>> from the heart of where innovation, money, and power collide. in silicon valley and beyond this is bloomberg "technology" with. caroline: caroline: and ed ludlow. caroline hyde and ed ludlow. caroline: live from new york i'm caroline hyde. i'm tim in san francisco. this is bloomberg "technology." caroline: invideo c.e.o. announces new a.i. tips at the annual conference but fails to wow investors. we'll have details.

china's 10 cent posts its fastest revenue growth since 20 # 23 with the company ramping up a.i. spender. cloudflare with new security products. we speak with the c.e.o. matthew prince. first check in "on the markets" which are the not consumed with a.i. but consumed with the fed. currently up .5% on the nasdaq 100 bouncing back off what had been a significant selloff yesterday. and overall we contend with the macroforces versus the micro. on the points higher, apple doing well to push the nasdaq. so, too, is nvidia, as g.t.c. continues. up 9%. it fell 3.4% yesterday. as the c.e.o. took to the stage unveiling a whole host of new a.i. improvements, chips that move from the blackwell ultraon to vera ruben. also a new scientist name for the net iteration. but tim, it didn't wow

investors. tim: there is always today. and there is always the rest of the week. for more on n video, mandeep of bloomberg intelligence joins us. mandeep, there is this narrative emerging that a.i. costs are are getting out of control. what did we see yesterday? what did you see yesterday from nvidia that said to customers, are you getting more value out of what we are bringing you? mandeep: one, there was a clear shift towards reasoning. the fact that he said reasoning requires a hundred times more compute. from that perspective the demand trend seemed to be reassuring come interesting nvidia. clearly they are ahead when it comes to the performance per watt everyone seems to be focused on with these chips. you could argue there isn't a new end market on the horizon even though they announced the partnership with g.m. or the human nowed was -- humanoid was part of the keynote. it's still about data centers

and servers. they seem to have a clear road map until 2027 in terms of what kind of performance improvements they are looking with the next version of their chips. caroline: vera ruben inspected to 3x the improvements on blackwell ultra, we get fayman for the future blatt form of focus. analysts overall once again declaring that the moat is strong. they may be eight years ahead of the competition. what more can you do to juice what's currently in the valuation? mandeep: if you look at n individual nvidia's numbers they moved to the upside because of something new, additional customer of the same ramp up. you have to look at the hyper scale investment. they are all developing their own basics. so the fact that you have competition on the horizon, even though nvidia is way ahead of everyone else in terms of

performance, but you just can't rule out the fact that a 2k-6 6 are a real possibility. that's what broadcome called out. that competitive environment will get challenging. they made the payment to reasoning after deep seek. six months back it was about pretraining. the keynote this time was about inferencing and reasoning. so they are very good at making those pivots. but the fact is the market keeps evolving. i think acics is still a real threat when it comes to nvidia's sales at the data center. it's a $1 trillion market. who can give the assurance it will be nvidia who captures most of that market? your competition is four or five main hyper scalers still looking to develop that option. caroline: mandeep of bloomberg intelligence. meanwhile, wider investor look, nvidia and others in the chip sector. kim for rest joins us -- forest.

not to mention intel languishing. but can nvidia remain the king when it comes to a.i.? kim: well, maybe. i think it's a strong maybe. maybe they do rule the hardware world or a lot of it. because there really is no substitute right now. here's the thing. human beings are incredibly invan hollenive. and -- inventive. nvidia, though they always trout out the fact that they have software that developers may use, i think the very largest developers that are using these chips are writing their own software, not depending on quda. so keep that in the back of your mind. i believe what deep seek has shown the investing world is, there is more than one way to skin a kavment just throwing really expense -- cat.

just throwing really expensive chips at the problem isn't the answer. i'm looking for innovation in the software world to make the build out of a data center a little less like key into developing a.i. in the future. more software, less hardware. tim: do you think the market has fully priced in the impact of deep seek? kim: no. actually. i think -- this is a really difficult area to talk about, a.i., without realliered in -- really nerding it. keep it at the 150,000 foot level. caroline: this is the show to nerd out on. koim: i'm trying -- kim: i'm trying to restrain myself. here's what i see as the essential problem. there are limitations in the physical world. power, how quickly you can build a data center, how quickly you

can build chips. the machines that create these exotic chips. how quickly you can build that. it's all -- a physical world problem. in many ways software is exactly what we have used in the past to become more productive. and why not use it on a.i. itself to use these data centers that we already have and we think the software and the training, testing, validation kind of exercises we do to build large language models, why not make that better by better software? crazy. tim: you have the background to nerd out. because finance you spent more than a decade working on this stuff. this was 20 years ago. you have been thinking about this stuff for a long time. but now do the economics of inference work? do the economics of agentic models work right now? kim: i don't think so. they are so expensive to build.

