we worked with tthe ceo saying o reshape pretty much every software category. what is that mean in terms of categories? >> the way to think about this is search is the largest software category that is out there. advertising is a $600 billion business. we have an opportunity to reshape that, to bring a value to people as we talked about in terms of being able to answer questions but also new value to advertisers who can bring more targeted advertising and get better roi. the opportunity to improve that is going to benefit everybody. caroline: we went to our own audience to ask them where they feel the winnings will be made. not just talking about google versus microsoft but china versus the u.s.. note to -- notably 38% but u.s.

technology will when that ai russ was likely china but robots caroline: i'm caroline hyde. is where they kind of point that speaks to a point to the power hit: i a driver no surprise. of artificial intelligence and at that point to read correct itself, to improve upon itself. caroline: no surprise heavy medicine of the stock pot to of i asked you about the concerns, course bloomberg at google. the safety, the biases. we get into that in just a how to make sure he we are at minute. the right place to unleash this. the hate crime race is on we >> it is top of mind for us. bring the latest global we focused for many years on responsible ai. generative ai and the big big we put forth principles and a announcement. framework and have done a lot of it will let and honing in on the engineering in that regard. we have learned a lot from our chip industry and increase in revenue. past releases so what re-released today has a bunch of we speak with the ceo of the guardrails and safety for things company as it prepares what they like safe speech, hate speech hope will be the largest for a and self-harm. chip. caroline: zillow slashing a before he gets to the model, before it generates any content percentage of its workforce. we trained them to catch these all that and so much more coming things and again before answers

up but first we check-in on the come out so we have done a lot of work. lomita feed is 101 years old this year and counting. i'm bill lockwood, current caretaker and owner. wrist, validate and check in on when covid hit, we had some challenges like a lot of businesses did. the markets. there are bad actors out there i heard about the payroll tax refund, who like to hike the system and it allowed us to keep the amount of people that we needed the nasdaq 100 the big is we like to feel today is an and the people that have been here taking care of us. see if your business may qualify. go to getrefunds.com. ed: sticking with sustainability and investment a two years ago in the start up. trending higher the impending important part. the leaves are producers in 90% you have to go to market, you announcements or was it more jay actually have to ship. less water, 55% less fertilizer powell not pushing back on the you can't solve these problems bullish town in the market? then print best conventionally also a leg higher the 10 year in a lapid. produced crops. yield we saw a be the mother -- in a lab. that's the story how did this caroline: generative ai day in does bond market decided there investment become a rogue are more hikes to come but the and day out it's great to have product for amazon? stock market really j bennett on you on. >> it was a collaborative effort what jay powell didn't have to say. ed, you even talked about it let's see what it meant for between amazon and hippo other risk assets. harvest. some of the other competitors, we source the deal, we saw two i'm going to give you quick note right? ed: a big-name coming out compelling features about the we look at what is happening in opportunity. one was to drive down the price this move we saw that ms. the overnight confirming a skit that and one was to increase the euphoria of jay powell not as soon as march it will roll quality. pushing back on the bullish town so we worked for 15 months not out its chatgpt competitor. and the dollar drops. to bring the product to market ed: i think it's her to say a innovating on the timing, lot of specific tech names lost packaging, quality of the step with the s&p some kind of it's interesting because they didn't do a big on stage splash reduce, we were finally able to get it over the line. ed: my understanding as there is more specific lives continuing what does press they just made a

