announcer: from the heart of where innovation, money and power collide in silicon valley and beyond, this is "bloomberg technology." caroline: thg bloomberg technology. coming up, insiders cash in on the rally as the stock pushes deeper into record territory. full chip coverage ahead. plus tiktok parent bytedance embarks on a high stakes bid to overturn the law requiring them

to divest or be banned. details to come. meanwhile, steve cohen's point 72 looks to raise $1 billion for a new fund picking winners and losers in a.i. we'll discuss that and so much more throughout this hour. first let's check in on these markets and look a little bit of a temperature check going on when it comes to big tech. is there too much concentration risk? a bit of profit taking happening on the day. is there one too many bankruptcies being fileed? we're just down about .1% at the moment when we're looking at the nasdaq more broadly however the s&p 500 near or at record territory and we're getting a little bit more, look at the stocks 600. up .6% as we digest what's happening from a political risk perspective over in france. we push higher. we're look at a 20-year yield, just down two basis points as we anticipate a big sale of 20-year treasuries coming later today. we've also got a little bit of a digestion on what's happening from economic front industrial production looking relatively sound as retail sales pull back a little bit, mixed picture in terms of whether or not federal goes move on and look at what

individual stocks are doing. we've got key news out. we've anticipated this move. now we look at how they'll restructure or pay back their debt. we are also looking at micron on the up and up. best performer on the nasdaq 100. analysts only expect good news come from them. nvidia as well pushing higher up. almost 2%, just the three trillion stock that continues to give. we're anticipating seeing some of those insiders buying and selling and we're seeing sales happening with executives offloading some of those shares. we want to talk about the chip market. we want to look at how maybe they're being impacted by geopolitical risks. a new story out by bloomberg, a new bill is seeking to ban government-funded semiconductor plants from using chinese-made equipment. here is bloomberg's mackenzie

hawkins, your news story just articulating how if you're going to be getting some subsidies from the u.s. government, i'm afraid you cannot have china's technology within that. >> that's right. so the u.s. passed this massive semiconductor subsidy program coming up on two years ago in august, 2022. and the biden administration's about 85% of the way through allocating some preliminary awards for the funding. that includes $8.5 billion in grants to intel, more than $6 billion in grants to each of tsmc, samsung and micron and lawmakers are really heavily scrutinizing this program. there are already some guard rails on how companies that receive federal funding can proceed in china. they can't have significant expansionings of their facilities -- expansions of their facilities there but law makers are looking at chinese equipment that might wind up in u.s. facilities. this new bill that was just introduced this morning would seek to ban any companies that receive federal funding from buying chinese tools for their u.s. factories.

>> how realistic is it that intel, that tsmc are receiving, taking goods and equipment from china at the moment, there's also other countries listed in your story, russia, north korea, iran, but really china's the one we're most likely to see equipment come from. >> that's right. so in every semiconductor export control measure sort of targets a handful of foreign adversaries but this really is about china. it's a great question. the u.s., japan and the netherlands dominate the semiconductor equipment industry with companies like lamb, applied materials, asml in the netherlands and tokyo electron in japan and chinese equipment makers have taken a pretty significant hit over the past couple of years because of u.s.-led export controls on their ability to get high-end semiconductor manufacturing tools and the chips themselves. but they have made some significant progress and they're beginning to pitch u.s. companies on using their tools. some companies have been entertaining those early stage conversations we are told, perhaps more as a way to impose

some pricing pressure on the u.s. firms that currently supply those. but lawmakers see this as a growing threat not just at the advanced edge, but also some tools that are designed to create more older generation chips. caroline: we keep an eye on how geopolitics effects some of these technology companies and ones that are getting federal funding. brilliant story, thank you very much for bringing it to us. look, chip stocks do continue to power high today. you're looking at the stocks, for example, hitting new highs, we're looking at micron outperforming on the day. should you be allocating into tech right now when we're at such oversupport levels? eric friedman is the man to ask. we do still have the odd headwind, whether it be geopolitical risk, whether it's happening in france or in the china or u.s. but it doesn't seem to be crimping the appetite of big tech at the moment. >> i agree. it seems like this is the story that we're hearing consistently across not just corporate america, but also global companies which is if you want to get bigger, stronger, faster,

