>> from the heart of where innovation, money and power collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang. emily: i'm emily chang and this is "bloomberg technology." in the next hour, no slowing down for meta-. the company denies a report it plans to halt the development of its ar and vr businesses. we discussed.

how palantir is navigating the chip shortage. the outlook for 2022. looking for opportunities? we will speak with people as they look to diversify softbank's opportunity in latin america despite the pandemic. all of that in a moment. tech stocks getting hammered. omicron is mounting. ed ludlow is here. take it away. >> it is all about the fed minutes, painting a picture of earlier and faster rate rises through 2022. the nasdaq and 100, falling for the most since march 2020, down 3%. the nyse, tech stock seeing heavy losses and losses in u.s. listed chinese companies. the golden dragon index down. tencent cutting its stake in an

online gambling and gaming company over concern about other chinese companies doing that. this is about the fed minutes, the outlook for rates in 2022. at the beginning of the year, we have seen yields on the u.s. tenure creep higher, the blue line on the right side of the screen. the ways -- the white line, the nasdaq. higher rates reduce the present value of future earnings for tech companies that have high valuations and are fast-growing. the question is, if you think about october and march last year with the 10 year yield rising, tech shares sold off but bounced back. will we see a repeat of that? the other big story wednesday was the ev space, so much news coming out throughout the day. i have picked out this etf, the electric etf which saw the biggest drop in a month. it includes tesla. there was a specific, i love

drama, between rivian and amazon. amazon ordered 100,000 rivian vehicles. they came out wednesday and said they ordered ev's from still lantus. you can see what that meant for rivian, a drop of 11% because there is conversation about their product. we were covering this in october last year. rivian disclosed amazon was free to buy trucks from others, but the severe reaction in the share price, gm shares down 4.5% despite the electric version of the silverado pickup. emily: we will hear from maryborough later in the show -- mary barra later in the show. the omicron variant accounts for 95% of new cases in the u.s., with hospitals facing the worst staffing shortages in a year. the less severe illness and death on average, but omicron is

so prevalent that doctors are getting sick, putting more pressure on the system. alex joins us. the cdc tried to clarify winds on how long you are supposed isolate. if you do get covid. what is the latest? >> the agency, a week or so ago, told everyone instead of 10 days to isolate after you get sick, they switched it to five days for a lot of people. then they suggested you wear a mask. they shrank how long a lot of people should isolate if they get sick. they clarified, people expected them to say more things related to, maybe you should test out. what they clarified, more specifics about wearing a mask after isolation. it wasn't as strong as a lot of officials had been urging, but the white house, a lot of top officials have said we can't shut everything down at this

point. they emphasize this idea that for a lot of cases, particularly people not showing symptoms, they can get back to work sooner than they did previously. that shook up a lot of public health people who felt like these isolation periods were essential to stem the virus. emily: the u.k. said it is relaxing covid related travel restrictions. do you expect other countries to follow suit, especially as cases spike? >> i don't really. the u.k., boris johnson in particular, has been hands-off on this. they have been pushing a little bit back. it came as a bit of a surprise, but again, this is the prevailing theory, the u.s., the u.k. has been saying although we are seeing more cases, we are not going to lock things down. we will keep pushing people and try to get our economy moving

along. that has been the trade-off western countries are taking. we want to keep people working despite these cases and we will see how that plays out. emily: it is playing out so far with increased cases. we shall see. alex, thank you for the update. facebook parent meta says it has no plans to help the development of an operating system to run vr and ar powered devices, denying a report that claims meta is opting to modify an android version instead. naomi covers meta and joins us now. are they or aren't they, and why does it matter? >> i think that is unclear. but meta says it is still looking to invest in creating new operating systems. it says it doesn't have plans to halt that work. it didn't give details about

what that is looking like, or how the technical approach to building that out has changed. but that just shows, this is hard and important work for meta . they have had to rely on mobile makers like google and apple to get services in the hands of consumers. mark zuckerberg won't have to do that anymore. the company has been making a big push into the metaverse, into building out its own system powered by virtual and augmented reality and other enhanced realities. it is dependent on mobile device makers. emily: we have seen the evolution of the conversation about the metaverse since facebook announced plans in october, but there is competition. there are other device makers getting into the game.

