caroline: i am caroline hyde up bloomberg's world headquarters in new york. >> i am at ludlow in san francisco, this is "bloomberg technology," we have nervous is driven by geopolitics. caroline: the u.s. china tech tension intensifies, cutting off huawei from the u.s. suppliers. ed: baidu, the google of china implementing generative ai into its own search engine. caroline: a 45-year-old entrepreneur committing to reverse aging. let's check on the markets they are reversing on the day. and momentous week, the fed, jobs day, earnings, mastec up by 2%, were state -- nasdaq off by 2%, worst day since december.

two year yield pushing up a little bit up some or basis point. -- 4 basis point. at little bit nervous where the federal reserve takes us. as risk assets fault, that correlation is back in crypto. we are under pressure on bitcoin for the last two days. we are back above the $20,000 levels. ed: straight into earnings, big week of semiconductors, we start with the second-biggest supplier to the automotive industry. and automotive they saw strength, the upper end of the range was below street expectations for the first quarter, $3.1 billion, the street looking for $3.16 billion. it is not weakness, but in other markets, that is a big cause for concerns. in a week we have samsung reporting earnings around the world. the story of the day is one of news headlines hitting left, right, center across the world of technology.

let's look at some of the names. ai, ai, ai that is all anyone is talking about. baidu down .4%, it is now higher after the bloomberg scoop that is doing its own version of chat gpt. big bear, i am not sure if you are familiar with this name. it is swept up with meme stock like trading with ai related names. snap report earnings on tuesday, up 1.7% on the session, meta is lower, we are bracing for a big week of technology earnings in the background of artificial intelligence. caroline: in the background, geopolitics and play. one of the most read stories, our tech executive editor, breaking down china versus the u.s.. themes, that tend to consummate, talk to us about hallway --

huawei. >> this is about isolating them. this is a company that for years the u.s. federal government has singled them out as a potential source of -- a threat to our national security. there are concerns about what happens with the it we buy from huawei. there is concerns about us enabling while way to become a bigger more -- huawei a bigger more powerful company. this is another step by the biden administration to isolate them and cut them off from vital u.s. supplies. >> there is a hard name for the stance under biden, president trump put them under the entity list. you could get licenses to do business. what u.s. companies are impacted by this? guest: a lot of the business that we do, that u.s. businesses

do with them is already cut off. there are some exceptions. for instance intel and qualcomm, to the companies that would be affected by this move. those two companies still sell. intel sells chips for laptops made by them and qualcomm sells chips used in some of the phones that huawei sells. you still had companies doing business with them. this is an example of the biden administration under tremendous pressure from republicans in congress to stay cap on china. not showing -- stay tough on china. not show any letting up. or a sign of weakness. caroline: this goes international in terms of the administration looking to the netherlands and japan. that is last week's story, putting other countries to put similar tough stances on china. guest: you cannot do this alone.

even though the u.s. is a major leader in chip making technologies, you cannot do this alone. nxp, from the netherlands sells chipmaking technology into china that is highly specialized, tactical, very lucrative for nxp. it is a technology cannot replicate easily. china certainly cannot do it. the u.s. cannot fully isolate china. remember, the u.s. wants to make it hard for china to become a powerhouse in chipmaking capabilities. this is something the chinese have been behind the u.s. for time immemorial. they have made a commitment to spending the money it takes to become a leader in chip making technology. the u.s. is saying no way to that. ed: bloomberg's executive editor of technology, across that headline. let's dive into the world of tiktok. the ceo will testify before the house energy and commerce

committee on the company's privacy policies. the impacts on children. the -- and the chinese commonest party. alex, what to expect? guest: potentially a bit of a spicy hearing. this is the very first time tiktok ceo will be testifying before a committee, that has been known in the past, for grilling arc zuckerberg on the cambridge analytical scandal. for really digging in on the details around child privacy and data sharing. as we have talked about before the punker -- republicans in congress are concerned about the company's connection to china through the parent company. you can expect questions on all of those things. you often see in the house committee hearings the absent as pushing the exact -- the representatives to push the executives make promises to agree to do things. questions around cutting off

