>> this is bloomberg technology with caroline hyde and ed ludlow. ed: caroline hyde is off this week. this is bloomberg technology. the bank out -- making fallout continues and we will give you the details of the svb meetings.

more than a thousand tech heavyweights call for a pause on the artificial intelligence boom to implement safety protocols and we will break down what is inside the petition. chip stocks getting a boost as analyzed -- as analyst upgraded nvidia. technology a big driver and we are in risk on mo and we are seeing outperformance the nasdaq 100 the philadelphia index in particular. a bullish outlook from micron. yields are coming back and the u.s. 10 year 3.4% and bitcoin is caught up in this risk rally, at 4.28. it has been a good run for tech stocks. the nasdaq 100 is tech heavy and we are heading for a pretty blockbuster quarter. we are getting towards the end of march and a few sessions left to go as we bring up this

bloomberg terminal to visualize the point. whether we continue the momentum is about the fed, core pce, the main measure that they are looking to and i will answer questions and terms of the direction of travel for rates. katie greifeld in new york, what you've got? >> let's start with micron issuing an upbeat outlook. that is above the average and analyst estimate and you can see micron shares up about 6%. other chip stocks rising including nvidia. shares are higher at about 2% and you had piper sandler come out and raise their price target about $300. carnival also cruising today and they got an up straight -- an upgrade up susquehanna ahead of wave season which is when cruise industry -- industries oscar --

offer discounted rates. let's talk about the banks because that was the big story. what happened in europe overnight and you had sergio romani coming back as ubs ceo in early april to oversee the acquisition of credit squeeze and this chart says in that eight days since the outwitted -- acquisition was announced, shares rally getting another bounce -- and getting another bounce. ed: turning from ubs to the banking crisis, you will be looking at live pictures from the house financial services committee here -- hearing. they too of the biggest -- day two. here is bloomberg's to talk -- bloomberg's telecom guy johnson -- took congo johnson --tacon --

bloomberg reporter. >> we heard that there was a lot of oversight, not just from there particular office from the fed but even from the supervisors on the ground who knew months before he was made aware of the issues and lawmakers on both sides of the aisle really drill down on the timing around when barr was alerted and when he acted when he learned of the lapses. ed: you considers -- consider the question from lawmakers and senators and representatives today and a lot of them focused on individual people and you have to remember the customer-based and many of these were venture capitalist. we have any answers on the next step either to prevent this in a the future or restitution that happened a few weeks ago? katanga: regulators are mulling

whether to draw down on existing rules or pushing lawmakers to consider new rules around whether they should be able to mitigate some of their risks of the issue in the future. barr emphasized that he is open to reviewing his toolkit and have you let us work collaboratively but -- and have regulators work collaboratively but having offices taken into the ways in which the rulebook can be enhanced. ed: thank you. let's talk about what the svb bankruptcy means for depositors. tech businesses of all sizes and bring in gregory jermaine. first of all, welcome to the program. your assessment of what you have heard over the assessment over the last week for hours. -- last 24 hours.

>> not very interesting and a lot of repetition of stuff we knew and a lot of political posturing. no new information coming out of this -- b's hearings. --these hearings. every time someone asks an interesting question, the answer is, the report is on a -- may 1. until we get that report, we won't learn more on what is going on in the regulatory environment. that was my general overview listening to a few hours of the testimony. ed: we broke the news of what was happening on silicon valley bank on this program through friday eight collapsed and into the monday, the discussion among venture capitalists was that they wanted reincarnated forms of svb to survive and what

happened is one bank took over parts of the deposit book but not all of it. there are questions on why an outright saver did not come in that first weekend. what is your assessment? gregory: this happens very fast these days. the run on the bank took place over a couple days and everyone panicked and trying to get a new institution to come in and take this over is not an easy task especially because i think the full scope of what their loan book looks like and what it is worth is unknown so the government sold it with backstops in a place to protect -- for citizens as the buyer. it is not easy to figure out what is going on in a huge

institution like all of these large banks are today in such a short period of time to get someone to take it over. ed: here's the main point. they wanted it to survive and in some set -- since it is, -- cents --sense, it is. what is the risk here with first citizens taking on some of the books? gregory: first citizens once the business and they are taking over the branches. they will keep the employees that have all the relationships. i think they want to keep it, so my guess is that they will be working hard over the next year or so to try to shore up trust. the handover will take a period of time, and i expect there will

