(woman) aerotrainer makes me want to work out. look at me. it works, 100%. (announcer) find out more at aerotrainer.com. that's aerotrainer.com. caroline: this is "bloomberg technology". coming up the chip crunch gets a , white house hearing. president biden hosts semiconductor and automakers to smooth out supply chain issues. nvidia has its own plan to make server processors. bringing get more competition into intel, we will have analysis across all things chips.

plus, striking deals. u.s. senator jon ossoff helped broker a deal between south korea innovation and lk energy. factories in georgia will supply ev makers. we will hear from the senator on that and more. sales toward a $100 million -- $100 billion valuation as it goes public this week. we talked to an investor who was in crypto before crypto was cool. those stories in a moment. investors took a cautious tone monday as u.s. stocks took a pause from record highs, as investors look at all-important eco-data. ed ludlow with the latest. ed: almost like we were treading water. we get cpi data on tuesday. investors have half an eye on the bond market. the s&p 500, the main gauge of equities, basically flat. slipping up slightly from record highs. the nasdaq 100, the tech heavy index, off by .2 of 1%. note real underperformance. bond yields not doing much. u.s. 10-year up less than a basis point.

1.67%. the real story is semiconductors. the philadelphia semiconductor index, down by 1.1%. biden, hosting the industry and their customers, the message one , of reassurance. that he has bipartisan support to fix the issue. flip up the boards this was , actually the story. nvidia coming into the cpu space. the longtime strength of intel. you can see what it did the , biggest points mover on the s&p 500. up 5.62%. intel plummeting. 4%. look at this chart because it , tells the story of the day of what happened on monday. you can see the blue line as nvidia spikes. the s&p 500 follows. after that we lost a bit of , steam and momentum. come back to me and look at my final board, the philadelphia semiconductor index, it has been plagued with volatility for weeks and months now. we are still up 9% on a three month basis. the supply shortage good for those chipmakers. there is a lot to work out and i

know there is a man standing by to talk to you about that. caroline: a great run through a couple of things he sets as up for talking about monday's virtual white house meeting with president biden. telling companies vying for eight global supply of semiconductors that he has support for government funding to address the shortage that has , idled automakers worldwide, let's bring in ian king who covers the chip industry. is there anything possible to fix this in the near term? ian: i think even before, the answer is unfortunately no. it does not matter whether joe biden has given them a trillion dollars or instructions to get on it right now. realistically, it takes so long to actually make a chip and to put in your factory in place. short-term, there is no easy answer here. i spoke to the ceo of intel.

a major stakeholder. he was very positive. everybody was wanting to work together. on the flipside, there was a little bit of disagreement. the automakers are saying we need something right now. we need to be in front of the queue. we need to have priority. others on the call saying you do not. we need to take a more holistic view about this. there was a little debate. obviously, the funding and corporate tax rate, that would seem to be at odds with what the chipmakers want as well. caroline: to be a fly on the wall. meanwhile, talk to us about the competitive nature within the chip sector. we sell it on the full display today. nvidia grabbing more of intel 's space. what do you make of the move to cpus?

ian: nvidia is trying to downplay this. they are saying it is very much at the high end of the market. the most difficult ai. the simple fact is that most of that work right now is done by intel chips. nvidia coming in at the expense of those who are already doing that work. that is primary intel who are getting away from that. caroline: that is why we saw the ramifications on intel stock. ian king all things chips for , us. thank you so much. meanwhile you would not expect a , company to actually thank regulators after getting hit with a fine, much less a $2.8 billion fine. that is what goes on in china. the e-commerce giant alibaba doing just that, to thank the chinese government. after being hit with a landmark farm -- landmark fine. shery ahn is with the story and a reminder. shery: you would not expect tech companies any the u.s. to thank regulators for the record fine,

