ed: i'm ed ludlow in san

francisco this is bloomberg technology. breaking news at the top of this hour. after hours trading after tesla is said to have been in talks and oink david. -- away a bit. another former member of sam bankman-fried's circle planning to plead guilty. we bring you the latest developments. and we continue our deep dive into the world of artificial intelligence. kevin dunlap co-founder and managing partner joins us later this hour all that coming app. let's get a look at these markets. you can see the nasdaq 100 the market passing a lot of fed speak at the moment. will it be 25 or 50 basis points. 7/10 of a percent down heavy index it was a 0.4% on the week.

sort of rebounding from the decline we saw last week. that is sealed's pulling back a little bit you see the u.s. 10 year yield around five basis points. made a late effort friday to try to breach 25,000. it fell away as this kind of treading water because sunday is a holiday for presidents' day. let's go from the macro to the micro in terms of specific names across the technology sector. so many news headlines but up 3/10 of course from a steep decline. draftkings surging and microsoft third straight day of decline down 1.5% on this friday.

interesting that they brought out some initial findings how ai tools are boosting actually the stock market and the crypto jumping 16% no regrets for ceo pretty bullish when it comes to crypto. sigma lithium bloomberg reported according to sources that tesla has been in talks potentially to acquire sigma the minor focused on what the stocks include the deal will definitely happen but bloomberg reports we will get into later that -- and to that later. and former member of sam bankman-fried's inner circle is planning to be lead guilty to criminal charges. want to bring in to talk about

details. >> this is the skip for it covers the southern district of new york wesley for bloomberg news remember close to a plea as well as carry ellison members of the inner circle for sam bankman-fried very key figures as the united states pursues its investigation of sam bankman-fried. the former director of engineering over at ftx had attended a property for session which means the individuals could printed limited immunity to surety tells about what happened at ftx. this is very close to coming down the pipe as well as potential suit from the fcc. ed: thank you. i think we had some issues there

with your mic but i appreciate your reporting and getting across the key details. let's stick in the world of crypto. the largest crypto exchange is considering ending relationships with u.s. business partners as regulators turn up heat. i want to bring in the person who broke the story, thank you for joining us. what are the latest details? >> we are learning that the global exchange is starting to have to think about a plan to retreat from the u.s. especially the remaining business relationships in the u.s.. binance is considering pulling back investments in the country. looking at cutting ties with some of the intermediary firms such as banks and other services firms and also an assessment after u.s.-based tokens potentially including a major staple coin and i have to at

these are still preliminary considerations. no firm decisions have been made this is an assessment the company has to deliver given the regulatory crackdown in the u.s. as we have seen from a flurry of actions in recent days. ed: our services giving us a pretty good sense of what the company is considering. binance did issue a statement in response to the story. we will bring it up on the screen now. like every other blockchain company we are conducting a careful analysis. that according to a binance spokesperson. the easy question now is what happens next? >> we are looking to see what steps binance will be taking we also understand finances in settlement talks over the investigations that have been reported by us and other press

and there is no clear details on either the timeline of the settlement or the amount of the settlement we also now either crypto companies are starting to look at the plans of potentially moving offshore as well we know that next those had already made announcements to pull out from the market after receiving orders from other states. binance wouldn't be the first want to start considering how a retreat will look like and i have to mention that binance u.s. which is set up as a separate platform designed for u.s. viewers -- users had no plan to exit the u.s.. ed: i want to get back to those breaking tesla headlines ahead of the top of the show. tesla is set to buy sigma lithium even for a friday you

see now it is still higher by around 26% those are the u.s. listed adrs of that company it is also traded principally on canadian exchanges tesla is said to have spoken to potential advisors but is always in our reporting, sources telling us that these considerations are early-stage. one source telling me this is a number of job jens -- have options for tesla. focus on capitol hill and beyond we will bring you all the details of what is happening out in d.c., next. this is bloomberg. ♪