be bumps in the road for a short while as they ramp up to taking over all these assets and providing better supervision then silicon valley bank did of the situation. ed: i just want to jump in. you are an expert in the field of bankruptcy and you look closely at the situation as it unfolded at silicon valley bank. how do we fix what happened? how do we prevent it from happening again? ed: --gregory: other than providing a government backstop against all deposits, which can be extremely expensive to the public, that is -- there is always the possibility of bankruptcy. banks are subject to rumors spreading so quickly, people get scared and we had bankrupts of insured deposits which makes no

sense. they are not at risk but people get nervous because they don't trust that they will be able to get their money out. the banking system is based on confidence and when confidence breaks down, the system starts to shake apart. the government's real job here is to provide as much confidence as they can. ed: gregory germain of syracuse university, thank you for your insight. all of the turmoil in silicon valley may be having a chilling effect on deals. goldman sachs lost three partners in be investing game -- specifically focused on tech. wall street saw a hit to their conversation last year as that drop in dealmaking took its toll and some partners based pay cut

but these are high profile partners that left -- we will track what they got onto. micron offers a upbeat forecast and sparking hopes that the worst of the brutal industry slump may be over and shares of the chipmakers pushing higher and pushing the philadelphia semiconductor index with it. this is bloomberg. ♪

ed: time for talking tech. crouch start -- robert reich investing $10 million -- crowd

strike -- it is the largest amount of cash the firm has ever funded through its venture arm. two company said they will work together. let's turn to chips and nvidia seeing its price raise from 2.752 $300 -- $275 to be hundred dollars. -- two $300. rounding it out with micron deceiving our price target update at susquehanna financial and boosting its target from $55 to $90 and 8 -- analysts think the main quarter represents the worst losses but the rest to rule profile is attractive. let's stick with micron. sending shares higher. bloomberg's ian king onset.

this is interesting because what they were saying our customers have been working through infantry's but there is signs that kind of let soared down towards -- down terms -- downturns, there is different trajectory on the other side. ian: the way to frame this is things are going to get worse. they are -- in terms of revenue, it is half the size it was last year so this is not a victory parade but if you believe the chip industry is on this long-term growth path you are looking for points like this where things won't get that much worse. ed: there is a bloomberg opinion that road and edit -- editorial about the chips act and the money being lined up from the public sector to onshore manufacturing capacity and the conclusion they reached is actually, it is a plan that is

racing towards failure. they talk about redtape and the time it takes to set up a manufacturing facility from scratch when it comes to chip application. ironically, when you spoke to the micron ceo last night, he is asking for the opposite to increase capacity and he is saying we and our peers need to cut down our production right now. . explain that. ian: there are a couple of things at play. that chip industry is as old as i am which is old. now we have government saying, here is a check. build a plant here. the concern is that we will have the systemic overbuild. micron was saying it was short-term and saying, we can get to profitability and get money if we start -- stop

putting less silicon into the front of these lines. that is a great idea and there is evidence that has happened but the thing that wasn't said directly was that samsung, the biggest part of the industry has not been doing that so the outlook for profitability there is dim. ed: i am looking at the shares. we are higher by 5.5% so positive reaction. this kind of terminal chart tells a story and if you look at this sort of deficit that micron faces this year, this is a big hit to profit. why has that happened? ed: it is --ian: it is a memory chip industry. the storage. the problem micron has and all the other memory makers has is it is a commodity. you can buy these things in these exchanges. when you have a glut, you end up making chips and you have to

sell them for less than it costs to make them. ed: that chart says it all. the legs are kind of taken under -- out from under them. we have a few seconds. and markets. -- end markets. what did the broad hopes for the smartphone market in second half of this year? ian: micron gave a picture that said maybe slapdash smartphones one claps as badly as we feared and maybe pcs as well. ed: we had micron and everyone is over the moon with nvidia who can do no wrong. why do people think that nvidia will be the main beneficiary from investments in artificial intelligence. ian: so far, they have been. ed: what is exciting? ian: the workloads that you need to run the ai system to run these recommendation engines,

reports the ability to do multitasking, to do parallel processing. nvidia's processes do that. ed: bloomberg's ian king is not quite as old as a chip industry but he is here a long time and we are grateful to have them. we are watching shares of alibaba search under the second day of news that the company is splitting up. we will bring you the details of that plan next. this is bloomberg. ♪

ed: alibaba's massive overhaul plan boosted chinese tech stocks tonight with investors -- the