what does the competition look like in 2022? >> i think this will be an interesting year, comparing meta to apple. apple is expected to be releasing its own sort of high-end mixed reality headset next year that would directly compete with the headset offered by meta. meta is working on a smartwatch and augmented reality powered glasses. but we also have snapchat in the mix. snapchat, years ago, debuted smart glasses and it is working on augmented reality glasses. it is a few years ahead of facebook in this endeavor. so what we are seeing, and microsoft is in the mix. in terms of the metaverse, as a player, so what we are seeing is

this is the next frontier of competition that comes to hardware tech related offerings. emily: naomi nix, a trend that we will continue to follow throughout the year. palantir and hyundai, the world's largest builder of ships joining forces. we will be joined by the ceo to talk about the $25 million deal and get an update a year after going public. this is bloomberg. ♪

emily: breaking news, the cdc advisors are recommending a pfizer booster shot for kids age 12-17. big news, a booster expanding to teenagers could help keep schools open. a hot topic, given what happened in chicago today amid the covid pandemic. we will follow this. the cdc advisors, the panel had been meeting today. they are recommending a pfizer booster for kids 12-17 years old. meantime, 2022 in full swing and a slew of tech companies are making big announcements. one of them is palantir, announcing a new big data deal with the shipbuilder hyundai heavy industries, and multiyear deal -- a multiyear deal. palantir's coo joins me. how will the partnership work?

>> thanks for having me. the partnership is exciting. it represents our first major expansion. we are working with hyundai heavy to drive transformation of their business. this is the largest shipbuilder in the world. the scales of the ships are true feats of engineering. everything from how do i produce ships better, faster, cheaper, how do i manage them in the aftermarket once we sold them, and most exciting, how do we introduce autonomy into ship transformation today? 80% of all accidents are human error. this is a big opportunity for commerce and economies. emily: what does it mean for palantir? how will it help you expand internationally? >> it builds on our track record of working with industrial companies. i would say the aviation ecosystem we build with airbus was revolutionary and brought together the 15 largest suppliers in aviation with 150

airlines. it generates billions in value for aviation. we brought that to automate roof and we are excited to bring that to the shipping industry. those on the manufacturing of ships but also the transportation, execution, operation of these vessels and the participants in these ecosystems. emily: how are supply chains impacting palantir and your clients? given the number of industries that you touch, including now building ships? >> as you know, we work across 40 industries and we have had a big role in helping companies with supply chains from the beginning of the pandemic, helping 3m, helping keep hospitals open and running. one interesting reality with omicron is, you are seeing it is not just about part availability, it is about people availability. hospitals are struggling to have full staffing and that is, in a holistic sense, a supply-chain

problem. we are helping manage parts and people together. a big part of that is, companies realize these cute sayings of just in case, just in time, these are just sayings. managing your supply chain is a software problem and we are bringing that software to the front lines. emily: you have a partnership with merck to address the chip shortage in particular. what are you learning from that? >> merck is one of the largest suppliers of materials for the semiconductor industry. the crisis in semiconductors, we worked with industrial companies as they work around this but mark and palantir joining -- merck and palantir joining forces, optimizing quality and yield to get the most out of the ships we are producing -- the chips we are producing, parting -- part of this is to meet with the semiconductor manufacturers and start seeing how we can help them drive quality and results

immediately. emily: this year, unlike many companies and executives, you decided to go to ces. ev's are a big theme. you have a partnership with a connected car platform. where are you expecting to see the most innovations on the ev front? what are you looking ahead to? >> i think it is mobility. everything from electric vehicles, connected vehicle data, you are seeing a big convergence. one huge theme for us has been leveraging the ai capabilities we have developed. all of these connected devices are generating so much data. people realize that is too much data to bring back from the vehicles themselves to the cloud, so how do you push analytics? how do you use those analytics in simile relations? we think about the metaverse from a consumer perspective but one exciting application is the

meta twin that allows cities to look at and simulate how would they change how traffic lights work based on vehicle data? it allows manufacturers and companies to do more simulations to understand how they can get more safety under more environment and ring goes to market more quickly. we will -- we think there will be opportunities. they launched the neural edge product at ces. emily: there has been debate about whether ces should have moved forward in person given the spike in covid cases and skepticism about how relevant ces is. what is your perspective, given that you are at the conference this year? how much value do you think it has? >> we have seen opportunities from being here. people are being safe and taking precautions. that has changed how people are

engaging. i still see a lot of cutting edge innovation and great opportunities to engage with partners and will the future together -- build the future together. emily: we are speaking about a year since palantir went public. looking at the stocks they dropped when he, underperformed -- dropped 21%, underperformed. what is your outlook ahead? >> we guided in q4 to 40% growth in 2021. we are excited about the fundamentals of business. i think the business is performing well, and what we focus on is working to create value every day. we are doing this for the long-term. you think about a great company like apple, they have been around 45 years. took them 30 years to create the first $100 billion, and three years for the subsequent $2 trillion. we have a monastic focus on

