>> 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 think from new york and san francisco, this is -- live from new york and san francisco, this is "bloomberg technology" tsmc source. ai hardware exuberance, is it back? ed: meta's effort to stop sexst ortion across instagram. caroline: amazon embraces nuclear power to ensure ai energy needs are met. aws ceo joins us live with the

details on the clean energy effort. we're going to check out the tsmc trade. ed: tsmc is our top story. taiwan semiconductor manufacturing. these are the u.s.-listed shares. the shares are trading at the highest level since 1997 when they first started trading in the united states. the outlook for revenue growth for 2024 is boosted, about 30% in dollar terms. the big picture, caro, is we feel better about the outlook for the chip industry in general. why? tsmc is the track manufacturer to the world. they make the most important chips that we care about, the high-performance gpu's in the ai context. caroline: post-asml we had anxiety about hardware and chipmaking, but it doesn't seem like it is there right now because bloomberg's peter alstom can join us from london for more. give us the context of what tsmc managed to prove to the market,

echoing nvidia, the demand is insatiable. peter: that's right, caroline, as you alluded to, all eyes were on tsmc after this asml. the dutch equipment company came out and said the bookings in the chip industry were only half of what analysts had been expecting. that startled the industry. nvidia stock was down and everyone was wondering who is the week player in the industry. which chip company is struggling. it is not tsmc. tsmc has done very well here. they beat earnings estimates and they reassured the market, really, that demand for ai in particular is strong at this point. the ceo got a lot of questions and the call after results about that and he said that the demand is real, he called it in san at one point. there is a reassurance play going on. ed: tsmc boosted its capital expenditures outlook for 2025. why is that important? peter: it's partly important

because asml is the company that sells the chipmaking machines to all of these companies. tsmc is the most advanced producer of these chips, and so there is a question about who is going to buy these machines from asml and that others in the industry. we know that a couple of the key players are struggling. intel and samsung are having quite a bit of trouble. tsmc appears to be doing very well partly because of ai to nvidia. they also supply chips to apple, which is trying to sell its phones in part because of their ai capabilities. we are seeing this bifurcation in the market where you have some weak players and you have some like tsmc, nvidia, that are doing very well. caroline: tsmc committing to capital expenditure globally. they're going to be building manufacturing, not just in asia were usually said. peter: that is very important point. for many decades tsmc only produced its chips within

taiwan. they felt it was important to concentrate its production in one place. over the past few years we have seen that business model evolve where they have been asked by the u.s., by europe, by japan to build these chipmaking plants in domestic markets partly because of the supply chain shocks that we saw during the covid pandemic. all of these countries want to make sure we can get those chips. tsmc is the best chipmaker out there. they wanted to come to the united states, to japan, to europe, beyond, to make sure they are being produced locally. the model seems to be working very well. ed: peter elstrom, executive editor leading our tech coverage from eight hours into europe, now into the u.s.. one of the names of the big on the same logic is nvidia. caro, and other top story you have got. caroline: looking at nvidia at a record high. let's switch to apple, because equally it worked with chinese automaker byd for years. the tech time partnered with byd

on long-range batteries as part of a canceled car project. the context here is a wonderful big take you have going deep into the byd success story. take us to the apple relationship and what it helped byd chief. >> sure, thank you. i want to be clear, i think this was a two-way street. byd, like a lot of battery makers in china, had been working with a new chemistry called the meyer phosphate and they made a battery -- lithium ion phosphate and they made a battery cell that was impressive with safety tricks but also could hold a lot of energy. apple was working on the apple car and they were working on a design for an ev that would have maximum range. the two companies came together from 2017 to 2020 and put their best and brightest together to work on a battery that would be best in class for the apple car.

