announcer: from the heart of where innovation, money, and power collide in silicon valley and beyond, this is "bloomberg technology" with caroline hyde and ed ludlow. caroline: i'm caroline hyde at bloomberg's headquarters in new york and ed ludlow is off today. coming up, a look at the outlook of the u.s. china relations as tension summer after tiktok ceo's testifying before

lawmakers. microsoft's accurate -- activision deal getting a boost from the u.k., details as regulators narrow the scope of concern. and we talked the health of venture investing accelerating ne-yo and look at the state of hiring in the tech world as more companies announce layoffs. first, let's check in on these public markets. putting off from lowe's, nasdaq off a few tenths of a percent, a swirling concern toward the weekend, may be risk aversion towards it i had of more concerns around the industry, this time from deutsche bank, from germany, still worry about what it means for the ramifications here. stoxx 600, the banks part of that index off by more than 3%. look at in terms of the havens, the dollar is down versus the japanese yen and that is where people seek some sort of safety. let's move on and look at where this has been seen as a haven,

today not so much, bitcoin up by .9%, the biggest exchange is binance signing they were not able to get through some of those spot trades in bitcoin. eventually ticking back up again, tentacle icam in new york time and still under pressure. >> that's right. a very volatile day on the cross i set move, seeing investors dive into those safe havens and interestingly looking at the nasdaq 100 because for a while there it had been outperforming the s&p 500. the last two weeks or so as investors were kind of piling into that as a safety trade but not today. and you look at the individual movers, we are seeing pockets of strain. first republic up getting a big spike in the last few minutes, up about 3.4%, still down about 90% year-to-date as the turmoil persists. when you look at the technology stocks, netflix up 12% in the last two days, bank of america

saying the company's bid to crackdown on the password sharing could boost subscribers for the video streaming company. ai also moving up higher as the trading persists, almost 5%, jp morgan raising a price target from $27 to 28, just about there at $26 a share and activision blizzard also up higher 5.3%. u.k. regulators saying they will focus that probe on the microsoft deal just on the cloud surface part of the company and analysts are saying that means the deal, the $69 billion takeover of activision from microsoft has better chances of going through so we see a nice lift the nasdaq 100 higher, still on the top line weakness. caroline: well said, emily graffeo. wish you a wonderful weekend. let's look into what the geopolitics at play, it has caught our attention the last couple day.

tiktok ceo doing little to calm u.s. concerns over national security during his appearance in congress. during the testimony we spoke on our show with congressman jim himes for his thoughts on an outright ban of the social media app. >> i've said this before, i work a lot of national security and tiktok is not on my phone or near my phone and people in sensitive positions because of what tiktok is probably more accessible to the chinese government than most platforms should be on anybody's who phone. an outright ban, this is a deep breath moment because the american people need to reflect on equities associated with saying sorry, the federal government does not going to let you use this media. my question is where's the limiting principle? caroline: one congressman not pro a ban, let's get to alex barinka who has been speaking to other congress people. what we think that showing from shou chew, did it persuade anything otherwise? >> the representative said deep breath moment and there were not

a lot of those moments in the room. the fervor in the room i have to tell you was one of the most contentious hearings we've heard and did not seem like chu was pulling a lot of folks onto his side. from the drop, chairwoman cathy mcmorris rodgers basically said we don't believe you and the answers you are bringing to the table how you will seek her -- secure americans data. that sentiment was echoed from both sides on the right, democrats are coming after him about how to protect children and data privacy and why isn't this an american company, republicans on choose left were voicing the same. it seems both in that room and based on a lot of the senators and -- that we were hearing from during the hearing that there is a lot of wins against tiktok right now and a lot of concerns that choose testimony honestly stoked yesterday without answering any of the kind of questions a lot of the lawmakers had.

