>> >> from the heart >> of where -- >> from the heart of where innovation, power and money collide, this is bloomberg technology with caroline hyde and ed ludlow. ♪ caroline: we are live from new york in san francisco, this is bloomberg technology. openai gets closer to a new ai model that reasons and a new mega evaluation of $150 billion. ed: intel at a crossroads. the chipmaker reaching a pivotal moment with a decade of dominance at risk. caroline: first commercial

spacewalk, polaris hits mission goal 700 kilometers above the earth. but first, let's check in on these markets. we are rallying once again. four straight days of gains on the nasdaq 100 i'm looking at. we have $1 trillion in large part because of single names like nvidia. nvidia is linked to the artificial intelligence and where we want to dig in on. ed: openai is in talks to race $6.5 billion from investors, catapulting the ai start up to $150 billion -- a $150 $150 billion valuation. we were working on this primary around. long story short, 150 billion dollars is a very big number in terms of valuation. what do we know about openai's latest fun race?

>> we know they are trying to raise quite a bit of money and they are trying to raise an amount in the form of debt. as you and i and some of our colleagues reported, they are hoping to do this at quite a high valuation. 158 billion would be much higher than the amount we previously reported which was under $100 billion. i think what we have to think about when we think about this company trying to raise a lot of money is that what they are doing is extremely expensive. they are building enormous ai systems and running enormous ai systems and that costs a lot of money. caroline: let's talk about where the money is being spent, the latest models. this is where training of these models, the computer, the talent -- compute, the talent, but what's the outcome? rachel: strawberry is a model that has been in the works for a wild. essentially what they are hoping that it can do is some tasks

that are similar to how humans would conduct reasoning. it's going to be aimed at things like more complicated math and coding questions and prompts that have been possible in the past. a source that i spoke to who tried it out said it was able to solve a problem that has been popular on social media today, is 9.11 larger than 9.9, which is something that humans would find simple but can computers? ed: openai has come to the banks and is looking to do about $5 billion of debt in the form of a revolving credit line. it's not unusual but it makes me think openai is getting to company scale. we keep calling it a startup but do you have any sense of how much money all of this technology is bringing in for them? how much of a business they have beyond just constant r&d and new model innovation? rachel: yeah, they have been

able to scale their business quite a bit over the past year. they released several different enterprise products and we actually know from a recent recording that they reached over -- they reached a milestone in terms of how many people are using their enterprise versions of chatgpt. this would be individual users, not customers. if they are able to keep growing and growing on that side, they are bringing in lots of money so the money they are raising, there could be less pressure on that. ed: rachel metz, brilliant and deep reporting and something people are talking about online. thank you. this week is a pivotal one for intel. intel's board has been weighing how to move forward after its latest service report and plans to slash 15,000 jobs.

bloomberg's ian king penned this big take. you kind of get it all in the first paragraph. a slow-motion disaster. where are they in the slow-motion action that's happening? ian: it's been tough for a while. they been trying to do two on the mentally competing things. which is spend a lot of money on restoring this company to where it was at a time when business has turned against them and away from them. caroline: just jumping in here, what is so interesting is what is on the exact agenda. pat, any trouble here? ed: not according to our reporting. -- ian: not according to our reporting. our sources that we spoke to said that's not the kind of meeting we are up to at this particular point. what we are looking at is what intel does. it's a huge company with 100,000

people. where it goes, where it is spending, to look at perhaps discontinuing some of the things that are peripheral to save money to focus on trying to push that plan forward at this point. that is where we are. ed: take us inside the room of the board molding and all of the options available to them. what are they considering right now? ian: the first thing on the agenda is far as we -- as far as we understand it is the factory. we talked about big plants in ohio and germany being an extension of what they have in arizona and smaller projects around the world. that's -- a lot of money being deployed. what we learned is business is not growing to match that footprint. whether it is physically or a

