>> 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, elon musk tries to back out of a $44 billion twitter deal again. twitter rejects him again. this before a whistleblower is set to testify on capitol hill. could that change the trial? streaming platforms going all out for sports broadcast rights. the conversation with amazon's global sports video vice president on the big ticket deal for thursday night football. more leagues making bets on the blockchain. an nft startup backed by serena williams made a deal with the nba. all of that in a moment. first, a look at the markets.

tech leading gains in equities with key inflation data to come later when the week. ed ludlow is in new york with the latest. >> breaking news, peloton co-founder john foley is leaving the company. they announced after market close monday, the chief legal officer, who is also a cofounder, is leaving and he will be replaced by an uber executive tovar -- to become the chief legal officer. nasdaq 100 up for a fourth day. the key august cpi, you want to see inflation cooling because of the big fed meeting. less performance in the semiconductor index, stock yields holding steady. bitcoin had a strong session as we kick into tuesday's session, around $22,500. semiconductors a softer part of

the market monday. reports that the biden administration will codify, firm up, expand u.s. exports of chip technology to china, the chip equipment maker's, the worst performers on the stocks including the likes of amd. so much technology news, stepien -- sticking in the chip space, until up but they are real evaluating the spin off the and ipo to mobilize the automotive tech company, inking about a bloomberg valuation and delaying the market condition. apple having its best day since may, early preorder data on the latest iphone looking strong. twitter down after a third rejection of a third musk attempt to walk away from the deal. emily: let's talk more about twitter and musk, twitter

rejecting the effort to cancel the deal yet again, saying it's invalid and wrongful. the third attempt to walk away from the deal, and third time is not the charm. the whistleblower, a former twitter employee, testified before the senate judiciary committee tuesday. here to discuss is jeff and alex. what were we expecting to hear from people on capitol hill tomorrow? >> i think the hearing tomorrow will follow two lanes of conversation. there will be questions around the data privacy concerns, around the fake accounts that the company is alleged to have ignored or didn't disclose. i expect the judiciary committee to focus on privacy issues. that might be a little less relevant to the acquisition but increasingly relevant as d.c.

pushes through antitrust legislation but hasn't gotten a lot of traction on data privacy so they might take the opportunity to lean into those things. emily: jeff, elon musk is trying to use new information that twitter signed a $7 million separation agreement with peter's echo -- with peter in june. he used that as a reason to cancel the deal. what is he trying to say? >> he is saying the payment constituted something outside the ordinary course of business. when you have these buyout agreements, one provision often in their is that the seller has to continue to run the business in the ordinary course. mr. musk says the $7 million severance payment was somehow tied to silencing the employee so he wouldn't bring forth his

complaint publicly. that he claims is another reason there has been a material adverse event and he should be able to cancel the deal. emily: sounds like a lot of money, $7 million to get this guy to go away and he winds up blowing the whistle anyway. can you tell us about what happened? >> the sticker shock may be a reason why musk thinks he can lean into the argument that the settlement should have been brought to his camp outside of the regular course of business. this executive was brought in a number of years back and oversaw a lot of the important security pieces and the team that works on those internally at twitter. he is a person who claims he has insider knowledge.

the company says you could have made changes on these things so it is an interesting back-and-forth. it has been reported that in the settlement agreement he was allowed to blow the whistle. to the government, if there were issues. $7 million is sticker shock, definitely that third strike elon musk is claiming allowed him to get out of the deal, but it does leave the door open for us to hear from peiter zatko tomorrow. emily: as a judge laid -- weighed in on the request from musk and the information about the separation of raymond and if not, when we will hear from her? >> she allowed mr. musk tad the whistleblower allegations to his counterclaim. the $7 million payment may be contractual. we don't know if this was per a severance agreement with mr.