and it doesn't look like people are lining up to buy it. is it really that simple? i think the answer is yes. i have not been convinced that there is a strong enough problem that can be easily identified and thus monetized in a.i. do i think it's the future? absolutely. but i think that businesses who have to put their assets at risk buying this stuff. and then using it. remember, a lot of language -- large language models are 85% to 95% correct, and that is underwhelming if you are going to build your business on something that is incorrect 15% to 10% of the time. these are real world problems that we have to get unexcited about and fixed. again, my answer is software. that's what i -- that's my book. i know that area as opposed to building better hardware.

caroline: go the to the software. the nerdy release open software dynamo. there is crowing that makes deep seek 130-x faster when you run this new open source software being offered by nvidia. are they not adapting quickly enough? it feels they have an answer for everything. kim: what you have to do is attack -- faster is better, right? then how do we stop wrong answers? that's where the humans have to come in. and kind of build stuff around that. to wall off the bad answers. whenever i was doing this back in the late 90's, that's where a lot of our time was spent on refining the models was to make sure that we weren't returning bad answers. i don't really see that as a focus. answer, aim talking my book, what i know -- i'm talking my book, what i know. it's still a problem. that's the crazy thing. 30 years later, wrong answers are still a problem. tim: kim forest, always great to

check in with you from boca capital. as many as 400,000 nvidia chips are set to have a new home in the small city of absleen, texas. the site of the first data center complex for open a.i. star gate infrastructure venture. the project will be completed by mid 2026 with support for hundreds of thousands of a.i. chips. no word yet on how many chips have been committed to the project so far. caroline. caroline: coming up, mental connectivity and connectivity firm cloudflare introducing new a.i. tools to take on vulnerabilities. when we are speaking with the c.e.o. next. this is bloomberg "technology."

tim: cloud connectivity cloudflare is in the midst of its annual security week announcing a slew of new products including one to help safeguard against a.i. vul nermts here to discuss is cloudflare c.e.o. matthew prince. you just announced cloudflare for a.i. this week allowing customers to safely use and develop a.i. tech. up to now what has been the problem, the challenge, vulnerability? >> the thimg -- thing that's really hard is everyone is rushing, everyone is bored what are we doing in a.i. and everybody is trying to go as fast as possible. mistakes are made. data that shouldn't leave your enterprise gets sucked up into an a.i. model. people are using a.i. in a way which might embarrass you or your firm. what we have heard from our customers, they want guardrails,

controls, even as they go as fast as possible they aren't going to break anything that's really important. that's what we are announcing with cloudflare for a.i. we are already excited to see customers using it going as fast as possible but not make the critical mistakes. caroline: you have so many current security official already when you think about web applications, firewalls. what's new here in terms of cloudflare for a.i.? bundling thee at that timic -- thematic or bundlings? >> a combination of building on the foundation we have where we can process vast amounts of great flowing through our systems dorks analysis, the controls. adding on top of it not just how are we looking for hackers, how are we looking for threats, but how are we actually looking for the ways that people might be using a.i. in a way that might be embarrassing to a company. in a way that might be revealing secrets that are there. part of what's powerful. yes we have customers that care

about their use of a.i. secure. a lot of a.i. companies, most of the major a.i. companies, also use cloudflare. we have been able to integrate those two sides in a way to give awe holistic offering and make sure you can go as fast as possible with a.i. but do it in a way which is secure and has guardrails. caroline: that speed, that desire to get out in front when it comes to a.i., many would cause as hype. could you set the broader context whether you think the a.i. hype is turning into a.i. productivity reality? >> any time you have something which is as disruptive a new technology as a.i., there are going to be a certain amount of money which is spent on it which is just lit on fire. that's just the reality that's there. what we are seeing is that there is real value which is being created as well. even if we assume that only 1% of what's being done today turns into value, what we see from our customers what, we see from the a.i. companies out there, is that that 1% has the opportunity to have enormous returns.