headcount. clearly, the focus is on rightsizing the company around what they have coming in in terms of orders and money. caroline: what you do so well in the story is the context, isn't it? this isn't an overnight issue. this is a long time coming. ian: that's absolutely true. the focus, the traditional wall street playbook would be look at the management, do we need new management? all of those standard playbook things don't really apply here, at least not yet. pat was brought in to fix the problems that already existed. he gave a prescription that everybody signed off on and agreed with. the problem that we have is that prescription is being proven more painful than perhaps we expected and clearly the market does not like that. caroline: we are looking at the revenue growth the market does not like. let's talk about what markets happened to digest with microsoft saying it will cut 650

jobs in their xbox unit. the third such layoffs as the company is trying to rein in costs and integrate that massive $69 billion acquisition of blizzard. the roles are mostly corporate and supporting functions according to a memo sent to staff. ed, what do we have coming up? >> breaking news on the bloomberg terminal, apple has fda authorization for its airpods to act as hearing aids in a hearing aid feature. we were tracking this one because they said on monday, during the presentation that they were going to get it. if they do, they other hearing aid stocks are not moving right now, they were when the news first came out. apple flapped in what's been an interesting week. a historic day for spacex and polaris. i am looking forward to this one. stick with us.

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♪ ed: macron under pressure this morning. the stock touching its lowest level in nearly seven months. cutting shares to underperform from outperform with a lower price target. analysts warning of a collection of dram prices. caroline: general motors is in discussions to buy ev batteries that would use technology for china's catl.

it's according to sources. gabby is here to break it down. this is apolitical handball, it feels like. gabby: yes, it's very sensitive. we have u.s. and china, the u.s. is trying really hard to decouple from china and chinese companies are trying to access the u.s. market and the automakers, the american automakers are caught in the middle. gm, ford, stellantis, they have poured billions of dollars into making batteries and forming joint ventures with korean battery makers and got a lot of sources in order to do so. but because ev's are not selling well and they have had struggles making batteries, which is normal, making batteries and ev's for the first time in your hundred year history, it's not going to go smoothly. it didn't go smoothly for tesla and doesn't for anybody. they are under pressure.

this potential deal which is still tentative, they are still under talks, nothing is finalized, would be a way for american car companies to get access to cheap, really cutting edge battery technology from china without tripping up the political wires that it could potentially trip up when you work with a chinese company. ed: i think the basics of what we have from sources is really important. the mechanics are such that the battery technology is licensed from catl, the chinese company. but the operations are run by a conglomerate from japan called tbk. they are basically a consumer electronics company. and then gm and other automakers is what we are hearing, would buy the batteries on fixed term contracts, insulated from price swings. take it from there. what else do we know? gabby: i think one of the most interesting things about this is you have a japanese company acting as a middleman.

up until now, we have seen ford and tesla use these -- do these licensing deals wherw the can use catl technology -- where they can use catl technology without violating any political rules. this is how they are adapting to the political and ev environment and the fact that they are not profitable or making ev's yet. we know that gm and catl and japan's tdk, which makes battery their supplier for the iphone. they make batteries for consumer electronics. they want to get into the ev battery business and this could be a way into it. they are looking at states in the southern u.s. i think this is so sensitive politically that the results of the presidential election in november could affect the outcome of these talks. ed: that's what sources told us. gabby coppola, great reporting. it was a historic day for spacex. the company's polaris crew

successfully completed the first commercial spacewalk. take billionaire jared isaacman was the first of the crew to step outside. here's what he experienced. >> we have a lot of work to do. but for -- from here, it looks like a perfect world. ed: she was formally assistant director for space policy at the white house, where she let advancement in spatial capabilities as well as a former nasa exec and with over 60 space mission contributions. let's start with your reaction to what happened a few hours ago. >> this is a huge success and its monumental, not just for astronauts but for anybody with a dream.

spacex tests the market viability of space tourism. to see if space tourism can grow like the early days of aviation. this is fantastic. ed: the images on the screen that you are seeing are from jared isaacman's helmet camera from the custom spacesuit. and now what you are seeing is the nosecone camera from atop the dragon capsule. this is the question so many people asked me this morning. was it actually a spacewalk? >> yes, technically it was because they were outside their capsule, their spacecraft. and they have a railing that they were holding onto and they were outside their capsule for 10 minutes each, both jared and sarah.

