>> this is "bloomberg technology." caroline: i'm am caroline hyde. ed ludlow is off. coming up, we will bring you the full recap from apple's annual developers conference as shares rise to a record filling the companies event. we will break down, from elon musk as he says he would ban apple devices from his companies of openai is integrated into the

operating system. troubled french i.t. firm atos picks a winner for its bailout. we will discuss that in the frame tech -- french tech throughout this hour. first, let's check in on the macro perspective more broadly. a little anxiety for the federal reserve, that cpi print. managing to see tech on top thanks to apple. cac 40 having a woeful time and france. some rumors swirling that perhaps even macron could step down if the boat he has just called does not go his way -- vote he has just call does not go his way. interesting fundraising news coming from france later in the show. crypto is off by almost .4%. bonds are selling off today. move on and have a look at

individual movers. i'm looking at apple. rising to get a new record high. we are up more than 5%. yesterday we were little like on spired by the announcements coming from wwdc but seemingly, we are thinking this will drive the purchases of new phones. shares as we hit this record, we want to delve into the ai announcements. one tech tightness are pretty hot take. elon musk saying he would then apple devices from his companies of openai software is integrated. calling it a security risk. we want to get into elon musk's take and the announcements. mark, some eyes the market reaction -- surmise the market reaction. he thought some was lackluster but the market seems to be like and we might buy some new iphones with this. >> i deafly don't think this is

going to drive iphone 16 sales in any significant way. i do think over time this will seriously drive sales of iterations. maybe the one after or the one after or even the one after that and will into the future. i think it will enable a set of a new generation of apple devices, things like glasses, robots, airpods with ai cameras. this sets the stage for apple's future. the most important part is apple no longer has to worry about the risk of people switching away from the apple ecosystem. apple now has the same functionality that samsung has, google has come other players have in terms of ai integration into its devices. i think from that standpoint, it is a positive and making the street quite happy. they are digesting there's a lot of stuff monday at the conference. i think going through what the apple announcements were and they see how comprehensive set

of tools that apple is offering here with it. the spin with this privacy standpoint and deep integration. caroline: let's talk about privacy and integration. privacy has been called into question by elon musk because of the integration with chatgpt. get is up to speed with what elon musk is accusing here. >> elon is basically saying if chatgpt is infused at the operating level of these phones, it would have access to all the data on the phone which would go to apple and then go to openai. what you have to remember is elon has a lot of incentive to see this idea this is an unsafe and a privacy issue because he is building a direct competitor to chatgpt with his x ai business that is building its own chatbot. i think this is the kind of thing he is incentivized to do

to pour cold water on his partnership, to make people question or doubt whether or not this is done aboveboard because he stands to benefit with his own business and his own company building arrival product. caroline: apart from going to tim cook, we go to you, mark. what do you make of some of the accusations of whether or not this integration would open up any privacy concerns? >> first of all, i agree with kurt. elon musk doesn't have the best relationship with apple and tim cook. he is building his own x ai company. he has an incentive to pour cold water on this idea and raise skepticism. on the other hand, i believe there are some privacy russians. i don't think as many questions

about in-house language models. i think they showed in great ways how private their own icloud based ai protection is. but once you start working with a third-party, we're talking about servers that are powered by microsoft azure, technology by openai. there isn't a clearly explained way apple can verify the privacy of your data input into chatgpt. when you start moving from apples ai models to the chatgpt models, it makes it clear you're in openai territory. warning consumers your data is being input into a third-party provider but they haven't shown away to verify the privacy of that information. apple and openai have said they are keeping the data input from the iphone especially private not logging it or creating data profiles but it is -- the onus is on openai to verify that an apple to keep on top of openai to make sure they don't reach those terms on the privacy side

of that partnership which i honestly think they will do. caroline: maybe there is some reason to the shouting going on on social media by elon musk but also immune to it. we have had elon musk throw some comments to tim cook in the past about perhaps the way in which the app store is run. we know he is doing openai. how likely do you think it is he would ban apple iphones across his six companies? >> this is someone as we know is not afraid of controversy and conflict in picking fights with other very rich and powerful people. tim cook been one. sam altman, zuckerberg. the list goes on and on. he might try to prove a point or make a point. for him, he is now sort of hinting at maybe he wanted to build his own phone someday. maybe he would partner with someone for a phone. i think this is very elon.