caroline: whatever the case, if they do choose to ban it it will take a while. what about hearts and minds of people that use the app, what about influencers, tiktok creators on capitol hill? ali: in that room -- alex: in that room behind shou chew was a group of influencers the company brought him to capitol hill to show off some of the 150 million people that not only use the app but also have their businesses on the app. i had an opportunity to talk to some folks and i asked all of them if your representative or senator votes to ban tiktok, will you vote for them? they all unequivocally said no, they would not give my vote in that situation. we heard it from some folks in the room, from the influencers yesterday, we are also starting to see on social media users start to talk about some of their complaints with this uproar and to your point on time, if there will be legislation, these things do

take time, for tiktok, even though yesterday was a bad day, time is kind of on their side and as long as they can draw out this process for at least -- or at least drum up discourse that both parties are not aligned enough to pass a bill, that is their best case in area after the fervor that went down on capitol hill. caroline: thank you so much. meanwhile, or on u.s. china relations, amy joins us. your job is brief companies on relations with china. what you think the overall tension is like at the moment? how difficult it for technology companies in particular to think they can make inroads into china and vice versa? >> tensions are incredibly high, that is for sure, and it is one of the leading issues foreign investors, obviously chinese investors in the united states as well, .2 geopolitical tensions. u.s. china relations being at a

low point, thereby causing additional risk for companies as they think about expanding the china market or chinese investors having any presence in the u.s. market. these risks are growing, they are full of a-rating around the breath of concerns between the u.s. and china on bilateral relations, on global issues, the war in ukraine, taiwan, human rights, and as you asked about, technology competition. the stakes are quite high for companies as they are trying to navigate these geopolitical tensions beyond their control but impact their bottom line and business. caroline: we have been thinking about the ramifications for users or companies. from the perspective of the ceo, shou chew, anything more he could have said or anything more you are listening for that could have dial back any of this? amy: i think he did not have a

good day yesterday. i think it would have been difficult for anybody of five plus hours of testimony to be fully successful but i think, at the end of the day, he really did not convince any stakeholders, stakeholders that will be difficult to convince in the first place, that beijing's continued interaction with tiktok, a subsidiary of bytedance, has ended. i think what the ceo is trying to say is the company invested over $1 billion to try to put in place firewalls, localized data, make sure coders are not working from beijing for a subsidiary here in the united states, but he could not prove a negative. he could not prove that in no way will the chinese government be able to influence the parent community today or in the future

unless there is a separation. caroline: talk to us about that separation because there was perhaps not only a difficult reception in the united states from lawmakers but also chinese lawmakers have made shou chew's hand that much easier afily oppf investiture from bytedance or subsidiary of tiktok. that will make show tuesdays much more difficult, especially since -- shou chew's days more difficult especially since it's with u.s. officials and to avoid the ban the likely way forward was going to be a do vested tour

-- divestiture of bytedance from tiktok in the chinese government says that is not possible. the u.s. government has to think long and hard what are its next steps here. they have the option of an executive order, taking action, the city says a ban should go into effect and presenting it to president biden to accept or reject unless they divestiture happens. i think for the administration, one of the concerns is of course when the trump administration tried to ban tiktok, it faced judicial oversight of course and that is why this bipartisan piece of legislation known as the restrict act introduced in the senate would give the authority of the commerce secretary or treasury secretary in case it is national security where the bill has been

reviewed, that would give the ministrations the ability to look at these platforms and take action to restrict them in the united states if there were concerns. caroline: and let's just look for a moment at what our view is, our audience think about what that would do to relations of it happened. if it gets penned and the u.s., what impact will it have? only 16% thought it would be catastrophic but 47% said no impact. what you make of the fact that nothing will happen overnight, is there no impact on the interim and if we get some sort of band between tensions in the u.s. and china, educate us. amy: i think i would vote in apple that it would have an impact but the impact would not be overwhelming. i do think your viewers are right on that because the u.s. and china face so many other challenges. certainly for trade and investment ties, this would send a strong signal that the was

government is looking at a chinese-owned platform, differently than it is looking at regulating even the american platforms that many of the senators yesterday talked about a meeting -- talked about needing better regulation. so this is not either or as far as should privacy be enhanced, protecting american citizens, should they be in a better position that way through the u.s. legislative action? the fact of the question about u.s. china relations, this is one of many things that is weighing on the bilateral relationship. i think both leaders in beijing and i know leaders in washington , dcr tried hard --are trying hard to tamp down tensions over the war in ukraine, over taiwan. technology competition will continue to ramp up.