zatko. i wouldn't automatically recoil at the $7 million number. we need to find out what that is about. i doubt we will learn that tomorrow. emily: how are you expecting this testimony from zatko tomorrow to be folded into the case that of course was building up to this trial coming up in mid october? >>'s testimony tomorrow about the national security staff and potential spies within twitter's employee group are the things the senators will be focusing on. the folks we are concerned about our -- is going to be his allegation about spam and robot accounts invented within the customer base. and twitter, his colleague's lack of interest in finding that out. that is the key question in the trial coming up, because that is where mr. musk has put all of

his ships in terms of defense arguments. emily: clearly, both parties will be watching this testimony with bated breath. any word from twitter about the latest, how this potentially changes their plans? >> they basically came up and said we don't mind the argument that the separation agreement is a viable excuse. i know the twitter camp will also be watching this closely. as will shareholders potentially making their voices heard in shareholder votes tomorrow. i would think if things go farther down the line, privacy concerns, there is interest in data security unrelated to the acquisition. that would be another thing to add to the list of twitter ceo's big ticket items to care about. a lot of the larger social media peers -- internally, you could

argue there is a lot of distractions at the company right now and if they get traction in terms of legislators arguing data privacy should be more important, i would add that to the list of ancillary concerns outside of operating the business. emily: alex and jef continuing to cover the legal drama for us. thank you for joining us. a story we continue to watch, intel scaling back expectations for the mobile ipo. according to sources, the move could delay or -- the share sale if market conditions don't improve. they expect the ipo to value the business at $30 billion. there are potential valuations of more than $50 billion. coming, how amazon and other streaming giants are disrupting one of the bastions of

traditional television, sports broadcasting. a top amazon executive is with us next. this is bloomberg. ♪

emily: it is an historic week for sports broadcasting. this thursday, amazon prime video kicks off an 11 year, 13 billion dollar deal. this is the first time a streaming service has had exclusive rights to nfl games in the united states and a big challenge to major networks.

amazon told advertisers it expects an average audience of 12.6 one million euros per day according to the wall street journal. -- viewers per day. the architect of amazon's live sports ambition joins us to discuss. a huge week for amazon. and for the first time, fans will have to log onto prime video to see the big game thursday night. does this seem like a turning point in sports broadcasting? >> absolutely. i think this will be as big as when the nfl went to cabell in 1987. we know how nfl games legitimized and grew the cable business. we think the same could happen for streaming. emily: you lead negotiations for the $13 billion, 11 year deal. it is massive. how do you convince the nfl that amazon was the place to be? marie: the nfl cares a lot about

scale and reach and we've got that. we doubt that better than any other streaming service -- we have that better than any other streaming service. they care about production and we showed in europe and in the u.s. that we can produce the best broadcast for fans. it is important to them. an exciting thing is they care about innovation. the nfl has been able to stay top of mind for sports fans for decades because they innovate and move forward and they have that confidence, and that was one of the biggest tenants in our deal. we agreed to continue to push each other on innovating on behalf of fans. it is something that is really exciting and something that excites the team. emily: what are your goals with audience numbers? we have the wall street journal number that you are expecting 12.6 one million viewers. is that correct? i understand the typical

viewership is more like 16.5 one million. -- 16.5 one million. marie: our number one focus is delivering the best broadcast for fans. everyone knows more and more fans, particularly sports fans, are moving to streaming. this won't happen overnight. but we feel strongly that if you serve the fans, they will come. we had the preseason game two weeks ago and the reaction from fans was fabulous. we are excited to get on the field this thursday. emily: thursday, the chargers take on the chiefs. talk about how this benefits amazon more broadly. what is your measure of success? driving audience numbers, driving prime memberships, getting more customers to buy more amazon products? marie: absolutely.