data, or putting up some blockades with the chinese parent company. caroline: remind us where we are. the administration is meant to be leading this, this is meant to be a deal with oracle we are. discussing where are we with that timeline? fdic congressional republic --guest: congressional republicans are putting pressure on the buy demonstration who have for years and doing a national security review on tiktok. our sources tell us it is getting there, but there are some hiccups. particularly with members of the determine of justice who are on the committee who are not comfortable with some of the concessions the company was bringing to the table and negotiation. it seems like a lot of republicans above the senate and house say we need to wrap this up or we will take this into our own hands. we will introduce bills, that they have done come the first of

which will come to the vote on the house committee of foreign affairs. ed: what surprised me in the reporting around this is that it is the first time a tiktok ceo chu appears formally in a hearing. he was on stage earlier in the year with one of our senior leadership or senior editors here at bloomberg. what do we know about his ability to feel these questions and engage with u.s. lawmakers? guest: he has been operating behind the scenes so far. we wrote a big story last all looking at their lobbying efforts that was behind closed doors. he was down there and taking meetings. the company has taken a change in stance. they have gotten pretty loud and much more for about what they are doing. describing some of the data security policies they're looking to put in place. this'll be the first time he is out front. we have seen vanessa, the chief operating officer.

she has been the defective phase for tiktok here in the u.s.. she did testify at, made a bunch of thomases about data security controls -- promises about data security controls. saying you need to trust us that we are not sharing information with the chinese government. there have been critical reports of the last month that the company admitted the employees of bytedance access the data of u.s. users including journalists. that trust is been degraded. is probably the reason we see heightened heat coming out of d.c. against this company. ed: terrific reporting around what is a focus for everyone right now. tiktok and if it will have a future here in the united states. and san francisco were twitter made its first interest payment on the $12.5 billion of debt elon musk used to take the company private last year. they paid a group of seven banks led by morgan stanley roughly $300 million, according to

sources and bloomberg compilations. questions on how the company will pay off its debt remain since the takeover twitter has failed to pay millions of dollars of rent, been sued over unpaid services and has auctioned off items not necessarily to raise money. caroline: coming up, so much more to discuss when it comes to silicon valley. how is it treating ai and is that the catalyst for the next wave of tech giants or is it height -- hype? this is bloomberg. ♪

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>> before the release of chet gpt, -- chat gpt many people underestimated the progress of ai. >> the u.k. is when the most interesting places in the world or artificial intelligence. >> we need governments to help us to regulate this new very fast emerging industry. >> other large companies figure out what they're going to do. google is the most notable one on the sideline. they have bigger regulatory headwinds. >> they want a galatian for ai, they want to feel safe. >> -- regulation for ai, they want to feel safe. >> there is a lot of progress the next couple of years it will be fun to watch. caroline: we will keep on talking about it. the rise of generative ai, we know a lot about the u.s. work on that front. this is an international

project. ed: really fascinating reporting on bloomberg -- from bloomberg out of china, baidu is working on something similar to chat gpt. and one point in monday's session the u.s. listed shares of -- adrs of baidu were up 2%, there was momentum behind the stock based on this reporting. we do not know a lot. what we know as soon march. what baidu would do, is the google of china, they're planning to embed this artificial intelligence platform into their existing services. what we know from a design perspective in terms of capability perspective is that baidu's chat tool or chat ai will give you a conversational response like chappy tuesday -- chat gpt. you and i have talked recent weeks about china's moving to artificial intelligence, the

hype here in north america and beyond. luckily we have the right person to discuss it. the doctor of research of the distributed ai research institute. where do we start? let's start with the news and china. guest: it sounds surprising that baidu would work on a chat gpt product, has taken english language by storm. it would make sense, baidu being china's google, they have the amount of data it would take to train one of these very large models. this is an ai model known as a transformer. ed: when you talk about the height, you are an academic researcher in this field. when you see a name like baidu moving into this space, do you think they are a credible player? i am interested in what they're working on here? guest: they are definitely credible. they have massive stores of data.