it's not so much a faster -- focus on labor, it's a focus on technology and to your point, it has been really centered on chips and larger integrated chip providers. so that's a space that we think is bought on weakness as opposed to sold on these levels and part of that reason is the very consistent cap x story we're seeing. we've looked across the globe and companies that are not just in the technology industry, of course, but when it's banks, whether it's health care providers, this push towards what a.i. and other big data services can provide we think is an ongoing theme. so it's a space that we think, we're benchmark relative investors, we want to be at least neutral if not overweight that space right now caroline: don't find the trend but sometimes momentum does come to a screeching halt. is there a way of protecting yourself from the down side? >> yeah. i think it's a great point. one of the things that you did a great job on the prior segment was thinking about protectionism and we've got a lot of data

points coming up. we've got the july 4 election. we've got the considerations around of course the u.s. republican and democratic national conventions. we'll hopefully hear more demonstrated policies regarding regulation and also on more tech specifics if you will. so i think it's a space where you can lighten up but we would not lighten up beyond market weight. that's a space that, again, we think that trend is there. what are some things that could cause that to go ott err away? geopolitical risk is one. if we see it creep higher on interest rates which is not in our current forecast, but if we see not just the fed but other global central banks push off rate decrease, that's something that could also be an issue for valuations on these companies. but again, it's a market that has to be proven, that needs to be sold as opposed to be bought which we think is a great place to be for investors right now. caroline: when you are looking at the broader benchmarks and you're focusing your allocation as us this, neutral maybe a

little bit overweight, at what point do you say, ok, we need to broaden -- do you even have to factor that in particularly? when you're looking to diversify, when you're worried about concentration risk when it comes to the a.i. bet? >> it's critical as an asset allocator to think about the overconcentration, the complexion of the s&p 500, that does give us some concern about how overweight if you will on a normalized basis some of that index is. but if you look across the pond again, we're big believers in efa as a long-term diversifier but that's largely a value-oriented index. so given that there is some participation in tech and germany as well as in the netherlands and space like that, and also to the point made earlier about japan, there's a lot of feed stock implications of the chips back and forth from a political standpoint that's not just the chip makers. it's obviously the designers, it's obviously some of the

individual renses that go into the chip making process. so i think the point is that you want to be smart i think first and foremost about the o.e.m.s they and second think -- o.e.m.'s and secondly think about the ecosystem. gentleman pass is a -- you can't get i think too bearish on the space right now. just given the backlog of demand which will still be there for some time. caroline: perfect perspective. eric friedman of the u.s. bank, we really appreciate your time today. meanwhile coming up, going into the a.i. trade, steve cohen's point72 raising a new fund to pick the winners and losers of artificial tension. discussing that one next. and what's happening with apple. interesting report coming from the information. apparently they've halted work on the next high-end vision pro headset. we understand that at least one supplier that works on the next high end vision headset has been halted, told who holt.

this coming from the information currently down by .8%. few features happening before the end of 2025. this is bloomberg technology. ♪

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caroline: time now for talking tech. the troubled e.v. maker is listing asset between 5dz00 million and $1 billion in liabilities between $100 million and $500 million. the filing while it works out a plan to repay investors. best buy is preparing for one of its biggest product launches of the year. a.i. computers. the retailer is training more than 30,000 employees to sell

and repair p.c.'s equipped with microsoft's new co-pilot a.i. that goes on sale today. best buy has exclusive sales rights to more than 40% of co-pilot p.c. models. and huawei says it's considering cutting fees on in-app purchases. according to people familiar with the matter, the company is weighing a 20% commission for payments made via the mobile stores. that undercuts apple and afl bet's 30% fees. seeking to raise $1 billion for a hedge fund focused on artificial intelligence. story being broken. tells but this new fund. a big chunk of change, $1 billion. >> it is and for a sector-specific fund we haven't seen point72 come out with a sector-specific hedge fund either. the sector they've chose season a.i. especially looking at semiconductors and hardware and