it is on brand for him. he picks fights and doesn't publicly and makes these grand claims or aspirations -- does it publicly and makes these grand claims or aspirations. i don't think it is the kind of thing for him, it is not a huge skin off his back if he makes the point is trying to make. as mark and i have pointed out, that is the goal, to cast doubt on this whole partnership, on these other companies that are considered rivals of his. and to do so in a very public way. caroline: he has the public's attention for now. mark and kurt with the insights on elon. we just got breaking news we will keep you up-to-date with what is currently happening from a legal perspective, hunter biden jerry has reached a verdict and again case. we will bring you the updates when we receive them. for now, we stick to technology. nabila popal is with us.

i think what the question for me and many ways is, why the market is loving it so much when initially we thought there is no wow factor here. >> thank you for having me. i have been absorbing all this information as i'm sure everyone else here. what is really big, yesterday there might have been a lackluster response because like you said there wasn't any brand-new feature or use case we have not seen yet from the other platforms or the other players in the market. what really stood out to me and what is catching on the wave here is this big move. it is a bold step forward for apple. they were behind the curve a little bit but i think the way they have come out right now, what apple does best. they have told a really compelling consumer story. most consumers are not aware of

generated ai. i think what apple did that was genius on their part, the way they integrated it into the user experience, which is central to apple's history and has always been about the user experience. it is about how ai on device with everything we do. everyday apps we have without having to go somewhere and click on a different app or chatbot. everything is integrated. a strong message on if you do it with apple intelligence, it will be private and secure. caroline: that privacy and security issue. do you think that will be questioned by what elon musk is saying? do you think it might put up people going for the iphone 16? >> elon musk will be elon musk. there is definitely going to be a lot of talk around this but i think apple's messaging was clear. if you are using ai the way they have shown this and everything they have shown yesterday it

will give you a personalize, customize experience, keep most of the things on device. they are not using -- i think there's a lot of confusion. i was looking into this myself. we have our team to verify is it the models being used all apple intelligence and the futures we saw, whether it is the summarization, search. everything on device is based on apple's own ai models. the chatgpt and openai comes in when you are trying to prompt siri for question that siri cannot you see information on your phone to answer. that is the future you will give siri access -- give your permission to access chatgpt. the way they have messaged it it is clear everything you do on the apple device will be secure and even when apple or the device can't use its own on

device ai model, will use apples secure cloud to personalize to be able to run those more complicated ai models. chatgpt, it was segmented into different way. caroline: what is interesting, this is a global, with a lot of focus on china. i'm interested in longer-term, perhaps more agnostic about which language model they use, indeed build their own, but could this go live in china? will it stimulate demand in china? >> chatgpt is not available in china. right now at this iteration, it is not going to benefit the upgrade cycle with the device this year. however, the fact apple is in ai, apple is doing these things is going to benefit the consumer perception which was taking and negative target, especially china. consumers are placing ai as a

driving factor in their devices in terms of purchasing. i think this year the upgrade cycle probably will impact because it will be available in the fall and only supported in the english language so countries like u.s., u.k., or any consumers that are primarily english driven, it is -- there are plenty of users out there with iphone 11 and 12 because the average refresh cycle was to look at three to four years. those users that will want these new devices even if it is just english support, english-speaking user. caroline: thank you so much, nabila popal. senior research director with idc. coming up, france. atos picks a bidder for its bailout. we will discuss that next. plus, political risk in france. also keeping an eye on what is happening in the u.s. when it comes to legality a politics. jurors in the hunter biden trial

we understand have reached a verdict on the gun case. this is the jury determining whether biden is guilty of illegally buying and possessing a gun in october 2018 after he checked the note to a question on whether he was an active unlawful user of any controlled substances. or on that. this is "bloomberg." ♪