caroline: amy celico, thank you for your time. of course some of those tensions and fighting in terms of trying to restore technology -- technological development is ai. look at the u.s. pinna for open ai, currently saying some chat gpt users may have had payment data exposed. they say their is no ongoing risk to users data, open ai. many people will be focusing on the wealth of people using chat gpt and worrying about some of their data privacy. let's turn to earnings coming out of china. a smartphone maker beat expectations of a difficult quarter. the smartphone shipments went down dramatically. still recording net income of beating analyst expectations. the world largest meal delivery service all revenue surge. the sales had a $.8 billion less

quarter topping estimates. although the beijing-based company is preparing for what is ahead, this is post-pandemic presumption of economic activity. this may slow the demand for food delivery. next come over to the united kingdom or microsoft deal for activision, showing activision responding positively to the news. from new york, this is bloomberg. ♪ it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management.

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start saving today at godaddy.com introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management. caroline: time now for going viral, today we focus on

twitter, who will be removing verified marks next week as it works toward a model where only paid subscribers, members of approved organizations have the status. the move to strike legacy verification begins april 1 and is one of the earliest policy changes announced by elon musk who described the existing program as corrupt. shortly after taking over late last year. joining us is ace accounts. remind us of the verification process prior to elon musk arriving. >> before elon musk came on, it was similar to what you would see at any other social media company, like metal for example, facebook, and instagram. if you are a normal person, whether you had a lot of followers, were a journalist or politician or athlete, you could go for varathan -- apply for verification, may be put in your photo id, give them a few clicks are links to show why you were notable and then wait to hear back and that is how you would be verified. it was a standard process,

similar to any social media platform. caroline: now? aisha: now, that is changing. now to be verified you will have to pay a monthly subscription so it is eight dollars per month if you're paying monthly, seven dollars per month if you pay annually. you still submit your government id or some sort of identity verification but you have to pay so you are essentially buying your check mark and people that previously were verified, if you are a journalist or politician, that is no longer enough to receive your blue check mark, you will have to send that. caroline: so my blue check mark is a goner unless i pay up? aisha: basically, unfortunately. caroline: remind us of how the breakdown goes. there are different colors for different organizations. we expect this to continue, be sustained, is there any movement in terms of all types of colors and what verification really means? aisha: who knows, right?

maybe he will add more colors but we can expect that i think gold was for politicians, blue is for organizations, we will see if other colors are added. it has come to a lot of iterations and there honestly was a lot of confusion when elon musk first announces it but i think we can expect to see blue and gold in the future. caroline: meta also rolling out a paid verification. aisha counts , great to have you let's talk to ken and microsoft is winning approval for its takeover of activision blizzard and got a boost. regulators narrow the scope of the produce focus on cloud gaming. the competition market authority said it changed its mind to weighing a significant amount of new evidence. that microsoft would be unlikely to profit from restricting access to blockbuster franchises such of -- such as call of duty on rival consuls like playstation. arc invest ceo cathie wood used yesterday's selloff in block has

a buying opportunity. after shares plunged following hindenburg's announcement the firm was shorting the stock over so-called fraud. early on the way, we spoke with cats -- cathie wood about her investment strategy. >> what we did do was we concentrated our flagship strategy, so a are kk, and other strategies, a rk q, a r kf, and we moved in the flexor case from 50 names in february 2021 when we peaked. down to 27-28 names. caroline: just outlining why arc tends to double down on its focus on certain winners, certain choice companies during turmoil times and tax harvesting. coming up, we turn to something kathy also likes crypto. charging about years were the fraud.