again i think anyone who is not doing at least something experimenting in a.i. is probably missing the boat here. and again i don't hear a lot of customers saying gosh, we are going to shut down our a.i. efforts. instead i think people are stepping on the accelerator, finding more ways to use this. we have to acknowledge some of this will be lighting money on fire. a lot is going to turn into real innovation over the long term. tim: matthew, investors watching are probably wondering how big a business does this turn into for cloudflare? what are you nod 8ing -- modeling internally? a we don't forecast anything in particular what will i say is customers are coming to us. this was a real demand driven by our customers saying you are extremely well positioned to be able to solve this problem. this is something that we want and that we want you to build. i think that gives us confidence that as we invest in this space that it's something where there will be real returns. something that customers want. something the largest enterprises are realizing they need.

they can't just go at the full throttle without those guardrails in place. because of the unique position that cloudflare is in we can deliver those guardrails and use acialtion i. safely. caroline: are you offering the platform to build torques deploy the apps and the security. paint a picture of the ecosystem. people might be thinking your competitors are aws and others, there is this deal with google whieg wis and what that does for overall security of infrastructure cloud, infrastructure. >> those are very different companies. congratulations to the wiz team. it's hard to build companies the fact they so quickly built something to have enormous value and sell it to google is something that deserves an incredible amount of tip of the hat to them on what they are doing. i think the fact that google had to build wiz shows how security has to be part of any cloud platform. cloudflare started with security. that's given us a huge advantage over time. wiz is great at identifying what

an enterprise's security vulnerabilities are. what we are proud of at cloudflare we have been the solution once they identified the problem to solving the security problem behind the scenes where they are recommending us as that solution. google has been a long term partner of cloudflare. we hope that will continue and expect it to continue over time. integrating wiz makes it make more sense for them to be integrating closely with cloudflare and differ our services as one seamless offering. caroline: some of the best perspective of the internet writ large. we love having you own. tim? tim: time now for talking tech. first up, google launched a redesigned version of its budget pixel bone phone. upgrading the chip and battery life weeks after apple's lower end i-16 went on sale. it costs $499 in line with the price of last year's pixel 8-a. plus, tesla was granted approval to begin carrying passengers in

california. the approval does not allow tesla to offer rides in autonomous vehicles, but a ride hailing business with human drivers could pave the way for tesla to introduce robotaxi service in the state. show me is working to expand its production capabilities to meet command. this comes after it raised its delivery teeing target for e.v.'s reflecting in roads into the chinese e.v. market. xiaomi group c.f.o. joined bloomberg television in an exclusive interview to weigh in on this >> you see a couple of our e.v.'s. and then the yellow one which is something we just launched is our su-7 ultrawhich we start selling at a starting price of over $500,000. we are running one factory in beijing. which is fully ramped up. we are working very hard to squeeze the extra production out

of that factory. at the same time, we need to continue to expand our production capabilities by adding new production sites. caroline: coming up, 10 cent quickens its a.i. spending after a boom in sales. details next for the chinese giant. this is bloomberg "technology."

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caroline: ten cent posted its fastest pace of revenue groaft since 2023. revenue rising 11% for the three months ending december. it also shed light on its a.i. ambitions. we are joined for a break down and doing a.i. what they did for gaming. but offer third parties. >> indeed. breakdown results show the company's doing pretty strong across its business lines from

gamings to social network. as well as the payment of fintech. a.i. is the key business focus for today. and the company said it made a so-called emergency purchase of g.p.u.'s in the fourth quarter because it was seeing a surge in a.i. demand. indeed, we are seeing this coming through on the revenue side as well. the company said that it's a.i. cloud business doubled its revenue in the fourth quarter. just to give you a sense of things in terms of how much the company's spending on a.i. these days, the company said its fourth quarter capital spending quadrupled from the same quarter in 2023. it really shows you the urgency that the company is having in terms of catching up on other chinese big tech companies in terms of enhances its a.i. capabilities. tim: henry, good to see you. thanks so much. elon musk invested $150 million to acquire more shares in x last

