emily: i'm emily chang in san francisco and this is bloomberg technology. google doubles down on commercial real estate investing in offices and data centers. the search giant promising to create at least 10,000 new jobs this year, an investment of $7 billion. what does it signal about the search giant's position on

working from home? we will discuss. plus, the global chip shortage. how bad is it? i will talk about it in an exclusive interview. and a pandemic perspective. one year on, venture capital. we will talk to the con academy. -- the khan academy. a text selloff dragging down the nasdaq today. ed ludlow is in san francisco. ed: how quickly things change. 24 hours ago, i was saying the markets have taken a sigh of relief. closely sanguine about the fed holding rates through 2023. fast forward to thursday, worries about inflation. you see the s&p 500, the main

gauge of u.s. equities, down the most in three weeks. tech, the real underperformer. the nasdaq 100, down 3.13%. the biggest drop in three weeks. it is no surprise the basket of big tech stocks, some of the biggest point the cleaners on the nasdaq 100 also down 3.6%. the environment is one where treasury yields have been rising. u.s. 10 year yields, highest in about a year. you factor in inflation concerns. we are back to the narrative. rising yields, rising inflation. investors concerned about tech stocks. look at this chart. it sets up the question at this point. how long is this environment going to last? that is the longest streak of weekly gains in the u.s. 10 year yield since the start of 2018. that is a significant streak. how long is it going to last?

that is the question. fast forward to today. the economy, the vaccine rollout, two big factors. if you look at the different sections of the equity market since the start of the pandemic, it is small caps, the russell 2000 that have outperformed the nasdaq 100 and the s&p 500. those are the stocks that are closely tied to an economic recovery. the most sensitive to a reopening. it is interesting the gap between the s&p 500 and the nasdaq 100 has closed recently. the outperformance of small-cap has continued. that is the other part of the story. investors pulling money from the riskier assets, the growth stocks like big tech and putting them into the reopening trade. lots to consider. lots of specific names as well. what are you looking at? >> it is all about the big tech

names. i want to show you what it did to kathy woods' etf. a 5.8% decline. the largest holdings, tesla and telacoc. tesla especially dealing with issues in the u.k.. you are seeing some pain in square. 9% decline. of course, teladoc getting spooked on the idea that amazon is entering the business. really, a broad tech loss. if you look at some other earnings stories, you are seeing nike trade after hours. still carrying on some of the pain it sold during the session. missing some estimates on wall street. it has a lot to do with consumer sentiment, with consumer spending.

here in the states, you are seeing that grow a little. abroad, a different story. i want to show you the statistic. china sells jumps, a whopping 50%. the stock market seems to be pricing that in. things like high end real tailors -- high-end retailers up. really tells you that not all retail is created equal. the divergence priced into the stock market. see if the economy follows. emily: thank you both. living on to -- moving on to google. planning major investments in the united states. the company says it will spend more than $7 billion to create 10,000 full-time jobs. this year, more than a billion will be spent in google's home state of california. there will also be data center expansions across several other

states. for more, i am joined by nico grant. they are also investing in a commercial real estate. it is less than the 10 billion dollars they promised last year before the pandemic. >> it is true that last year they promised $10 billion. the pandemic happened. the ceo said they would have to scale back on the hiring it had done. in 2019, it had pledged $13 billion. we have seen a decline across these areas. it is a very bold statement about where google sees its future. it is no secret the company has for more than a decade invested --

if employees want to continue to work from home, that is ok with them. has been more concerned about what might be lost with google's culture if there was a true permanent to this current state during the pandemic. it is a company that has thrived on types of spontaneous collaborations and independent projects that may turn into real product in the future. in september, google employees will be expected to come back to the office about three times a week at least. emily: that is interesting. definitely want to hear your observations comparing and contrasting the philosophies. we are hearing mark zuckerberg saying he thinks 50% of employees will be working from home by the end of the decade. what is this feeling among google employees about this hybrid model? >> i think many employees