we take a look at bitcoin, because as of late, it has been deemed to some sort of haven particularly amid the financial fallout, the worries about the banks over the last five days basically flat. we've had a run-up in the last month. from new york, this is bloomberg. ♪ go find leaks. go fix-em. emerson technology detects compressed air leaks to save manufacturers, like colgate, over 20% in energy costs. go brush your teeth. go boldly. emerson.

when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh caroline: u.s. prosecutors charged quan -- he was already a fugitive from charges from his native of south korea and arrested thursday. kailey leinz joins us to discuss and almost this was the beginning of what was then a fallout for the system. kailey: and this was sometime ago now, last may, and i'm sure

you remember well tara usd was an algorithmic stablecoins and used the trading relationship to maintain the one-to-one peg with the u.s. dollar. then it collapsed and had ripple effects across the crypto universe including the downfall of a capital company and this was the founder -- this was the downfall of the founder of stx as well. they allege that investors were deceived about aspects of the terra blockchain including technology and the extent to which it has been adopted by users, hence fraud charges and we understand the u.s. district attorney's office in manhattan is asking for his extradition to new york after the arrest in montenegro. what is so interesting is if that happens this will be the same prosecutor that is pursuing the case against sam bankman-fried. to a certain extent all of this is coming full circle. caroline: it is. it will be an interesting place to be the next few months. what about other stablecoins. today we get news about

performance in yuan. kailey: in tether, the biggest by far, they say they will have 700 million dollars a profit this quarter, similar to last quarter, but what is interesting is they say circulation of u.s. dt increased 18% since year-end and has seen a big uptick in circulation of recent weeks because of what is happening with some competitors. you had axios as the ust getting cracked, regulators, taking it out of commission to a certain extent and usdc had some of its reserves in silicon valley bank and got wrapped up in that whole collapse as well which undermined confidence and ultimately broke its peg briefly against the u.s. dollar so tether has been one of the beneficiaries of that and accounts for 60% of the stablecoin market. caroline: interesting binance stablecoin today has been [indiscernible] kailey leinz, brilliant as always. thank you so much out in washington. coming up, so much more on the banking crisis and how a sparked

by svb and others in community banks, how they are stepping in like the beneficial state bank. the chair of the borders joining us next. checking on on the bank stocks, worry about them in europe, deutsche bank down with significant pressure. this is bloomberg. ♪

caroline: welcome back to "bloomberg technology." i'm caroline hyde in new york where it is 12:30. it is 4:30 p.m. in london. european trading seeing under pressure across the bar, stoxx 600 off by one percentage point, as the banks lead us lower. i focus on deutsche bank on i one point having its worst day since march 2020. it ends the day having its worst in a week or so but this continues to show some fear around the solidity and backing of the financial institutions

that are so important in many ways systemic important. no citigroup says deutsche bank, the fears are irrational at the moment, the market selloff, but sometimes irrationality doesn't need to have any rational cause but has an effect on -- effect on investor sentiment. bond market really getting a bid in the two year yield, up 14 basis points. let's get back to what this means for you -- for your up to the u.s.. -- europe to the u.s. lead zero in on smaller banks for an instant. avenue capital group ceo mark lazaro talked about keeping money in smaller, regional banks earlier. >> what is the benefit of keeping your money in sort of a smaller bank? even if the bank is doing extremely well. it's not one of the banks in essence the fed worries about systemic risk. caroline: let's get an expert on smaller banks and how they are doing. kat taylor

from an oakland-based community development bank, beneficial, i want to understand what you have seen, the demand for your services or worries of your customers. >> first thanks on behalf of an official bank having us on to talk about banking. financial services is the largest industry in the world and feels other industries and we need it to finance the world in which we live. -- finance the world we want to live in. what is suggested by the failure of silicon valley bank's we need to return to stricter regulations as envisioned by the dodd frank act which happened -- had been watered down by industry lobby ever since. we need to return to strict regulatory stress testing of all banks over $50 billion in assets, not just those over $250 billion in assets. silica and valley bank was $220 billion in assets at the time of its seizure.