creating software the world needs before the world knows it needs it. we will continue doing that and we think that will be reflected in the long-term. emily: thanks for stopping by. i want to stick with supply chain issues and the chip shortage. we caught up with lenovo's president of north america. they asked about how the company is navigating new product launches with the supply chain crunch. >> we are seeing things like shipping by freight is about five times higher than it was last year, two times higher on freight costs. we are making sure the boxes are smaller, lighter weight, making sure some of our large customers , we are shipping and multi pack boxes to reduce the footprint and that weight. especially the space it takes to ship some of these devices. that is something we are looking

at. it is true, one thing you do is in order to make sure you are innovating, we spent over $2 billion in r&d to make sure we are innovating products customers want. one thing we hear from customers, they want a more sustainable product for their corporations and enterprises. and for their home use and small business use. >> let's talk about home use. what do you see in terms of trends in terms of usage? particularly for corporate products. a lot of people will be sitting at home, working from home as a result of omicron. they will be using virtual meetings, zoom, teams. how does this new product fit into the landscape? how does it evolve with the landscape? there is a lot of conversations around what will be happening with meta, particularly the corporate landscape. how will this new product fit in? >> a couple things we have done, with this particular notebook we worked with amd as a partner to make sure we are developing a

product through their cpu that delivers the highest and most realistic audio quality for teams and zoom usage and really, to create an environment where you are hybridly there. we have seen the dynamics change. work remotely is turning into hybrid work. it is an area of the market where the more you can actually create better virtual experience for employees or consumers, that is some of the trends that are driving the industry today. >> what is it like to get your hands on chips and stuff? how are you dealing with shortages that everyone has to deal with? i know you mentioned making packaging lighter. what about chips? >> we have seen supply issues now for well over a year.

being the number one pc manufacturer in the world gives us a lot of clout. we made massive investments in buying products early, whether it was chips, memory, drives, panels. those were things we made early investments on. it is one thing that has kept lenovo as the number one pc manufacturer. we have leveraged our worldwide manufacturing locations. we are operating in 100 80 global markets and manufacturing in about 10 different countries. that has allowed us to spread out some of those areas where we could procure and build product closer to the customer. that reduces some of the shipping time. emily: lenovo's president of north america there. coming up, sony making its way to the ev market. we talk about how the electronics giant may leap ahead of apple and more. this is bloomberg. ♪

emily: sony is launching its own car company to explore the ev market. best known for devices like the playstation, sony announced it is setting up its own mobility unit. the president and ceo said they are looking forward to bringing together creativity and technology to change the experience of moving from one place to another. more on china's tech crackdown. tencent is cutting its stake in singapore's c limited. this sparks concerns that other firms will pare down their own tech investments as they continue the crackdown on tech giants. bitcoin slumped by as much as

5.6%, sending it to the lowest level since its early december flash crash as growing expectations of rising borrowing rates are weighing on some of the best-performing assets of the last few years. coming up, we will talk to leading investors for softbank's and latin america funds. they join us to talk about what their top priorities are in the new year. this is bloomberg. ♪

emily: welcome back to bloomberg technology. i am emily jane. we are less than one week into the new year and despite the raging pandemic hope remains this will be the year it ends. investors are looking for untapped markets, some focus on those hit hardest by this pandemic. joining me now, one of the founding members of softbank's opportunity fund and a managing partner at softbank.

thank you for joining us. stacy, i want to start with you. you are focusing on founders that have been overlooked for far too long. what are the priorities for this year? >> we are so excited about the opportunities we have coming into this year. the opportunity fund as it invested $75 million in over 70 companies. we have looked it over 2000 companies. what we know is it is not an easy path, it is hard to pick some of the best companies out there. we are looking for great companies like softbank, companies that have a great founder that are passionate about what they do that has an ipo that can scale and the purpose to make it happen. we are excited to invest in many companies across all sectors, which is representative our portfolio -- of our portfolio

today. emily: you have made investments across a slew of sectors. where are the biggest areas of excitement for you as the pandemic drags on? >> to contextualize the opportunity fund and latin america fund softbank is known for this mothership fund called division fund. there are others that look for pockets. latin america, the opportunity fund, miami are part of a general idea that there are pockets of activity where great founders exist or no capital exists or not enough capital exists. there is a connection between all of those initiatives. latin america we came into into 1019. it was to the tune of $1 billion to $2 billion a year. a flood of capital from foreign investors who have not been there before. the opportunities are much