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ed: in washington, two u.s. senators are urging a key national security panel to quote and pose strict its chinese parent company and in other news the ceos of amazon, letter, have been subpoenaed by the gop. on the hell, we are joined by anna edgers and in d.c. and big tech correspondent alex brinker. let's start on the issue of tiktok. we covered all week the strange relations between the u.s. and china. we covered your reporting on tiktok, what is the move in d.c. about how to act with tiktok? >> i really summarize it as one

of distrust and what was striking about the letter which we saw yesterday, it is a letter from richard blumenthal and j moran a republican from kansas we don't believe that we are hearing from tiktok when it comes to assurances that the chinese parent company doesn't have access to user data and a that on the skill of the algorithm. we don't trust the security arrangements we are hearing from the company and the assurances from the lead lobbyist here in washington even the ceo himself we don't trust there is going to be enough to protect u.s. users from chinese interference. ed: tiktok ceo is due to go to the hill. what do we know about that and i guess in the corridors of making center of our world, what is the attitude towards tiktok going into it? >> it's striking how bipartisan

this is there is a bond of mistrust about what tiktok's interest is in growing the influence here in the u.s.. they are saying things like why would you spend $1.5 billion? if you weren't doing something various. there is a lot of disconnect between the popularity and the national security concerns we hear echoed that is the broader discomfort with chinese relations right now things like this bill and that was shot down for chinese survey let's is something that ramped up tensions even further and made it even more likely that both republicans and democrats will feel pressure to push back on a company that is part of a chinese parent company. ed: alex springer, bringing you went from los angeles. tiktok has a massive user

footprint in the united states. you and i have discussed a number of times that the user base doesn't get it. they feel that the risk has not been communicated to them order the companies doing to address concerns? >> i'm sure you have heard of something called project texas. it's an initiative to bring people to help with security and to make sure that there is nothing of users data or influence on the algorithm that will get kind of nefarious. that is the exact plan that, as anna said, lawmakers seem to be skeptical of. talk is continuing to push forward i was on the app today and they launched a new trivia tilray you could go answer questions so it seems like they are moving full steam ahead in

terms of making sure that people find delight in the app. folks are spinning about 100 minutes on the app every single day. there is this interesting device where there is concern in d.c. and mostly just a concern about being entertained from users here in the united states. ed: but also, alex, what you noticed, not just with tiktok but i know this to be true with twitter and meta how much energy as the company putting in? how aggressive are they? >> it's interesting. last fall we wrote this thing on their efforts. they weren't giving a lot of love to the josh hawley's of the world folks were the loudest in the room bringing up concerns against them it seems like that strategy has not worked in their

favor we have heard at there has been reporting from elsewhere that they have changed, they have been more aggressive so the company is making moves definitely the dollars are going towards these kind of behind the scenes conversations. ed: all of those big tech ceos have been subpoenaed, what are we hearing from sources about what could come out of that? >> this is really what we were expecting from house republicans this year senate democrats having the majority and house republicans having a majority on the others of the capitol there is not a chance that there's going to be tech for this legislation that's going to get through so house republicans are using their majority for this investigation and the main concerns is getting to the bottom of hunter biden's laptop why was that story suppressed before the last presidential election? the cooperation between the

biden white house and these big tech platforms on addressing misinformation around things like covid republicans will say this is a free speech issue, that they are worried about the government putting it somehow the scale using these tech platforms this is like the opening a and demanding documents from the ceos to make sure they are getting the kind of transparency that house republicans believe they deserve. ed: and and alex bring, thank you. coming up, saudi arabia's public investment fund just became the largest outside shareholder of nintendo we will explain why in talking tech, that's next. this is bloomberg. ♪

ed: nintendo sales have overtaken those of the playstation 4 you can see in this chart, gradually holding the mighty ps4 interestingly though, a slight slackening of growth in the most recent months of which a bit are later. you say that's not a fair comparison. even taking that into account you can see and tender is outselling the total unit sales of playstation across the board. and is not expecting to sell as much this year as people had expected.

i see these pace of sales for nintendo switch as bullish as a consequence the share price is being punished. ed: time now for talking tech let's stick with nintendo for a second. saudi arabia's public investment fund became the largest outside shareholder of the videogame company. this is the latest move to lower its reliance on oil the sovereign web fund owns 8.3% according to a filing about 6% at the start of the year putting it ahead of japan's pension investment fund and only behind nintendo's holdings. moving onto the world of pc makers lenovo's profit fell for the first time in three years. forcing the company to warn of job cuts. the company has been struggling following the pandemic work from home era.