year at a valuation approaching the price he paid for the company's equity back in 2022. bloomberg's curt wagner joins us with more. what's the endgame? does he just want to own the entire thing? >> he already owns around 75% of x. i'm not sure how much of this is buying $150 million more in shares is not going to dramatically change his othership. it could be used buying out somebody who wanted out. more than that, it's perhaps a signal that this company is still valued at where he or close to where he purchased it. we know they are out raising money from other investors. maybe having that sale at the end of last year setting the benchmark. if elon's willing to buy in it at close to what he paid, maybe others should as well. perhaps it was more of a signal than anything. caroline: the signal was amazing deep dive by you and other reporters in kingdom holdings in

your report the society investment firm that seems to where we got the tip-off he was offering these prices for the equity. overall, the business seems to be improving, right? curt: that's sort of the narrative. there are signs that point to that. number one, the fact that they are out trying to raise this $44 billion price tag is one sign. we know and we talked about this on the show the banks holding all of x's debt have been able to offload that at around -- the same price at which they loaned it a couple years ago. earch we -- we have heard stories of advertisers returning. will i caution on the advertiser front, x and elon are also suing a bunch of advertisers. so there is some fear out there are not spending on x we aree opening ourselves up to potential legal dispute with this company. maybe we throw them some money to avoid that. yes, there are some signs that perhaps things are certainly better than they were six months

ago. tim: you wrote the book on this. how has the product changed under elon musk's ownership? we have all seen what the experience has been like? how has the product changed? >> i can only speak for myself here. i would say the biggest thing is that the news value of twitter or now x in my opinion has gone down. i remember the first trump presidency how much news was coming out of that administration. and twitter was a must-have for me. i think the change that elon made around verification. the changes they made around the ranking has just, in my opinion, made it less feuls as a news venue. especially its been tightened to me given the fact that we are in this trump 2.0 presidency. we are seeing that news cycle again pick up just like we did during the first time around. i just don't feel like i'm getting news through x in the way i used to through twitter. i think the verification thing in particular has a lot to do with that. caroline: i spy a battle for the

bird over your shoulder. thank you. we talk about how a.i. investments have been hit by the border selloff. this is bloomberg "technology." where ya headed? susan: where am i headed? am i just gonna take what the markets gives me? no. i can do some research. ya know, that's backed by j.p. morgan's leading strategists like us. when you want to invest with more confidence... the answer is j.p. morgan wealth management

caroline: welcome back to bloomberg "technology" i'm caroline hyde in new york. tim: i'm tim in san francisco. caroline: a little bit of a reprieve ahead of the fed 2 p.m. new york time we get what is the ultimate transcript. then you get the press conference coming from jay powell. what will he say about the the overall economy? we expect no move in terms of rates we are up .#% as some of the tech catches a bid. drill into individual moves am up 4% even as the pure pea--year pewian commission telling apple

to lose its control over -- loosen its control over the operating system. it favors its in-house services and prevents developers from offering alternatives. assaad from the app store play store. a move what's happening with meta. they had been your outperformer of choice but finally it tumbled into the red. off by another quarter percent. kathy wood seemingly offloading shares. she had been buying them up last year. now they have taken profit. turn back to the markets more broadly. we are pleased to welcome j. is j. gibbes, e.t.s. at blackrock. the macrooutweighs the microfundamentals. nvidia c.e.o. captured the vibes into his shares and market capitalization until we hear bert music out of the fed. >> it's that tension we are seeing. is this an interest rate driven

meerkt or thee mat. what we are seeing is more thematic. the developments in a.i., geopolitics exthat's what's driving the the markets. it's why we are seeing a lot of interest in areas like infrastructure, not every day is the same. we certainly see this tension playing out in real team. caroline: that sounds at odds for many who feel that they might have leaned in but they have lost money. we started to see investors pull out of some of the big winners. are you saying people are allocating toward them > we have seen $50 million come into our e.t.f.'s. that's our a.i. and bai an actively managed fund where we are picking winners within the a.i. space. people are buying the dip. caroline: it doesn't feel like it? >> if you look at some of the valuations you have these incredible a.i. companies, some