revelatory environment improves and shares of alibaba surged earlier by the most since november out in a long tongue after the news of the company will be slitting its to $50 billion empire into six business --$250 billion dollar empire into six business units. they have been having time to digest what is going on and we are hearing develop its on how they will present the plan. >> this is the second rally in two days and it means that investors are liking what they see because allie bobby is a -- alibaba will be split into six and analysts like this. analysts have upgraded alibaba from attitude by. --add to buy. allie bobby -- now with the six units, there will be possible in

ingesting the repertory landscape and a lot of analysts are liking that and the second reason is it will unlock valuations because the six units were given the description -- this question to raise funds however they see and ipo was one of them and the ipo and she has been lackluster and that will provide the ipo market. ed: if you go to the bloomberg terminal, we will be covering alibaba briefing on their plan to walk investors through how this would look remind me be basis the -- of -- through this. remind me of the business of alibaba. >> compared to rivals like tencent, alibaba is cheaper and that is why some analysts are saying this will help them reshape its image and break it up into six and if -- among

those is tencent and this breakup can be abrupt -- a blueprint not only for china but for the broader world. in the u.s., we have two big -- too big to fail companies that u.s. regulators have been criticizing. in china, tencent is one of them and it is hard to happen without the permission or blessing of the chinese government and people are saying this may be a single by -- at the crackdown in the past two years is done and dusted and i will bring up jack ma returned. one can speculate if that is coincidence or plan. -- planned. ed: we are showing the chart of alibaba's position. another -- a number of analysts upgrading price targets but looking at the bond trading high. a lot of interest in alibaba. what happens next? this is happen overnight? -- does this happen overnight?

is this something that will be protected. -- protracted? >> investors are in a weight and see mode. but alibaba, they are waiting to see if this affects only -- other countries. there is also tencent and jd so it will be -- alibaba, i don't want to call it a guinea pig. it is the pioneer. it is the first country in china to do this in recent emory so this is a blueprint. -- in recent memory so this is a blueprint. ed: thank you so much. over 1100 ai leaders and experts are urging a halt to training powerful ai systems like chatgpt and its latest form. we will have the story next and elon musk is speaking off. he was one of the signings of the letter and we are taking a

look at shares of tesla, of two percentage points in possession. eb stocks are high --ev stocks are high. you will get numbers over the weekend and we will see how those look and analyst expectations are mixed going into that print. this is bloomberg. ♪ ♪

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ed: welcome back to bloomberg technology. it is going viral. our -- including elon musk and apple cofounder steve austin that calling on developers to hit the pause button on trading -- training ai. the idea is to allow for development of shared safety protocols.

joining me on set to discuss, technologist sarah cao --guo. i'm really happy that you're here. you know the space. many signatures to this and they are saying we have come far in stop and we need to rethink the parameters. your immediate reaction? sarah: i will start with, ai is an advanced form of computing so it is like we are stopping computing until we will guarantee -- ed: writing code -- perspective from a layman's perspective. sarah: yeah, it is general technology that can be used for creation and for -- by bad actors. the move is not to call a moratorium on the internet but to develop safety goals and be transparent about access. ed: you are someone investing in

ai stock. how realistic is it to ask founders like the ones there to stop? isabelle: there is a question on enforcement here because most of the research that would be related to developing a modern -- metal -- model more capable than chatgpt is more sensitive to do. the number of labs capable of this dispute and they are stocked with teams very focused on alignment and responsible development but if a set -- largely, the signatories do not belong to the labs and it is not like you have people calling for moratorium but you have people who are not part of those efforts. ed: they have done something in the field and that is why i went to have you at the program.

your thesis is that we should be funding and backing those working on technological records not yet solved. in putting pause on development goes against that thesis. sarah: we will find a basic reese's -- research efforts but the thesis of the fund is on the apply site. it is hard to argue we don't want to get people the superpowers we are developing so if that is the ability to have any person ask questions of this is data and natural language, that feels useful. if it is to decrease the cost of high all the legal work, that is useful and i am excited to get people more creative skills and you have people who don't how to draw using been turning -- mid journey and people who don't have a code using things. ed: i wanted to update the audience that we reached out to open ai multiple times and open

ai have not responded to our request for comment. in the letter, which was written and the partition that i have here -- petition that i have here, i called out ai and we -- you see why we try to get them to respond. the question is does -- this doesn't work if open ai doesn't respond. sarah: you want -- alignment or the idea that we should make ai do things that users want, it is intertwined with advancing capabilities and there is not a way to make the models more comfortable if we don't understand the capabilities. ed: in the petition or the letter, they talk about the idea that powerful ai system should not be developed until we are confident that their effects will be positive and the risks are manageable. say you have -- or found a

proposal or debts in your desk, how would one quantify or clarify those two targets -- codify those two targets? sarah: the computer and internet are real and audis and they are real risks. this information used by bad actors --disinformation used by bad actors. that doesn't mean no internet. that is not the conclusion most people will drop. i care about asking -- access and reinforcement of bias but we have to address these concerns in a open and transparent way and not to call for a halt in development. ed: you know many of the sick countries -- the signatories to the letter. were you surprised by the letters to these participants?