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.

caroline: print ai start up, raised millions and a new fundraising round. it gives the company additional resources to take on bigger global players such as openai.

mistral has a track to more than one billion euros in investment this last year -- attracted more than one billion euros in investment this last year. we do have breaking news coming from the u.s. i want to have a look at hunter biden has been convicted of gun charges by a jury in a delaware trial. the jury took three hours to reach a verdict against the president's son and hunter biden still faces a separate tax crime trial in california. we now want to go to kailey leinz who has been standing by in washington. the impact of this? kailey: could be significant. hunter biden found guilty of all three counts with which he was charged. this is the first time in history a child of a sitting president has been convicted in federal court. this stems from his purchase of a gun in 2018 when he was addicted according to prosecutors to crack cocaine and the jury has agreed with the

prosecution, finding him guilty of these three crimes which you will be sentenced for in a number of weeks, potentially carrying a maximum sentence of 25 years in. it is unlikely that will be given for a first-time offender. this has massive personal and political implications for the incumbent president. this is the son of joe biden we're talking about, could potentially bring political ramification to him as well in addition to a great deal of personal difficulty. we have heard from president biden friend days ago he would not intervene and pardon his son if he was found guilty as he has been today. there could potentially be some political upside in this follows just less than two weeks ago donald trump being found guilty in a court in new york of 34 felony counts allegations from trump and other allegations that the system has been weaponized against donald trump. it is the same justice system that has found hunter biden guilty of a number of crimes. but usually it throws cold water

on that argument. it does shine in a comfortable spotlight on the president's family and this also is just one case in which hunter biden had been charged with crimes and faces a separate trial in september on tax crimes. caroline: that one in california . can you give us a breakdown of what is next post verdict? kailey: we will be awaiting sentencing. 25 years is the maximum. two charges carry 10 years each. the third a maximum sentence of five years. this is the first time hunter biden has been convicted of a crime so that could bring potentially more leniency but we will be looking to see what -- what ultimately the judge decides and will be up to that one individual in terms of the sentencing. we will be looking to see whether there is an appeal on the part of the defense and whether or not they look ahead to that trial that is set to happen in september.

if there is an appellate process, could be successfully delayed. they have not yet had success in doing so. it is worth keeping in mind that september tax trial he will be facing in california brings as ever observed to the presidential election in which joe biden, his father, is trying to seek reelection for second term and that timing potentially could add greater political difficulty then what we're seeing today with conviction of their president son. the first time in history this has happened to the child of a sitting president. caroline: as you said, president biden has said he would not pardon. i'm interested in whether we will hear from him, if there's any idea as to whether he will speak on the matter. kailey: he is a scheduled speaking engagement today, speaking at a gun safety event in washington and he is said to travel to the g7 in italy. this is where the personal and presidential duty potentially come into conflict. this is likely a very difficult day for the biden family.

we will see if he makes a statement on this before departing to italy. if he -- trying to focus on foreign policy, all of the other responsibilities of this office while also having to deal with the difficulty of having your son, the only living person from the car crash that killed his first wife and daughter many years ago and of course beau biden who survived the crash died of cancer back in 2015. that is when many of hunter biden's addiction problems began. that was at the heart of this case. this is a story of someone struggling with addiction. it was very painful as we saw ex-girlfriend scum ex-wives, even hunter biden's daughter testifying throughout the trial about a personal difficulty and what he was grappling with over the course of those years that he was an addict and just shines a very comfortable spotlight on the first family. caroline: very personal. the very political in nature. i wonder what impact you think