biggest, fastest growing trading at the same p.e. as 75-year-old fast food companies right now. there is value in a.i. which doesn't seem -- won't have said that three months ago. that's the case right now. tim: surprising to hear you say that. i think a lot of people would argue, jay, there is still by many measures these are still very expensive stocks. where specifically are you arguing that there is value? >> i lost audio. caroline: i don't think he can hear you. as we get the connection back again tim was asking about where exactly you are seeing value. at 25, 26 future earnings for nvidia still feels expensive even if it is akin to a 75-year-old restaurant chain. >> it's what you're paying for that growth. in the absolute 25 times earning sounds expensive. when you get earnings growth, that's 30% a year. you are seeing top line revenue growth in the high double-digits. that's superior towards the

broader technology sector. even the s&p 500 more broadly generally speaking are you seeing a.i. companies grow twice the speed of the s&p 500. it's ok to pay more if you expect to see the growth back that up. caroline: i suppose everyone was in on the hype. and now it becomes ok i'm committed to the long-term trajectory. and they did a good job still building a moat. the company will be eight years ahead of others. i think in the here and now people are seeing an opportunity cost in investing in certain names. are you saying it's spread out. people go i'll back energy, or the application of a.i. rather than the infrastructure, the ultimate picks and shovels we have seen committed to of late. >> it is spreading up the picks and shovels theme is very much in vogue. you are seeing it with semicondition ductor companies, data certainties, and digital infrastructure. where there is a shortage. there needs to be more. caroline: are we not seeing that in the share prices.

semiconductors obliterated this year >> we are seeing in the investment dollars where you have some of the companies spending hundreds of billions of dollars to build out this space. markets are on the short term. in the long-term we see opportunity in a.i. digital infrastructure is the first area. the next area of attention from the market will be on the data companies. who owns the unique data that's going to have to feed into these large language models. you could run out of data by next year in terms of what is training these models. they are ingesting so much data to get so much more powerful, that unique high quality data is where it will be valuized. i think we'll see transformative industries build around artificial intelligence. the users, adopters. that's in the back part of this decade we'll see a lot of value. caroline: where the fund flows coming from. geographically can you break it down or even when it comes to age groups? how are you seeing people allocate that trade? >> we don't get that much level of detail in e.t.f. space but

it's being felt. you have see investors looking at a.i. trail for a while and telling their clients aim not ready, valuations look stretched. now that it's pulled back in a significant way they see it as the entry point for long term investing. we are seeing that pretty broadly. tim: blackrock's jay, joining us in new york. thanks so much for joining us. elon musk's xa.i. and chipmaker nvidia joining forces with microsoft and blackrock to build $30 million of a.i. infrastructure mostly in the u.s. the group also includes the united arab emirates. both microsoft and blackrock have ties to open a.i. which is part of a $100 billion a.i. infrastructure plan star gate. i feel like i need some sort of chart here to keep track of the spraining bedfellows. i guess the opportunities brings

somewhat frenemies together? caroline: the whole world of the a.i. space is one built on frenemies. isn't it interesting when we saw the stargate announcement in the white house, microsoft wasn't there. it seemed to be opening a.i. opening itself up to deal with oracle. microsoft has been there with blackrock trying to integrate and ensure allocated dollars is going into data centers. when you see the news as we reported top of the show that 400,000 g.p.u.'s can be homed in the texas building that's currently happening by stargate it seals feels like demand is there for all the things jensen builds. tim: the demand is remarkable. we'll have to wait and see what we hear from nvidia in the coming week as g.t.c. perhaps up. no question that investment these companies are making is still happening. caroline: we are going to talk about what it takes to stand out from the crowded market for building a.i. developer tools. it's all about graphite for

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economic forum.com. caroline: this is bloomberg "technology." are you looking at a live shot of the principal room. tune into bloomberg television today at 1:30 p.m. eastern for bloomberg "surveillance's" special fed decision coverage. this is bloomberg. tim: google has agreed to payed $33 billion to buy start up wiz. it's a big win for the backers of wiz. joining us is bloomberg katie. we are learning more about exactly how this deal came together. even though it was over a long period of time. it was also just recently really in the last week and a half or two weeks. what do we know? >> exactly. google first expressed interest after hearing the buzz about wiz at r.s.a. security conference

last may. and then talks picked up last summer. and wiz was not interested at all in selling at the time. even though $23 billion which was so much money, especially for a company that at the time was 4 years old. what changed is the regulatory environment. there were people involved with wiz very concerned about another adobe-type situation that went on with regulators and slowed the company down. so there is a perception at least that this deal would be more likely to get approved under the current administration. of course that remains to be seen. yeah, we understand in the last week or so google's persistence finally paid off. caroline: it's interesting. we have the f.t.c. chair on earlier in the week saying we are going to get out of the way if we decide we can't win in court or can't bring an antitrust case. ultimately they are plowing