ultimately as we know apple pulled the plug on the project early this year. meanwhile, byd -- it had its own ip, i want to be very clear. byd coming to us that there was no apple ip in its battery. but you look at all the cars that byd is selling, every single one of them has this battery in there. it was a game changer for the company and helping them improve their sales, really rocket from being a nobody, also-ran in the china market to be number one in the world's biggest car market. what my colleague and i uncovered is that there was influence from apple in that journey. i don't want to take anything away from byd because they themselves are an innovative company. the world did not know -- this went on in the labs in byd and shenzhen. there was collaboration between apple and byd. ed: really important piece of reporting about byd's prowess

an history and batteries. and then there's electric vehicle side, specifically in the cheaper categories. that is the whole point of the big take. let's start with the basics. what is the conclusion you reach about byd and its strides globally? gabrielle: i would say that my biggest take away from reporting this story over the last few months is that if you want to understand why byd is the biggest carmaker in china, why they can make a chart that have such impressive technology and yet such a low cost that truly terrifies auto executives all around the world, whether they are in tokyo or detroit, you got to understand that the story is much more complicated than subsidies. obviousl where in the middle of a really intense period of trade war and tariffs with europe and china, and there is rhetoric going on about how subsidies are what is making these companies grow. i don't want to deny that it china is not a free market economy.

the level of subsidy -- people say the u.s. has subsidies, too, the eu has subsidies, too. that's true, but the scale of subsidies in china is much greater than any free market democratic country. if it was just subsidies, you would see 20 byd's, where there is only one. that is a testament to the innovation, engineering breakers, stick to toughness of the founder, and that is what i tried to tell and the story. ed: gabrielle coppola, thank you so much for joining us on "bloomberg technology." instagram is set to launch a new campaign to keep teenagers safe from sextortion scams. this is "bloomberg technology." ♪

caroline: let's turn to instagram, whose parent company, meta, has launched a campaign to protect teenagers on this platform. it has raised awareness of sextortion and it includes this ad. >> let's talk about sextortion, when someone threatens to expose a sexual image or video to get you to do something like send money. here are red flags to look out for someone coming on too strong. asking to trade photos. or move to another app. caroline: here to talk more about the changes is antigone davis, global head of safety for meta. it is not just the ad campaign, but features, updates. can you talk us through them? antigone: absolutely, i will give you three of the most

compelling features. one is the prevention of screenshots. if you send an image or video, we will prevent somebody from screen chatting that image or recording the video. that is important because you are sending a signal that you want to protect the image and you don't want someone sharing that with somebody. the other is blocking the follow request of potentially scammy accounts. we already block message requests from unconnected accounts for teenagers, but we want to make sure we are closing down the avenues for the scammers to try to find teenagers on the platform. and then the other one is hiding the follower and following lists of teenagers from these scammers. the reason that is important is because once they have that image, they threatened to share with friends and family they find on the lists. ed: antigone, why is the campaign being launched today and not previously a year ago when data showed spikes in this kind of activity that you are now trying to prevent and

crackdown on? antigone: thank you very much. this is building on additional protections we already launched. recently we launched teen accounts that put teens automatically into private accounts and have the strictest messaging restrictions. this is taken another layer out. they reflect a change in the crime. it is moving to becoming a financial crime more people ask for more money, and within that there is a spike of this across the internet. ed: antigone, how is the technology changed if there is a change in the crime? what my colleague reported is in the case of facebook, in nigeria, for example, technology is used to -- as a counter to suspicious activity. you have the video, which we showed, but what is the role of technology here? antigone: that's a very, very good question. the technology try to identify potentially scamming accounts,

and they will do things like see a new account that since a lot of follow requests to a teenager -- to teenagers outside the area where the initial individual is messaging from or following from. those are the kinds of signals we use. use a large range of signals to identify these potentially scamming accounts. caroline: you are of course helping hide from these potentially scamming accounts. why not let a teen hide full stop the follower? antigone: it's a good question. these are important for connecting and finding the people you are interested in and we want to protect those valuable features for enjoying the app, but we want to make sure they cannot be exploited by these scammers. caroline: you, i'm sure, face countless questions, and indeed your company and others face countless lawsuits from families, from authorities that feel what you offer on social