if we had stricter stress testing, it would attend to four buckets of risk and mitigate them before crisis occurs. those are i can address those at any time. caroline: it's interesting you say this because have news a little earlier from the new york fed for example saying regional fed banks will adopt policy to public information requests and will implement policy by the getting of 2023. the move for regulation, do think it will be quick enough, the support from the likes of say janet yellen assessing whether the depositors need more support. kat: at beneficial state bank, we serve the main street economy, a more resilient banking model. silicon valley bank had a devaluation of its marketable securities portfolio and rising interest rate environment, it had stretching out duration with

slowing of payments in that portfolio. if they had to liquidate it, they would have recognized losses that had capitol, extreme concentration in their deposit banks among startups and venture capital banks. caroline: is it not a community bank? kat: we financed main street -- that means we are supporting small businesses, fair consumer products environmentally sustainable companies, nonprofits that are community-based, and we have a very sticky deposit base. we are mission driven and our depositors love us for many reasons. they do not move in lockstep to flee the bank. we also insured deposits up to our largest deposits with special products and we have a very strong capital buffer. what we really need is for the regional commercial banks and community banks to have higher fbi see limits, more like $10 million, to avoid the flight to subsidy that occurs when everyone goes to the top five

banks. caroline: have you been seeing that therefore or have you been gaining deposits, or have you been losing market share to those systemically important lenders? kat: initially, silicon valley bank depositors, especially startups, were attracted to our mission-driven bank and were mandated -- we are mandated to achieve social justice and environmental well-being and being financially sustainable. but then came the cry of their venture backers that they had to go to the top five banks. that is not a flight to safety, it is a flight to subsidy because those banks are too big to fail and we have to bail them out. if we could allocate fbi see insurance at a higher limit, it would keep deposits in the community banks and regional commercial banks, which is where we need them to find an economy that is resilient and supports all americans. caroline: you are mission-based and when you go into the website, on your twitter account, what you're bank stands

for, how have you been thinking about diverse founders, people who have not had access to financing in the same way others have been able to? many would say silicon valley bank did that, they were able to take bets, they backed people perhaps without a large minimum. are you able to do that and offer that to some founders who are looking for deeper connections, different financial relationships? kat: absolutely. we are dedicated to all of our stakeholders, the communities we serve that are largely low income, our customers who are very diverse, our colleagues, the public interest and environment upon which we all depend. this is just a smarter way to bank, recognize the constituencies but the risk areas. so depositors seeking mission fit can be assured there deposits are being lent back out in a way that sustains a resilient, equitable economy.

we fully insured deposits up to high levels, the biggest posits we have, and we are advocates for changing the banking system for good with high regulations, higher fdic insurance, and for instance the department of financial protection and innovation, which is additional regulatory scrutiny since the watering down of dodd-frank and evisceration of the consumer finance protection bureau. caroline: have you reached out to regulators? have they been reaching out to you? kat: we are in very close touch with regulators at all time. we embrace our regulations and regulators and we expect they will have a very good analysis of what exactly happened in silica and valley bank and how we prevent that from riffling through the system. caroline: kat taylor, great to get your expertise. let's talk about autos, completely different but in many ways they lend out too.

this talk about ford wrapping up its f-series pickup factory and construction in tennessee. it will produce half a million trucks per year but 40% on the company forecast. the carmaker is seeking to reverse losses on ev's expected to reach about $3 billion this year on losses. the ford ceo says he is confident losses are a temporary stack. he spoke earlier to bloomberg. >> we are not going to spend this money losing money so this is a profitable enterprise. think we will be able to make money a couple years faster than tesla. there is an investment that we have to build the plans and engineer the vehicles. that is why we are losing a lot of money. we gotta do a couple things, first scale, scaling helps cost, we got a the vehicle differently for a smaller battery a more efficient. and we have to get our distribution and manufacturing costs down. this plan for the same size will be to present smaller and that plus what happens inside of the plant will help us make money.