the pc market may stabilize sooner than expected. back to crypto the sec saying crypto fugitive transferring 10,000 bitcoin out of their project and turning it into cash. previously denied wrongdoing and south korean authorities are still seeking help in the hunt to find them. turning the tesla, reactions, tesla is recalling 303 -- 363,000 vehicles. the recall has little financial impact that the risk clearly remains. investigations are ongoing. colin joins us now they have a recommendation, 150 dollars price target. the recall happening and over the air update fix doesn't do

away with longer-term concerns and other words still looking at asking questions of tesla. >> absolutely, it's an over the air update at no cost to tesla. i think it does show that it's going to take action. i think there are reportedly over three dozen investigations ongoing and it's not really just that set. there is an indication they are asking for information. there is the sec that might be investigating again there is a lot of those risks out there and i think tesla investors need to keep that in mind. autopilot is an extremely important feature for tesla if there is regulations on its use or pullback functionality that's going to be a concern for the stock. ed: elon musk even interview

june 20 where he described the overwhelming focus for tesla being to crack full self-driving and he said it's essential because really the difference between tesla being worth a lot of money and being worth zero is the success on fsd data. do you model that into your price target? do you agree with that thesis on how tesla should be valued? >> not really. i think he has already walked back some of those targets. in has been clear across the board that ticket the full economy is very challenging. full self-driving is, you know, it's not full self-driving hole for bubble five it's going to be advanced level two type system. i don't see most of the experts i have talked to the strategy seems like it's going to take a very long time if at all possible so i actually don't put

a high probability of anything near term entrée. driving the way people are thinking about. could that massively change the valuation? absolutely. i just on think the technology is there yet. ed: tesla is considering a bid lithium, cigna a source told me tesla is one they are looking at. march 1 we will get master plan part three which part of, we understand will be how to scale beyond tesla's current level what are your expectations for what we will look for elon musk? >> if you look at what is happening with tesla, we had, it seems like there were clear signs that demand was softening. we had this massive price cut. how long does the price cut peak demand going so you actually need to start getting line of

sight to what is the next driver i think the key event is going to be focused around understanding what they talked about i think most people are guessing it's going to be a lower-priced model. if you get to 30,000 or below that is obviously widening the market and getting people excited of you can do economically. i think that is what people are expecting is discussion of a cheaper priced model with better economics behind it. ed: i now a lot must, tesla is probably not how you want to end your day but talking about a regulatory risk and damage to credibility, what are the other risks tesla is facing right now? >> expectations are high after the recent run. i think we have to see what happens april 1 when the full ire credits come in the 7500 to

see if demand is impacted there. i think there is high expectation. it's probably going to be longer-term. that might be more aggressive than what we saw yesterday but still remains a long-term risk shouldn't forget about, maybe it'll all blow over but it's still something to consider. ed: wills for coming up everything generative ai how is it going to impact? we talked to kevin dunlop. all of that coming up next. what a conversation. this is bloomberg. ♪ ♪

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>> ai deserves a ton of credit and taking it out of the

research labs of these big tech companies. >> they are really at the front lines of bringing these technologies to application developers and users. >> they were very careful to put in place safeguards to prevent certain types of toxic or harmful content from being shared. >> i wouldn't be surprised if we have one of those that are capable of truthfulness. >> i think every company is going to be an ai company and everything is going to be transformed by ai. ed: those were some of technology because sharing their recent thoughts on the billing ai sector. for more on what's going on and the impact to tech moving forward i want to bring big andy. this friday about actually so much focus on what it will do in the search orders being revival

versus google for you this is about cloud explain your thesis. >> i think what you're going to see is everything around us that comes to apps, websites, software will become more intelligent and what you need to drive that is cloud infrastructure so think of, you know, how our data centers are set up right now it's essentially a certain kind of workload which are mostly cpu driven now that we have power of these custom chips that can run ai workloads that can run these large language models and allows us to leverage all of that in our day-to-day experience which is why i think cloud growth was extremely strong even before the slowdown and i think this even accelerates that on the server-side. i wouldn't be surprised if it drives up the cycle on the consumer enters aces as well.

ed: a conversation we have had. of course aws dominates this market. they have not shown there head when it comes to their ai are at least there out there consumer haley. there is an analysis you have done about how much it's going to be connected to large language models. i think you said some between 15 and 20%. why did you point that out? >> think of, you know, how many types of searches actually require that large language context. some of these searches are looking for a website or some basic information. we are a -- where a large language model can add value or drive some intelligence around the type of or you don't want to

access the url but make it intelligent in terms of saving the time and productively. if you look at all the queries people do on google, we kind of narrowed it down to 15-20 percent over the next 2-3 years. you can see education at a lot of that is using negative context around copying essays of that kind of stuff but there is a real use case around is a dutch education as well as queries or you can do things like summarizing things quickly. i think that is where we get to that 15-20% number. ed: bloomberg intelligence officer, thank you. kevin dunlap managing partner is with me now this friday. the second front of $97 million back in december 2020 one

specifically to invest in early-stage ai and automation startups across helped her, logistics, education, financial services. let's get the big picture from you first. you heard all the data points semi-but you are seeing right now as the moment in ai would is it that is before us? >> when we started calibrate first in 2017 we believed there was an unlocked that was going to occur similar what happened in the early 2000's and it now we are seeing that. the ability for businesses to build on top of these large language moderates as well as taking and implementing these actions into realities. ed: the chronology or the timeline is so interesting you started or lunged europe on in 2021i don't know how much of the capital you have committed yet but this took off in november of 2022, right?