media is harmful for children, whether it is sextortion or addiction. how are you fighting those fights? how do you feel it is coming to you from a lawsuit perspective? antigone: from my perspective what is most reporting is to listen to parents and understand what it is they are worried about and make sure they feel we have protections that give them peace of mind. so we know, for example, parents are worried about the amount of time teens are spending on the platform. when we launch teen accounts, were created so that between 10:00 and seven car pimp they are not getting notifications we are sending -- 7:00 p.m. they are not getting notifications reasoning to their account. ed: you have the family of apps, largely smartphone-centric. sometimes they are accessed through a web browser on the computer. how do you adjust your technology and policy for that, how people access your applications? antigone: that's a really good

question. one of the things i can give you an example of is for screenshotting -- we are preventing screenshots for certain types of images sharing -- on the browser you cannot prevent that screenshot. we are preventing them from seeing the image. caroline: going back to the point that you say you are listening to what parents, and indeed i'm sure some teens, are saying to, what about as you see these legal efforts proceeding, do you in your heart of hearts enough is being done for the parents and the teams and the way they are pursuing claims is the right way to make change? antigone: i think one of the things parents are struggling with is a set of standards they can understand for assessing whether their teen should use a particular app. one of the things we have been pushing for his legislation that would require the operating system or the app store to provide apps like ours with the

age of the user. that would enable us to ensure that we can provide an age-appropriate experience and they could set up so that parents would not approve of an app download if they want to. these other kinds of things we need to make it much simpler for parents. caroline: antigone davis, thank you for spelling of the changes for parents and teens, head of global safety for meta. coming up, we speak with matt garman, aws ceo, about the company's new nuclear investment. this is "bloomberg technology." ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh

so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana ...with horses let's take a look at those scenarios. j.p. morgan wealth management has advisors in chase branches and tools, like wealth plan to keep you on track. when you're planning for it all... the answer is j.p. morgan wealth management. ed: big tech is going nuclear in order to secure the energy here is what google's senior director of climate and energy told us yesterday on "bloomberg technology." >> the world needs more carbon

free energy, and this agreement we signed is an important milestone in what has been a 15-year journey at google to make the transition to clean energy it is our first nuclear energy deal, and we feel that nuclear is a very important technology for going carbon-free for offices, data centers, communities where we operate because it is always-on, carbon free energy resource. ed: google is not the only one. amazon also announcing a half billion dollars investment in nuclear clean energy. here to discuss it, matt garman, ceo of aws. welcome back to "bloomberg technology." matt: thanks for having me. ed: so interesting -- thank you -- to see hyper scale is focused on this. why smrs? that's a specific avenue to go down. matt: i think it's a great new technology and an important part of the energy landscape that we are looking at. we made a $500 million investment in a company called x

energy that are one of the leaders in the space and they are really pushing on the technology. smr's have a couple of advantages. they are able to be constructed on a smaller footprint. you can put them closer to where the energy needs to be. they are incredibly safe and easily manufacturable. they are very promising technology and we are quite excited about our investments in the space in the partnerships we have coming up. caroline: small modular reactors, smr's, for those getting in the acronym lingo. matt, it's great to have you. what about other deals? is this the first of many? matt: couple of details on the things we announced yesterday. one, we have this investment with x energy, a producer of these, but we also have two partnerships with utilities. we are well down the path of implementing these deals. we have a partnership with the dominion in virginia to implement an smr as part of their energy footprint in

virginia, and with energy northwest in washington and oregon. our goal is to deliver more than five gigawatts of nuclear energy. we think it is a fantastic opportunity for us to keep pushing on the carbon energy footprint that is needed as we continue to scale around the country. ed: if you're well down the path, and based on what you just said, do you have a clear line of sight on what the dollar per megawatt hour is going to be out of those facilities? matt: we don't know that yet. we are still early and we are still learning. many of these technologies for these reactors probably won't come online until 2030, so we will still be learning. people that as we scale and in the fullness of time, these energy sources are going to be quite competitive, cost perspective and that is one of the reasons we are so excited about them. ed: would oubring back a full nucler plant like three mile island in pennsylvania? and if so, which one? matt: well, i would not have