broader and latin america then we presumed at first. coming in we thought it would be e-commerce, fintech opportunities. it has been broad and deep across markets, there are software companies in brazil. the new york stock exchange, a brazilian e-commerce enablement company, so you are seeing high quality globally competitive governorship -- entrepreneurship that is difficult to do work in. they are battle tested for the world. emily: i spoke with softbank's coo exactly a year ago today about what the priorities were then. take a listen. >> we are going to continue to invest in companies that utilize data and artificial intelligence to disrupt traditional business models. we like companies that are

making the world a better place. emily: i believe he did that interview from miami. we did not think the pandemic was going to go on this long. i am curious how the strategy or philosophy has changed given that we are still in this. >> what marcello said is the same. we just mentioned the year feels a lot like the same. we are still invested in companies. we have made a recent investment in an amazing company focused on helping immigrant populations better connect with financial services. it is helping communities and mixed reality to the conclusion.

they are absolutely true today, so we continue to look for great founders who are black, ethnic, native american. we have not yet invested in a native american founder. we have spent the last year meeting with over 30 different people from the native community to understand how we really invest in that community and find entrepreneurs that are building great companies. we have got to take a different approach to invest in the native american communities, so we will be looking at partnerships, we may be reinventing around our investment model. we are excited to bring that into our portfolio in 2022. emily: there have never been shortages of headlines about softbank especially since the doubling down in technology. there is been turned over the

partnership and reports about marcello potentially leaving. what do you say to founders about whether or not they will let the stability and resources they need to be successful and whether the relationships they are developing with folks at the fund will last. >> obviously it is not wise for me to comment on private negotiations happening between my bosses. as far as latin america goes we built a team that is dedicated to the region and unique. we have people living in brazil, mexico, miami focused on latin america. the operating team is focused on helping them to be better, achieve specific goals. none of that is going to change. softbank continues to invest around the world and latin america is representing a larger component of that.

we have seen every brand name investor intact -- in tech come into latin america in 2020 and 2021. the region is as exciting as ever. we jumpstarted our own efforts there but i think they can stand alone for the foreseeable future. emily: talking about the opportunity fund specifically, how will you measure success? >> we measure success just like many other venture funds. we generate returns just like every other venture fund. success for us is also the values that we create in the communities are founders come from. we have a value creation team dedicated working directly with all of the founders in our portfolio to not just give them capital and validate their business model but to create a community so that they can

support each other. ultimately we went to change the face of wealth creation in our society. more than half of our companies we have invested in have a follow-up round. how successful our founders are in scaling and growing their business from the broader investment community in ideas. emily: we cannot escape and fts -- nft's and the cryptoverse. does softbank see crypto as an opportunity? >> we are a strong believer in the revolution. this is not bitcoin as only. it is a fundamental restructuring. it is more true in latin america because there are many gaps to

fill with this new technology. mexico, zero, argentina, venezuela, olympia, all have innovation around web three. we had a two week period, the entire latin america fund had to spend two hours studying crypto whether having an external speaker in or watching specific video. we think this is real and will persist. we are all in. emily: thank you both, we will be watching. coming up, 2021 was all about the rise of nft's. will it continue to soar? we will talk about that next with a ceo. this is bloomberg.

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emily: tough start of the year for tech stocks continuing to plunge for a second day with concerns about faster rate hikes looming over growth and profitability. the year we see the tech bubble pop? our next guest joins us, michael wolff of activate. does the tech bubble pop this year? >> no, it does not. growth across most of the major companies continues. tech continues to be the second largest part of the world economy, and even if you look at the last bubble, what you saw

was there was a demolition into value, but what you did not see was the growth stock and we will continue to see growth in each of these companies. emily: where do you see the winners and losers? >> it is all over the place. we talked about the metaverse, roadblock. they had 35% increase in stock value. zoom was up between 2021 around 350%, but it is still up based on estimates 50%. tiktok, now the largest site on the internet only followed by google, and even though there is a long way to go for turning that traffic into revenue estimate of nowhere. chapa five as -- shop of five --

shopify is estimated to be up year on year. look at apple's revenue growth. amazon up almost 22% between year on year and almost two thirds of that is the highly profitable marketplaces. emily: what are your thoughts on and fts -- nft's? where do you think this goes? >> 2021 was the breakout here. we went from around 100 million in sales to we estimate about 80 billion in sales from 2021. a lot of it has been in sports. we estimate nba top shot will be