to push higher up after a strike statement kind of flexing a a pretty small footprint over in little bit about the roadmap. december quarter earning. santa cruz. is this a money maker, is this a zoom up almost 10% the biggest viable business long-term to jump in a long time as it make these investments? confirmed it will cut 15% of its it is the google of china, it >> as philippe. global workforce. dominates the search market there and they plan to integrate we have a mandate of reducing then to the downside, u.s. adrs that into their own search capabilities. as we discussed the shares carbon emissions and also down 3%. that is off the vision fund unit looking to do it profitably. absolutely surging both in hong kong caroline: and the u.s.. it represents the best of both contributing to the surprise caroline:just the element here, of those cases and i think they loss. accounting for $5 billion loss are already demonstrating that. in the most recent quarter and we talked time and time again caroline: you must've spent some about the u.s. versus china. amazon kind of flat. you think about the books that ai big driver in markets we have been written that china talked about that. time up scaling when can you get really managed to get into the it up? microsoft an example of one of -- abroad? those stocks moving along with home so much faster. >> we are in the experimentation the basic form of language ai we the s&p 500. we got news on the ai power. are all used to asking a piece phase the first step is to get it into the market see if of equipment in our home china one stock that did move on ai as customers are interested in purchasing it. led the way there. we will scale it through the district shares jumped 12% whole foods ecosystem and confirming that earning the ed: arnie is so similar, it republic to some hippo harvest checked gpt bought while out and as they try to expand the be integrated. domestically and internationally. we expect that will take a gives a conversational style you look at some of those names response. couple of years before we had the strike. caroline: we have been looking

giving back some of the is it continues to track. coming at we will turn back to tarnishing gains they have seen at some of the pictures, i can here today. see robots over there i know you the ai focus the earnings softbank and turn may be to a vision fund plus a new fence are a man that talks about startups but you also talk about continue to be important as work force. well. caroline: we have a company that from goldman sachs we will bring how is this focused, the that all of the should we will can marry both of those sufficiency going to get together. they also just produced on an blue-collar workers and the ability to need that >> sort of bring all of that next. let's dig in. this is bloomberg. ♪ softbank posted its earning. flavor. we are just learning how the gone up in the vision fund robots are going to change the dynamics on the farm. hippo harvest is still employing segment but the silver lining, local employees and bringing firm ask for tees to bear to the conglomerate has in his heart nessel -- personal the help reduce this produce and we are also seeing new jobs emerge. technology are present throughout consumer electronics. sorting and supporting the robots but also doing that he assurance and control and of chips power, most every single supply pa -- supply chain smartphone on the planet. just reported a 28% increase in management. revenue for the latest quarter. highly anticipated ipo this year that is why we are so pleased to i know you are edge fund welcome granny house. -- renée house. principal that's your job can hippo moves as fast as it done? we have seen overall the chips

sector be somewhat disseminated. the demand reversing and yet you certainly having amazon behind managed to be pushing higher you is a key s. when your clients are following. i think one thing we look what is happening? forward is improving we are very happy with the entrepreneurs. quarter we just had. with hippo harvest we have our revenue is up 28%. several entrepreneurs here. we signed increase of 60% in the our expectation is we will see licensing business in 20% in more of the same and it doesn't royalties. fire amazon. ed: have you eaten the lettuce? we have seen a significant -- >> i recommend everybody try it. diversification. caroline: all types of lettuce, business around the con has been in the double digits. we thank you so much for coming out and talking about hedge fund. our business in colorado probably triple digits. nick ellis. that does it for this edition of this strategy is not now we started it had number of years bloomberg technology. ago. we are just now starting to see uber joins bloomberg 11:30 a.m. the fruits of that labor. caroline: can you give us some eastern, 8:30 a.m. pacific. targets around automotive? don't want to miss that conversation. from new york, from san >> you know these areas are francisco, this is bloomberg. ♪ places where the growth has been

very significant over the last number of years we have made a conscious decision to focus on these new markets particularly with products. as a result we have seen huge benefit from that. every cloud provider has instances in the cloud. our top 50 customers are able to use arm. mobileye and video, all shipping ...meets trailblazer. ♪ ♪ classic meets modern. ♪ at morgan stanley, we may seem like a contradiction...and we are. silicon and to automotive. ♪ ♪ at 87 years old, ed: good afternoon to you. we still see the world with the wonder of new eyes, ♪ helping you discover untapped possibilities ♪ and relentlessly working with you to make them real. ♪ partnering to unlock new ideas, ♪ to create new legacies, ♪ you bucked the trend. to research, innovate, collaborate, ♪ and build the way to transform a company, industry, economy, generation. ♪ i want to dig into this idea of because grit and vision working in lockstep puts you on the path to your full potential. ♪ ed: bettel division fund to still has six point $5 billion how you continue to grow in your customers don't. for fresh investments. is this an issue of log you are softbank are key funds was $5 billion in value in the december not yet experiencing but will quarter. experience later on in the year? it was the segments fourth >> we are no different than the straight quarter of losses and rest of the industry. we feel the effects of the more of course in the world of ai. slowdown but we are buffered to some extent. g 42 hiring dozens of people in we have seen significant growth