this is risky. you think of the spacesuit as a spacecraft in itself because it monitors their temperature and controls their vitals while they are outside. and what we see is how successful this was after a few years of training versus the decade that one trains for when you are a professional astronaut. caroline: phenomenal when it comes to commercial space success. what will we learn when they come back and they are tested? because this is about radiation exposure as well. how tough could this have been on their bodies? >> absolutely tough. you can be hot one moment, you could be cold another moment. your fingers could hurt. even though it is cold in space, there can be pressures within the suit that make you feel very warm. this was a complete and thorough test of the spacesuit which

spacex intends to use for future moon missions and future mars missions. there will be a lot of lessons learned in those regards. i think in -- of the trillion dollar space to economy -- space economy that has been discussed. this is an exciting point to see if there is viability in those markets to see how much growth the sector will endure due to the success today. caroline: sarah gillis was out there as well. she said it was integral for data. they don't know what they will be doing with the data. at the moment, it feels like spacex is cleaning up when it comes to space success. is it? >> they are doing remarkably well. it's obviously due to their vision, their hard work and this

success is just so, so impressive because spacewalk are risky and you have astronauts that are not professional astronauts and the companies are planning this mission for years and not decades. and they pulled it off successfully. so it's very critical to realize the feet that was accomplished today. it's incredibly impressive. caroline: thanks for giving it the context it deserves. great to have you with us. former nasa executive. coming up, sarah leavy will join us to talk about ai's role in her advisory firm and how we are using it to manage our money. ed: we will take a quick look at microsoft. it's more of a psa. both azure and 365 have connectivity issues. microsoft has updated us and said when it comes to azure,

they have many get it whatever the issue was and accessed the 365 --access to 365. there is a lot of focus when these things happen. partly because cloud is so important for some any people. stick with us. this is bloomberg technology. ♪ ♪

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>> running out to the world of tech investing, -- just come out with the first of its kind salvation with four in five advisors using ai in their aura. sarah is here with us.

what made you run these sorts of numbers? i know you're looking at this particular part of the business and rebranding it. you just want to understand how these advisors are getting two groups of ai? >> the advisor we serve tends to be more of a millennial advisor and this is a growing group and they are more sophisticated than their predecessors. they don't suffer as lightly when they think about the technologies they use. we need to provide them with powerful tools. betterment advisor solutions is our advisor arm and our roots were with the retail investor where we learned a lot. what we have learned for advisors is they can harness the power of technology so much more. and ai for me is a continuation on that spectrum. we introduced automation to save time and money, to help with customer retention and ai just furthers that journey. caroline: what are they using? are they using generative ai per se?

are they more productive? >> i think of ai a lot like digital. if you think back two decades ago when you talked about digital in music, you have digital and analog companies. at the time, people asked are you going to work in digital and then digital became in the fabric of everything we do. that's how we think about ai, it's powering the humans to do better, stronger, faster. so, everything from para planning, before you meet with a client as an investor and after you meet with the client, there is a lot of work to do. ai can take that administrative burden off the plate. that is one example. ed: the better question posed by the federman survey -- betterment survey is whether those four out of five finance advisors who are using ai, lots of people will have a financial advisor, whether ai makes them better in managing people's money, is there any evidence of that? sarah: i thing i wouldn't think

about ai as managing people's money. as a financial planner, our advisers are fiduciaries. we as ria are fiduciaries. the way you want to think about ai is basically giving back time and saving money for the advisors so the advisor can focus on the client and the investment solutions. that's the benefit they are getting. ai, the computers are not taking over the world. the human advice is still a critical component of hitting people to great outcomes. ed: an extension of that is the economics kind of change. fees and the incentive of somebody using a service or a digital format such as yours. sarah: i think in the early days of where we began, our roots were robo advisory. there was a lot of dismay in the advisor community. is technology going to take over the human interaction? i think that was very overblown and i would say the same about

ai, which is not to diminish its potential. i think it will be a huge power tool enhancer if you will. but we have been building power tools for advisors and retail investors for the better part of a decade and a half and this just takes that to the next level. that's the way we are thinking about it. ed: a classic 60-40 portfolio. the financial advisor will have more time being freed up by ai. sarah levy, we appreciate you being on bloomberg technology. coming up, we will be joined by the cfo for an outlook on the fintechs space in latin america. that is next. this is "bloomberg