but that is what happened in china. alibaba coming out with a statement saying they're full of gratitude and respect, saying they would not have achieved that growth without sound government regulation and service. we actually saw alibaba after being hit with this record $2.8 billion fine surge in the new york session and hong kong as well. we are talking about the best day since june 2017 in new york. a couple of things. bloomberg intelligence saying the record fine is a small price to end uncertainty. jeffries saying it is a starting point for alibaba. as you can see right there, if you put this into context it is , only 4% of 2019 revenue. 11% of free cash flow. you're talking about a company that has more than $250 billion in assets. raymond james saying they expect solid continued china e-commerce growth. the valuation for alibaba is

still attractive. they maintain a strong buy rating. caroline: not changing inherently that business model. ant financial is going to have to reorient itself. shery: a complete revamp of their business. they are staying with their core businesses. everything else is changing. they are supervised more like a bank. we are talking about authorities asking them to eliminate unfair competition in payments. also increase oversight of consumer lending processes. not to mention they will be transformed into this financial holding company. they have to wrap up data productions as well. they will need to cut the value of their money market fund as well. they will return to their origin story. focusing on micro-payments and convenience for users. regulators making it harder for

ant group to exploit synergies. that direct traffic to other financial services. what sort of implications will this have for their ipo? that has been the big question. the $35 million mega listing they had to scrap last year, bloomberg intelligence saying their valuation could drop 60% from the $280 billion that it was pegged at last year. caroline: it is mind boggling, the fall from valuation, the fall from grace for jack ma. this must have implications for other people running big businesses and even startups. how does it impact the rest of the landscape? shery: the alibaba ceo last night was saying this is not just about alibaba. this is about a global trend where you are going to see more regulation. not surprising we actually had

, pressure for jd.com, for baidu, for tencent. beijing also wants to create an entity to oversee internet data. according to sources. not to mention they are going to start curbing market concentration in online payments. we have already seen it with ant group. we are expecting that to happen with tencent. tencent has been warned as well. we are watching those developments closely. caroline: you certainly will be when you take to the helm. you do not want to miss her programming. it will be plenty more on this story i am sure. meanwhile, coming up two south , korean ev battery makers ended their trade secret spat. ending a 10 year import ban into the u.s. saving thousands of , jobs in the state of georgia. senators jon ossoff joins us next to discuss that settlement and the new controversial voting

law. this is bloomberg. ♪ >> for our bloomberg tv and

worldwide, we are joined by a special guest right now. he is the man of the hour. there is a big drama being played out in the state of georgia about whether a major battery plant would come to pass or not. mr. jon ossoff, the senator from georgia was brought in. he got the deal done and we are delighted to welcome him. first of all, senator i have to , congratulate you. there was a lot at stake with

this. it was not clear what happened. give us a sense of how you got it done. as i understand president biden , asked you to intervene. sen. ossof: david, thank you for having me. it was an extraordinary team effort. i want to commend the united states trade representative. ambassador her staff. , she did an extraordinary job bringing this to a successful conclusion. i got involved because this is a matter of georgia's economic interests. 2600 skilled jobs at this innovation facility being built in commerce, georgia. billions of dollars of investment in georgia's economy. this is a strategic investment because we are talking about electric vehicle battery technology. the united states needs a diversified supply chain so our auto manufacturers can access this technology so they have a choice of vendors and we don't want to rely exclusively on imports to provide our automotive industry with this

electric vehicle battery technology. there was a significant intellectual property dispute between sk and lg. the options that were apparent were for president biden to consider a veto of the ruling by the international trade commission. that veto would have allowed sk to continue construction of this plant in georgia, but at the cost of the integrity of our intellectual property legal regime. i stepped in. the parties were at an impasse. i urged them back to the table. we got a negotiated settlement. lg has withdrawn its complaint. sk can continue with construction of its $2.6 billion facility and a commerce, georgia. 2600 georgians will be employed in skilled jobs producing electric vehicle battery technology. david: that is where the high drama comes from. the area of climate that is a priority for the biden

administration. electric vehicles, which are terribly important. at the same time, protection of intellectual property is as well. can you give us some sense of how you reconcile this? these parties have been in dispute for some time. as i understand you were right , up against the deadline about banning imports from sk. sen. ossoff: that is right. the president had 60 days from the international trade commission's judgment to determine whether or not he was going to veto the itc's ruling. that put the administration in the unenviable position of having to make a choice between the production of strategic technology in the united states, electric vehicle batteries, which are a vital part of our transition to a clean energy future, a geostrategic option, where we face substantial competition with china. and on the other hand, potentially eroding confidence in the intellectual property law in the united states. in order for major industries to undertake research and development, there needs to be confidence that intellectual property law in the united

