductors we will go to our team around the country to talk about that. nvidia is the biggest point boost. the story we will focus on is elon musk closing the mecca funding round. will they use nvidia as a cluster to train language models. amd is coming to market. dell in association with nvidia one of the biggest gainers and

intel feeling the love. then there is apple, there is this data from china. last month, in april iphone shipments jumped 52%. the back story is for most of 2024 apple and resellers have done discounting to get the smartphone market going. caroline: we tried to piece together the picture of an important consumer base to apple . the discounts are working? >> we have had nothing but bad news coming out of china for a fair amount. when you look at it it seems the china situation is more

securable -- cyclical in nature. i think it's good news for apple but we are not harping a lot of these numbers into our calculation of sales data because what we saw in the last quarter even though jan/feb sales were bad. ed: one of the drivers of sentiment amongst of the consumer's discounts and incentives. we are entering june which is another modern day period of sales events in china. how reliable is that to depend on for apple? anurag: this was a brand that

did not do sales in china. but that is one way to drive the channel. it will be popular in june because of they do announce these are the features of ai and their phone that could lead to a better cycle this winter they need to get all of those phones out. it's important to continue this momentum. we have heard a lot of good news but at the same time, the stock is done well. apple may not have those amazing features. but if they cannot announce a partnership with openai it will tell people if apple doesn't have their own technology they will license it from the best

enders out there and with over one billion phones out there they can give a boost to any ai vendor who gives their technology. ed: meanwhile, sticking my china. the country's set up its largest bond to promote develop meant of the domestic chip industry. it is the latest effort from beijing to achieve self-sufficiency. chinese chipmakers are making fast progress on closing the gap. >> there are a shortage of resources here. i think in general, the computing resources we have here compared to the u.s..

i think asian markets never have a lack of talent or data. in terms of talent and data eventually even though we have lack of compute we can squeeze the last of compute. caroline: we have an activist investor on our hands. elliott investments management wants an improvement in free cash flow. the stock is up .35 percent. this is bloomberg technology. ♪

ed: it is the aia hardware names and semiconductor names that are leading this charge this tuesday morning. nvidia is up 5%. this story we will get to later is x ai raising significant money they will train models and uc names amd, dell higher. texas instruments more muted. it had been much higher as elliott takes a significant take -- stake. we have jordan klein

you have your ear to the ground. let's start with nvidia. the ai story is well told how much of the activity is x ai or is it due to this block -- stock split in june. jordan: i think it's 70-80% for x ai. i don't think institutional money managers care very much they are long and overweight but retail investor seeing a stock split will get people active in the near term. any time you see 6 billion in financing you assume the lion share is not hiring people but buying compute infrastructure. caroline: these long and

overweight institutional investors right to be focused on nvidia? jordan: i think you are starting to see it accelerate beyond just nvidia. if you pulled up a chart of qualcomm, you would not know that qualcomm has the same amount of nvidia up 20%. it's unbelievable but no one talks about qualcomm because it's not a direct ai story. memory stocks have been on a blistering pace higher micron, semi cap, and the other group that is catching attention is the cyclical analog semis like texas instrument analogues that have caused in industrial demand. ed: i want to linger just a

moment longer. we talk about qualcomm on this program quite a lot. but the story is about ai shifting from the modern-day computer severac onto device. qualcomm may be the fishery in the first instance what if the consumer does not buy these devices? jordan: that's the risk unless you give consumers a reason to go out and upgrade their smartphone or pc your new book. they will probably use what they already have. these phones are so good today. you need to see apple and google who controls android create new functionality and features related to ai that offer

efficiency, productivity and new things you can do with your phone that you cannot do with an existing phone to drive you to upgrade. if they don't do that it's all a marketing ploy and consumers will say there is no reason for me to spend another $1100 to get a phone that operates the same way. the onus is on the echo system, software but it will evolve faster than people think. year from now people will be motivated to upgrade. if you hold your phone for longer, you are willing to future proof and new purchase and say i would rather have the product that can handle ai rather than buy something now they can't. caroline: all of the onus is on the understanding of how we use ai pc's.