i hate to sound repetitive but at amazon we start with customers. number one, we think we can serve sports fans better, we can serve customers better. we wouldn't be in this if we didn't think we could improve this experience and make it better for fans. there are great business opportunities. we are prime video, and membership service. we can attract more members to prime. plenty of people have prime but maybe don't even, have not streamed prime video. other folks come into thursday night football and find things like lord of the rings. in the prime membership opportunity, that is huge. we think that is opportunity that is huge for us. we haven't talked about advertising. this is a game changer for advertising at amazon. we have a strong business already but can't beat, this is the most premium video

advertising inventory out there. it is a game changer in terms of advertising. emily: how do you plan to leverage targeted advertising, and do something differently that maybe a traditional network wouldn't be able to do given all the data and other ways you have to reach customers? marie: i would start with, we have done a deal with nielsen so we are actually the first streamer have a deal with nielsen. we will have ratings every week. that is important because that is what advertisers and the industry follows, nielsen ratings. on top of that, we have first party data and we will use that not only to measure our fans and serve them better, but also to serve advertisers better. we can use that first party data to make the advertising more relevant and targeted and directed. it is an incredible opportunity. emily: talk to us about the experience. will there be a pregame show,

halftime show, sideline reporters? how will this be different than a traditional network experience? marie: first of all, we start with the basics. we have the best, we think we will have the best game broadcast in the business. i have been in sports 20 years and you have to remember it starts and ends with the game. we have iconic broadcasters like kirk curb street -- herbstreit, al michaels. we have more cameras than anybody. when you turn on your big screen or whatever you watch the game, you can relax and enjoy the big screen experience. on top of that, we are an ott service so we aren't satisfied. the bar is high. we will offer all sorts of innovation and customized experience for fans. you can watch the game, sit down and watch with your family.

you can explore our x-ray experience, which is actually, without ever leaving the game, you can see all sorts of statistics and replays. x-ray, the point is to put the tools that normally have to wait for a producer or director to say, let me show you extra stats or see the reply, we will put that in the hands of fans. and we have the content around the game. we have pregame, post game, a great late-night show and we have the best talent in the business. we have carissa thompson, tony gonzales, richard sherman and ryan fitzpatrick. the conversation they have, they were on the field with these guys last year so they will take fans literally inside the thinking of the players on the field. we have a great surrounding cast and we will also offer the game and the programming on twitch. twitch is an incredibly young,

interactive audience. twitch is all about watching with the community so we are excited. we will expand the communal nature of sports with twitch and we have shows during the rest of the week. we will surround fans, and as you can tell, we are thrilled to get going. emily: i assume you've got some contingency plans. are you sure all cable fans will be able to find the game? are you planning or any kind of on boarding issue or onslaught of onboarding issues potentially? marie: absolutely. if you come to any amazon service, you are not going to be able to miss this game. it will be seamless and easy. we have great third-party marketing to help you. we are prepared. we have done this in europe and other places in the u.s.. we have all sorts of online tool . we are old school, we have phone

numbers to call and we put extra people on hand because we know it is frustrating when you call, sometimes when you call those services and don't get an answer. we will literally have thousands of people ready to take those phone calls if needed. we are excited. we have been preparing for this for years. this is hard work and it is complicated, and we have been building towards this for years. we think we are the company, we know other companies are in position to serve a concurrent audience like we will experience this season. emily: what next? is amazon planning to bid on the remaining college sports rights or the nba? what else do you have coming? >> i can't talk about specifics but i can tell you that we approach everything on the sports fan perspective. the first thing we do is say, how will fans consume the content? is there a way we can do better and serve the fans better?

what can we do differently and does it make sense for us? there is literally, i can't give any sports right we don't look at. we are in business with the nfl, the yankees, we provide local games in new york. we are excited, the partners are willing to come with us. we are fan focused and really, we want to go and, like wayne gretzky says, go where the puck is going. emily: you used to work at espn. amazon has a huge content budget. are you thinking about making new sports content? i believe you were involved in the 30 for 30 series. maybe original sports documentaries and other ways you can build out amazon as a big player in where you go to see things about sports. marie: absolutely. we have started that. we have a series, all or nothing, we have done in the u.s. and europe. we have great success with that.