including ones at google would like some ability to make a decision. what is most important is feeling like you are safe in the first place. google had originally envisioned their employees might return to the office sometime in the middle of this year, which we had heard a lot in 2020 that perhaps in june or july of 2021 might be a suitable time. now with the vaccine rollout perhaps coming into full shape in may, september when kids may be able to go back to school, which is another consideration for a lot of working parents now seems acceptable. around the margins, you can expect some flexibility. it is three days a week. there may be opportunities to work with your manager if you have special reasons or requests to work in this way. emily: nico grant, covering

google for us. thanks so much for that update. coming up, his nonprofit educational organization has seen rapid change amid the pandemic as remote learning became necessary for millions. i will talk to the founder and ceo of khan academy who has big plans to use a recent donation from elon musk. this is bloomberg. >> they just recently gave a $5 million donation to khan academy. i hope you feel good about this. this is going to allow us to accelerate all sorts of conduct -- sorts of content. ♪

emily: the centers for disease control has said it is critical for schools to open safely and

as soon as possible and remain open, but the agency's guidelines of physical distancing of six feet has made that hard for many districts across country. that coupled with resistance from some teachers unions means remote schooling is still a reality for millions of families one year after the u.s. shut down. as a result, remote learning has shot up in demand and scale like never before. khan academy saw its districts grow from nine before the pandemic to more than 200 now. with perspective and predictions on education across the country and around the world, we have sal khan, founder and ceo of khan academy with us. i the past, you have warned about educational catastrophe as a result of this push into remote learning. in your view, has a catastrophe happened or did we dodge it? sal: we have dodged certain

aspects of it. the data we have that came out last fall when some kids got some form of assessment is for certain groups, the learning laws has not been significant. the big asterisk is there are 10 or 15% of kids who did not show up for the assessment. everyone suspect those of the 10 or 15% who have suffered the most. i still hold by the fact there will have to be disaster recovery. even of 85% we were able to measure, we saw a degradation of 10 or 15%. the 15% have phone off the radar. when we get back to some form of normalcy, we will have to do a lot to make sure those gaps do not stick with them forever. emily: do you think the learning gap will close or is it only going to get wider overtime? sal: the hope is that does not get wider overtime. there has been an interesting phenomenon where for a lot of

families because of the constraints of covid, have discovered new things that work well for them or their children where they are late, there are some great things happening in the physical school settings. i can go to schoolhouse. world. their other resources. pod schooling where for some kids, learning is accelerating. there is evidence that distance-learning has accelerated certain kids. that creates a fear where everyone is talking about is technology going to seller at the ignite -- the economic gap, is he going to be a situation on the learning side? for those who do have access to technology, it is going to close. there are a lot of folks in the bottom half or quartile who have reasonable access. for those who are not in position to leverage it, the gaps may grow. emily: khan academy has been a

huge support for so many kids. as a parent, i am super grateful. you have seen huge growth. what trends are you seeing as school start to reopen? sal: one of the fascinating trends we have seen, we talked almost a year ago when the closer started happening, we saw traffic grow by a factor of three. in 2012, we sold 12 billion learning minutes. that is a record for us. 2020 hit that. what we are seeing is there is systemically overall less learning time. and we talked to the large charter networks, they have been -- we don't think we have enough class time to cover everything in calculus, to cover everything in algebra. now they are leaning on resources like khan academy to make sure students are able to have the exposure because the total amount of learning time in

the system seems to have gone down. emily: there is still a lot of uncertainty about what happens in the fall given that children likely will not be vaccinated. we will not have a vaccine for kids by then. if we don't have one, you think schools should still be open in the fall? sal: i feel pretty strongly they should. there is little evidence of child to child transmission. there have been several school districts -- the state of rhode island famously never shut down. they have no cases of child to child transmission. this is a state commissioner i know well and we have worked closely with. that worked even pre-vaccine. my wife is a physician. i have taught a little bit of immunology. once the adults are vaccinated and some of the older teenage level students, the risk of young child to child spread especially if people are still taking precautions like wearing

masks, the potential risks at that point are lower than you would have from other illnesses like the flu. the potential harm of not going to school, which is significant, we are seeing anxiety, depression, social emotional skills suffering. that is going to turn into the epidemic if we don't get kids back to school. emily: moderna released information about the studies they are doing on children. we are getting more details on the pfizer trials. some parents might not feel comfortable sending their kids back to schools. i wonder what your concerns are any that situation. some kids i would think are not going to go back. sal: i think it has got to be a lot of education about this. once all of the adults are vaccinated and once the parents are vaccinated, especially if we are talking about younger children, under the age of 12, there is almost no evidence of child to child spread especially