going back to your focus on analog. this is being brought up by investors. an activist investor getting into texas instruments they want cash flow to investors. jordan: analog is probably one of the most forward looking groups of semis. they are macros sensitive and people tend to buy analog when they think estimates of bottom and in six months those numbers go up. what you heard in april and may from analog industrial has bottomed. order rates will improve thereafter. they are saying the pmi's are

showing improvement globally and that should lead to upward provisions late this year, into next year. this is why people buy these they don't have ai but they diversify investors into macro, cyclical and markets. to be honest i didn't get any pushback on upgrades. sometimes they say you guys are way too late. this is a poor call because valuations don't support fundamentals. i get a lot of people asking is now the right time to buy them? not as much as nvidia and ai trade but they are up 15, 20% and valuations are high on the

next year's numbers. they already assume a pretty good recovery from the end of this year into next year. that is where the pushback is. isn't this all in the stocks already? is not late to be buying at these levels? we don't have a lot of visibility into the shape of the analog recovery is if you shaved or you or l-shaped. if you keep seeing stocks act well they will keep going up. ed: jordan klein of mizuho. later on we will be joined by aya kantorovich from august network ltd . caroline: t-mobile is buying

spectrum, retail customers and retail stalls. this is bloomberg technology. about things like changing tax rates, exemption certificates or filing returns. avalarahhh ahhh ahhh ahhh

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with our lifetime transferable no clogs warranty. we'd be glad to come out for a free no-hassle inspection. to schedule your free inspection, call 833-leaffilter today or visit leaffilter.com ed: it is time for talking tech. asia's e-commerce is under scrutiny from indonesia antitrust authorities. it has allegedly set up an algorithm that prioritized its own services. a follow-up hearing has been set up. this is one of the biggest

listings in india ever. they join citibank and jp morgan which could raise 2.5 billion in health care payment maker way star is raising 1.4 billion before its ipo. it's offering 1.04 and shares. ng -- caroline: let's turn to other type of assets. the world of crypto and we have so much to digest. we are awaiting a decision on ether etf. they have been trying to step up efforts to retain 9 billion from

the biggest bitcoin exchange. you have a platform designed for the digital asset management. this is a story of supply and people waiting for creditors to be repaid and maybe they sellout. will it be a longtime overhang? aya: as you mentioned we have 100 82,000 bitcoin, 140 3000 and bitcoin cash. we have seen historically there is custodial movement for different wall preparations do for distribution. that will be closer to october 31. a lot of this is narrative as

opposed to actual distributions. caroline: is it mere did everyone -- there is so much debate for why the fcc seems to be allowing and etf coming sometime soon. issuers have to get a go ahead. what's your view on why this is happening? aya: around everyone being surprised and overexposed. earlier last week showed a 5% probability of etf approval. that was repriced to 70% and then the approval announcement. what has been more surprising is that we are continuing to see crypto become a central topic for the election.

we have the financial, institutional bill also get past. that will pull focus this year so we will continue to see that as we near the debate in june. ed: were you taken by surprise? aya: i certainly was. i myself am very bullish but we did see a number of our clients underexposed and there was a larger distribution and a lot of buzz around solana being next. in options, a lot of activity. implied volatility is still down. a lot of that is because there

are still questions around what the timeline is for the listing of etf. we have heard between next week to the end of summer. there are a lot of expectations on what the timeline will be because the issuers themselves were caught off guard. ed: i'm trying to get to the root of the bigger picture. we talk about etherium being the most currently use blockchain. ether is digital oil. what is your bigger picture on why this is important? aya: is one of the foundational pieces of the ecosystem. most of the activity is centered around etherium one of the most active chains in the space. even though you have seen

alternative chains, etherium is where most of the activity in the spaces happening. even if you look at some of the token launches, those projects are eth specific. this is the main narrative to help us bring crypto mainstream. caroline: and the presidential election of the united states. we have aya kantorovich august network ceo. ed: i am looking at gamestop. it continues. the shares are up 23%. 45 million shares were bought.

there are two big factors there and it never ends. the memestock frenzy seems to be back. this is bloomberg technology. ♪ , xi-chun! you've got more options than you know. book now. so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana ...with horses let's take a look at those scenarios. j.p. morgan wealth management has advisors in chase branches and tools, like wealth plan to keep you on track. when you're planning for it all... the answer is j.p. morgan wealth management.