it will have longer-term as we head to the election? kailey: it will be hard to tell what the real impact of donald trump's own felony conviction has been as we have not seen any great shift in pulling thus far. we will see if it has a material impact on the way joe biden is polling. what i would point out is there a very important distinction. this case is the conviction of the son of a president, not someone who held the office himself or seeking to be president. that is different than donald trump who not only is the former president but is currently the presumptive republican nominee. while this may complicate the messaging joe biden and other democrats may have wanted to utilize in this election cycle, the idea that donald trump is morally questionable by being a convicted felon perhaps, that argument gets more difficult to make when your own son is also convicted of crimes. that could be politically complicated. there's been a lot of scrutiny in congress of hunter biden and

the entire biden family, allegations made by many different members as part of the impeachment inquiry that largely seems to have died down but will be interesting to see if this revs up in that regard congressionally as well. that said, we are going to have to be paying attention to the polls as right now it is june stop we have almost five full months before the election november 5. a lot can happen between now and then, including the second criminal trial of hunter biden. caroline: we are a business network. is are in the implication on companies running gun law and the way that my direct travel for purchases for demand of supply? kailey: interesting question. joe biden is largely a president who has spoken about 10 safety. he will be doing so at an event later on today which is affiliated with michael bloomberg. largely he is a president that has advocated for greater control -- gun control measures.

difficult when your own son illegally purchased a firearm as he was found guilty of doing so today with this crack cocaine addiction. will it materially change anything around gun laws? it is unlikely given no matter what developments we have seen in the gun violence area, mass shooting after mass shooting in the u.s., nothing really is ever done legislatively. joe biden has signed a number of legislative orders looking to restrain gun purchases in said area but it is something you really can't crackdown on without congressional approval. with republicans in control of the house, that is unlikely to be happening in this congress. caroline: being put through the test. as a political way of doing business here in the united states? kailey: we are at this really unique moment in time where we now have not just a former president, presumptive nominee convicted of crimes, but of the

president tsai convicted of crimes in the same two week period. both of these incredibly historic. we have never seen anything like this before. it will be interesting to see how this alters the narrative was the after donald trump's conviction less than two weeks ago, there has been an narrative about a justice system that has been weaponized for targeting donald trump. whether or not that is true, joe biden did not have the ability to say, he could have the power to step in with the special counsel investigation into hunter biden, potentially with the pardon, and he is declined to do so. allowing it to do its work. now that this has happened to his son being found guilty of three crimes here in delaware, it does alter the narrative around the way the justice system is working. you can no longer say it is only going after donald trump. it is come for biden as well. caroline: kailey leinz, so much information to digest, reacting

at the moment to this finding from the court, from the jury. we thank you very much. all things washington now. we were turned all things technology. coming up, the direction of apple going forward. laura martin joining us. that is next. plus, we already know were elon musk stands on the newly announced partnership with apple, but he is getting some empathy. spoke to bloomberg earlier today. take a listen. >> elon said if it turns out openai on the ios level, there are some security risks. i think given the secrecy around the advancements they're pushing forward -- ♪

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.

caroline: welcome back to "bloomberg technology." moments ago, breaking news a delaware jury has reached a verdict finding hunter biden guilty of gun charges. he was found guilty by federal court jury and has become the first child of a sitting u.s. president to be convicted of such crimes. we know the verdict came less than two weeks after his father's chief rival for the presidency donald trump was found guilty by a new york jury of 34 counts of falsifying business records late last month. political system intertwines with the legal system. we have greg farrell with us.

extraordinary really. the legal system is now becoming a focus for both presidential candidates but this one is novel in terms of the some of the sitting president. >> it is extraordinary because i think hunter biden. it is a question of timing. donald trump in charge in several places. it would be unfair. the optics would be terrible if hunter biden were charged and taken to trial. caroline: what do make of the swiftness are not many felt crepes coming back a second day, an immediate decision coming from the jury? >> we don't know what goes on in the room but in the afternoon, let's think about it. this is a serious thing. let's not jump to any conclusions.