done that one in particular, we have a partner ship with talen bringing more energy online in pennsylvania. we were the first company to announce a deal with talen a few month ago. some of these large nuclear plants are and excellence was of energy, and they are an important part of that. small modular reactors will be a component of what we need for carbon-free energy will, but large plants will be part of that, too. it takes all most a gigawatt of cavalry bringing back online from this large plant in pennsylvania where we are bringing data centers nearby. it is all an important part of the portfolio as we move to decarbonize energy. caroline: let's talk about decarbonization, because when you announce the dillon susquehanna, you talked about how the aim is by 2025 100% renewable energy. is that attainable with the sudden desire to have ai and energy that goes with it?

matt: we announce that this year we hit 100% carbon-free energy in our system, and our goal is as we look at all of the energy demand of the business in the world -- that the business and the world frankly needs, how do we get on the continued about --continued path of growing carbon-free energy? the power we need in between 25, 2030, 2040, how do we get the ramp of power with companies digitizing and with generative ai that we have enough carbon-free energy to support the? it is a long-term view we have, and this is the long-term view of how we have enough power into the future. caroline: let's talk about the short-term view if we can for a minute, because right here right now do you have the power that is necessary from the places you want to be getting it from? matt: we worked really hard to make sure that we do. our business is continuing to grow rapidly and we are adding

new power and new data centers all the time. we look further out and we have power we are adding in 2024, 202 5, and continued out. as you may have heard, over the last five years amazon has been the single biggest purchaser of renewable power contracts in the world every year for the last five years. we continue to do that, we continue to add power to our footprint, and we plan multiple years out because these projects that we go and launch, they take many years to come online. we have lots of plans and we continue to grow as the needs of our customers grow. ed: matt, will you have blackwell online by the end of this year? matt: no, unfortunately nvidia's timelines have shifted on that. we have samples in the lab and we are working on them now, but production quantities, we expect to be early next year. we work closely with nvidia on gpu's, and super excited about

the launch. nvidia's own research cluster is launching in aws. right now we are working with them and we have early samples, but as they get their yields up on the blackwell chip, it will be early next year before we get production on samples in real volume. caroline: another partnership on the chips, how is that going, briefly? matt: fantastic. anthropic continues to live -- deliver fantastic new models. their model is one of them is powerful out there today and customers enjoy using it on a variety of tasks. the reasoning is industry and world-class and a bunch of capabilities enterprises are able to deliver and the value they get from the models is really fun to watch, and we really enjoy that partnership, and we continue to expect it to go for a long time. caroline: matt garman, aws ceo,

we appreciate your time. thank you. ed? ed: coming up, top bank in ai. we will talk about it next. this is bloomberg. ♪

caroline: welcome back to "bloomberg technology." ed: taking a quick check on the markets, the s&p 500 is off session highs but i one point reached a new high on an intraday basis with technology having a park to play. many names to the upside. nvidia, you will not be surprised to hear, is one with some carry through on the optimism around tsmc guidance. for those just joining us, those are the tsmc listed shares. this is the contract manufacturer of chips of the

world saying yeah, things are pretty good, 2025 outlook looking pretty good, in stark contrast to what we heard from asml, the company that makes machines that makes the chips. netflix is down 1% and i flag it because we are going to talk about it later in the show with its earnings after the bell. maybe that is positioning? who knows. caroline: in the financial sector, ai adoption is rapidly increasing. the rate of ai utilization is happening twice as fast in the top performers and top 10 banks of the index. alexandra, it seems that if you put a lot of talent, focus, and energy in r&d, you are winning and will continue winning. alexandra: yes, you are. this covers the 50 largest banks

in the u.s. and europe and we cover those with the talent stack and the innovation levers that the banks are pulling. we are carefully tracking what the bank are reporting on in terms of their use cases and roi. looking at the responsible ai side. what we see is that the leaders are pulling ahead and needing more at double the pace of the top 10 ranked banks in the index , which are moving at double pace from the rest of the banks in the index, which does indicate bifurcation in the rankings. the leaders are leading more and the ones that are follow standing still are actually falling behind in the race. caroline: alexandra -- ed: alexandra, i'm pretty certain that social media accounts are overheard on wall street and wall street is listening to this because there are two things here. banks and ai. in our world, that is everything.