five months ago, we started a separate sports group. we are hiring and staffing if any young filmmakers want to work with us. we are excited. when you have that additional content, not only is it valuable on its own, we have a high bar and want to see excellent content but it engages fans more with the athletes and teams that we shall on live events. it is a great ecosystem to get going. we found that in europe when we have our all or nothing on the print -- the premier league teams. fans understand and appreciate the players and teams even more when they understand what they have gone through and have seen behind-the-scenes. emily: marie, i believe you have to catch a flight to kansas city, so thank you for joining us. amazon global sports video vice president, excited to see how it shakes out on thursday. we will be right back. this is bloomberg. ♪

emily: early indicators suggest the iphone 14 preorders are stronger than expected. preorder data showing the iphone 14 promax is the best-selling model, and orders for the iphone 14 are tracking ahead of the 13. there are strong demand trends. they expect many iphone users haven't upgraded phones in years. coming up micron breaking ground in idaho. that is next. ♪

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emily: welcome back to "bloomberg technology." trevor middleton, the founder

and former executive chair of nickel, went on trial started -- starting this week charged with lying about the product to mislead investors. let's get back to ed ludlow, who was in court today. what happened? >> he faces two counts of securities fraud, two counts of wire fraud and you are right, prosecutors have to prove that milton lied about the company's technology and in so doing, misled investors and therefore the investors made the choice to invest in his company based on the inflation. he arrives monday morning in manhattan for the trial, which is supposed to take place in june or july but the judge granted a delay until september 12, monday, so they could take on the fourth count of wire fraud. it is a five-week trial. we started monday with jury

selection. tuesday, opening arguments with the prosecution having three weeks to present evidence, then the defense comes in. the burden of proof is on the prosecution. the trial could run through the end of october. the focus of the prosecution is convincing the jury that trevor middleton misled investors about the progress, the technology, what it could achieve, but also retail investors in particular were moved or motivated to invest in the stock. this was the poster child of the 2021 way above ev companies going public and it had a market cap grade, and things are different now. emily: ed ludlow, thank you. we will continue to update as the trial progresses. micron broke ground on a new memory manufacturing plant in idaho, the first of its kind in the u.s. in 20 years.

the chipmaker plans to invest roughly $15 billion over the next several years, making it the largest private investment ever made in the state. i caught up with micron's ceo earlier. have a listen to what he had to say. >> we have development, technology leaders from boise for decades and being able to combine the leading edge manufacturing technology, this was marketing new technologies and solutions for the benefit of the customers as well as of course driving u.s. leadership in semiconductor technology. this is a big day, a big announcement and has enabled the chips act, signed by the president, and that is important in terms of this. this is exciting. it will bring 17,000 jobs to idaho over the decade.

we will start production in 2025. construction will start in 2023 and this will be transformative. we will be bringing on production online to meet demand. emily: micron already has plants across asia. how does this impact operations globally? will you always consider building in the u.s. first? sanjay: of course, we have as you noted, a footprint across asia for manufacturing. the chips act enables us to level the playing field whereby now, production can become cost-effective with the support of grants and tax credits. we will continue to invest in our plants in asia as well, but when we look at the demand, by 2030, semiconductors demand is

expected to double in terms of opportunity. that means new capacity. that is why we started the plant. we had the ceremony that launched the construction for this plant. this will enable us to meet the growing demand for the 2030 year for new semiconductor technology. we keep investing interest -- technology transitions overseas, as well. emily: has money been set aside by the u.s. government enough? some have called it a start. sanjay: it is a good start. the support in terms of chips grants and tax credits will help us level the playing field with foreign governments, who have been supporting investment in semiconductors in their countries for a long time. companies like micron will continue to invest from their

operating cash flow as well as from the balance sheet. a big part of the investments will come from micron, but the chips grants are absolutely essential. without chips, we wouldn't have been able to make this announcement today. emily: do you have concerns that the government and not market forces are setting the agenda for what is needed, and that could down the line create excess capacity? sanjay: it is extremely important, as i noted, that we are bringing on production in the future in line with the industry demand projections, the end market demand projections. each of the companies that is bringing semiconductor production up, we will be managing, should be managing and i can speak for micron, we will be managing our supply growth, keeping an eye on demand and keeping a balance.