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ed: welcome back to bloomberg technology ed ludlow in san francisco. caroline: let's check on these markets. there is a little bit of concern as we had to an important week for economic data. we have pce, housing data strong. mastec is on the higher side at .27 but europe is off. we have a thinner liquidity.

as we think about with the previous bitcoin exchange that went under with 19 billion in bitcoin held up. what is the micro data telling us about a company like mnra and modernity. we are taking profits from a dharna at the moment and looking what's happening in texas instruments. an investor taking a stake in what do they want? more cash flows. nvidia, this is why we see tech stocks do well around anxieties around the data.

ed: this is a story we have covered step-by-step for a number of months. elon musk x ai has raised 6 billion and incomes less than a year after the debut. joining us now is kurt wagner. we know the numbers they publish them in a blog. but a good place to start is he managed to attract big-name investors the kind you want behind you. kurt: a lot of these names are people who invested in acts or what was twitter. he is any familiar pool of

investors brace 6 billion we are looking at a valuation around 24 billion. whether these investors that are also invested next what the terms or structure of that arrangement looks like but you see him going back to a familiar pool of investor. caroline: tesla has been under pressure and there is that ongoing anxiety as to where elon's focus size. he is frustrated by a lack of ownership and now he wants to create a super computer to power grok ai. kurt: investors are excited about ai rather than twitter.

you think what is the business upside? but when you look at and ai company and the returns are much more exciting or you could imagine much more exciting. if is going to be distracted they would much rather prefer he's distracted by xai. ed: it's important to remind x and x ai. kurt: there only product is a chatbot called grok being trained from information on xp elon has talked about the importance of grok in real time

and how eggs is differentiated. that is the relationship. i don't think it's crazy to think of x as becoming more formal part of x ai. it would tie it to this ai business model people are excited about. right now, x data training data. caroline: and be as true seeking as possible. that was what was being talked about by elon musk at the viva tech conference and his frustration with openai that he helped co-create and left. openai has created a board committee to value a security.

it's a governance change after a top executive resigned. the company disbanded this internal team. we will break it all down. they are trying to make an effort they are about safety in alignment with humanity but he was almost born? >> that was one of the first things i noticed they said i may pose that sam altman is a member of the board. as well as a handful of current employees in consultation with outside people. it will be interesting to watch and see how these people work together and what kind of recommendations they come up with. we know the chief scientist

involved in the ousting of sam altman disagreed with altman about safety related issues. ilya is gone along with his chief deputy. it's important to say that the company has had thoughts of safety, people working on safety across the company. this is an additional layer. ed: the timing is industry. two former members in an op ed saying they are worried about governance of openai. does this new format or oversight board answer their concerns? rachel: i'm not sure that it does. i would say they would say not really.

this is created by people already at openai and there's not a lot of diversity in this group in terms of gender diversity. just on the surface, that's a pretty obvious thing missing there. if you have a lot of people already involved in the company involved in this group it's hard to see how you would have that much output that would be taken seriously. caroline: we saw meta-has an ai oversight board and guess what that is, for white guys? ed: the people behind the models in the actual human oversight is super important and we are grateful to you for your coverage. more to come on bloomberg technology. we will be joined by framework

ventures vance spencer where we will talk about that new etf. this is bloomberg technology.

ed: you are looking at a live shot of the principal room. check out our podcast you can find it on the terminal as well as apple, spotify and i heart. this is bloomberg. caroline: crypto mining has made them unsolicited offer to buy arrival. let's get to it. they have been building up his stake in they want to buy against their own desires. >> we have a hostile takeover in the bitcoin space. this is an old-school bearhug

maneuver. they are launching a proxy fight against the board. caroline: not liking the governance of bit farms. what does this tell us about on consolidation? >> big fishy the little fish. it is in much better financial shape and as you noted the target has corporate governance challenges so it's right for the taking. caroline: fascinating what we will be looking for in the crypto space. we appreciate you taking us through the old-school school and new school.

ed: a dive deeper into the world of crypto from the investor perspective with mark ventures vance spencer. where we start is by asking if u.s. an individual were taken by surprise at the pace of conversation around the spot etf? vance: absolutely not. people had time but it is the clear asset that should have this second etf. it has stablecoins, it has be higher than bitcoin. it's an asset people want to own. i know bears were prognosticating that the yachts were 10% and the line is that the evenflo's are less than

expected but we are firmly in the camp that it will be big beneficiary. ed: what leads you to believe trading will start in a couple of months and what do you think the regulatory worry map is from here? >> the 19 b-4s have been improved and now you need the i 1s approved. we view it is positive. it's the same buildup is bitcoin and sales and marketing. to some extent it will ride the coattails of all the excess bitcoin has built. you think about someone wants to put a dollar into crypto.