states is robust and enforced. that is why a settlement was a vital and necessary solution. the parties are no longer at odds. a payment has been made from sk to lg. lg withdrew its complaint. the intellectual property law of regime is intact and georgia is going to get these 2600 skilled jobs. david: senator, can you give us some sense of how long this settlement will last for? sk is investing a lot of money. we would not want to have this dispute to come up again in another three or four years. sen. ossoff: they would have faced two years in the case of production of one battery component or four years in the case of production of another before they had to shut this plant completely. now this dispute is behind us. ,the itc matter has been fully withdrawn. the parties are no longer fighting it out over the

intellectual property dispute. sk is continuing with its 2.6 billion dollar investment in georgia. i believe it is the largest foreign direct investment ever made in the state of georgia for this plant that will employ so many people, producing technology vital to our clean energy transition. david: what took it over the top? sen. ossoff: a lot of hard work and relentless pressure on both companies to come to a deal. these are two south korean industrial titans. both of whom have invested many billions of dollars in electric vehicle battery technology. it took a lot of hard work by a lot of people. i went to again command the united states trade representative for her extraordinary contributions to the efforts to bring these companies to the table, settle the dispute, allow the matter to be put to rest with hours left on the clock. president biden called me saturday afternoon to confirm the deal had been reached and construction of the facility in georgia could continue.

david: this is not suggesting, but why did the president pick you? what in your background has prepared you to get this done? sen. ossoff: i don't think the president picked me. i stepped in because george's -- georgia's jobs and economic growth were at stake. again 2600 skilled jobs in and , around commerce, georgia. this will be vital employment generating wealth, generating , opportunity for northeast georgia and statewide for decades to come. david this is going to attract , other firms in the clean energy space to build and locate facilities in georgia and create more jobs. these supply chains that are becoming increasingly integrated. the fact we have electric vehicle battery production, one of the most significant capacities is now moving into georgia, that means other firms involved in the electrical vehicle space and clean energy

space are going to come to georgia. i look forward to working with them to create more jobs in georgia. david: it was reported before hand that lg was insisting the deal totaled $3 billion. i don't know how much is competent to and how much is not. did it get what it wanted? sen. ossoff: the agreed settlement was a $1.8 billion payment from sk to lg. the matter before the international trade commission has been resolved. as your viewers who have been involved in complex, high stick negotiations -- high-stakes negotiation know, those numbers over time takes a lot of work, takes a lot of pressure. both parties need to understand their incentives are aligned so they need a deal and it takes a deadline. it was with the clock ticking. less than 24 hours to go until that plant might have been shuttered. we were able to get a favorable resolution, save the plant in commerce, georgia, end the intellectual property dispute and make a huge step forward for

clean energy technology in the united states. david: congratulations. it seems like a wonderful deal for the state of georgia. thank you to senator jon ossoff of the state of georgia. he is of course a democrat. much more coming up on bloomberg television and radio. ♪

caroline: pretty big bet in the health space. microsoft has agreed to buy nuance communications. that represents a 23% premium to the closing price friday. microsoft has been working with

nuance on artificial intelligence software to capture doctor and patient discussions. our reporter joins us now with the inside track on why health , ai? is it all about telehealth at the moment or what else is it nuance is going to bring to microsoft? reporter: there are a few angles here. microsoft cloud computing already worked with nuance behind-the-scenes to capture all this data doctors can collect from patients and medical records. microsoft will get a benefit from its cloud computing platform being used, but it is a new vertical for microsoft going after the health care space. this is a big bet and a new area. it is microsoft's first big deal in health care. we will see how it pans out. it is definitely a new application for microsoft and nuance also has older technologies. it has been a publicly traded