i wonder how you feel about how much hope in has dominated the headlines because the names you're looking at have nothing to do with open ai at this moment in time. >> all of our companies are looking at how to use generative ai. some have looked at using open ai. but the timing and the press received is actually great. it actually highlights the opportunity that's out there and even some of the things you are saying and some of the potentially negative things you are seeing i think also highlight where we are in the cycle. we are at the. early cycle of this other needs to be a lot of moderation, content filtering, and hounding of these models to understand and take them into applications. ed: we were discussing the potential for cloud and enterprise out of generative ai

but the consumer facing excitement is about search. are there developments that are have to jump from google to another search engine? we will bring up the results for you i don't know how surprising this is, kevin. 44% saying it's too early to tell. 24% saying yes it is more now -- now more exciting is that really true? >> i think it's a game changer. i was joking about this the other day if you asked me a year ago quarter the chances ai would download being it would probably be secret. i think it is a game changer for microsoft. ed: going back to my last

question about open ai, should we be thinking open ai for what they have done to get momentum around generative ai? >> i think we should be. i think what it's doing is opening opportunities, it is allowing startups to be more cost-effective and get products to market sooner and allow to scale faster. i think the intention that has been brought on by open ai is actually positive. with everything, every product launched there is always about lots of the perfect product versus market. i think we have seen a little bit of that here the hounding that's going to be happening, the ability to customize we just had an announcement on last night, i think those will do wonders for the product we are offering. ed: you have been doing this since 2017, $97 million funds

the end of 2021, how do you value your portfolio company? there is a pot of broth the public markets. it's one way of benchmarking your private portfolio but 800% gain for big bear ai, or that 100% for c3 ai, must be a nightmare. >> the benefit is being we have a long-term horizon and even though we see a rise in the companies it started to, for little bit and we are seeing more return to normal. i think the hardest place right now is the later stage financing of these pre-ipo companies i think that is where i would be the most cautious because that is where it is a hard time to understand what the public markets will valuate these at in the future. ed: at the early stage of the curve are you having to write bigger checks? i think there is a proxy to be

more competitive to get into promising companies. >> i think the size has increased its more runway to actually execute platforms. we have been fortunate to do this a long time so our expertise has been a nice benefit for us to win deals. ed: kevin, what is your personal relationship like with artificial intelligence? bear with me on that one. you are an investor, i'm trying to get in on the chatgpt waitlist. you sitting your desk every day and communicate with ai and all the different apis and tools that are available to you? >> in general, i think we are interacting with ai in lots of ways without knowing it. robotics companies use ai to

taste side what movements to take in the real world. web searches using some form of ai without us knowing. i love playing with chatgpt and asking it questions and seeing how it responds but i also take every response that i get with a grain of salt. i know this is an early, large language model. i know the answers need to be verified and understood in the appropriate way so i think people also need to take that same approach and understand this is the very beginning and you also need to verify information. ed: you took us there so let's stick with it. affects accuracy, false information, and accuracies what is the biggest risk to this sector right now facing artificial intelligence? >> that's a good question.

i think the biggest risk facing artificial intelligence is the backlash. what we are seeing now is companies moving quickly to add in these moderation algorithms and understand what is being delivered to a customer. two beautiful enterprise level, is going to take a couple of years. you are still at a factor where you are generating 40 images called soft robotics they use generative ai in some of their images it is still not out of skill or you can create a bunch of industrial images. so i think the adoption cycle is the biggest risk. as we have seen with all technology, we figure out ways to work with it. ed: kevin dunlap managing

partner we will have you on later in the cycle and see how it went. coming up, draftkings soaring after a fourth-quarter revenue beating estimates and analysts responding positively. we will have jason robbins next, this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh that's stitch fix. ...and how can you help me? we do the shopping for you.