if all the adults are vaccinated and even we know there are some horrible stories you hear about a young child who gets covid with bad outcomes. those are still few and far between relatives other things like the flu, which kills thousands of kids every year. we have to have education about putting everything in perspective because it is easy to hear her stories on the news. -- hear her stories on the news. the mental health and the harm to your education the children will suffer is a far bigger risk. emily: this is another interesting trend. we spoke to melinda gates who is concerned about women backsliding in the pandemic. we found more women are dropping out of the workforce where there are more kids in remote schools. if women have lost their jobs or left their jobs, you wonder if they might feel more flexibility to keep their kids at home whether or not it is a good thing. what do think about that? sal: there is definitely that

movement. i do think that has been an unfortunate trend where families have had to take on more of the childcare responsibilities. it has fallen disproportionately on the women in the families, which is hard on their careers. this trend of some families discovering that certain aspects of pandemic schooling were working well for their children is going to continue. i talked to the state commissioner of alaska who already had a large homeschooling position. they have seen homeschoolers go from 10% to 25%. it is not a niche thing in their state. don't think it is going to go back to 10%. they think it is going to go back to 20%. homeschooling or some hybrid between normal schooling and homeschooling is going to become more the norm. emily: the stimulus bill, $170 billion to help schools.

schools might be feeling pressure to use that quickly. how much will that help? how are you expecting that money to have an impact? sal: this is the hot topic. i have a meeting with a bunch of strict leaders tomorrow to discuss this thing. behind closed doors, everyone is very excited. 20% of which is for learning loss. billions and billions of dollars. behind closed doors, they are like we are going to have a lot of pressure. this money could easily disappear. if it is appears, people will be skeptical the next time. high-quality, high intervention, high dosage tutoring. that is something we are hoping to do. anyone can volunteer to be a tutor or get free tutoring. we don't charge people for this. i'm like, maybe we should have gotten into that. khan, a lot of people view that

as part of the formula. we do a district offering where the districts get support and training. i think it is a big question mark on how you put the degree of capital to work. and how it can last beyond covid. emily: we will have to leave it there. sal khan, founder and ceo of khan academy. coming up, we are going to hear from senator elizabeth warren. her push for a bill that would provide $5 billion for green mass transit. this is bloomberg. ♪

emily: the house and senate have introduced a proposal to shift u.s. transport away from fossil fuels. earlier, bloomberg caught up with elizabeth warren. >> i think we are going to be able to be able to work with a lot of republicans. right now, the white house is

putting together its infrastructure package. it is all kinds of pieces. the part i have got here is about transportation. it is about buses, it is about subways, it is about commuter rail, it is about cars, electric cars. it is about all the ways we move people around. when we put together this big infrastructure bill, we will also include water and power grades. this ought to be our transportation piece. we do that piece, that is the part that currently creates about 30% of all carbon emission in the united states. this plan brings that down to zero and makes it possible for us to have a new state-of-the-art transportation infrastructure that is green and is efficient and works. >> when you think about bipartisan support for this, who

are the republicans that you are specifically hoping to get on board with this? sen. warren: i am talking to all 50 of them. i am serious. you name a republican who lives in a state who represents a state who does not need an up -- that does not need an upgrade in their infrastructure. name a republican who is not struggling back home with problems of gasoline powered or diesel powered buses and trains and mass transit, highways that need repair. we can do this together. it is one of the things that is everybody's best view of what the senate ought to be able to do. work together to build a stronger future. emily: senator elizabeth warren. you are taking a live look at anchorage, alaska were u.s. and chinese officials have begun the first talks since the biden