company for a lot of years. it is sort of a bet on the future. with a company that has revenue and profit. it is a pretty interesting move. caroline: revenue and profits. tell us more, you said it is the second-biggest to the linked in deal. $20 billion means nothing in comparison to the company's cash. it can certainly afford it, but what does it speak to in terms of the overall m&a playbook? reporter: microsoft is a massive company. it takes a lot to move the needle. they have been attacking different areas in m&a. earlier this year, there were reports they were looking at a 50 billion plus deal looking at pinterest. they have been looking at the audio chat and apps. they have a huge corporate development team looking at all

of microsoft's big areas whether it is xbox, or cloud computing , or the windows platform to see what companies can fit in. it is true. $20 billion deal for microsoft is not that big but it is second-largest. caroline: it is also wonderful when you have a 23% premium coming your way. talk to us about nuance in general. they have been working behind the scenes. why now? nuance has been around for a while. reporter: nuance is a company that has been transforming the past few years. in 2018, they got a new ceo. they had a bit of shareholder pressure. they really needed to clean up a few things. they have spun off an automotive both -- automotive company, they have turned that into a separate publicly traded company. they sold a bit of the company

to private equity. it is almost like they were preparing to slim down to be more attractive to focus on a few key areas that were growing fast like their health transcription and artificial intelligence capabilities. remember, they developed the technology that led to apple's siri products. they have been doing this for a while. caroline: thank you for bringing us that story. all things microsoft. let's bring you some other tech stories we are covering. apple has been a laggard in the smart home space. a versatile new device could change that. bloomberg has learned the company is working on a product that would combine apple tv with a home speaker. it also would include a camera for videoconferencing, connect to your tv and other smartphone functions. coming up, we have to talk coinbase expected to go public this week. a staggering valuation of $100 billion. we will look at the company's numbers and what it means for the larger crypto space. stay with us. that is next. this is bloomberg. ♪

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pain and stress is the only thing you have to lose. get it and get it now. your body will thank you. (announcer) find out more at aerotrainer.com. that's aerotrainer.com. caroline: this is "bloomberg technology". i am filling in for emily chang. for a look at what happened in the markets, we are joined by ed ludlow. take it away, ed. ed: i wanted to stay with london and talk about dark trade. the british cybersecurity firm announced it planned an ipo in london. it is interesting it is the , first big listing candidate since deliver room, which was not the most successful ipo. it is exciting in its own right. flip up the boards. it could be valued between $3

billion to $4 billion on the london listing. one of the criticisms was its dual class structure. it gave the ceo control for three years. not so with dark trade. they plan to do a single class structure. they want to raise funds so they can fund their development. in the wake of solarwinds hack, the microsoft server hack, i thought this was interesting. an opportune time to plan a listing. they plan to sell 20% of the company's equity. you want to bring it back to delivery. flip up the boards a final time. it tells the story of what was the poster child and i know that is a cliche for london ipo's in 2021. seven days of trading. we are down 35% for deliveroo. it was really interesting, and an interview on the dark trade monday, ceo was at pains to say it is exciting for london we are going to do a listing in the city, but dumping does with the same brush. it is one to watch going forward. what will the investor appetite be for a firm that specializes

in ai, that prevents and the text against cyberattacks? want to watch for you. caroline: always a pen up they have ceos -- female ceos and cfos. a really diverse business. all eyes -- the global story of potential listings. in the u.s., it has its on its own big addition. all eyes on the crypto company that is of course coinbase. we want to bring in our correspondent from new york, the former senior advisor for bumble. we thank you for helping us bring you this interview. >> thank you for joining us. let's start with the math on coinbase because it is expected to have $100 billion in valuation as it goes public. in terms of market cap. does the valuation makes sense relative to what it earns? we know it is profitable, but is it worth $100 billion?