sarah: i will say i generally believe there are signatories who care about democrats is tatian of axis -- the representation of -- democracy tatian --democratization of axis. some of the signatories have been on the wrong side of a technical architectural revolution in favor of transformers which is a fundamental architecture that is making these ai works so well. ed: we have discussed where we are at with generative ai. from a consumer perspective, i can go on jesse p and ask questions and get relatively detailed and informed responses. there is much more to generative ai than that and i wonder which areas you think, we should be focused on. in the legal field and areas you

are interested in. sarah: i would probably put some of the areas we care about into new skills capabilities and new knowledge. an example you described his new skills giving the people the ability to code to draw -- and to draw and to create video and to do legal work. noon knowledge is interesting -- new knowledge is interesting. you have seen things around protein folding. the idea to reduce the cost to a new doug -- for a new drug for less than $2 billion is important. ed: how does ai do that? sarah: there are tasks within the drug discovery process that are approached by the industry in very expensive as premise always -- experimental ways and being able to get an understanding of biologically --

biology and chemistry with these models make the process of drug development potentially -- cheaper. ed: you are a venture capitalist but you work deeply with and have worked with the founders you backed. your research is driven and i know you read from the world of academia. who should be driving this? elon musk is asymmetry -- is a signatory and he started his own startup. it is messy in terms of leadership in this field. sarah: in the end, we should have people from academia in the state-of-the-art research labs in a more inclusive discussion like makeshift state -- like nationstates. that is not include -- ed: this has been a tense and serious conversation because they are risks we are concerned about. when you wake up this morning

and before you knew about this initiative, how do you feel about where we stand with menton in this field. many conversations have been positive in recent weeks and months. sarah: i am generally very excited by it and it is not like i don't see the risk, i, long-term cybersecurity investor. my waking up experience tonight was my five euro-dollar -- bob -- my five-year-old daughters saying, make me a three-headed serapis unicorn dragon -- serapis --cerebus unicorn dragon. she doesn't know these words. she is five but the fact that she can use these tools to make this is inspiring. as of last year, i started a new venture fund focused on ai and

it is the largest value creation opportunity we will see this generation and it is an immature field. being able to understand the translation from research is our focus. ed: you are the cohost of the no priors ai focus podcast. sarah guo, thank you so much. the golden state goes green. how silicon valley is trying to type about part -- climate crisis. let's take a look at shares of lululemon that are surging. as katie greifeld put it, the explanation is there is intense interest. i love the story, the e-commerce story. they gains are 13.5% and the company giving an annual outlook about street expectations and high demand for those leggings and active way --ware. more up that next. this is bloomberg.

ed: it is the left -- last night, we hit the road and talk climate tech and i hosted a panel with top names in the industry on what is really driving growth. and the tech climate economy summit at 2023. have a listed -- listen. >> the dollar value going into climate related measure plateauing between 2021 and 2022, driven entirely by the decrease in the growth rounds.

many of us invest early but the large $500 million plus private rounds will a cliff as the spac market froze. ed: that goes to the quick fire ground where they -- 2021 was not right and the second quick fire round, does the private sector or the public sector drive investment into private tech? i will give you an opportunity to expand. >> private. >> private. ed: i was hoping he would disagree. -- you would disagree and that did not work and that brings me to the actual question of the impact of the ira and i want to give that focused in the news agenda. i think you all agree that the ira, through eight trickle effect, will see dollars thrown at earlier stage startups. how does that manifest? >> we are looking at how we can

support startup so they don't have to continuously get into that hedonistic silicon valley treadmill of raising more more corporate equity and for us, that means tax credits and non-diluted funding dollars going to my startups so they can pause between fundraising rounds are not have to raise another round so that is exciting. the ira funding is hitting a number of parts of the ecosystem and the white house support -- white house budget got released and they put aside 250 million -- $250 million for interconnection. it is not just direct cash that may come to my companies but cash that will make it easier for them to go to their jobs -- to do their jobs. ed: a big part of what you do is data-driven, research driven. how do you interpret the broader impact of the ira? >> it is beyond the date of