google is in that space, microsoft, facebook, whatnot. it makes sense they will take the technology moving to the space. building models where they can generate language at such a large-scale intake a massive amount of queries. caroline: much has been written over the years about the race in ai between u.s. and china. many felt china was ahead when you think of all the language bases and how they have connected devices in the home. i am interested, what about the ethics race? i have a feeling many say the u.s. is thinking about it, but are they thinking about it quickly enough? about the biases and artificial intelligence and try to get ahead of it as it takes us by storm? guest: they are trying, as you see with chat gpt, when you feed it inputs around race and gender it produces bias and put -- outputs. this is been shown time and time again. we do not have disability about

what baidu is doing, we have seen aib bias against certain ethnic groups like the uighurs. we do not know what happened, or how it will exacerbate further inequality. caroline: is it exacerbating racial, gender, class, and the u.s. or are people -- in the u.s. or are people it will tamp down on the model? guest: there is a potential for it, and english language there is less of that possibility. these issues have been documented by many people before. as these are used in other domains we do not have a good idea of what kind of ics may be baked in -- biases may be baked in. when he gets away from english language there is not enough data that is there. not enough regulators or legislators focusing on that

prevent that from happening. ed: let's talk hype. guest: let's talk hype. ed: caroline and i have gone over with you in the show in recent weeks worries about plagiarism. or how artificial intelligence would contribute to inequality across race, gender. everyone is talking about artificial intelligence. there is an interest use it. does that worry you or excite you? guest: both. the way we think about artificial intelligence, we think of it as a separate consciousness that will emerge as the thing of science-fiction. we talked to chat gpt like an actual person. what is, is something that takes existing data and reproducing patterns he has seen before. it has a lot of ways it could be generative. it could be helpful. it could help humans flourish. especially when we think about ways in which language

technologies could be useful. especially places that do not have a lot of good translation. collaboration could be for full with effective communities. the way it is, controlled by players like open ai, microsoft, baidu, it will probably reproduce allow those inequalities we have seen before. caroline: what is interesting, of course, your ai research institute comes at it from a community based focus. you are trying to go away from big tech's pervasive influence. what about the startups, c-suite, the smaller players and -- in ai that is exciting? we know the power alphabet has in the realm of ai. who is doing this in a smaller scale with really interesting outcomes? guest: we have seen this last on the seed seen, the major players and venture capital in the u.s..

we have seen some projects, that is a collective of african researchers using ai for machine translation on the continent. they have a fellow, a tech that works with us, in doing machine translation an automatic speak rugs -- speech rec nation for language -- recognition for linkages that are less translated. as a means for sourcing groups with less resources, i think those have been really exciting uses and the plummets of ai -- deployments of ai. there is a rush to do things big tech has been doing. we see a mass exodus from places like google where people have gone ahead to develop large leg was models. it tends -- language models. it tends to be in english and attract the eyes of ecs that -- vcs that will get investment.

caroline: real quickly, mass exodus. can you quantify that? guest: i do have the numbers off top my head, i did see a story that 30 researchers coming out of google brain, the company i came from, left in the last couple of years. they found things that focused on ai, and they are afforded that nimbleness and going into the start of space. they can produce a product that might be quicker to market than a place like google that is a little slower to react in those spaces. caroline: thank you for your time, director for research at the distributed ai research institute. coming up the ev price wars. ford slashing his own prices following tesla. more on that. this is bloomberg. ♪

>> is this the start of an ev price war. ford is cutting prices in the u.s.. the move is to counter tesla's price cuts earlier this month. according to elon musk it spurred new demand for tesla. across all of ward's market -- ford marquis versions, -- the most significant cuts are the most expensive versions. dropping $5,900 to start it 63995.

they qualify for a federal tax credit for up to $7,500 under the federal -- inflation reduction act. last year ford was the number two ev seller in the u.s.. that was way behind tesla that controls almost two thirds of the market. caroline: as always, your first and foremost with this sort of news. talk to us about why ford is doing this. many would say that because of the tesla response. some say it is making it more available to certain subsidies. ed: a number of analysts say this is a response to tesla. my point the pieces that they are cutting the price where the vehicles morse. -- most expensive. they are trying to make them eligible for the tax credit to take advantage of that. ford talks a big game about how demand is outweighing their ability to supply right now. they did not bill that many of them last year. caroline: to that point, what is

interesting in the story, this was already a lossmaking type of car anyway. ultimately, they are taking a hit to margin where necessary? what about the rest of the ev vehicles they're coming out with? ed: they plan for the marquis to be profitable from unit one, is unprofitable because of rising input costs. they want to ramp up, makeup more them and improve margins. >> volumes over margins at the moment over a tesla. ed: the future of the gaming industry, the latest gaming report with the managing partner josh chapman. that is coming up next. this is bloomberg. ♪