>> that is a lot of money. to put it in perspective, jpmc is worth $475 billion. $100 billion is a lot of money, especially when you look at the fact there assets under management are not superhigh. they have 43 million accounts but they only have about $2000 per customer on average compared to a schwab that has 9 trillion under management with 31.5 million accounts and almost 200%, over 200% more when it comes to assets under management per customer. this is a really big bet on a very nascent player. >> that is interesting because there is a chance this goes public. what does it mean for those

retail investors buying in? is this the top? is there a risk it falls? >> there's always a risk it falls. the interesting thing is they make money when you buy or when you sell. as long as you believe there is going to be volatility in crypto and pretty much as long as it has been around, you can count on the volatility, coinbase can still make money. the bigger question longer-term is are they losing customers? are people getting out of crypto or is there a constant feed of new people who are interested in getting exposure, a.k.a. new customers? caroline: we thank you for joining us and for complete transparency, my husband is the senior manager at coinbase so i know a bit about the business from behind the scenes but i am interested in your perspective. you talk about cons. what has been fascinating to watch from the public market perspective is the rally we have seen in microstrategy going very long into the crypto

space. the desperation for investors to want to get into some public equity that is linked to crypto but perhaps do not have the risk tolerance for buying crib or the -- crypto in of itself or the ability to. how do you think it will affect those sorts of companies and it -- and is at the institutional buyer you expecting? >> i think we are going to see a lot of retail investors. this has been -- the past six months have been the dawn of this hyper online millennial generation z retail investor. we saw that with gamestop. we see that with robinhood. we see some of that here we see , that with tesla. a lot of what is driving up tesla's market shares is the belief in elon musk and a lot of that comes from his twitter followers. he there is going to be in element of that. institutional investors were slow to come into crypto. now it seems that every day there is a major headline of a huge institution trying to

figure out it's crypto exposure. we have etf's, the canadian stock exchange we have seen , repeatedly companies like gemini try to bring forth etf's in the u.s. i think realistically we have to assume in the next 12 to 24 months we will see a u.s.-based crypto etf. in the meantime, coinbase is your opportunity to get the public market exposure to cryptocurrency. caroline: and maybe then thick and fast, we could see the likes of gemini and other companies rushing to the public market once it has been opened. your perspective on the competition? there is bytedance there is , gemini. >> coinbase has a lot of accounts. they have a lot of retail investors. they have not leaned in nearly as much on institutional investors, which is where other players like gemini have leaned

in more from the beginning. the reality is, at scale there , is a question of, is coinbase just a crypto exchange or is it a trojan horse of one of the biggest neo-banks we have yet to see? chime in 2020, they had 8 million customers. coinbase is much bigger already. they are offering things like savings and earning interest on your savings even though it is not fdic insured. they are offering some credit and debit instruments. what could end up happening is it could be that coinbase becomes the neo-bank for a slightly younger generation of retail investors and crypto becomes a service they offer and not the service. >> thinking about the future of coinbase, not just where it can expand in terms of different products, in terms of more banking services, what is the likelihood, especially given the

regulatory environment right now, that it gets taken out, and who can take out coinbase? >> almost no one can afford coinbase. i don't have an extra $100 billion in my pocket. there are a couple players you have to consider. the jpmc's, could they afford it? probably. the $2 trillion elephant in the room always when you talk about technology is apple. we have seen apple with apple wallet, apple card, apple pay. they have increasingly gotten into the payment space. is it a bridge too far to say apple could wake up one day and say we want to own coinbase? i don't know. i think in this moment, all options are on the table and they are one of the very few globally that could afford it. caroline: let's talk about your own experience and how you are going to be looking for the next

disruptor that is going to come in coinbase's wake. i love going back through your twitter feed. back in march you tweeted out that in 2011 you were telling anyone you went on a tender date to buy bitcoin. you have been tracking crypto for a long time. i am interested in what you are looking at -- are you looking at any fintech's that resemble coinbase? >> i think decentralized finance and i think blockchain for contract uses interesting. i think there is still a lot of room in the market for crypto to grow. the entire cryptocurrency market cap is only $2 trillion. that means it is lightly less valuable than apple. half of that is solely bitcoin. there is certainly room for a stable coin. we are seeing the rise of nft