so they're raising th is billion -- they're raising $1 billion for the fund which is a pretty sizable fund but the firm as a whole $1 34 billion so still not as big -- whole is $34 billion. caroline: it's notable when we get a first fund in more than a decade. why is steve cohen pursuing this avenue? because it's going to have long positions but also short too. >> precisely. he's quite bullish on a.i. he thinks that it's going to be transformative. it will change the way companies work. how they make money. how much money they make. he thinks that the opportunity can be over the longer term and so you might see big winners, you might see big losers. so there's long and short opportunities here and he thinks that this is the best time to be investing and so it makes sense that he would launch this kind of a fund. caroline: the nots just him making the investment decisions here. >> no. he has a p.m. that's going to focus on the tech space. steve will be overlooking and overseeing the firp and fund but what's interesting here is that this is a new hedge fund vehicle that they've decided to create

for these investments. and typically they have their main hedge fund that does investing in stocks and they do macrotrades and it's more market neutral this. fund will be more flexible. it will be more long biased if they see opportunity. it will focus on that one space. it's an interesting move that he chose to create a new vehicle for these investments versus just putting it in the main fund. caroline: not afraid to make bets when it comes to technology but has used his own money when it comes to the v.c. area but there have been other areas where they've looked to improve things. >> yes. so they have a venture investments too. they have a unit that makes investments only for steve's money. they have a separate unit that makes investments for venture and private equity for outside capital. so you're seeing this firm that back in the day was just old school hedge funds, long-short. really pushing to new areas. going more into venture and private and pushing into macroas they've been expanding that unit and now pushing into a.i.

caroline: and using generative a.i. thank you. the real world impact a.i. is having on health care. that's next. meanwhile, look at snow flake. we understand that there was indeed a hack that occurred to some of snow flake's own customers. now we understand that the hackers are now demanding as much as $5 million from those particular clients. as many as 10 companies were breached in campaign that targeted snoact customers in -- know? flake customers in particular. this is bloomberg technology. ♪

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caroline: time for our weekly section. today we're looking at a.i.'s impact on health care and how it might even aleave create soim of the -- alleviate some of the burnout of nurse, help with the shortages there. based on new data from incredible health. here for more is c.e.o. and co-founder of incredible health. we want to talk to you about how ultimately you're seeing a real worrying trend here. there's going to be a huge shortage of nurses, can technology help in any way? >> absolutely. so in our most recent study, 90% of health care executives think the nursing shortage is going to worsen in future years. so the way we see the role of a.i. is that it can have an impact in increasing opportunities for nurses and other health care workers too. we've experienced it ourselves,

our platform is used by over $1 million u.s. nurses and by over 1 -- one million u.s. nurses and hospitals. we've imp thed a.i. features that have benefited these workers as well. for example, we're now using a.i. in what we call our resume wizard which enables nurses to create resumes using a.i. and we enable hospitals to send out messages to nurses using generative a.i. which has led to a 20% increase in interview requests being accepted. caroline: can totally see how it's making nurse interviewing requests that much easier. tell us how health care providers, the hospitals you work themselves, are perhaps using generative a.i. and might be able to alleviate some of the burnout, stress, work for the nurses they employ. >> absolutely. so in our recent study that's just published today, over half of health care leaders are exploring technologies that you use artificial intelligence for nursing operations. primarily they're looking at using it for scheduling and

administrative processes. we're seeing a lot less, less than 10% being used -- using it for recommendations and patient care. and the reason that they're focused on this technology is because burnout is the top reason why nurses are leaving the workforce and why they have such high turnover of over 20% annually. in hospitals too. so this is an urgent issue to alleviate the workforce and a.i. is a potential for doing that. caroline: i can imagine that actually in years to come gentleman are a tirveg a.i. might help with the mental health burdens that nurses feel too. >> absolutely. so there's several things nurses are going through right now. first of all, they're very dissatisfied with the ratios of patients they need to take care of. they're taking care of more parents than usual -- patients than usual and the health care executives acknowledge that as well. they're also dissatisfied with the nurse to patient ratios at their hospitals. we're also seeing burnout and stress be the number one reason

for turnover and then finally we're seeing an increase in workplace violence. so over the last year, there's been an increase in verbal and physical assault from patients or patients' families on nurses. and so for all these reasons these are high priority topics that health care executives are trying to tackle with technology like a.i. but also more traditional methods. including salary increases, increasing flexible scheduling and improving these nurse to patient ratios. caroline: how quickly you have been able to increase the skill set of your own employees, to adopt generative a.i., to make your product even better? >> we have a fantastic product and engineering team here at incredible health and since chat gpt launched they've been excited to use that technology. we do use -- we use co-pilot, for example, when writing code. and then we've also implemented a.i. in a whole range of