administration took office. we are seeing secretary of state antony blinken meeting with chinese party officials. we have been listening to antony blinken make some remarks. he says the u.s. is committed to continuing to lead with diplomacy. he says they will talk about human rights issues happening, concerns about hong kong and how the chinese government handled that situation and says that some chinese actions have threatened a world based order. -- a rule-based order. we will continue to bring you highlights. again, u.s. and chinese officials meeting for the first time in person since president biden took the white house. coming up, we are going to speak with the incoming ceo of qualcomm about the company's completion of the $1.4 billion acquisition of a chip design

company. our interview is next. this is bloomberg. ♪

>> semi conductors or chips are in a central component in things we use every day. they are made from the material they gave silicon valley its name and they handle everything from artificial intelligence processing physical functions like translating the press of a button into an electronic signal. pink of them as the brain of a device. when the pandemic shut down car factories in march, automakers expected less orders for passenger vehicles. i intern -- in turn, they cut

orders for chips. working from home and 5g drove demand for laptops and data centers. those industries increased their orders for semi conductors. that caused chipmakers to switch production to those areas rather than pileup chips they could not sell. what both car and computer companies not expect was a quick rebound in demand for products. there is now not enough supply to meet demand and building chip factories takes years and costs billions of dollars. >> the answer in the near term is nothing can be done in a grand way that can increase supply. supply expansion takes time. takes a dish and -- takes edition of capacity. >> chip sources are expected to wipe out $61 billion of sales for automakers alone. big chipmakers like qualcomm say the auto industry is not the only sector to get hurt.

games console makers say things will get worse before they get better, potentially impacting holiday sales. president biden has signed an executive order to look into why the u.s. is so rely on overseas chip manufacturers. >> companies such as qualcomm, nvidia, all of these companies did not have factories of their own and rely on third-party manufacturers. over the last decade or so, have become extremely reliant. >> how long before supply meets up with demand? it is a guessing game. some analysts say we will not see signs of a turnaround until the second half of the year. emily: ed ludlow reporting on the global chip shortage. catch us up on how chips are performing. ed: chip stocks under the same pressure the rest of the tech sector is on thursday, down

4.2%. biggest decline in a week. some of the name putting under pressure, amd down 5.5%. qualcomm also down 3.1%. this chart. it is all about volatility. stocks, 30 day volatility. it has been creeping up recently. that is not quite the right chart. volatility in a philadelphia semiconductor has been on the rise. nowhere near where it was when the fandom it -- when the pandemic first hurt the united states. when the pandemic hit the u.s. in march, that was a shutdown of our economy. prior to that, it had already her china's economy. part of what i learned in that story is how closely chips are tied to the demand side of the economy. in terms of how the stocks performed relative to the broader market, outperformance. you can see the gap has narrowed in recent weeks. the philadelphia semi conductor

index, the question you have to post to your guest is how much longer the outperformance will last, when will we see the supply and demand equation rebalance? emily: we will ask our next guest that very question. ed ludlow staying in chips. qualcomm recently completed its acquisition of a company founded by three apple engineers. joining us for more, cristiano amon, president and ceo elect. first of all, what do you plan to do and why did you think it was important to bring chip designers in house? cristiano: it is a very important acquisition for qualcomm. we are excited about closing the acquisition. it will enable qualcomm to take a leadership position in cpu performance, especially for the upcoming conversions of mobile

and pc's. with the acquisition, you expect qualcomm not only to continue to have the leadership position in cpu performance in mobile devices as nuvia cpus will be part of our premium chipsets but also part of us developing dedicated computing parts for the future conversion. we are going to be sampling computer parts into 2022 with the nuvia cpu. we also are going to use the cpu technology in automotive as electrification drives a lot of general high-performance efficient computing platforms and cars. very excited about that. it creates a new chapter of growth for qualcomm in computing. emily: i'm curious about how you

want to make your stamp on the company as incoming ceo. what are your top priorities? where do you want to take the company as we come out of a pandemic and presumably how we use technology will change dramatically. cristiano: the long-term story of qualcomm is incredible. it comes from the fact that demand for our technology right now is no longer just unique to the mobile segment. i have spent the past three years accelerating 5g. 5g will continue to be an important priority for qualcomm. when you look at 5g alone, we have built the core business and opportunities outside. one of the largest opportunities for qualcomm, the largest we have seen in the core business past driving 5g into our existing customers, pass to resume the business with apple.