all of those things are required to make money because the battery is very expensive. >> you say scale is important to your plans, it has an 8% positive margin in 2026. what scale assumptions do have built into the model to deliver those results? >> we hope and plan on building capacity like this plant, 2 million anchor mental units per year. we make about five now, so to million -- 2 million is like the company will grow by more than 30%. that scaling is important. 2 million units, no one has ever done that in north america especially but we are already number two, our vehicles are bestsellers in their segment like truck and van, the each transit. we are very optimistic that we can get the profitability and scale. the biggest thing on scaling his batteries. caroline: jim farley, the ford ceo there. coming up, oracle jobs and they

scrapped their record unit after the ceo promised to clean up the subdivision. heading to break, we asked some vc guests over the past week what their outlook for tech investing is. take a listen. >> this is wartime for startups. >> before the svb excitement, i thing no one thought too hard about is my bank safe, is my bank secure. >> i believe in a few months, three to six months, business will be back to normal. >> i made an offer last week so we are very active. >> at this point, fdic money is safe, we are encouraging founders to put money back in svb. ♪ it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals.

okay, great. j.p. morgan wealth management.

it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management. >> change, is --

caroline: before we became consumed with the banking crisis, amazon announcing another 9000 layoffs in oracle saying it will cut jobs in its health records unit. this as the software giant works integrate its recent acquisition. let's take more on what it means, particularly startups. ollie rose faith joins us now for more on all of this and you are someone who thinks deeply about talent retention but also acquisition for the startups you work alongside. what is it like right now with all these talks of all of a sudden lee -- all of a sudden we are awash of people with talent or that could be hired. is that true? >> first off thank you for having me. i'm excited to talk about talent with you.

so what is the state of the talent market we are in. i like to think of it as quality is an -- is an and quantity is out. time was term the great resignation because we never heard -- saw so many zach it is making changes across the ecosystem as we previously had. what no one was talking about was the quality of the opportunities. so what we see now, given the entry on capital, it's a really well thought out role because it is viewed as something that will help change the course of business. what are those executives looking for? because when perhaps they are coming from one of these big tech giants, the amazons, mentos, letting go of talented staff, but they are used to getting a lot of money. what did they therefore need to be offered by a start up perhaps does not have deeper pockets from a cash perspective? holly rose: what we are seeing

across the industry is executives who previously had not engaged in opportunities are. those executives are both from companies where they have been impacted by layoffs and those that have not. to your question on the compensation peas, compensation has started to plateau for a bit but the best executives are still going for a premium. caroline: what about equity? is that something they are looking into, the way they can be recompensed because valuations have been cut. holly rose: the importance of equity is to view it as to what is the total ownership you're going to have within a company versus what is the value given the flexibility and change in valuations. caroline: so what ways in which our ceos and companies therefore having to lock in executives. do they have to say we give you a bigger chunk of equity as the evaluation is falling, are there ways they can make sure someone is dedicated to the growth of their business even if perhaps

they cannot offer them a nice check on a monthly basis in terms of monetary value? holly rose: it's happening across the board and his company to company dependent. the answer give to founders, they want to know some tougher questions up front. i give founders the advice of when you have the first second conversation with an executive, talk about what is the runway of your business, what is working well, why do you want to bring this executive in to help change the course of the company and all of that helps feed what are going to be the offered terms later on in the process. caroline: what about a focus on diversity? it was a lot of talk of focus on that. is it more, is there much action in this current environment? holly rose: diversity is still on top of mind for companies. i'm working on an executive search right now, a cmo search in one of our portfolio companies and candidates are 60% women, 40% men and of that

group, 20% are from underrepresented minorities. caroline: what about outside the world of marketing? holly rose: outside the world of marketing, you see it across the board, it is still in top of mind. there could be a company by company dependent but it is on top of the focus. caroline: holly rose faith, it is great to get inside on the hiring atmosphere right now. coming up, with the ai arms race going on, ne-yo is partnering with microsoft to help companies navigate this new focus. what are they doing in terms of hiring a growing? the neo ceo will break it down. let's look at the publicly traded tech, as we had to break, nasdaq under pressure but not as much as earlier, off i .3%. this is bloomberg. ♪

caroline: neo is a startup accelerator, forging a partnership with open ai and mike is out to give free software, free products, and advice to companies and a new track focused on he guessed it, artificial intelligence. companies accepted to the ai board will receive the credit stews microsoft azure cloud and open ai's language generation tool, the image creation program for example and others. ali partovi joins us for more.