features that benefits our users too. so we're big believers in that technology. and the impact it can have on our users in a beneficial way. especially when it comes to expanding opportunities for health care workers. caroline: your headquartered in san francisco. where i'm sure the conversation every other second is around generative a.i. or a. impt. how is that differing with the global workforce that you employ or help employ within hospitals? how does it affect your own talent pool and how expensive it is? >> as far as the actual incredible health marketplace itself, we have over one million u.s. nurses and 1500 hospitals here in the sows where we operate -- in the u.s. so we operate in most of the country so we've actually seen the uptick in a doption of a.i. to be -- in adoption of a.i. to be quite rapid throughout the entire country. not just focused in the bay area. then also we operate our company fully remote. so have an engineering team and a product tease spread across the country -- team that's spread across the country as well. we've seen the adoption and

interest in a.i. be national. it's widespread. caroline: how do you use it? on a daily basis? >> personally? caroline: yeah. >> i've used chat gpt pretty consistently when it comes to improving written communications, whether it's to customers. it helps sort of edit some of my marketing copy as well. i definitely have personally used it day to day in work too. caroline: don't we all. thank you so much. c.e.o., co-founder of incredible health, just talking us through how generative a.i. might change the game for nurses going forward. meanwhile, speaking of artificial intelligence, nvidia insiders have sole shares worth more than $700 million this year alone as the stock continues to push deeper into record territory. now amid the unrelenting demand for its chips, company executives and directors have unloaded about 770,000 nvidia shares so far. that's the most since the first

six months of 2023 when about 848,000 shares were sold. now coming up, bloomberg's jamie joins us to take a look at high stakes bid at bytedance as it's trying to overturn the potential ban on tiktok and what disclose disclosures it wants to see. and a quick look at what's happening in the u.s. creditors are trying to ban together to ensure they're working as one. they don't want to have any creditor brawls or fall out. they want a pact to avoid exactly that. they're going to be signing a cooperation agreement amid concerns that the company could move assets away from their reach. according to people with knowledge of the matter. now, it can initially lost about 18 months. this is -- those creditors in europe have done similar things when it comes to altice france. a look at what's happening in apple as well. there has been some reports

coming from the information today that apple's informed at least one supplier that work on its next high-end vision headset have been halted. now a report saying that the employee and manufacturer that makes the key components for the vision pro is being cited here, remains at work on a more affordable vision product with fewer features before the end of 2025. from new york, this is bloomberg technology. ♪

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caroline: welcome back to "bloomberg technology." maybe a little bit of profit taking coming in big tech at the moment. we're seeing also some mixed economic reports coming in the united states. retail sales just slowing a little bit. are we having a slight weakness in the consumer here in the united states? even though industrial production did look better today. we're also anticipating what the federal reserve does, many talk coming from the fed saying maybe just one and done in terms of rate cuts this year. we've seen the nasdaq 100 off by .2%. europe getting a bit of a reprieve at the end of trading, up .66%.

bitcoin under pressure, off by almost 3%. maybe that's more of a trying to rationalize where rate cuts do go for this year. fewer of them, maybe risk assets p are a little bit. the index overall doing well today. chip companies, just think of micron, on the up and up. only good news coming from this particular company. i'm looking at what isn't performing well. e.v.'s, if is ker, -- fisker files for bankruptcy. it's the second time that henrich fisker, the man who designed some real supercars, now sees once again another one of his company havings to file for bankruptcy, trying to protect himself from creditors. off by 48%. it does drag other e.v. makers down. tesla off by more than 2% today. we're going to flip gears and think about a privately held company that has been long in the head lights of regulation here in the u.s. i'm talking about the chinese company bytedance. parent company tiktok, of course. and it's entering a high stakes bid to overturn the potential

ban of its app imposed by u.s. lawmakers. to talk us through how they are looking to do that is jamie, joining us with more. this is interesting. because much of the moves made by u.s. congress was because they'd had some closed-door meetings that made them really wroared about tiktok -- worried about tiktok. >> we've learned a couple of different things that some of the lawmakers have discussed, including the -- sort of the revelation that there was an overlap between people on the board of bytedance and their connections with the chinese communist party. something that the c.e.o. of tiktok told hearings on the hill that there simply was no connection with the chinese communist party. there were certain elements and events that happened over the course of the last year that took most of the lawmakers who were luke warm on legislation from not voting for it to convincing them that that was the only means necessary and that's one of the things that we are looking at in this space.