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caroline: welcome back to "bloomberg technology." i am caroline hyde in new york. ed: i am ed ludlow in san francisco. caroline: we have four straight days of gains in the nasdaq 100. despite headwinds of cpi coming in a little hot. two year yields pushing up a little bit. we are still anticipating what the fed will do. many are seeing just a 25 basis point cut. bitcoin, a little bit of risk.

a lot of the push forward in the nasdaq is thanks to nvidia and some of the chip names. warner bros. discovery up almost 2%. charter communications still has a distribution deal. mastercard up .6%. more than $2 billion being spent in cybersecurity. they are focusing on your data. moderna, yorkie underperformer. biotech -- moderna, your key underperformer. they feel there is a lack of clarity. the revenue guide coming down. ed: i have an opportunity to get clarity on another business. the goldman sachs tech conference comes to a close in san francisco, we are thinking about how fintech is revolutionizing the sector.

mercado libre cfo martin de los santos joins us now. welcome to bloomberg in san francisco. 50% of your business is essentially fintech. you have met with the bankers and your investors and other members of the technology community. what business outlook and update did you give them? martin: thank you for having me. we are celebrating the 25th anniversary of our company. we have built the largest e-commerce platform and fintech platform in latin america. we became the most valuable company. we are very excited about the growth and opportunities we are facing and the change we are making. on the commerce side, last year we had more than 90 million buyers purchasing 1.5 million products on our platform for

more than $50 billion and is growing rapidly. we built a very large infrastructure that enabled us to deliver a 75% of products within two days in latin america. that would be something you could not dream of 10 years ago in latin america. on the fintech side, we processed payments for over $150 billion for 2 million users on our platform. we are serving mostly people who have been excluded from the financial system. people who have never had access to credit or financial products. we are very excited about the past 25 years but we have plenty of opportunities going forward for the next 25 years. caroline: we are looking at your shares at a record high.

what about competition? you have seen the fintech opportunity but so have others. as you go for a banking license, how are you thinking about others wanting it on the space? martin: we see a tremendous opportunity on fintech because the banks have done a poor job in latin america including people in the system. if you look at mexico, we are the largest fintech in mexico in terms of number of users. this is a country where 50% of people do not have a banking account. less than 20% of people have a credit card. there is plenty of room for us to grow. ed: in mexico, it is not just a bank account, i am thinking about deposits and loans. david: -- martin: we have a $1.5 billion book in mexico, the

largest for any fintech in the country. the users on the fintech side are growing 37% year on year. mexico is wide open. there is a lot of financial inclusion. there will be space for plenty other players. in fintech there is room for other players to create and change the lives of people. caroline: let's go back to commerce. you have some chinese competition. how are you seeing the chinese competition in e-commerce? martin: we have operated for 25 years in the area. there has been competition. local retailers. more recently with the americans, amazon and walmart.

more recently we have seen more competition from the chinese. we face competition, we compete upon our strength. the logistic infrastructure we have in latin america that enables us to provide a world-class service and the fintech and the payment solutions we have built in the region where most people do not have a credit card, having our own payment solutions is a big competitive advantage. in mexico, 25% of payments are done with their own methods. ed: before we run out of time we should talk about argentina. a lot of people are trying to make a conclusion of the economic policy. how do you view that market? martin: solid position, started the company back in the day in argentina. a tough first quarter but gaining growth in the second quarter. we see a lot of opportunities.