money, talking about -- it is a strong signal. europe is concerned that the ira -- diary was coming out because it was short on the good side but it is a strong -- saying it is a good time to invest. ed: that was a live -- likely discussion. a diverse range of views on why we should be backing climate startups and where the money is coming from. candidate takes from those panelists. coming up, we will break down delays latest on day two on the bank -- hearings. we won't watch the green spaces, rivian gaining as much and more than 9% after needham set it's positive on the risk reward and going into the ev's first corgi

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ed: federal regulators in front of the house financial services committee today to testify for the second day about recent bank failures at svb and signature bank and standing with us on the

latest is ram ceo --ramp ceo eric glyman. we had discussions with the ceo of mercury. your company, did it benefit from the days and weeks that followed be svb collapse -- the svb collapse? eric: our mandate and commitment to customers is to help them less -- spend less money and less time and we are happy to announce today that last year, ramp rule four times year-over-year and it is helping customers spend less. we automate 5.8 million hours of work and drive a better bottom line and we think events like last week and earlier this month with svb's failure and folks go out and look for solutions and look for partners like ramp. it is what we do day in and day

out and helping customers and businesses have a better bottom line. ed: the root of my question is that not just diversifying banking but many startup founders and venture capitalist came to realize that they wanted to modernize how they conduct their finances. what i am asking you, wetlands did you happen to that in the last three weeks. eric: first, our primary product is around credit. when we are effectively allowing companies to continue spending, no matter where they are thinking, part of how we spring into action is thousands of our customers removing banks, we were a continuous lifeline of support to make sure as they were moving from smaller institutions to whether large institutions, you name it, their service on ramp. -- ramp was continuous and they

were using tools to have more value and because we work with an array of partners, because support people moving billions of dollars. we were there as a partner and there is a support to make sure there was value. our project -- product was a regional lifeline and where other products were less able to provide services. ed: there are discussions around the fact though tightening up financial conditions being able to access capital, whether it is venture debt or traditional loads --loans. is that area where you try to fill, if there is a tightening of financial conditions? eric: when interest rates go up and the cost of capital is higher, the thought is what am i getting out of every dollar.

the hurdle needs to be higher. for us and part of our products, whether it is the corporate card or flexible finance solutions, we offer credit but ramp's advantage to customer is helping them reduce their spend by 4% and when you compare to what others are doing in the queue -- industry, we think something like ramp, which helps companies spend less and get more of any dollar, are not just useful at any kind of time for that much more valuable where capital does not come cheap. ed: let's talk about ramp and you as the ceo. you are back five -- backed by big names, goldman sachs, stripe. an $8.1 billion valuation. are you struggling? it doesn't sound like it. eric: i think -- part of it,

going back to what is on top of mind for founders, can i find software focused on my business that helps me spend less and helps others go further? customers are spending less and we love that. it has accelerated, the interest and demand for customers from -- from customers for solutions. you talk about the offense of this month. over a third of our customers come from word-of-mouth and recommendations from others so in terms of new business growth, this has been among the fastest years of growth and even in the past month, month of growth we have had. ed: our final question. did the company bank with svb or you yourself? by extension, what do make of first citizens saving a really influential institution in the tech community?

eric: ramp did not bank with svb or have direct exposure but we support businesses and several thousand of them did and we supported them. as far as first citizens, we wish them luck and they are a fantastic institution and they serve a lot of companies but our role as a partner to these companies is to serve them no matter where they choose the bank and help them to get more of every dollar. ed: thanks to ramp ceo eric glyman. that does it for this edition of bloomberg technology. jeff lawson joining me live. there's a lot to recap from the last few days so check out the podcast wherever you take your podcast, you can find it on the bloomberg terminal as well as apple, spotify, i heart and other bloomberg platforms.

we get the core pce data thursday and that will tell us about the fed and the impact of higher rates and otherwise on valuations but out here in a very soggy san francisco, thank you for listening. this is bloomberg. ♪

alix: we are more than halfway through the trading day in new york and tech is leading the way. this is bloomberg markets. ♪ alix: let's take a look at where markets are. we are right around the highs with the s&p 500 up 1%. at some point, something has to break out. the nasdaq 100 is leading the way higher with a nice rally at 1.3% and a big part of that are the chip names with matt -- with

micron