gaining market share in the singapore, shanghai, and tel cloud gaining market share in aviv to scout for opportunities automotive and smartphones it's for a tech fund according to sources. been well-documented there was a slowdown in that industry. it will target technology we have seen very good results investment across those markets. of that's been to two main caroline: still getting reuse factors. more value for us but also more particularly in these ai fronts. great wrap up meanwhile what we importantly we sing more technology inside the smartphones. all continue to talk about, we more processors, it means more are talking about social media being front and center in cpus in the smartphone or washington as the president chicken music group -- or prepares to deliver his state of the union address we will bring royalties for us. you the details ahead and what is happening in terms of ed: how confident are you that legislation that will be analyzed by congress. from new york and san francisco, this is bloomberg. those outliers of performance ♪ that you have just like can continue throughout calendar 23? >> who can be really confident these days in terms of where the market is going to go? we are very confident in the long-term secular and that is

compute and number two that is more power efficient compute when you look at the data center and automotive these are areas that need a high degree of power efficiency. something that surprised folks last quarter was a record number of shipments by the armed partners. 8 billion ships that were shipped by our partners. that feeds a cycle of people developing cycle that feeds into more demand. you also see those relative to what is going on but we are very confident the long-term secular trend is very good for us. caroline: someone else's confident around you and it's that the ipo will be this year. as it london, new york? do you have a timeframe for us? >> i can say we are fully

committed to an ipo in 2023. there has already been a lot of planning. regarding location, i can't talk about that notices haven't -- a decision has been made. caroline: when it comes to your relationship call, ahead of the initial public offering, there has been dispute there. how is that progressing? >> i can't comment on litigation, i have to leave that up to our legal team. i can say we are very confident in the case and we think the court will ultimately agree with our position. ed: i want to talk about china a little bit. arm is about the underlying technology. how impacted are you by u.s. and allied efforts to cut china off to access to the latest in chip technology? >> like any other company, we can play 100 percent with

whatever the u.s. government comes down with. because we actually don't make anything physical, what we deliver is intellectual property and license rights to build products with our designs we are not so directly impacted by some of the recent rulings. either chip companies or equipment makers or staff themselves, we have some level of indirect impact. if there is something we need to comply with we comply, of course but given where we set not so directly impacted as some of the other companies might be. ed: your technology is present through so much that goes into consumer electronics. the designs are integral to the chips for smart phones the hot topic, it's artificial intelligence. his arm competitive in that field and i know that you work closely with big tech names that are doing more in-house chips in

this area. >> i would like to say we are for more than competitive. there is a lot have ai that runs on arm already. when you think about inference welcome back president biden at the edge and any kind of will be issuing his state of the artificial intelligence that union address. that is all being run on arm cpus. at the same time lawmakers are there is a lot in the industry targeting tiktok. even today regarding ai that's according to reporting government tech order she joins going to mean even more demand us now from capitol hill and for our technology. maria first and foremost on the when you look at the work was state of the union just talk to us about why this time this that run on cpu and accelerators, there is room for acceleration to take place in focus on children he has done it both areas. once before but it seems it i think the area we will perform should be bipartisan agreement well is power efficiency. here. it might not be different this these new ai algorithms are year. that is certainly what the president is hoping for. intensive and in our broker we he has identified it as one of don't have that much energy to throw at a problem it's going to the four areas were republicans and democrats can actually unite be critically important. and get some legislation passed caroline: from your global there is a bipartisan interest in protecting kids online. it is something that resonates