here's the question. what is it that makes a bank good or not good at ai? alexandra: looking at the strength in the ecosystem, a good bank is able to move it through the system and identify where you have problems where ai can be a solution to the problems and move them into a testing phase and then into production of a use case using genai. a good bank can do that very quickly. all of the elements that are needed to move the use case into production swiftly and well has the strength of those component parts. carolin we have jp morgan, capital one, and rbc. based on your report, those are

top three performers. is it that they hired the best computer scientists and engineers early? what did they do differently from the rest of the list? alexandra: the common denominator is they went out early and big and they reorganized the bank to look like, look more like a tech company. ai first business with a research lab that is attracting the best talent, reorganizing the bank from inside looking at the data infrastructure, looking at this question of build versus buy, looking at decision-making and if it lies in the center of the bank or if it is federated and striking that balance. what the leading banks did is they went out early. jamie dimon famously laid out the ai strategy for jp morgan in 2000 18 and established a research lab and really went to work on looking at how to reorganize the banks so that they could respond to oncoming technology swiftly and easily

and get the time to production down and really infuse the bank with ai thinking, ai mindset and nimbleness. that is what they are reaping the benefits of now. not that they are standing still, they are moving at double pace of other banks continuously . they want to spend more on ai, higher other people and continue the research on the partnerships that are delivering the impact they hope to get from ai investments. jamie dimon said this year that the are alive from his ai investments is at $2 billion. caroline: who else is making money? who else is seeing return on investment? everyone is desperate for that. alexandra: only two banks in the list of 50 are talking exclusively about are alive. that's jp morgan and dbs out in singapore. but this is going to ramp up. we think that in the next six to

12, maybe 18 months, really as ai use cases move into production more solidly and the pressure to show roi off of the investment ramps up, the roi is being measured internally by the banks and many are looking at how it is impacting in non-numerical and numerical terms but there will be a cascade of announcements publicly from six months to 12 months on. caroline: that is what is so interested about that -- interesting about the timing of the report, we just had banks earnings season. did you see early evidence that gets you excited for future reports of roi? alexandra: absolutely, absolutely. there were other factors around the rates and geopolitics, but four banks were asked about the ai strategy spend and the impact it is having. so, jamie dimon was asked to pick from morgan stanley, who

was also asked specifically about what they were expecting to see in terms of ai investments and where they see that having an impact and to pick and go into detail on the tools that they rolled out across morgan stanley called debrief, something that they are trying to put in the hands of many across the bank, and ai service that helps to manage meetings and responses and so on. we must remember that we are in the early innings, it's a big and monumental transformation and we are only two years in. there's a lot to come with tools getting better and better with much more reliability and speed, but we are looking in the next year or two at what we call identikit ai coming in to be tested out and be a potential tool for the banks to consider and are considering already, which will be a real game changer on many accounts. caroline: what are they using?

building models in the openai chart? what are the frustrations? what models have been deployed? are they being built from within ? deployed on openai? alexandra: most are looking at the many models out there, like hugging face. every model has uniqueness. when you look at the variety of use cases and problems you are trying to solve, there will be different types of models that will need to be deployed and fitted. the building and the engineering of making it fit on your own data for your own systems in a particular way that is unique for you, depending on the type of bank you are, you are looking at this variety of large language models that each have their own features. but then they get bought in and implemented and fitted into the data and system of the bank.

caroline: so pleased you have come back to discuss this latest on financial ai. coming up, unity just announced that the latest version of their gaming engineer software is out. the ceo joins us next. this is "bloomberg technology." ♪