we are investing in argentina. we opened our new fulfillment center there. we see a lot of good prospects for the country. the good thing about our business is we have seen it all in latin america over the past 25 years. the trend of people moving online, 15% of retail is done online in latin america compared to the high 20's in the u.s. and the 30's in china. there is room to grow the e-commerce market and we are the leading player in e-commerce and we play an important role in that transition. on the fintech side, there is plenty of room. at mercado libre, the best is to come. ed: martin de los santos, thank you so much. caroline: let's get to talking tech. china wants to keep tv tech to itself. beijing has asked to keep ev

from foreign plants. key parts of the vehicle would need to be produced domestically. two of china's most prominent ai chip designers are looking to an ipo. the move comes as china looks to sure up its industry to combat u.s.-led sanctions and bans. ed: a little bit more to come in the show. we will be joined for an exclusive interview on the companies's latest set of autonomous defense vehicles. more breaking news coming up, as well. caroline: a new coo of microsoft. building on capabilities essential in ai and operational excellence. a newly created role. she will be joining the senior leadership team.

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caroline: this is "bloomberg technology." you are looking at a live shot of the principal room. you will find the podcast in the terminal and online. this is bloomberg. ed: fuse energy has raised $32 million, valuing the start up above $200 million. industry experts say producing viable fusion will require another decade or two of work, giving the company plenty of runway. you and i know loads of people who have been talking about fusion for a while. this is a tangible start up and part of the process.

it sounds like we are still a long way off of it being mainstream. >> the technology will take a decade or two to create commercially viable energy. this company is looking to make money along the way by providing radiation as a service to not only the private startups that are looking to do this. there is a lot of money and a lot of interest in commercializing this but more important to provide revenue and testing results immediately by providing radiation as a service to nuclear weapons testing and also use the data to build their own fusion generator. caroline: posed power machines are what they are building. who wants to take the financial risk to back this? lizette: there are a number of investors. buckley ventures, tamarac, as

well as the chain smokers, the musical group, their venture capital firm. along with former dod, officials and someone from lockheed martin. they will be looking to use this technology in incremental ways, looking to rent their machines to blast different machines like fighter pilots to see what the effects of a nuclear explosion would be on planes and other materials that the u.s. would need in a time of war. caroline: lizette chapman, we appreciate it. talking about time of war, the barracuda family of autonomous air vehicles has been revealed. aimed at mass-producing aerial vehicles more cheaply.

the philosophy here is making it evermore easy, fewer parts and making it quicker to make. palmer: that is downstream of the real goal, making sure the u.s. and the allies have the tools we need. a lot of wargames, the u.s. is running out of critical munitions in a few days of conflict. we have been working to build a family of systems that solves this. it is called barracuda. half the parts in half the time using 95% less tools than existing missile systems. it is designed to be made at scale. many thousands of systems at a time. that is what the u.s. and our allies need. caroline: talking about partners and allies, drowned ai in

ukraine, you are supplying drones piloted by ai. how much autonomy do they have about targets? palmer: in our case, it is all about ai. the core software is a brain that powers barracuda and ghost. they are in ukraine and have been since the second week of the work. we have destroyed critical russian hardware that cannot be destroyed by things that require a real-time link to a person because the russians are quite good at jamming communication links. they do not have enough of these jammers to hit the entire battlefield. that is why it is important to keep taking those things out and helpfully leave them helpless. ed: palmer, it is great to have you back on "bloomberg technology." i am thinking about the existing

work and what we are hearing from ukraine. they want to strike deeper into russia. is there any technology where you would work with ukraine on that process? palmer: absolutely, that the cap yacht that these decisions are up to the u.s. government. to a large extent, what they do with these weapon systems. i do not think anduril or any private company should be in a position where we are controlling a u.s. foreign policy decision. we need to put that decision with the people who are supposed to make that decision. people accountable to the electorate. you should not have to trust me. you should trust someone you can vote for and vote accordingly. ed: we are sharing images of the barracuda system. you talked about allies.