perspective can you tell us with errands across the country where the u.s. sits in the race? ensuring their kids are protected from the cyber when it comes to artificial bullying, the mental health intelligence? >> certainly the u.s. is impacts we can all see on social media so he will be highlighting investing very heavily in this. that this year. ed: the senate judiciary you so that take place today with google and microsoft. committee is going to hold this hearing on protecting kids or the u.s. is versus other online this week. geographies, it is clear that how is this a long-term goal for artificial intelligence whether biden think he has discussed this before relative to trying it's a spot of fake playlists it is finding its way into our to put pressure on congress to lives and i think it's only do something on it. >> this is definitely an issue going to increase. ed: we look forward to that ipo. that can be tackled from multiple angles, not just from congress but from relevant sticking with chips intel is federal agencies like the federal trade commission. looking to raise $11 billion so it certainly can be a long-term goal on various fronts through the bond market. a source says seven parts and but the senate judiciary committee will put a focus on time to take advantage of the the 118th congress. the witnesses have yet to be determined but we can expect demand and lower borrowing costs. conversations on key legislation following a series of downgrades from major credit assessors. that did not make it across the finish line but did come so, expected to yield 215 basis yeah.

caroline: was interesting, when points over treasuries. again, according to a bloomberg we have gets on in particular source. caroline: the ai race heats up fcc commissioner's and the like they talk about this should be and microsoft is announcing its driven, the tiktok focus should ai powered being search engine. be coming from the administration rather than from congress. is there any update whether the let's take a check on one tech administration stands on tiktok and access to it? company, zoom closed higher by >> we heard recently the 9% tuesday. it's actually announcing cuts to president is not sure if tiktok its workforce. should be banned but interestingly congress's that's part of restructuring. approach should be giving the the ceo called himself president or authority to limit tiktok so it would still end up accountable for the issues and he would himself reduce his being an executive branch effort salary and forgo his bonus. more on that ahead. . importantly, senator warner is this is bloomberg. working on a bill that would ♪ prevent giving other countries a platform for retaliating against u.s. companies so that is a consideration moving forward as we see more bills pop up. today's markup of the three talk to -- tiktok hills empower consumers to have more knowledge about their app they would,

(upbeat music) there's more to business distributors be required to tell than the business you're in. (robot whirring) consumers it is owned by a want smarter factories? company that is based in china that's the internet of things business. and that the data is being accelerating r and d? collected. data science business. this is taking on a different hey. have a look. managing global supply chains? approach. shrink our carbon footprint business. ed: thank you. thank you. (in foreign language) that's where deloitte comes in. with a potent blend of acumen and technology i look there to the state of the to help advance and connect union. to an end at 8:30 p.m. new york all that it takes to excel in business ... time for full coverage of the to the business i'm in. presidents state of the union deloitte. address. staying in washington, two u.s. senators express their concerns to mark zuckerberg over risks of developers having access to user data. hundreds of thousands of that's stitch fix. developers in countries ...and how can you help me? we do the shopping for you. characterized as high risk had you tell us your size, budget and style. access to significant amounts of wait, is it a subscription? sensitive user data. no. style for me? for me? the senator said staff help for me? always. we'll pick the clothes. you enjoy the great fit. meetings with company execs to

stitch fix. thanks to avalara, we can calculate see who could get the data and what facebook land to do about sales tax automatically. avalarahhhhhh it with regards to protecting what if tax rates change? ahhhhhh filing sales tax returns? users'information. ahhhhhh let's stick with meta-. business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? the company is asking many of ahhhhhh ahhhhhh its managers and directors to ahhhhhh transition to individual contributor jobs or leave the company as it tries to become more efficient. joining us as bloomberg's sarah who broke the story. the mass round of layoffs, i imagine there are a number of employees who have been waiting for the ax to drop in this case is very specific roles that mark zuckerberg seems to be going after. >> ever since those 13% cuts in the first time you made a sale online was also the november, the historic time for the company you have seen a first time you heard of a town named... dinosaur? we just got an order from a dinosaur, colorado. number of other rounds of layoffs in your thinking what's start an easy to build, powerful website for free coming next? with a partner that always puts you first. are we having another round? godaddy. amazon had another round there