>> did you get a videogame for christmas?

who ever gave you that got off cheap? prices for games, toys, and hobbies fell 4.8%. due to cheaper computer games due to the u.k. office for national statistics. what happened in december? three things. the lack of releases in 2022. new games tend to be more expensive. because there were not that many barges, people had more discounted -- launches, people had more discounted titles to choose from. for example the latest need for speed, was the best performing in 14th space, but the sales in the first five weeks was lower. second, holiday discounts. gaming companies run black and christmas deals on existing games. look at be for 23 that was discounted as much as -- fifa 23

that was discounted as much as 70%. fewer people were buying games, looks like quality, not price is king. does that mean videogames are getting cheaper? the short answer is probably not. 2022 was a corrective year after two exceptional years of lockdown fueled growth for the exit -- gaming industry. prices will probably rise again. ed: let's stick with gaming news, meta reported to have cut contracts with at least 200 gaming creators. according to information. meta ended the relationship in the second half of 2022. they also cut contracts with streamers not successful building an audience, they are citing a meta-spokesperson. electronic arts and ea reporting

earnings tuesday, we get a read on playstation demands when japan sony reports numbers on wednesday. let's get it -- into it with josh, in an early game stage investment firm. they will take assets to around $270 million, i with a new report on the state of the gaming industry. what is interesting for me is that the conclusion of your report is a pathway to growth year, talk through what you found. guest: thank you for having me on the show. what we noticed in 2022 was three things. gaming investment is to ask what it was -- 2x what it was pre-pandemic levels. second thing we noticed, there is about $45 billion in cash sitting on the corporate balance

sheets of gaming companies today. creating an incredible healthy gaming m&a environment. the third thing, the ipo markets are closed, late stage investing in the gaming market has slowed almost two a grinding halt while early stage continues to grow. in this chart gaming will continue to grow and expected to continue to grow over the next five years. there was a report last year showing the gaming over the last two recessions was incredibly resilient. no matter where we are at right now we think it will continue to thrive as an industry. caroline: going back to the consolidation point, there is a lot of cash on balance sheets and there's a lot of regulation on how that cash is put to work. microsoft in activision, will that deal go through? guest: the ftc is doing his job to protect the gaming market, our opinion is that they are -- their objections to the m&a

acquisition is unfounded. it is based on what might happen, not what is happening. we think this acquisition should go through, we believe it will go through. we believe it is a fair acquisition. is worth highlighting that post acquisition, the gaming revenue to microsoft be around $21 billion, about 11% of the entire gaming market. right now sony makes about 18 billion in the market and the are a lot of competitors in the similar range. we think the ftc is setting up a very dangerous precedent. we think they should go through. we think it will go through after he gets through all the objections. is certainly an intense environment. caroline: this is an interesting one, netflix has been getting into gaming more. are these the sort of companies that start ticking up interesting companies? what kind of companies do you

see this consolidation occurring in? guest: absolutely. netflix is building on the games business. in reaction that passive entertainment is losing out to interactive entertainment. passive entertainment is like netflix, hulu, hbo go. gaming has been a professional at interactive entertainment for 50 years. this interactive entertainment is where flicks, amazon, google is moving towards. you will see disney enter the space in a much bigger way. a lot of the cash on the balance sheet of broader technology -- tech companies will likely compete and enter into ways along the active $45 billion in cash. that gaming companies like the traditional ones like activision, blizzard, nintendo have. ed: used site those numbers in your report and you -- the

conclusion he draws that there is a healthy m&a environment. yet caroline and i are waiting every day an update on microsoft and activision. do you think it will happen? guest: i do. the reason why, the objections are based on the theoretical of what might happen in the future. i do not think that will win out in court. that would set a dangerous precedent for future m&a come across all of entertainment. well, we might become a monopoly so we should stop this m&a. the ftc, could retroactively, if their fears become recognized, slap the hand of microsoft and see you need to divest. right now it is a really tricky environment and it would set a weird precedent across all the ftc scrutiny of different markets. caroline: your funds, your new ones, where is it right to invest? guest: there are a few areas and