the largest opportunity we have ahead is huawei has been changing their position. they were shipping 200 million devices. the opportunity became available for customers of qualcomm. there is a sale come, a xiaomi. that is an example. we are going to be growing -- going to be very focused on that. unlike when we sell a modem only. this is an opportunity that we sell premium snapdragon msm's. it is a four to five x value and we are excited about that. the other one is use all the company transforming itself. it tells you a little bit about the future of qualcomm. it is a company that is not just a licensing business.

it is a company that will have a number of different businesses as we have done i the past two earnings calls. automotive and we are just scratching the surface of iot. just reached a billion-dollar business in the last quarter report. emily: as we have been speaking, u.s. and chinese officials have started their first talks since president biden took office. the relationship between the u.s. and china has been under incredible tension. that tension has impacted the chip industry and qualcomm has a huge footprint and important relationship in china. what would you hope the next chapter of u.s. china relations involves as it pertains to your business? cristiano: despite the tension, our business has been growing at an incredible rate. we are very privileged.

now we are growing including with new customers. to answer your question, i am optimistic that for areas like in the technology sector like we are in 5g, we play a very important role for both the growth in the united states as well as the companies in china. we expect the corporation will continue in the areas of technology and we are optimistic about the future. our business in china will continue to expand. emily: we have to talk about the chip shortage. i would love for a breakdown of what is happening, why is it happening and when do you think supply will catch up with demand? will soon supply outpaced demand? cristiano: it is one of my favorite topics these days. we are still growing as a company. as we have said in the last

earnings call, our ability to meet demand is outpaced by the supply of availability. there is not a single industry that is not impacted by the semi conductor shortage from automotive to iot. it is because of all the different trends that accelerated the semi conductor during the pandemic. we have line of sight that demand and supply are going to end by this calendar year. we have started to see some capacity investments come online. we expect this crisis is going to be behind us. you ask a very important question. will supply exceeds demand erica -- will supply exceed demand? we are fortunate because some of the drivers for demand are here to stay. we see the expansion on mobile

in the market that was served by huawei as an opportunity for qualcomm to participate. we sell big acceleration -- we saw big acceleration of iot. they were connecting other people. now they are connecting their assets. we have been in the upswing trajectory with the automotive industry. we expect to continue to see growth. in general, the pandemic, what will take five to 10 years of the role of technology, we have an acceleration in two or three quarters. a lot of the demand is going to continue into 2022 and beyond. emily: we have about a minute left. we will have to keep it short. you are expanding into new

markets beyond the phone, beyond laptops. which of the new markets do you think will be the first to take off? cristiano: automotive is really big. that is why it is a separate segment. the additional transformation and electrification are big drivers. following automotive is the digital transformation enterprises with industrial iot. emily: cristiano amon, president and ceo elect. interesting to watch how you take over the company and what your priorities will be. coming up, just a year ago, sequoia capital warned founders and ceos to prepare for the black swan that was the coronavirus. now the firm is urging everyone to seize a new window of opportunity. our conversation with sequoia capital is next.

this is bloomberg. ♪

emily: just over a year ago, sequoia capital came out with a memo for entrepreneurs titled coronavirus, the black swan of 2020. today, sequoia has sent a new memo. on march 5, we urged you to prepare for the impending storm. today, we are at an other inflection point. the u.s. is poised for stronger economic growth in the second half of 2021 than we have seen a decades. do not be afraid to dream and be optimistic about where the world is going. to discuss this and much more one year on is roelof botha.

tell us more about the thinking. why this advice now? roelof: the way we think about this is similar to racing analogy. there was a short term in the road. you're going to get off the track. just like a formula one razor, accelerates from that position to win the race. we feel we are at that apex now for startups. i have to realize that change unfairly favor startup companies. technological changes, economic changes, societal changes. the shift to cloud, the shift to mobile, the shift to pc and internet years ago. we have been through a year of the pandemic. the post pandemic world is around the corner. emily: you said to prepare for