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car: t the bloomberg technology podcast on terminal and on apple, spotify, and i art. this is bloomberg. ed: ok, unity releases its latest development platform today called unity six. a speed of tools used by the

gaming industry and professionals to create market, grow games in the vr experiences across a variety of platforms. the unity ceo joins us now. matt, i have come to learn in the last couple of years that loads a video game developers, publishers, and game industry people watch the show, but many won't know what the tools are. why is unity six so important? welcome to the program. matt: it's a global platform that enables and empowers large chunks of the videogame industry. 70% of the mobile games in the world are built on top of our platform. so, it is an important and fundamental peace and we are the only company in the world that can help developers from the beginning to the end of the lifecycle. prototyping, building the game, operating the game in live service, going out to find users

for the game or monetizing advertising input -- inventory. it's a full sweet and we are close partners with developers all over the world. by the way, as well as nongame users. and there are plenty, we will dig into them in a moment, but when you think about those developers, you have to win back that trust, focus on being a good partner, being relatively new to the role the previous ceo had to leave because there was a pricing main point. how are those relationships building? the first five months -- >> the first five months have been exciting and i've been spending time with as many customers as i can. i've been really excited at how willing they are to reconnect with us. the ecosystem is really the best when we do -- well, when you choose it, you are building on top of us for 10 or 20 years. it's really important that you trust us and it's really important that we deliver what is needed. what customers told us around

the world was that we are happy to pay more, we just don't like the way you have asked for it and that was the easiest decision in the world to reconnect with folks and find a way to charge them that worked for their business and regenerated relationships. caroline: there is tough competition like epic games and open source. how have you managed to retain or build on or even lose market share? matt: unity has been developing this platform for 20 years and as i said, the vast majority of mobile developers are already on the platform, all we have to do is things like release unity six. better performance software that is also stable, stable as a rock. if we keep doing that, we feel really good about our position. ed: a question from the developers in our audience is that you will raise prices over time. explain the cadence, the percentage, and the rationale behind it. matt: we announced that we were reverting to a very typical kind

of subscription model. very common in the business. we talked about making the software more available for the community. and then raising some prices on our largest customers. the news has been really, really well received. as i said, not even so much because of the price increase but the way that we did it. part of the reconnecting has been really spending time with them, to listen to them, to test our ideas with them, and to not surprise them. the way that we rolout the pricing and the nature of it has been well received and we think it will just revert to some annualized increases that are typical in the industryand there won't be much drama. ed: what is the unity story going to be under your leadership? there was a time when they were like -- we will be a metaverse company. i get why. seems like you are doing a hard

reset back to being a video games company. matt: one of the exciting and challenging things is that we sit at the intersection of so many powerful forces. 3d, digital advertising, interactive entertainment. the metaverse, ai, you could be forgiven for wanting to pursue lots of wonderful things. to your point, what we have wanted to focus on is making sure that we deliver for the core customer sete in video gaming. make sure that we deliver rocksolid software that they can build businesses on, use to help acquire users and sell advertising inventory to make sure that we nail that so that folks trust us, that we reconnect, and when they trust you, it can be like a dream and you can make all kinds of other investments. caroline: oh, other investments, with a b in organic rather than organic? generative ai offerings? matt: our focus is on building

the business in general, but i will say that ai is an important piece for us. as a platform, we are interested in changing the economics of the industry. the best thing that could happen to a game developer is for us to create a tool that lets us make games more quickly and efficiently. it changes how many games they can make and it changes the calculus. as a platform developer we can use ai to obfuscate the complexity of our software and help them move more quickly and that is the best thing we could caroline: are you focused on buying someone? matt: we are focused on being better. ed: the question from this point is video games change? unity is a great. ai, great. we want better games. can you promise that will be the case? matt: i can. i have been making video games

for 15 years before i even got to unity. there is a lot of talk about where we are as an industry and perhaps growth flattening. it's important to remember that the videogame business is a victim vibrant business. bigger than streaming video, streaming video -- music, and global ox office combined. sometimes late in the hardware cycle you see flattening like we have now, but something i can promise you is that the creative geniuses in our business are creating amazing interactive entertainment that they will release, there will be new platforms with growth returning to the market. ed: matt, thank you so much for joining us. caroline? caroline: time to talk tech. the eu said that it might include revenue from several elon musk businesses when calculating a fine for violating content federation rules. not just x, but potentially from