tools and support for every small business first. is a thinning of the ranks happening at meta as we speak. managers are getting told by their supervisors, you need to get to a point where you are caroline: the big revealed doing individual contributor work whether that's coding, sunday microsoft announcing ai research, design, whatever that technology to power new versions is that you can do that is part of its bing search engine. of building as opposed to managing, that is what meta-values right now if you microsoft corporate vice can't do that, if you don't find president and husband a busy day yourself in a row like that, we will have to ask you to leave. -- it has been a busy day. caroline: to that point, the there is a weight line to start nice package, if you're being using it in this way what has asked to pull back on managerial the reaction been like? >> its early days but it is role but do more yourself, is already a lot of sign up that more valuable or less in terms of recompense to you? >> it's unclear if people are interest on getting a lot of emails for people that want to being asked to take lower get in the front of the waitlist. salaries. i imagine that would hard to i think we have lit up peoples swallow if you are a imagination of what is possible meta-employee. but i think the important factor by infusing ai and chat and getting to a place where you can here is that the company is

trying to become more efficient. sucker bark has called it also get answers to your questions. efficiency. i think it struck a chord so far they are calling it the so we are pretty excited about flattening. it. caroline: struck a nerve is an they are trying to make sure there are fewer steps to getting things done and trying to make interesting way of saying it sure that products are better, because it feels like you struck a nerve underneath google's will profits are better. all things across the board can because it's talking up its spot at the moment. be solved by having fewer discuss why that seems to be the matured -- managers. flurry of announcements for this i think that that is the take generative ai within search. >> we have been working at it away whether medical actually be more efficient as a result of for a little while and we have been excited about it. this i don't know. i think that there are roles today there is 10 billion that have been created for a quarries that happen on any reason but what i have heard in given day. that to us is a huge opportunity talking to employees at the company is there is some to sort of reinvent search. encouraging signs here. ai in the last several months people who have noticed there has seen an inflection. are managers who are only in charge of one or two ways, there are some teams that are tasked the user experience, the idea of with doing jobs that are in being able to chat, the combination of those two things conflict or in competition with has come together for a big other teams. opportunity.

ed: busy day as caroline said. certainly, those things can be sorted out and asked in this next round and maybe the fact i question is why now? they are not doing it all at how ready is it? once and more on an individual how convince are you that it is basis. ready? i think there was a lot of i thought the timing was tension following the last they interesting. >> as i mentioned we have been working on it for a while. also people didn't hear about it until the last minute. caroline: every single person we do feel like we are ready to go to a limited preview and we wants to be more productive and effective and have more impact are happy to shift in that at work. do we know if there's bits of state. in the evolution of the the business this is going to affect, where it got from a technology there is only so much you can do in the lab and then you get to a place where you managerial perspective? >> i think the company wants to need to get the user feedback. focus on some of their court you need that to improve the initiatives. product. we know they want to improve we have a well idea in terms of how to chat and search and browse. artificial intelligence for we put in all the good work to better add targeting, better algorithm sharing on their reels make sure it is a stable system we are looking forward to giving product. feedback and improving. ed: you say open ai has a closed they want to ensure some of the work they are doing can profit. it has been licensing access to translate to pay will phone user. developers. there are some really key

is there any element of initiatives that are working towards here that are focused on profits. exclusivity in this arrangement would open ai that gives you an one of them that was mentioned advantage over others? on the earnings that caught my eye was this transition to utilizing the underlying making money in messaging which technology? >> and can work with many is something people have been asking about for years. sucker berg says there are 10 companies. we worked with them together so billion annual run rate revenue. closely so this latest ai model underneath the covers which we announced today is a brand-new we'll see the company get a lot one. this one is much more powerful. less experimental and more thoughtful about where they we worked together to make that spend their time going forward happen. to try to bring a sense of certainly other companies can work with the technology but i think we have a great efficiency and energy. collaboration there. caroline: so far music to some we are making that across because the cloud powers the backend. investors here's. sarah frier, thank you very much. senior editor of that team meanwhile, coming up we will talk about the future of mobility from evs here on earth to planes, to the moon. cyrus and gary next.

keeping a key i uncertain sure is right now ed: as i said the stock moving in lockstep with the s&p 500. a lot of this about fed chair powell's comments. the edge browser and what they can do to boost their competitiveness against google in particular. investors liking what they see. this is bloomberg. ♪ introducing the new sleep number climate360 smart bed. only smart bed in the world that actively cools, warms, and effortlessly responds to both of you.