emily: you and micron warned about slowing demand about a month ago, which triggered a broader concern about a slump across the chip industry overall. what can you tell us about demand as you see it? is it indeed slowing down? if so, how much? sanjay: for the semiconductor industry, this is a challenging environment. primarily inventory adjustments that customers across areas and markets are making. that is impacting the industry demand and supply balance. of course, we have taken actions in this regard in terms of adjusting our supply growth plans for the future. but you know very well with semiconductors, it takes a while before results are achieved so it will take a few quarters before industry demand and supply is balanced.

what is important is what we are announcing today, the long-term future. the demand drivers for long-term , ai, 5g, autonomous and across datacenter, automotive, those demand drivers in terms of consumption of memory requirements for the long-term are intact. that is why to meet growing demand of the future, investments need to be made now because there is a long lead time to build these, and production would only start in the second half of this decade and it will be managed in line with the demand projections for the future. emily: clearly, a huge step for micron breaking ground today. i'm curious what you think this means for the broader industry. if demand is slowing for a few quarters, as you say, how long could we be in a cycle of oversupply? not just where micron is

concerned about across the broader chip industry? sanjay: adjustment take a while to work through the system. the memory industry tends to be cyclical, but what is important is that the health of the industry is ultimately driven by long-term demand trends. i think it is important, that near-term transitions take place due to inventory adjustments, actions are taken fast to bring demand and supply in balance but of course, it takes a while, it takes a few quarters for the demand and supply to be in balance. important thing is, actions are taken fast. we are being responsive in that regard. managing for the long haul in terms of the growing demand, meeting more investments in order to meet the requirements of our customers, as we look ahead to the second half of this decade. emily: there has been a lot of

talk about the competition between the u.s. and china on this front. how big he china in the memory market in particular? is it something that the u.s. government should be concerned about the -- concerned about the echo sanjay: the chinese government has been making certain progress with respect to the memory. these are taken into account when we look at the industry supply growth expectations of the future. what we are doing at micron is continuing to stay ahead in terms of the technology capability. of course, we want a level playing field and respect for intellectual property, but we have to continue to drive our own technology roadmap. today, micron is a leader globally in semiconductor and nano can -- nanotechnology. right from here in boise, the themes that have produced

innovation, in the future we will be able to combine and manufacture right here as well. these are chips that have enabled activities that have helped secure the national security of the u.s. as well by having manufacturing of infrastructure needs, the chips being made here in the future in the semiconductor industry. emily: micron ceo sanjay mehrotra. coming up, could the future of sports be nft's? we will talk about that with soler's coo, next. this is bloomberg. ♪

>> security is a big part of this. the security, investment is going way up. in the grand scheme when you look at the pieces of the blockchain, it gives athletes the opportunity to go directly to the fan base. it gives the fans insights that are different and cutting out the middleman. emily: that was nba champion and investor andre iguodala talking about sports and nft's. let's dive deeper into the conversation with sorare, backed by tennis great serena williams. they are in partnerships with major league soccer and major league baseball and is adding the nba with the first free to

play fantasy game based sorare on digital cards. soraresorare coo ryan spoon joins us. talk about the partnership with the nba coming together. ryan: thanks for having me. it came together, it is a natural evolution. you heard andre talk about the importance of, the opportunity blockchain enables. i spent years at espn on the digital side. how important and fun on fast-growing fantasy is, we know on the collectible side, when we tie fantasy and collectibles with the blockchain on a global scale, the nba is a perfect product and partner. it is our third lunch. we have a big global soccer and football gaming community. it has been successful. a couple months ago we announced and launched our mlb partnership, so we are super

excited to do this with the nba around the upcoming season launch. emily: this puts you in competition with nba top. how do your platforms stack up? ryan: we are specifically focused on nft based games. players collect their cards, you come in and everyone registers and you get a free set of cards. with those cards you play the game. your management of cards, so like a fantasy draft, on the set of espn, where i spent time this weekend doing my fantasy draft, here the player has the agency to pick and manage his or her roster. as you do that, you collect cards as rewards. that is different. i have admiration for topshop, and i am a user of other platforms but in our case --