it is a pretty simple case. unfortunately for hunter biden come he wrote in a book what his condition was at the time and did not take the stand. it is not a surprise in terms of the verdict most of it is more the magnitude of this, the strangeness of the world we are in where a former president is convicted one week and the son of a current president right now. caroline: i asked this previously of kailey and put it to you, is this the way of the land now? are we going to see far more legal system taking action around political decision-making? >> unfortunately, i don't necessarily believe -- i don't necessarily believe in the weaponization that has been claimed, but now that we have gone there, now that a local district attorney has brought charges against a former president, this is going to get worse before it gets better. i don't think there will be

cooler heads that will prevail. whoever loses the election in november, get even more galvanized to exact some retribution. it is a concern a time that way. caroline: we appreciate you analyzing what is another unprecedented finding here, hunter biden found guilty of gun charges by a federal court jury in delaware. meanwhile, let's go back to what we do today. currently seeing political risk evident in europe and france in particular under pressure, close to market with the stoxx 600 off by almost a percentage point. macron calls a key vote. rumors did swell as his own presidency. apple guiding us higher. bitcoin on the downside by more than 4%. key correlation happening. looking for the federal reserve

decision this week. move on, some individual stocks. we did get some earnings. not good enough when it comes to software. tesla down by more than 3%. interesting what we're seeing with tesla and jp morgan saying haven't spoken to investor relations at the company, they were the reverend -- while be coming anytime soon. elon musk, the leader of tesla, distracted currently by the frustrations he sees with apple's relationship with openai and integration of chatgpt within apple's operating system. apple up more than 6%, a new record high. that is because of the wwdc with a slate of software updates across paro ducts, partnerships -- products, partnerships, apple intelligence. here is ceo tim cook. >> recent developments and large language models offer powerful

capabilities that provide the opportunity to take the experience of using apple products to new heights. introducing apple intelligence, the new personal intelligence system that makes your most personal products even more useful and delightful. caroline: that video being shot on apple devices. live from san francisco for us, it felt and the moment perhaps there wasn't that wow factor but the market showing today there is. >> it took the market a little while to catch up. notice how tim cook emphasize the word "useful." they mentioned ai for the rest of us. i think this really showed through in the features they highlighted yesterday as part of the apple intelligence rollout. let's look at the summarization capabilities we now have, transcription of audio. you can personalize ai emojis.

when he think about the massive appeal that could have, that is key. they emphasized privacy. but outside of the ai features as well, the ios 18 upgrade has some pretty cool things coming down the pipeline. for example, you can tap back messages with different emojis, schedule messages to be sent later, access more apps and different ways in your console -- in your control center. we were sitting. there for an hour and a half a for the highlights came through. there was a lot of anticipation. this was their first swing. from what we could tell, just the first step in this broader ai rollout. caroline: many felt name checking openai for two minutes within that 90 minute thereabouts presentation, it was trying to suppress the actual real integration but really lean into what you will do for you as a consumer user and try to identify privacy and protection

being key. but elon musk calling that into question. >> exactly. siri was a major highlight because that digital assistant will have the opportunity to basically be able to pull information from chatgpt when answering questions. you are right, privacy was highlighted. they made sure to note you can opt out of this. you have to give siri permission to tap into chatgpt. when you think about the concerns elon musk is raising, it does also shine a spotlight on the other questions apple has to answer. what exactly happens to the data? does openai have access to seeing how you attract with the app on screen? there's a lot i think people want to know and some of those details will come out but they were keen to highlight users will be asked for permission. the request for information will not be logged. keeping with that apple privacy e those. caroline: we thank you so much.

it was a long day yesterday. thank you. laura martin joins us for more after -- you overall thing the price point is going to go higher? what happened at the event yesterday and what galvanizes it today? >> i think we were very disappointed at the apple generative ai stuff. they talked for 65 minutes about new colors and things that felt like snap type of functionality. then inman 65, they talked about the only thing wall street cares about. then in minute 65, they talked about the only thing wall street cares about. report 1% revenue growth this year. what we need to hear was what is going on with generative ai that is going to force an iphone replacement cycle to drive that 1% revenue growth higher to 2%,