around $380 million. nike got in to a company that does virtual apparel. we are not sure if this is a bubble that is going to burst or it will continue to grow but we do believe nft's are here to stay and it will be important especially as we move into the world of the metaverse and people are willing to take those virtual goods. emily: there is an interesting trend in video game makers getting into nft's but some seem to hate it. what do you make of it? >> people have been trading virtual goods and games for a long time. if you look at games like world of warcraft they have been winning individual elements,

treating them on marketplaces -- trading them on marketplaces. i think part of the reasons gamers are not excited about it is because they do not view it purely as games. these are people who are buying an element and it is not part of the game, part of an environment and they do not view it as authentic. emily: what about crypto? >> the biggest winner is ethereum from a value perspective up over 5%. the theory of is important because it is not just cryptocurrency, it is also a blockchain platform that people can build other applications on. >> always good to have you here. we will be watching to see if those predictions ring true. it took just minutes for gm to

sell out of its brand-new ev chevy silverado, but can the company compete as the market gets even more crowded? the ceo reacts. this is bloomberg. ♪

emily: a big day for gm, the company showcasing its new all electric chevy silverado. the truck set to go on sale in 2023 sold out in 12 minutes. the ceo spoke to us about the big rollout. >> we will bring them to market as quickly as we can. we anticipate we will start with the work truck variant. in the fall we will have the rst and we will work to get them to

customers as quickly as they can. the reception has been great. the first edition sold out in 12 minutes and reservations are coming in, so we are super excited about the response we are getting. this is a round up ev truck that has so much capability. >> congratulations on all of the people ordering, there is the demand there. you are a year or so behind where ford is with the f-150. is it important for general motors to catch up to ford? >> when you look at the ev race we have had the bulls out and we are shipping commerce. the cadillac will be out and we will have not only the silverado at the chevrolet blazer ev/suv as well as the equinox.

i am so excited about the electric vehicles we have coming and i am confident by mid decade we will be the leader in ev's with the battery plans we have come at the assembly plants and with the models at a volume segments we are going with total leadership. >> with regard to the accessibility of some of these vehicles, these are still relatively expensive vehicles that can sometimes cause $50,000, $60,000 when you get them fully loaded. where and we get to the point -- when did we get to the point where we see broader adoption? >> that is why it is important we have the equinox coming up because it is important to get into the affordable part of the market, $30,000, $40,000 is a

huge volume segments. when we reveal that shortly people are going to see just how much value they are going to get for the starting price of $30,000, and that is where you will see huge adoption. i am super excited to get those affordable ev's into the marketplace. we want to bring everybody in. >> a big part of making this more affordable is improving the batteries to the point where they are economical to produce and as a result that brings down the cost of the car. how far along are you in the development of that technology and manufacturing you can have confidence that the price can come down meaningfully for consumers? >> when you look at the previous generation battery technology we are using to what we are launching with the hummer, the

lyric, the silverado, and the blazer that is coming on our new generation of technology that is 40% less expensive than what we have. by mid decade that will be 60%. emily: the gm ceo there. the battle in the ev world heating up and tesla is still the biggest target. ed ludlow to talk about the latest bloomberg quicktake. the two automakers tried to take on tesla. >> the splashy announcement is made about ford and general motors but we have to talk about the two biggest in the world, volkswagen and toyota because they sell 10 million cars per year per piece. these two companies put their money where their mouth is and we need to learn what they are

going to do to take on tesla. emily: what is volkswagen strategy -- volkswagen's strategy? what is tesla's strategy? >> he is going full spent on electrification, both on software development and on ev's and they went to electorally -- electrify the whole fleet. they may not have the technology but what they do have is a legacy and history of manufacturing and delivering vehicles at scale. emily: how much is elon musk care about this? >> he has this line, prototypes are easy, production is hard. a company sold just a little more than 300,000 ev's. they have such a long way to go to manufacture to scale and they

feel tesla as a technological lead. the best value for money, bring the cost of battery price down. tesla are bullish and so are there it investors. they tried to build advantage, not let it slip to legacy players. emily: which carmaker is the closest to challenging tesla in terms of market share, quality? >> it investors have given such a lot of credibility to ford and gm because of the pace of what they have done but they do not respectfully have the scale of volkswagen. they are waiting for volkswagen to go big, and 2022 could be the year that happens. emily: thank you so much for that update, and that does it for this edition of number

technology. join us tomorrow, we will have so much including jamie heineman , plus we talk about the role of social media one year after the attack on the u.s. capitol. this is bloomberg. ♪

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paul: good morning, i am paul allen. shery: i am shery ahn. welcome to "bloomberg daybreak: asia." asian stocks said to open weaker after a selloff in u.s. tech. minutes suggest rate hikes may be more aggressive with a faster trimming of the balance sheet.