do you want to be in service of any specific allies beyond the u.s. government? what is the benefit of the scalability of the design? palmer: i do not think the united states needs to be the world police. we need to be the world gun store. we need to provide our allies and partners with the tools they need to turn themselves into porcupines that nobody wants to step on. sending american lives overseas, boots on the ground, will not be the future of how we support our friends around the world. it will be making sure we can make things at a scale to where they believed our support for them will be to scale. ukraine has exposed the weakness in the u.s. foreign policy strategy. we say we support these people but they say they cannot manufacture the basics like artillery shells or small

missiles. how can i possibly count on these people to cash the checks they are writing? barracuda was designed for low-cost, high rate manufacturing. it is a operating system right now with multiple customers. partners will be able to trust that barracuda is something they can actually make for them and deliver not just now but if a conflict were to come about. caroline: you are delivering by manufacturing evermore in the u.s. you have just recently got a whopping valuation of $40 billion and other manufacturing units. can you update where they might be, these sprawling manufacturing areas? palmer: we closed a huge round with investors. strategic investors who want to help us build a lot of things, particularly arsenal 1, a

factory that will create thousands of jobs and build vast numbers of ai powered autonomous weapons systems. it is not just barracuda. it is the entire amount of things that anduril makes. drones, submarines. able to share a lot of tooling between the programs which gets the cost down and the rates of and the benefits flow onto our customers. ed: palmer, is anduril selling air defense systems to israel? palmer: i cannot comment on any specific deployments but i will tell you this -- i have no problem with israel and no problem selling things to israel. a better target for your question would be the united states government. ed: you mentioned china at the top of the conversation. does anduril have a commercial relationship with taiwan? palmer: we have a very strong relationship with taiwan.

i am going there again soon. that strong relationship is one of the reasons that anduril was recently sanctioned by the chinese communist party. they announced they will seize all of our chinese assets and we cannot enter the country. the joke is on them, we do not have any chinese assets. it was in the wake of a deal we did with taiwan, getting them some systems that frankly china is afraid of. they know our systems are the real deal and they cannot jam them or hack them because they are powered by ai. ed: anduril sounder palmer luckey, it is great to have you back on "bloomberg technology." adobe earnings continue as we get the expectations back. this is "bloomberg technology." ♪

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caroline: 67 million viewers tuned into the presidential debate between kamala harris and donald trump. well beyond the 51 million people who watched donald trump and joe biden. trump said he is not inclined to have another debate with harris but had not ruled out another matchup. ed: believe it or not, earnings

season is continuing. the next wave of generative ai services may depend of tech companies can find enough 3d renderings of tractor-trailers and shampoo bottles. startups are working on that. this is something bloomberg reported on before adobe's earnings. let's start with the report. i saw the images after the story. >> you can go on the internet if you are so inclined and scrape a bunch of photos, videos and books. if you want to create a 3d model that can generate a coffee cup or something like that, you need something where you cannot scrape it. we are seeing companies like adobe go out and buy 3d data from creators. you have these 3d renderings of bridges, what if you share them

with us? soda bottles get created, a year or two down the line, we will see 3d models come out. caroline: how much is adobe able to monetize this focus? brody: that is the big question. everyone wants to know if adobe can really get money from their generative ai innovations. they have rolled out a lot through products, higher pricing tiers. it is not totally clear if they are making money from it yet. caroline: we will see if the revenue can hit the 10% level. brody ford, we hope you will join us tomorrow to break down the numbers. that does it for this edition of "bloomberg technology." ed: what an edition it was. private companies to public companies. find a podcast in the terminal and online on apple. from new york city with caroline

and out here in san francisco with me, this is "bloomberg technology." ♪

>> welcome to "bloomberg markets ." i am scarlet fu. u.s. stocks in search of direction. traders cementing their bets. you have the s&p 500. it was on a three-day rally but that is stalling out. wholesale inflation did pick up a little bit. small caps outperforming. the russell gaining .8%. we are seeing someone higher