caroline: what we understand, bytedance and tiktok and executors are pushing for more information to be divulged to the greater public. thus far they've said the risks cited by law makers are hypothetical. >> right and it's very interesting because the law makers have said, look, the burden of the proof is on tiktok itself. they're the ones who have to show that they're not a national risk to security concern. there's plenty of evidence out there from not just with congress and things that have been sort of spoken about and reported in congress, but there have been reports and research and findings done in other places around the world, australian parliament for example, that have basically displayed the sort of national security concerns that law makers have referred to. one of the things that is an issue, though is, if the d.o.j. decides to put forward information that might be classified, they'd have to do that in a closed setting. if that information is going to be released to the public or at least submitted publicly in a

lawsuit against -- in response to the lawsuit, it would need to be redacted for -- in terms of making sure that elements like sourcing and methods of obtaining that information were not included in the details. but again, it's really the lawmakers have said, this is an act of congress. it's up to tiktok to prove their case rather than the lawmakers and the government having to prove what tiktok is alleging about the speculative nature of the national security concerns. caroline: i can't imagine and indeed as quoted in your story, a law professor saying it's inconceivable that a court would force them to release anything given it is such highly sensitive data taken by -- looked and found by the united states. but i'm interested in just the typing of all this. it feels as though we're getting this pace of discussion once again because june 20 is when we need to hear from bytedance about tiktok. >> that's right.

in matter of days we're going to have at least from tiktok, they're going to lay out their case entirely, as we know that they have said that the law was unconstitutional, that it impacts the freedom of speech of its 170 million users in the u.s. and as you said, the legal expert that we quoted in our story says that if that were really the case it would be about every platform, not just tiktok, but there are other platforms. so freedom of speech is essentially protected. it's also worth noting that tiktok is funding the legal cases of several users who are also trying to challenge the legislation. so it's going to be really interesting. but i think what's really important here is that tiktok has a global audience of over a billion users and they're fighting incredibly hard to hang onto these 170 million users in the u.s. and i think that in and of itself is worth exploring. caroline: great to have you on the show. thanks for breaking it all down whether it comes to tiktok.

coming up, we're going to be joined by the c.e.o. of wahby to talk about how a new funding round for the driverless trucking company is really shining a light on the technology they have and how quickly we do see automated trucks on the road. this is "bloomberg technology." ♪

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caroline: this is "bloomberg technology" and you're looking at as et principle room. coming up, former bridgewater associates c.e.o., dave mccormick. this is bloomberg. ♪ caroline: waabi is a company working on applications of generative a.i. to the physical world. today it's announced a huge

raise of $200 million and an oversubscribed series that by uber and with participation from the likes of nvidia, volvo, who's who of corporate vmpt c. -- v.c. we're jon: ed by the co-founder and c.e.o. -- we're joined now by the co-founder and c.e.o. tell us about fully autonomous trucks by 2025. that feels really bold to me. >> yeah, yeah, it's bold but at the same time it's something that -- [indiscernible] -- we are able to go so much faster and so much more capital efficient compared to the rest of the industry. today we have trucks in texas with a safety driver and we are on the verge of enabling of deploying without a human. we're very excited. caroline: tell us about ultimately what the difference is that you have pioneered. i understand it's a single end

to end a.i. system that basically has a human-like reasoning. why is that so important for autonomous trucks? >> yeah, so you spend the last two decades really inventing technology, a.i. technology to this idea of a sing a. impt system that is able to -- a single a.i. system that is able to reason like a human does so it can really generalize different situations that might happen on the road because you'll never be able to observe everything prior to deployment. this is remarkable in terms of safety compared to anything else that we have seen in the industry. so one way to think about it is that we have this system that can be -- [indiscernible] -- and then uses those be a strakses to -- abstractions, what are the things it can do? what is the best maneuver? it's much more safer and