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>> way to areas like semi

conductors, green technology. a lot of the tech companies hopefully they find a way to generate the capacity. ed: talking about how and investing in companies that are going to benefit from the investment in ev charging structures and how companies might benefit from those that are seeking a job especially in those backlogged industries looking for a boost. general motors ceo saying this year is the year that gm moves past its rival and starts to close the gap on tesla. it is a long awaited push. they will use its outlet the m battery but it has only recently started production. >> it is critically important if we want to achieve goals to get

40 and 50 and yonder. you have to get into that 30, 40, 45 range because that is where the bulk of the market is. that is why i am so proud of the chevrolet equinox and laser both evs that are coming out this year. the equinox will be our route $30,000 and those are very affordable vehicles. ed: 30% higher at the end of the trading day in new york reaching the highest level since august. this after the sports betting company reported revenue better than expected ceo jason robbins joins collies earlier today -- joined my colleagues earlier today and this is what he had to say. >> really feel good about the trajectory of the business and really great check -- track to

have q4 be a big quarter for us. sort of what drives the growth going forward here? this is a business that i think to a certain degree was out in front. sort of the shift to these platforms here and a lot of people want to know is this one of additional users or is it may be trying to monetize a user base that you already have. >> i think it is all of the above. we are in the infancy stage of the industry. the artist only 10 of the users coming in. states are passing new legislation. you are finding customers that are adopting new sports, new products, and growing their spend with us too. if you look at it, we had consistent growth both in our monthly users and in our average revenue per user. we expect that to continue. we have massachusetts opening up

hopefully in march. lots of great stuff on the horizon. >> do you see yourself entertaining and other large deal after the environment is changed? >> lawyer focused on our internal operations on becoming more efficient, finding ways to cut costs, finding ways to grow revenue, that's been a huge plus for us that as the environment has transitioned really it's afforded us the opportunity to look internally and spent a lot of time asking ourselves how can we be more efficient and cost-effective? ben has been the thing for the last year and that to continue. >> talk to us about partnerships. one thing that struck me i noticed one of your competitors had set up a sports book operation in one of the main and a full stadiums in washington. are these types of deals necessary ideas to continue this

sort of capture market share and keep people tethered to your specific brand? >> you know, we have a handful of retail sports books across the country. i think they serve a great purpose. we are building a really big one at wrigley field and another one at this site of the tpc scottsdale phoenix open. they do have a place, i think it depends on the deal if there is a good deal to be done we feel is going to be a profitable one that's cost-efficient, i think it's something we pursue we are mostly focused online. we're -- there is a place where it makes sense. ed: that was draftkings ceo. closing 15% higher i shortchanged them a little bit but the biggest jump since november in the stark closing at the highest level since august. want to watch for sure. coming up less than a year back

and vince mcmahon delivers the smack down. to potential wwe buyers. $9 million price tag, we will talk about that next. this is bloomberg. ♪ ♪

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ed: it's going viral that's mcmahon is looking to get as much is $9 billion on a potential sale of wwe the company he returned to this year. already 7% above the company's current market value. bloomberg's lucas short break

that story and joints me now. any offers yet? >> according to people familiar with the conversations, there have been at least a couple of offers. there was a story about a month ago that saudi arabia already had a deal to buy it, that was dismissed by nick on who is the ceo. we now that there is interest from middle eastern investors. we know there is interest from endeavor which announced the ultimate fighting championship. there is a lot of interest from the strategic partners, the big media companies, comcast, fox, netflix, disney and its peers. it seems like the interest is more from the saudi's and endeavor but it has gotten offers for people beyond the expected list. ed: looking at share is really jumping after the headlines reportedly dropped. why such a high valuation? what justifies it to vincent

mcmahon spline? -- vince mcmahon's mind? >> it is up a lot in part because people expect there to be a deal that anytime you so, you aim for a premium so you at least a billion or two on top of it and that puts it in the eight-9 billion range. in terms of why the company is worth that much and is able to deliver a very consistent audience. it delivers a live audience. there are companies paying hundreds of millions of dollars for the rights to show the programming. if you on it you can have more control over it. and there has been ongoing efforts or desires to take some of those characters from the regular show center that into fell, television, something like that. ed: lucas short giving eyes on that deal. we will continue to track it. i want to get back to the breaking headlines on tesla.

according to sources weighing up a bid for sigma lithium. adr jumping 30% in after hours even on a friday. admit volumes according to sources tesla speaking with advisors, and has been considering this. of course no deal is certain but one deal will continue to track. that is it for this edition of ploeger technology. don't forget to recap on our podcast. a lot more to discuss around the world of technology. this is bloomberg. ♪

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david: looking for answers about those flying somethings we are shooting down, where the economy is headed, and when we will bump up against the debt ceiling. this is "wall street week." i am david question.