and ethereum and the technology behind those. i don't think those markets go away. i don't think the collectors markets, which is largely the use of non-fungible tokens in things like art and selling your tweets, i don't that goes away overnight. i think crypto has for a long time been a protocol in search of a use case. up until now, it has been daytrading, but i think we are at a dawn of a more broad set of applications. caroline: in search of a use case. i love that turn of phrase. meanwhile, we look at the auction of entities we watch and , wait for the next headline number. absolutely great to have you with us. sonali basak, we thank you for bringing that interview to bear. coming up one company helping , others go green and why they say remote work be worse for the -- made -- maybe worse for the

environment. this is bloomberg. ♪

caroline: over the last year, millions of people shortened their commutes by transitioning to a digital workspace. turning their living rooms and -- into offices. from ditching time in traffic, not having to warm up the car on a cold morning. the climate impact these changes have had on the globe should have seen improvement. one company is saying it is more complicated than that. although companies around the world are continuously joining a pledge to limit net carbon by 2040, it is households that may not necessarily reflect the green models.

the blackrock ceo compared climate change to the pandemic in his 2021 letter to ceo's saying i believe the pandemic , has presented such an existential crisis, such a stark reminder of our fragility that it has driven us to confront the global threat of climate change more forcefully. and to consider how the pandemic will alter our lives. as part of our work shifting series, joining me for more is the watershed cofounder and president taylor francis who is making it easier for companies to ensure they are on the right climate track. talk to us about the calculator. what is it going to help companies do? >> thanks for having me on. everyone is wrestling with this. what does work look like post-covid? atwater said we build software , that helps companies the carbonized. we build software that helps companies think about the carbon impact of every business decision they make and return to work is no exception. you are right a lot of people , think remote work is good for the planet and it is true that less time commuting means less

emissions from transportation. we are publishing this calculator today to help companies think through the impact of different scenarios. what we have seen is it is more complicated than meets the eye. remote work is good but not if it comes at the expense of people moving to suburbs, buying bigger houses, buying bigger cars. that means the carbon impact of their own lifestyle, which may not show up on their company's carbon balance sheet may actually increase. it is important we get this right, it is kind of a rare opportunity to reset how the workplace works and a rare opportunity to reduce emissions. caroline: how many companies are wanting to be presented with that full supply chain reality? does it give more fodder for those who publicly say, i would quite like people to come back to the office, because of culture and all of that, if the reason for a climate change perspective? how many companies want to understand if their employees have a gas guzzling car or a not

particularly efficient home? >> a lot of companies are thinking about this. in the climate space probably you mentioned larry fink, you , mentioned blackrock. the expectation is companies think about their impact broadly. the omissions of their employees, remote workers also , their customers and their vendors. the important thing here is all these different pieces are interdependent. the companies we work with are all thinking about the big picture. caroline: the big picture. you can help get to the big picture much faster than usual. talk to us about how some of the products are helping speed up this map. taylor: every company is wrestling with climate. it has become a business imperative as well as a planetary emergency. companies are finding climate is a data problem. your carbon footprint as a business lives in supply chain. it lives in thousands of different companies making the products you buy it lives in , utility bills and purchase

orders. we build software that helps a company upload a bunch of road -- raw data and turn that into a plan on how they can reduce emissions, how they can source from different suppliers. all that adds up to businesses able to get to net carbon faster zero as a part of the core way they do business. caroline: watershed in of itself is moving pretty fast. you launched in february. cofounders of the company you started, this is where you and your cofounders came from. talk to us about the momentum you have at the moment and where you hope to take watershed climate. taylor: we started watershed in 2019. we announced the company in february. we just announced our series a. we are excited about the customers we are working with. we are working with square,

chaka fattah, sweet cream, all these companies have aggressive goals in every part of their business. they are looking at climate the same way. we are trying to help them make climate not just something you can publish in a sustainability report pdf once a year but actually how they design products, ship products to customers. the momentum is pretty significant. i think it is amazing to see every company thinking about climate for the first time. that is going to be inescapable over the next decade. caroline: we thank you so much. taylor francis, the president and cofounder at the watershed cup -- climate. really great to have some time with you. still ahead, an overview of the white house chip summit were president biden addressed a chip shortage that has idled automakers worldwide. we have perspective from an industry analyst on biden's response. that is next. this is bloomberg.