space, we are the leader and these relationships, this is the laying we are exclusively focused on and we think we have demonstrated real leadership in. emily: you have launched soccer and baseball products previously. every judge in charlie otani -- aaron judge and shohei ohtani are the most used codes. ryan: soccer is very successful, a large community. it is a global game. the user based on our side, when i say geographically diverse, it is in all segments of the world. we still believe we are in the early days. we closed last year doing $325 million in card sales. we exceeded that in the first two quarters of the year and

now, we will introduce mlb, we did that at the end of july, the traction has been positive and encouraging. also a global footprint which we think it is important. baseball is an excellent product. because of the fast-paced nature, the movement, the surprise. nba will be fantastic. we know how important the stars and the players are. for what it is worth, our deal on the nba side is with both the nba and the nba pi so these are licensed player driven cards. i think it is worth noting that mlb's biggest day on the platform when we announced the nba last week. that is important, an example of how we think the sports can fit together on the global nature of these games, hopefully works together in this concept of being able to collect cards, like giannis or mike trout, and

that is a big exciting idea. emily: good stuff. ryan spoon, coo of sorare. andre iguodala is excited and that should get people excited. thanks for joining us. blue origin's aborted rocket launch. what went wrong and what happens next. this is bloomberg. ♪

emily: blue origin aborted a

lunch of its rocket moments after takeoff. this happened in west texas and it is the first major failure for the company in several years. lauren joins us from austin with more details. what happened? >> we don't have a lot of details at the moment. all we know is what we saw on the livestream of the launch today. this was a pretty regular routine launch for blue origin. they were launching research, no people were on board thankfully but it was meant to be a pretty regular launch. some time a little after a minute into the lodge, something went wrong with the engine and it's triggered the abort system for the capsule. how significant is a failure like this in what would have

been a pretty routine lunch? loren: i think blue origin got lucky today because there were no people on board. they have a pretty good track record and it comes to their flights. they only really suffered one partial failure really early in their testing regime, so this is the first time they have had a major failure like this. i think it is probably going to be a while before we see any shepherds fly again. emily: what is next? when something like this happens, a significant failure like this, do you go back to the drawing board? can years pass potentially before someone else, before they try to attempt this again? loren: it depends on the source of the failure. the faa says they will be looking into this. fortunately, no one was hurt and the booster you saw break away

from the capsule fell into a hazard, a hazard zone. the faa will look into it and the shepherd won't fly again until they get to the root of the problem. it depends on what the source of the issue is. with these commercial companies, they can be more nimble when it comes to returning to flight. we saw companies returned to flight in the past. it could be similar for blue origin. we can't say for sure because we don't know what caused it. emily: can you put this into context of blue origin's broader ambitions? jeff bezos went into space. they have sent other folks up. celebrities up there. talks -- talk to us about how this fits into the longer-term plans. we talked about the space colony and more. loren: it might be worrying for

folks who might have a ticket lined with blue origin -- to fly with blue origin. this was a rocket geared towards launching payloads but it is essentially the same rocket they used dissent people to space and back. some comfort can be had in the fact that it has worked as intended, the in-flight abort system. you saw as soon as the system detected a problem, motors fired on the capsule and it separated the capsule from the rocket. that landed safely in the desert. presumably, if there had been people on board they would have been fine and would have landed safely. can't say for sure, thankfully there was nobody on board but it seems to work as designed so there is comfort in that. but if i had a ticket, i might be a little nervous in the future. emily: all right.

point taken. loren, thank you for the update. that does it for this edition of "bloomberg technology." tuesday, melinda gates will join us to talk about her foundation's efforts to fight poverty and gender gap. check out our podcast wherever you get your podcasts. i'm emily chang. this is bloomberg. ♪

>> good morning and welcome