3%, 4%. there was nothing i felt they announced that made consumers to run out and replace their iphone. now we have to wait a year because they have an annual placement cycle. if you did not like what you heard yesterday, you have to wait until next year until the next cool generative ai stop. i thought it was a disappointing day, which is why shares were down 2% as soon as they were done speaking. today they are up 6% because maybe the developers are finding cool way to integrated into their individual apps. i thought it was too little, to wait. they're way behind on generative ai and need to catch up. caroline: they seem to be trying to catch up with third-party relationships for now. what is the flow of money, lori? they are not going to be charging us for the joy of suddenly being able to use chatgpt should we wish to do. how much money are they going to be having just been or is a good they don't need their own gpu hold to a certain extent? >> they say they will be using

their own servers, to hold onto the ios data in their own servers in the cloud over at microsoft. i think they're still continuing to focus on privacy. i think the way that money works is they -- typically, apple will pay the microsoft cloud and chatgpt probably a fixed fee per month and they will put it into your iphone price. your price will go from $1400 to $1500 and you will pay for it upfront. i pay $20 a month right now for chatgpt4. my guess is apple gives that for lower price but they probably have a surcharge heavy users of that particular functionality. because of the privacy issue, think a lot of people will not call out to the cloud to chatgpt. then apple -- it is not costing them anymore for those users. caroline: maybe this key concern

referenced by elon musk will be listened to by some in the crowd. laura, we love having you on because of the breath of the analysts you do. i'm interested to who is winning the charge of any of the actual device makers operating system providers? is alphabet doing any better with the google offering? >> the only thing strategic decision for google come alphabet is better because they have cloud so they get it cheaper because they own it. they have android, which is the direct competitor to ios. they have an ad driven business within search which means i have a lot of first party data. they have youtube in the world is moving to video. youtube is the number one streamer and makes a lot of money and the largest subscription streaming service as well. which gives them first party data. it feels like there strategic position is a lot better even if they are sort of inferior and everyone of those things they do. the fact they do them all gives some really strong better data

and also more ways to make money from you. i don't feel like they are strategically in a box. apple feels like it is strategically in a box. it cannot participate in generative ai except its billion five users. that is not true google. it feels like it will participate across the globe in his 3 billion users a day that come in for search. caroline: laura martin, thank you for joining us. you can even get onto paramount with her. coming up, masha bucher. we sit down with her. let's just look at what is happening on the stock market elsewhere. spotify up a percentage point. we understand the company wanted to introduce a new hire price plainly them -- premium plan. the plan will cost at least five dollars more per month but it will include access to high fidelity audio, playlist tools.

this is "bloomberg." ♪

caroline: this is "bloomberg technology." check out the close. caroline: vc has raised $150 million for its latest fund boast of joining us now is masha bucher from day one ventures. interesting lps. talk how you brought them together. >> i think lots of nice to be here. what we have accomplished because of the great work of the founders investing and working together with. caroline: some of those founders

are investors. how many of your original portfolio companies initial fines have put money in you now? >> we were like to be packed by thousands of founders including 10 and including 14 founders previously backed which is beautiful to see because it proves on the one hand we partnered with very successful -- became successful financially so they can afford to be backing the fun. on the other hand, improves we were able to build this partnership, more like a very strong bond and were happy with experience they got as founders. caroline: let's talk about the partnership. you have an interesting route into venture funding. initially, you built a public relations company, helped these founders tell their stories. did that allow you therefore to get access to early opportunities to invest and build from there? >> yeah, i think what started -- i started two companies before. the previous was pr studios i

created. customers i took, 10 became unicorns. betting on as a publicist, becoming successful. we chose -- went well. it enabled me to get experience to be able to create new funds in 2018. that is how it happened. if you look at any business problems you want to solve and any business goal you want to solve, 90% of the business problems are communications problems. i think this is something we train founders and something that will help them to do. caroline: portfolio includes the crypto startup. you also have do not pay, u.com.