how quickly this has suddenly evolved. ali: how quick, state again. caroline: how quickly did it evolve because it feels like suddenly there's a wealth of news around open ai and certain relationships with microsoft? ali: indeed. caroline, i think we are going to look back on 2023 as the year life changed because of ai and innovations led by open ai and microsoft. frankly it is dizzying how fast they are innovating and how fast innovations are coming out. at the same time i think we are still only seeing the tip of the iceberg. caroline: give us an idea of how many of the startups you would generally see where in the world of artificial intelligence. how many will you have suddenly has become [indiscernible] ali: i would say the gravitational force pulling all companies, i just startups, all

the tech industry to realize this is the new platform, this is the new technology everybody needs to embrace or be disrupted. now think about how much life changed when the iphone came out. imagine your life before the iphone or before the smartphone how much you depend on it today. i think it will be similar and the other knology i think it is, for the first year and a half, the iphone had no app store, no apps, it was just the phone with what it came with. that is what open i -- open ai has been, what chat gpt has been for the past several months, just open ai's technology. this is the tip of the iceberg because the in cripple transformation has been all the things third-party companies and startups failed using this technology, using open ai and azure. caroline: like what? what of the most obvious fits you think will scale for

positivity -- productivity and make a lot of money? ali: yes, although i would say my imagination is limited and pales in comparison to the imagination of hundreds of incredibly innovative, young people coming up with new ways to use this technology, but what i can tell you is if you are a twentysomething software engineer, may be a few out of college working at a great tech job, there is no better way to maximize your impact to the world than start a company now dealing with ai. that is why we created the startup accelerator with help from open ai and microsoft to provide a boost to these first-time founders who have the potential but might need the extra encouragement and support to aim higher and maximize their potential. caroline: how do you ensure -- let's think for a moment about

the hype cycle around crypto and everyone putting blockchain in their name -- how do we ensure that with the companies willing to write checks, that they be the big tech giants with a cash balance sheet, whether vcs have money to put to work, how do they make sure they are backing a company truly innovative in ai and using it as a core technology than putting it on? ali: honestly i don't think there is anyway way to be certain of things. as an early stage investor, you have to recognize you cannot be sure. you are taking risk and as an early-stage founder you are taking risk. people who are not comfortable with that usually do not become founders but i am absolutely certain that this is where the focus of innovation is going to be and that some of these companies will be the trans formative companies just like companies like uber, tender, a number of -- tinder, apps that

were enabled by the iphone that were not possible before the invention of the iphone and everything else pivoted to build using the iphone. even existing companies like services like gmail for the iphone but now where do you use your gmail? mostly on your phone. in a similar way, i foresee that within a few years we will see that almost everything you use is going to use these technologies like open ai and azure. caroline: briefly, all they all born in the u.s., are you looking for innovators? ali: i say we are agnostic. i think one of the wonderful things about the united states is it is a beacon for immigrants , the land of opportunity, and also the great universities of the united states attract the brightest and hardest working from across the world so most of our founders are people who studied at north american universities but that draws the

best from across the world. caroline: holly rose faith -- ali partovi, we thank you for your story. neo ceo. that does it for this edition blue or technology. tune in kicking off in a couple minutes time, we have a great set of guests for twitter spaces. this is bloomberg. ♪ hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management.

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it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management. >> from new york city for our viewers worldwide, i am katie greifeld. "bloomberg rea e