when they think the magnificent seven they don't go all into one. but all seven are components of an investing strategy. we think the same thing will happen here. ed: if you're talking about nvidia your thinking about thick peanut butter layer in just a dollop of jam. i want to ask the same question consistently and that is, what are the principal differences in bitcoin spot etf and in the theory of base blockchain versus bitcoin blockchain? >> bitcoin is digital gold. you can view the rigidness of its roadmap there is no future roadmap.

bitcoin will be bitcoin for the next 100 years. etherium starts with the stable coins unchain and blackrock is bringing on fixed income, equities, commodities and private credit. it's on the forefront of that movement and it's a different asset. it does 2, 3 billion a year. it's a different asset than bitcoin. it's more of a textile growth plate. if bitcoin is digital mold, etherium is apple. people are going to be really surprised and the uniqueness of fees and skills of the business that it will generate from the transition taking place.

ed: the vance spencer call is that etherium is apple is digital oil. what happens of the approvals come as expected? we talk often in our coverage, the etherium blockchain is most use globally. what is the crystal ball into the future if approvals happen in the cadence you have set out? vance: we manage 1.8 billion we are a venture firm but we play in liquid markets. one of the few firms who have bought crypto on open market exchanges.

that moves the price pretty meaningfully. etherium is a smaller, more reflexive asset. that will make a significant impact in the market. you think back to 2020, michael sailor was on the scene and we were buying digital gold. sure enough, the bitcoin went up two times and three months. with this catalyst in the set up of relative lack of supply in the narrative that these are not just that rocks but things we actually build with as technology, that is a big tail wind. this is a surprising decision but it is baked into the cake

for us. ed: you use the word political, it's an election year we have a presidential election in this country where one candidate has tried to make crypto a bout topic. does this approval process first spot etf have any relevance to that? >> there are 60 million of us who hold crypto. a lot of these emerging markets there are more wallace on crypto accounts then bank accounts. this industry is not going anywhere. it's the democrats who have gotten the memo on this and it's amazing to see them pivot on this decision. the clarity bill for those who tokenized assets to stay in the u.s..

tether, the 30th largest buyer is overseas. that's embarrassing we want those industries in the u.s. we should be voting for any growth industry to stay here and that's happening politically. ed: framework ventures vance spencer we will see if approvals came in under your timeline. caroline: a disappointing memorial day weekend when it comes to the box office. we will bring you those details next. this is bloomberg, technology. ♪ ♪♪ ♪♪

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why not give your wealth a second look? book your free meeting today at creativeplanning.com. creative planning -- a richer way to wealth. caroline: perhaps by you are celebrating you were not doing it at the box office. a disappointing memorial day weekend for furiosa that only brought in 32 million. the furiosa release could be the worst release in decades. bloomberg intelligence notes that in 2025 has been a much

better film industry when some of the strikes un-crystallized themselves. ed: i sought everywhere on social media and prims hemsworth doing all of the media around the world. for me it goes back to the idea of theatrical release or a streaming release. i was not in the movie theater but at home watching atlas with jennifer lopez. caroline: wasn't any good? ed: she was pretty good but one thing chris palmeri said about the box office, there is good stuff coming in the summer in 2025 is a much bigger pipeline. caroline: you think of

oppenheimer, barbie. the fact that we came in well below the worst case scenarios, 37 percent down from this time last year's weekend. people don't want to spend in that way, right now. even though it was a rainy monday i wasn't thinking about the cinema but what to do at home. ed: garfield from our childhood why remake another garfield? just come up with another movie. caroline: you mean something like frozen 4? that does it for this edition of bloomberg technology. ed: check out the podcast you know where to find it on apple, spotify, i hard. this is a big week for economic data with earnings in there as

well but we started talking about ai and crypto and i suspect that's how we will carry on. 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. should i? normally i'd hold. but... taking the gains is smart here, right? feel more confident with stock ratings from j.p. morgan analysts in the chase app. when you've got a decision to make... the answer is j.p. morgan wealth management.

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♪ sonali basak live from bloomberg world had worked -->> live from bloomberg's world headquarters in new york. i'm katie greifeld. >> look at the studio. >> i feel like we are not supposed to be here. but we will be here for a couple of weeks. >> making changes elsewhere, but surprises to come. it feels like home. >> the sec paves the way for the eventual launch of investing directly in ether.