a lot of hype is generated around ai gaming. one of them is artificial intelligence. artificial intelligence will make the creation process much easier. we think that will absolutely play out. it will be tricky how this will play out from a tech standpoint. if it will be investable to build a billion-dollar company. it is a question mark. the next is web three and blocked -- blockchain technology provide modernization to the -- the third is around new marketplace dynamics in the virtual reality space. as virtual reality continues to be adopted i think it will be continued investment. some of the areas we are most excited about is a firm is around the intersection of gaming and education. gaming and health care. gaming and we are -- vr.

that is where we see exciting opportunities. ed: on those themes, ea reports earnings on tuesday, sony later in the week. are those legacy names relevant to the growth areas and future opportunities you outlined? guest: they are relevant, the companies i am investing are looking to land those people as clients. whether they are from the tech space like meta entering the game space through oculus, or like zynga, take-two, ubisoft. all of them can become clients that us as a firm are looking to invest in. they are relevant, and eventually the companies can find an amazing business relationship they can become an acquisition relationship. it is absolutely still relevant. is a great companies at the forefront of where we are going. we are hoping to work with them more. ed: josh chapman, convoy

co-founder, managing partner. caroline knows i've been one to have this conversation for weeks, months, surely about video gaming -- purely about video gaming. paramount has announced showtime will merge with it paramount plus service. the merge will be across the linear and streaming services. there will be a rebranding, paramount plus with showtime. the name change will launch later in 2023 and only affect the premium tier of karma pleasantly showtime network -- of the paramount plus and showtime network. >> crypto is having the best art of the year in a decade -- start of the year in a decade. this is bloomberg. ♪

ed: they jumped monday after announcing plans to reach profitability in 2023. posting record revenues and all three is a segments. bloomberg's cinelli bassett discussed it with the co earlier. >> it is a reflection of our strategy coming to fruition. we build a digital platform where members can do all their financial business with us. we help our members are a

better, save better, spend better, invest better. that one-stop shop has allowed us to develop a diversified business where some businesses can do well offsetting others. that is what you see today. really strong growth in the checking's and savings account business that helps drive deposits, that were used to fund loans. may also continue to see great growth in the investment business and the credit card business. >> told me a low bit earlier today you are looking to be the biggest in the country when it comes to checking and savings. who are you competing with? is there anywhere in particular you are gaining share? name names. guest: we have aspirations to be the guest in each of our is is is. checking's and savings accounts is where we are wing shares from the large most well-known banks of -- winning shares in the large most well-known banks of an states. it is high-quality, 80% of

deposits are from direct deposit customers. we give them and i'm presidented value proposition, 2.5% interest on checking. complete functionality on your phone, you can pay with your phone, person-to-person payments. debit transactions we give you rewards with activities with checking's and savings. no fees, no overdraft, and free roundups. on savings will be offering 3% later this week up from 2.5%. it is an unmatched value proposition is helping us win share and drive high-quality members with great stickiness because of the direct deposit. >> 3% is significant based on what you see out there in the market. do you think it is problematic? do you think is problematic that the banks are not passing on

those rates to their clients? >> we have a structural advantage. a lower cost of capital now, lower cost of funding. we have the bank license, we also lend those deposits. when we have deposits come in at 2.5% and 2.5%, -- and 3%, we lend them out higher. many of them do not lend. they are not getting a return on those deposit gains. they will have lower return on equity. we have a great combination of this is that can drive higher roe. ed: many well, things are looking up for crypto's largest asset. caroline: sophia has been trying to get into the crypto wave -- sofi has been trying to get into the crypto wave. they are up 39% in 30 days.