ahead on other alphabet focused investigations. when it comes to the speed of this particular set of negotiations, boy, it was fast. it came together in a week and a half you say here in new york? >> we are hearing it's about that. earlier this month is our understanding is when talks picked up again. if you even look what wiz was doing as of january, they hired an i.p.o. ready c.f.o. they fully thought they were going to i.p.o. at some point. they were taking steps for that. but, yes, kreentsly wiz was in the middle of a funding round -- recently wiz was in the middle of a funding round and changed course and decided they had $10 billion more reasons to sell. the $32 billion announced. and an additional billion bonus. employee retention bonus they may receive. tim: some real cash. not just for the founders but the venture capitalists who backed the company. it's time for our spotlight. the market for a.i. developer tools is quickly becoming

crowded. as more companies turn to a.i. generated code. for a deeper look we are joined by accel partner kristen herman. good to have you on set with us here in san francisco. accel just invested in this $52 million series being in graphite. what is the opportunity that you see here? >> thank you for having me, tim. yesterday we announced our $52 million series b in graphite. it is an a.i. power code review platform. like you mentioned i don't think it's any surprise the amount of code being generated has exploded. largely thanks to the success of companies like percenter and windsurf and co-pie lovment as a result of the activity in code gen there's been an increased emphasis on reviewing that code, testing it, and deploying it. that's railroad graphite fits in. they are the collaboration layer. where human developers and action i. agents can -- and a.i.

agents can share. tim: how do you see this disrupting the engineer and software development market? >> good question. i think there is a lot of conversation and a lot of people that are saying will the saft wear developer cease to exist? what's the fuhr of that career path? feature of that career path? anecdotally across conversations i am having with technology leaders in the enterprise, everybody is trying to hire more and more software developers. it's actually a war for talent. that's largely due the to the fact that software developers can just be much more productive with tools like graphite. we are seeing incredible productivity gains. companies are going multiproduct faster. i think that this also an accelerant to the software development career. caroline: we talked about this being a crowded space when it's coming to using a.i. to build code. this is about assessing that code. there are other start-ups building in that direction. and the person who built

co-pilot is building poolside. how do you decide it's a winner here? >> there are certainly a number of companies vying to be the next multibillion dollar company the in the developer tool landscape. i personally think graphite is unique in a number of ways. first and foremost the team is exceptional. it's founded by three co-founders. they all met while studying computer science at harvard. they just built an exceptional team and culture in new york city. secondly, this team has just been able to move very fast and ship new features. yesterday they launched their stand alone a.i. code review product called diamond. i think it's just really important to stay ahead of the curve. constantly be iterating on product and graphite is able to do that. caroline: i may be selfish here. this company is based in new york where i happen to sit. i just think of a.i. lab cognition raise ago ton of

money, huge valuation. trying to build an a.i. software engineer. what's new york got versus the west coast? >> it's a great question. at accel we are global both in terms of where our offices are and where we invest in companies. we have long believed that great founders are everywhere across the globe. it's important for us to be able to find those founders no matter where they are building their companies. graphite's unique in that they are in person five days a week and care about build ago strong culture. that's given them an edge in this competitive time. tim: your own portfolio companies include graphite, linear merge, pleat, headway. what's exciting now as you look across the start-up landscape? >> i'm having a ton of fun. i think there is no time like this when companies are growing so quickly and buyers have so much willingness to spend on technology. it's been amazing to see the interest in enterprise technology as a whole. what i look for when making new investments in consumer and

enterprise and a.i. and infrastructure is just phenomenal founders. this is a people business. i'm just so fortunate to be able to work with exceptional founders across all those different companies. tim: is there a type of technology right now that you see on the horizon that's really exciting you, want to get behind? we understand the people make the companies, but the tech has to exist, too. >> for sure. we are seeing an incredible platform shift right now. software development is entering a new paradigm. it's really important to just be paying attention to alt different technology innovation -- all the different technology innovation. if history is going to repeat itself. we are going to see new winners across productivity, collaboration, and security. we are paying close attention to those areas. caroline: i want to go back to suggest said. graphite is unique because they are in the office five days a week. is that what you care about when ultimately engineers can be based anywhere and work together? >> we work with companies that are in person and also companies that are remote. i think it depends on the