spacex, euro link. because tesla is publicly traded, it would be exempt, but no final decision on penalization has been reached. tesla and the robot update, they responded to blowback on their robots needing human help last week. the clip shows the bought walking a factory floor, navigating charging dock, even responding to visual cues, passing over popcorn and drinks. they are now saying that he can -- that optimists can avoid obstacles using neural nets. the apple chief people officer leaving the company after less than two years according to people familiar with the matter. the role was created for carol service in 2023, who was responsible for the recruitment of apple's 160,000 employees. ed: coming up, netflix reports after the bell as analysts see the end of the road for the

latest growth driver. we discussed what is next for the streamer that has tripled in value in recent years. this is "bloomberg technology." ♪

thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon.

what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana ...with horses let's take a look at those scenarios. j.p. morgan wealth management has advisors in chase branches and tools, like wealth plan to keep you on track. when you're planning for it all... the answer is j.p. morgan wealth management. are everywhere you turn. but at t. rowe price, we're letting curiosity light the way. asking smart questions about opportunities like advances in healthcare. and how these innovations will create a healthier world tomorrow. better questions. better outcomes. ed: cable companies are not only seeing a drop in television subscribers, they are also struggling with broadband.

look at the charter broadband subscription data for the past six quarters. cable providers may lose up to 481,000 internet customers in the third quarter. that would be the worst ever decline for the industry. analysts say it is due to the excellent -- expiration of a government subsidy program as phone companies bundle internet wireless options. caroline: trouble for cable providers extending to netflix, reporting earnings today. shares tripling since may of 2020 two, hitting a record high earlier this month. can we sustain this? maybe revenue growth is slowing a bit. we have seen the password crackdowns already. has that been priced into where we are standing? should we be trading at this valuation? this set of numbers, fiscal third quarter, doesn't look like it will remain strong. is that enough to keep joy around netflix? >> 4.5 million is solid growth,

down from third quarter of last year, closer to 9 million, but the huge run-up in the stock price we have seen since may of 2022 is driven by two things. yes, the password crackdown has been effective, but it has been driven by the introduction into the lower price ad tier, right? that's what you should keep an eye on going forward. how many subscribers do they have in that advertising tear? how much is that revenue growing? a big part of that is them going more heavily into live programming, right? in order to get advertisers and viewers synced up, you want live events. the more that we have seen in the last year have been all of this increase in live production. we had the joe rogan comedy live special over the summer. hot dog eating contests. that's all pretty small compred to what i think is coming down the pipeline for them in the

next couple of years, which is really live sports. ed: when you and i were hanging out in hollywood and rubbing shoulders with celebrities and moviemakers, i guess what they were not talking about so much was some kind of crisis, when they were one year ago. are we looking to the horizon for a crisis? >> i think like everyone is happy that the strikes are over and we are in the belt tightening phase of hollywood. feels like the major production crisis has passed but we are down from where we were in the gtv years. in terms of what netflix has coming, you know, i'm still curious about the gaming investments, they had a shakeup over the summer. they haven't had much success there. you know, they will point to big things like "squid game 2" next quarter. caroline: plenty to get excited about. thank you.

that does it for this edition of "bloomberg technology." ed: good show, if i say so myself. recap on the podcast, you know where to find it. this is "bloomberg technology." ♪

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sonali: welcome to bloomberg markets, i'm sonali basak. traders dealing with geopolitical, economic earnings factors. there is a lot to chew on. at the overall picture as we had noon wall street time, the s&p 500 is up .4%. even more so in e nasdaq 100, where the chip stocks are helping to drive the nasdaq 100 eire, up .8 percent. looking at the 10-year yield, it's pretty stunning, save -- seven basi pints higher. just flirting with the