efficient than anything we've seen before and it's safe. caroline: as you mentioned, you've been basically at the forefront of a.i. and applications in the real world for two decades. you applied some of that know-how to uber and you're now already sort of working alongside uber when it comes to trialing autonomous on the roads of texas. what gets you from trial, error to actually functioning by 2025? does regulation have to change? >> the regulatory framework, particularly in texas, where we're going launch, enables us to deploy this technology and we are working with all the regulatory bodies really on a day to day basis so they can understand our technology, with the trust. and for the first time we have the ability to really make a

much more robust safety case compared to the rest i industry which is -- rest of the industry which is trying to crank up miles in order to have a way to prove safety. but that's not sufficient. if you look at the highways, a severe injury will happen every -- [indiscernible] -- miles and -- [indiscernible] -- something different. thanks to our a.i. simulator, we have a way to prove safety in a scientific, mathematical way. that's something that the regulators freely appreciate. as finally having the ability to really sacrifice systems in a much better way than industries today. so they're very excited about what we are building and we bring them alongside and build trust from day one. caroline: when everyone's trying to poke holes in elon musk's idea of robo taxis coming in a year or so, the august the 8 date hot in many investors'

minds, do you think that can be a reality and we can be seeing autonomous vehicles more broadly, whether it's trucking or cars or robo taxis by 2025? >> i would say that we will see. the operators you see in the industry today for level two, level three, which is not fully autonomous systems, they are black box infrastructures. [indiscernible] -- they require massive amount of data on computer to be trained. and it's not sustainable either. the previous generation of technology, we need something better and that's what we have with the new generation of foundational models. they are purposed for the physical world, you can rereally deploy technology in a way that has super human capabilities. we would see in the next months, years to come, that what is very clear is that self-driving is

going to happen and the scale willing happen first in trucking. [indiscernible] -- all those different use cases will be something we will target in the future. caroline: got a big infusion of strategic capital to get you there. thank you so much for talking us through what waabi has in store for us. let's stay in the world of promising a.i. applications and where startups are getting involved because red point ventures just unveiled its comprehensive list of the next 100 promising private companies in cloud infrastructure. guess what. a.i. has a big role to play. managing director at red point is with us. just dig through some of the companies here. what are the broad trends of the opportunities looking to began valuize a.i. right now? >> what we're seeing is that a.i. is permeating every aspect of our lives already. and this is really just day zero. if you look across these companies and their growth

trajectories, what you're see something we're seeing incredibly almost unprecedented levels of growth as people harness the trend and the demand in the market for a.i. we're seeing revenue ramp more quickly than ever before. companies like modul that are helping companies put a.i. into production and build apps that run on top of it are able to grow incredibly quickly and what's most exciting to me is this is just the beginning. caroline: i think that's exactly it. for many it's been where is the value going to lie? for now, picks and shovels, infrastructure, the actual chips, the hardware that you need to build these large models. then you're saying it's companies that help you apply to build applications that are building a revenue. where else are we starting to see startups build the next layer of opportunity? >> oh, across the board. there's a company, for example, called norm.ai that's helping turn hundreds of thousands of regulatory rules into automated a.i. compliance agents that can

help financial institutions better comply with the regulations in place and the work is so insurmountable that you couldn't do it before without a.i. so, yes, of course it starts with the picks and shovels but we're already seeing a.i. start to move up the application stack in the categories like compliance, insurance, financial services. caroline: are there already too many startups? we had someone saying, i'm getting calls, 10, more than a week of companies needing to sell themselves to me because they can't keep growing, they don't have the money. >> that's absolutely the case. whenever you have such an incredible platform shift like this, there are a lot of venture dollars that go into it, a lot of optimism. there's an explosion of companies. and obviously that's not sustainable. but this is also part of a healthy ecosystem, right? we have all these brilliant founders that are coming out of existing incumbent companies to try to build something new and

they won't all be successful but we learn a little bit every time and some of these companies will of course get acquired into larger institutions and then people will bring their own learnings and innovations into those and that's the cycle of startups that we've seen in every other platform shift before. so i think this is a good thing even if temporarily a little painful for some. caroline: what's interesting is we were just talking with waabi and they've got to deal with uber. uber and these companies that came into existence, disrupted and stayed independent in the previous wave of move to mobile. now we see these weird deals going on, inflexion going into microsoft, sort of relationships built between open a.i. and every other company. what sort of companies will end up existing or will they all be bought out ordeals done with incumbents? >> sure. i don't have a crystal ball and i think it's really important to call out that we're still climbing the hype cycle so there's a long time to come