the rally in virtual coins, pumping through some of the fallout and collapse of ftx. they shook off the latest news from genesis. the smaller coins, solana, 138%, x e infinity, up 76%, the central and, up 145. digital assets of climbed over the course of january. ed: it is not just digital assets, blockchain and crypto related stocks on the mend after the ftx vasco. when you talk about -- fiasco. when you talk about correlation there is no higher degrees of correlation between crypto currencies and the stocks that do crypto assets. caroline: these are risk assets and indeed the risk universe has

been going higher. the nasdaq has outperformed too, they really have managed to come back. meanwhile we have a fantastic conversation coming up. the businessweek story that has gone completely viral. what does it take to be younger? you will tell you how to reverse your aging process. maybe. this is bloomberg. ♪

caroline: it is no secret that people are willing to spend big on their health. lebron james invest in age defying supplements. those routines look like child's play compared to this tech entrepreneur. he has 40 health experts monitoring every function, and

following a routine he calls the blueprint. he says he has managed to reduce his biological age by 5%. he is on -- by 2% rate -- tell us, what effects have you seen so far? guest: pretty remarkable we did not know what to expect when we started. 5.1 year age reversal was adjusting. -- slowing the speed of aging by 25% is something we found exciting. it exceeded our expectations. caroline: when we say stringent, vegan diet, exercise, sleep, at the same time every night after two hours of light. you are doing this for another reason, a purpose, where does this go in terms of next stage therapies? guest: the idea behind the

project is if you can measure all 70 organs in your body and allow them all to speak, and express what they need to be in an ideal state. take those needs and look at a gold standard evidence and crater protocol. i agreed to go through that -- create a protocol. i agreed to go through that process. we go through it again and again and we try to fine-tune it. we try to create the perfect diet and health protocol. i have spent willing to dollars developing this world-class scientist and doctors. i have made available to others at no cost. they can implement it, improve upon it, and report new data. it is the push it forward. ed: we have been showing your morning routine on the screen, your exercise, your calorie targets. to be fair it is not that much different than mine yet i am definitely aging quickly.

do you some thighs with reactions to the story? most everyday people this is not a reality. this is not an accessible method of reversing the effects of aging. guest: i absolutely do, it started when i was in a bad situation. i had chronic depression for a decade. i tried everything to fix it. i was feeling hopeless. there was one version of myself, i called him evening brian, seven brian would roll around, and he would inevitably eat too much food of the wrong food. that would cause poor sleep, feeling groggy the next morning and i would be overweight. one day i said evening brian is fired. this version of myself has no authority to decide if he is going to eat. it was the first time i understood me as different versions of myself. the protocol i have her nose pretty daunting for most people. the basic -- have now is pretty

daunting for most people. we commit these destructive behaviors again and again. the biggest gains can be made if we stop those destructive behaviors. ed: we asked our audience what they are willing to do to achieve longevity, i suppose. if you are not thinking of aging in reverse. this is what they had to say. pretty split. 36%, all of my money and time, 36% nothing, yolo. for the everyday person it does not feel achievable. what is the simplest that you felt this is an easy change that has really helped me? guest: the expectation of blueprint is not that the individual person. can do all these things. the objective is to show that if the protocol is implement it you can achieve remarkable results

in slowing and reversing aging. if that is the case, it really is, the contemplation i find interesting is could we do it as a society? we do not ask people to go out to navigate mcdonald's and algorithms that try to addict them at every turn. this is about creating a change in society. basic simple things people can do, prioritize sleep, eat more vegetables, nuts, berries, and stop self-destructive behaviors. you are off to a good start. caroline: i ask your reaction to the reaction of the story? it did go viral. there is a split view. some engagement say this is great and something to be admired. others, maybe through their own innovations and issues -- inhibitions and issues are hitting on it. how do you find the reactions online? guest: the same dialogue that

happens online is the same that happens inside of each of us. we are all critical of ourselves. we make observations all the time. we are our own worst critic. this is my call blueprint group therapy, we have a dialogue about how hard it is to live in modern society. it is very hard to maintain a healthy lifestyle. you have to go out of your way. the commentary is about the larger society than it is about me. caroline: blueprint ceo and founder, come back and tells how it is going. that does it for this edition of "bloomberg technology." ed: tuesday, nikolai ceo, you do not want to miss this. this is bloomberg. ♪ ahhh

hi, i'm katie, i've lost 110 pounds on golo in just over a year. golo is different than other programs i had been on because i was specifically looking for something that helped with insulin resistance. i had had conversations with my physician indicating that that was probably an issue that i was facing and making it more difficult for me to sustain weight loss. golo has been more sustainable. i can fit it into family life, i can make meals that the whole family will enjoy. it just works in everyday life as a mom.