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ed: later tonight, president biden is expected to discuss his economic progress so far including how the inflation reduction act will drive manufacturing and supply chain improvements and by extension cut u.s. emissions. speaking of which a report looking at all the transit and transport in 2023 it is based on hundreds of studies and draws some critical conclusions. funding from mobility has outpaced most tech sectors but secondly mobility has become the most written segment when it comes to looking at how to combat emissions here in north america joining us to discuss managing partner and cofounder, before you joined us here in san francisco for the show you posted on linkedin about a port coming out, hundreds of people

engaged and said i would like to see it. more money into mobility than any other subsector and also the mobility counts for more emissions what is that you discovered or found? >> thanks for having us. the big takeaway is mobility rapidly. it represents about 38% of all co2 emissions. it's a $10 trillion market is a convergence of one of the most things for society today, how to reduce carbon emissions and how to move things on ground, sea, air, and space. ed: i guess the conclusion, this is where the money is going, this is what the biggest contributor to emissions is. when you think about mobility, you and i have spent some time with some of your portfolio companies in areas you confessed what did findings of the art as

you did do with your own investment thesis and where you are looking to make change? >> we just released it so we get to go make decisions. a couple of key takeaways, one is in the industry we are facing a major shortage. we will be at 65,000 pilots short by the year 2030. we are looking to invest in technologies and businesses that can sell that as we go towards electrification of everything, a massive material shortage. we are looking at an increase in lithium batteries. an increase in the lithium ion price index. the entire ecosystem for technologies to create lithium-ion batteries, cleaner ester, cheaper a huge area of investment for us. ed: one thing that jumps out is the demand curve going through 2030. when you discuss with your

portfolio companies, as you go out with making an investment in mind how do you fix the problem? which areas do you invest in to fight the shortage of supply? >> we made a couple of direct investments. using ai to help understand what materials can help solve -- >> and ai company. >> it's very relevant to what's going on. a company using computer vision, ai in juries to look at batteries for their faults. it can take 45 minutes to put out a fire for an high-quality product going out the door, that is a good investment. caroline: what about the focus federally? what about a desire for lowering emissions and seeing a labor shortage alleviated, is that headwind or tailwind for you? >> inflation reduction act has

created pretty significant tailwinds for this entire industry. we are looking at 100 billion dollars allocated into hydrogen, clean energy, is going to create activity around mobility. one big piece of news is the upcoming green deal in europe. they are looking close to a trillion dollars to go2net zero by 2050. this is a huge secular change moving things. it's having literally an active congress, here, europe, elsewhere is going to be our to see these major changes in how we move about this planet. caroline: you are a man who is so passionate in particular flying from a very young age. understanding how to navigate the skies talk to us, there are other people who navigate the

skies, run these businesses, many come over passionately wanting to bring down the emissions curve. are you seeing the focus on real innovation coming from the big companies or does it have to come from the small companies? >> i think it's really a partnership between entrepreneurs and of the largest companies to affect major change. a company like zip line which uses drugs to do package deliveries and partner with walmart. they deal with 500,000 delivery flights lester. we have seen an increase double-dip previous year which doubled the. i think to your specific question you have to get the entrepreneurs to partner with the largest companies. ed: you are a very able pilot across a number of areas. my head is often up in space and i was interested to see a focus of your work and the opportunity

why >> go there? why look at that? it's really the last frontier for us, is space. it's important to recognize the consequences. the way people should think about starship is like the roadway for space.it's making io get a pound payload into orbit. when you make it free to get a pound payload into orbit, you can't understand new businesses can have a -- this is a huge area of investment. ed: managing partner and cofounder, good to catch up it was so interesting for me as well, the opportunity as an investor we see so many of these reports saying sustainability offers an attractive return down the road. caroline: it's the same, we got the exact same conversation coming up. we are going to talk about a company that uses robotics, uses greenhouses to reduce food

waste. backed by amazon, nonetheless. we will talk about that in a minute this is bloomberg. ♪