where we'll see a lot of evolution, just like we saw in the shift to mobile. you mentioned all these companies and they all came several years after mobile phones and the smartphone really came out. so we're going to see the ipsa thing i think with a.i. we're going to of course see a ton of m & a, of course all eyes are also on regulators to see what's allowed to happen and i think you take the case of inflexion in some of these other -- i'll call them creative deal structures that probably had to be put in place because of fear of regulators, but the incumbents know that they need harness this technology, they need to forge relationships with these up and comers in order to remain relevant over time. so, yes, we're going to see some generational companies that are getting formed right now, just like we have in previous platform shifts. we're also going to see a lot of very interesting and exciting alliances between startups and incumbents come. we're going to see a lot of m & a to come as well. some of the greatest companies

of the next 20 years haven't even been started getting built yet. caroline: not even on the list you bring us. we thank you for doing the hard work, for finding some of those 100 hot ones already. managing director at red point. we thank you. meanwhile, coming up, x makes a payment play. details behind the company's ambition to take on the likes of venmo. that's next. talking of payments. we understand app something shutting down its pay later program which let's customers make payments on an installment plan basis. they're making retreats from efforts. a lot of news around apple today. this is "bloomberg technology." ♪

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♪ caroline: the everything app. we're back there. e lon musk's x. to do that needs to perhaps add payment networks into its social media platform. according to documents submitted to state regulators, the company is looking to perhaps add event employee-like payment features -- venmo-like payment features on x. 350 pages of documents when it comes to emails related to money transmitter applications made in various states nation. what have we learned from how payments will be interweaved to x? >> as you mentioned, went through a lot of documents, we talked to state regulators

because one of the things x had to do to allow payments is being we lated in all 50 states. so we found --ing we lated in all 50 states. so we found that elon musk owns 75% of x holdings, the company that then owns 100% of x. we found out x's revenue over the last year, they made about $1.48 billion in revenue which is down 40% from the year before musk bought twitter so details like that and then of course more details on how they actually plan to implement the payments aspect and how that's going to feed into an everything app. caroline: let's talk about the payments part in particular. because that's his roots, right? that's where he first came from. one of the papal mafia as he was -- paypal mafia as he was known. what does he envision us using payments for and how on the platform? >> he envisioned it just like venmo as i think you mentioned earlier. if you think about being able to send money to friends and then being able to send that money back to your bank account, that

might look like products and services that you buy through x. maybe even in the future it could be some of musk's other companies. and then there's a vision of actually being able to use it in a way like apple pay where you go into a physical store and you can buy goods. so it looks like all of those things noaght one and as you mentioned -- things noaght one and as you mentioned -- things together in one and as you mentioned, that's important. if i want to buy a product, i have to have a way to send money. it's really a lynch pin of that plan to really be able to do everything in one place. caroline: he needs the states to sign off on it. but he also needs partners, i assume. they're not building this all from the ground up. they already have relationships with other players in the field. what more do they need to build here? >> absolutely. they need those partnerships, you can imagine they outlined some documents as well that they might even look at partnering with other people beyond. there may be other payment processors, obviously banks, they're banking with citibank

right now. and if they're going to sell goods and services they might want to have partnerships with retailers and they might even want to have conversations with advertisers. if advertisers want to put an ad for their product and someone can click on that ad and then go directly to the purchase prague ses. all those swords -- purchasing prosessments all those sorts of things are opportunities for them to get more people buying goods and services and sending money. caroline: crypto-related? >> no crypto. which is sort of surprising and it might be because of some of the regulatory hurdles with that. you might have to go through some additional steps. but x told regulators it has no plans to do crypto at this time even though we know that musk has been a huge fan. caroline: have to hold out for a little while longer. great piece of reporting. a whole trove of emails and documents. we appreciate you scraping through then. meanwhile, that does it for this edition of "bloomberg technology." check out our podcast, you'll find it on the terminal as well as on apple, spotify and ihop.

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sonali: welcome to "bloomberg markets." stocks are mixed after data showed a slowdown in u.s. consumer spending. sparking more jitters about the consumer. leaving that with an s&p 500 up .1%. we were about flat earlier. gaining steam now. the nasdaq 100 is still on the red on the day, but just rarely. the two-year yield really recouping some losses