these are all male founders but how any female founders you have within your portfolio? >> we like to back over 40 female founders. i was also proud able to bring nine female limited partners because fund 2 -- fund three i had a big goal. quite proud we were able to find nine successful oc female entrepreneurs -- mostly female entrepreneurs. caroline: bring them on. masha bucher, really interesting story. day one ventures. thank you for stopping by. the more breaking news, this time regarding public companies. the u.s. is waiting more limits on china's access to chips needed for artificial intelligence. restrictions would target novel gate all around technology we understand, in early talks on

memory. that is integral toward nvidia and other relationships. people confirming relations. currently sing tsmc as will trading down. amd off by 1.5%. this is "bloomberg." ♪

clogged gutters can cause big problems fast. until now. call 833-leaffilter today for your free gutter inspection. i've had terrible flooding problems on my porch. now i understand why. right now leaffilter is offering a free inspection, on your schedule. leaffilter is a permanent gutter solution, so you never have to worry about costly damage from clogged gutters again. call us today and schedule your free inspection. to schedule your free inspection, call 833.leaf.filter today or visit leaffilter.com.

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

caroline: we want to return to breaking news regarding the biden administration. potentially considering for the restrictions yet further on china's access to chip technologies for artificial intelligence, targeting new hardware that is now only making its way very slowly into the market. gaa most cutting chip architecture, the moment, sing semiconductor companies just starting to adopt to make them more powerful. this could be affecting the likes of nvidia in particular, pressure on some of these stocks more broadly. does talk about the ecosystem of technology with laure negiar. great beds on some key companies -- great bets on some key

companies. do you expect it to interfere? >> we do. we think it will affect sentiment. there will be disentangling of sentiment and then hard reality in the p&l's, but we think geopolitics here to stay. caroline: thus far, nvidia, has not been buffeted around too much in terms of market capitalization because of this because they've had a bigger demand coming from the u.s. and western economies. is that going to counterbalance? will that be enough to sustain these heavy valuations? >> a tough one but certainly, the demand is very strong and projected to outstrip supply for a good long while yet. caroline: tsmc i believe is one of the key bets and beneficiaries you have called out. where are we seeing the money flow when it comes to picks and shovels then into the implication of ai? >> would you think of nvidia and then everything that supplies into it, tsmc, nvidia is a tsmc

customer, then the suppliers to tsmc so direct plays in the sector and more indirect place. it is quite fun to be thinking not just about the direct plays but the indirect ones as well. caroline: has nvidia got too crowded? have you felt people have not looking more broadly over the ecosystem? >> it is hard to say nvidia is not known. starting from that place, would like to think who is supplying to them, who is a client of theirs, how we can play this a bit differently. caroline: where else can you play it differently? we are thinking of apple trying to play catch up when it comes to application and will use case of artificial intelligence by you and i and a consumer way, but how is it being adopted elsewhere and which companies are going to benefit? >> there is a supplier to tsmc that makes extreme ultraviolet equipment called asml that is become quite well-known but a few years ago was not. there are companies that make

them ask blanks used -- make the mask blanks used to attach them to the waivers and then we have the waiver space. those tend to be well known and yet they are very present in the supply chain and great beneficiaries. caroline: have you got to trait and actively trade this market or just sit and wait for valuations to rise? >> we think this has been a great buy and hold space. right now sentiment is very buoyant. look back two or three years ago, everyone was extremely depressed. the geopolitics were weighing heavily. it is a wonderful space to be a long-term buy and hold investor with the ability when you are brave to buy more when the sentiment is down. caroline: are you buying more right now? you said sentiment is up so i suppose not. it is great to have you here. come back. laure negiar talking all things

tech. that does it for this edition of "bloomberg technology." don't forget to check out our podcast. this is "bloomberg." ♪ 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.

♪ ♪ sonali: live from bloomberg's headquarters in new york. tim: welcome to bloomberg crypto. sonali: the global markets aren't as thanks to uncertainty around the beds rate decision. u.s. cpi's come up tomorrow and european politics. bitcoin might be set up for a new round of volatility. tim: in a moment, ian rogers will discuss his product for crypto investors. sonali: we will discuss