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caroline: more than a dozen ceos, including alphabet, ford , general motors, met with president biden virtually this monday vying for semiconductors. biden says there is bipartisan support to address the shortage. plenty more of action in the semiconductor space. the managing director of semi conductors is with us. an eventful day. you were writing in february about some of the meetings going on, the bipartisan nature. the fact the u.s. government was looking at these chokeholds. what are you seeing in terms of the bottlenecks and whether the u.s. can address any of it? >> there are two issues going

on, one is the current shortage situation, which is essentially getting worse. the other is a perceived overall -- overreliance on asia, taiwan and that part of the world for semi conductor manufacturing. these two issues are not really related to each other. they do not have anything to do with each other. even if we dole out a significant manufacturing capacity, we would still be having the same situation. this was driven around some of the dynamics around the pandemic, what some customers did in terms of orders. they don't really have that much to do with each other. on that note, there is not a -- anybody can do to address the shortages. to the extent that the shortage is sparking the conversation and creating bipartisan support for a deeper investment in local semiconductor manufacturing, i think that is the good thing. it is more of a one issue, helping to stimulate demand for the other issue.

caroline: why is it a good thing for the u.s. to bring it more domestically and europe is looking at doing the same. is it an efficient use of capital? >> i am biased. i work in this industry. i do think it is healthy. the industry has gotten extremely efficient at what it does. to your if you are point, disaggregating things, you will be less efficient. at the same tom there are some perceived increased risks from having so much concentration. it is never quite that good to put all your eggs in one basket. the way things are looking now we are reliant on areas like , taiwan. that part of the world is getting geopolitically a little less robust. that is becoming perceived as increased strategic risk. the industry and the world may need to live with a little less efficiency. that makes things a little more resilient. that is the discussion going on right now.

caroline: a few competitors at the same virtual table today. we saw competition thick and fast. that was the news in the semiconductor space. nvidia getting in even more of intel turf. tell us about the focus of the cpus. >> part of the reason the stocks reacted they did because i don't think expectations were that high. it was a little more eventful than people expected. in terms of nvidia doing their own arm-based server chip, we know they have been working on this for a while. at some point, people expected they would announce something. i didn't think they expected they would announce it today. maybe that was a little earlier than what investors have thought. they are painting a tougher picture for intel. intel, the stock has been strong recently with the new ceo. the hope trade. the problem is it is well known

the next couple of years there is not a whole lot he can do. the path through 2023 is baked, and i with the announcement 2023 , and beyond, has gotten a little tougher as well. it is still early we don't know , how well nvidia products will stack up. the competitive environment is set to become tougher, it is right at the point where intel was hoping to get his team back underneath it. caroline: more on his plate to a certain extent. nvidia, how are they doing it so much faster than people expected? >> i'm sorry. what was the question? caroline: how is nvidia managing to get these things out the door? >> they have been working on this for years. they will be doing this chip whether or not the arm deal goes through. they have been working this for

many years. they had one called project denver they had to shut down a while ago. they have had a number of iterations. it is not likely to started on it yesterday it has been years , in the making. it is not likely just -- i think people were not expecting an announcement. it is maybe a little earlier than what investors for thinking, but it is not like it is something they threw together. caroline: ok. investors certainly liked the early headlines. up 5% on the day. >> they also talk to numbers in the quarter. things look pretty good for them. caroline: always nice when you get a little bit of a quarterly update. fantastic always to get your voice on these things. such interesting takes you get the research from him. meanwhile that does it for this , edition of bloomberg technology. tomorrow, i will be joined by u.s. senator marsha blackburn of tennessee on transportation.

it will also be joined by gary tan. we continued to preview wednesday's coinbase listing. thank you so much for joining us. stay happy and healthy. this is bloomberg. ♪

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manus: this is bloomberg daybreak middle east. yousef: james fuller says getting three quarters of americans vaccinated will be a signal that the covid crisis is ending. manus: china's march exports surge year on year, but come in lighter than expectations. meanwhile, a bloomberg scoop reveals the u.s.