subcategory you are building in. right now in developer tools specifically i think it's really important for teams to be able to move quickly and be in tern together this market is moving so, so fast. like you mentioned it's very competitive. we are waking up every day to companies raising hundreds of millions of dollars. in order to be able to keep up i think it is really important to be in person together and to be able to pay attention to everything that's going on in the competitive land scape. caroline: music to many of some of those in finance here in new york. we thank you so much for joining us. meanwhile, want to update you on a developing story outside the world of technology. president trump says he just complete add one hour phone call with ukraine's leader. he said the it was very good. they had a dramatic disagreement at the white house recently. it involved zelenskyy to leave. we'll continue to monitor and bring you anymore information from that call. first coming up, we speak with

adobe's president of digital media business, david wad wamy as now -- wadhwani. thloomberg "technology."

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i am doing what i've always wanted to do. if i was back at the beginning, i would choose snhu all over again. (♪♪) you need tre. i need indeed. indeed you do. when you sponsor a job on indeed, it's easier for talented candidates to find it. which makes it easier for you to hire them. visit indeed.com/hire caroline: adobe unveiling a new suite of product i novations integrating a.i. to help drive the customer experience. pleased to welcome adobe digital

media president david wadhwani to the show. what's going to be happening to a customer? how much will they interact with agents? what does it change in terms of their experience? >> thanks for having me on the shoavment it's been amazing having the world's biggest brands and so much companies together talking about the evolution of how creativity and how a.i. will change what we call the content supply chain. the question here is around how you create more content in a personalized way to reach audiences with messages and content that resonates with them. the entire show that we are at adobe summit today has been around enabling enterprises to create more content at scale through a.i. that can create better engagement with their customers. >> -- caroline: some that have is about interoperability as well. where else are you integrating, who else are you adding? >> first of all just so much

understands, we have the world's broadest set of a.i. models focused on creativity. we developed those models in a way that is more controllable and toolable than anyone else in the world. we also recognize that customers want to have a broad set of models that have their own individual permanents. we announced partnerships with google to bring the google models for both image and video in. we also are working with flux. we are also working with a host of other third party models, including runway for video. we are very excited about making sure that adobe becomes the one stop shop people can come to for the most controllable a.i. models. and the trusted partner in terms of getting access to everything. tim: how does this affect pricing here? how can you move the lever when it comes to priceing? can you keep pushing for more price increases because of what you're adding? >> if you look at where we are,

creativity is the foundation of everything that is happening in the world today when it comes to communication. whether are you a business professional or a consumer. whether you are a creative professional and needing to produce more content. whether you are an enterprise trying to create more scaled content for personalized experiences, that foundation of creativity is what we bring to the market. we are bringing a lot more official around premium offers in web and mobile to reach billions of users with business professionals and consumers. we are bringing a the lot more value to existing creative professionals where we can bring in more tiers. we are bringing a lot more solution and value to enterprises. across this entire ecosystem there is room to bring in more users, provide more value, and drive more increased montization. tim: briefly, can you give us a timeline here about achieving a.i. sales of $1 billion? you recently disclosed a run

rate $125 million. a we are already influencing billions of dollars of adobe business because a.i. is pervasive in everything we do. to your point we also announced we have stand alone value new products that have hit $125 million today. we expect that to double in the next nine months. and everything we see shows a lot more acceleration in that space. those products. we are very bullish about that and continue to grow. and actually accelerate in the years ahead. caroline: great to catch up with you. off the heels of adobe summit. digital media president. that does it for this edition of bloomberg "technology." don't forget to check out our podcast. find it on the terminal and apple and spotify and iheart. catch up on the latest out of adobe summit. g.t.c. for nvidia. tune in to the fed special later. this is bloomberg "technology."

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>> welcome to bloomberg markets, i'm sonali. it's a green day. let's get a check on these markets. the s&p 500 has held up its bid. dip buyers hopping into the market. up almost 1%. roughly .9%. more so when you look at the nasdaq 100. a gain just over 1.1%. that 10-year yield has been holding steady at about 4.3%. of course there is that big fed decision later today.