more volatility. what kind of volatility and how ? roelof: the pace of recovery will be uneven. the vaccinations are rolling out quickly in the united states. italy is undergoing another lockdown. the rate at which we deal with covid will not be even across the world. the previous guest talked about ongoing supply chains. we do not think it is a smooth recovery. we do think there will be bumps. new variants of covid will emerge. there is no post-covid world. it is a post pandemic world. we will need to cope with that. on the whole, we are optimistic this is a point at which startups can accelerate and think about what they can accomplish over the next decade and positioned themselves. emily: in the memo itself, the

warning was stark. what if you can't fundraiser? think about your cash position. think about your headcount and if you can do more with less. many companies suffered. many tech companies saw a renaissance. sequoia had huge ipo's with airbnb and doordash. you think sequoia over rotated on the warning or was that necessary at the time? roelof: we think it was necessary at the time. we had a global view. we have businesses around the world. we had an inkling of what was happening. we had the benefit of stiff two years in experience -- of 50 years of experience. we told people to pause and think deliberately about what to do next. we had a few portfolio companies who lost 80% of their revenue overnight. two companies were affected significantly overnight. they had to make meaningful cost

reductions. some companies had to accelerate. companies like doordash and instacart. companies like zoom had to employ technologies around the world. our call was a call to pause and be deliberate. emily: you closed a europe focused seed fund. you have a huge business in china. you like sequoia's investments in youtube and square. you say the big question is which behaviors will persist over the next decade in which will be fleeting. what behaviors are you doubling down on? what do you think will be fleeting? roelof: one of the phrases we came up with last year is covid is the shock that accelerates the future our technology companies have been -- it was a future of food

delivery, a future of enterprises and bracing cloud infrastructure, of machine learning finding its way into more applications. we thank most of these -- we think most of these will pull forward into the present. i would say what we are most excited about is companies figure out how to help us with the hybrid environment. an environment where we harness the best of personal experience. that is where we spend a lot of our time right now. emily: given that you are on the board of square, i have to ask how enthusiastic you are about bitcoin and cryptocurrency as we see jack dorsey doubling down. what is sequoia's view? roelof: we have been active in the cryptocurrency field for a while. i am most excited about the ability of programmable contracts. we can use cryptocurrencies to

make things a lot more efficient. that is the area of greatest interest for me. emily: you are also an investor in the video security company. they just had a big hack. foreign companies like tesla and hospitals. they have fed criticism of corporate culture and how they treat women. i know sequoia is really hands-on. how are you handling this one? roelof: the company reacted very swiftly. they are sending out frequent updates on a daily basis as they are investigating and making sure this is an experience that is not repeated. emily: as work becomes more distributed, i curious what your thoughts are in continuing to invest in companies that do not have a home office, that employees are working in a lot of different places versus more

traditional companies where everyone is going to be back at the office. does sequoia have a preference as to how their entrepreneurs work? roelof: i think it is up to them and that is the part of the beauty of embracing a different future. the truth is that opportunity is not evenly distributed. talent is far more evenly distribute it. silicon valley has been an incredible point of focus for technology talent around the world. we are seeing technology talent remain where they are. an incredible development team in sydney. development offices in over a dozen countries. they have been part of this remote work movement for a decade. i am excited about the ability to embrace talent wherever it may reside. given we have evolved as a

social species, i expect people store benefit from that real-life experience. we saw a little bit of this at eventbrite last year when new zealand came out of lockdown. it turned out that people snapped back to the old in person event at the pre-covid level immediately. it is who we are as a species. emily: all right. roelof botha, really fascinating to have you here. thank you for joining us. you can check out their new memo . all right. the nfl's $105 billion tv deal coming up. we will bring you the latest on what that includes. an historic contract with amazon. this is bloomberg. ♪

>> the nfl just announced a new series of long-term tv deals valued at $105 billion including an historic contract that gives amazon exclusive rights to thursday football broadcast. cbs and fox will continue to carry daytime games on sundays and gain expanded digital rights. nbc will retain rights to sunday evening telecast. espn will keep monday. the agreement start with the 2023 season. that does it for this edition of bloomberg technology. tomorrow, we continue our conversation about the pandemic one year on with the zoom cfo. zoom has seen explosive growth over the last year. we will talk about that and their next chapter post pandemic. do not miss it. bloomberg daybreak: asia coming up next. ♪

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