>> heart of where innovation, money, and power collide, this is "bloomberg technology" with caroline hyde and ed ludlow. caroline: live from new york, i am caroline hyde and this is bloomberg technology. coming up tesla sales slumped 40% in europe, having fallen in

10 of the last 12 months. we get the analysis plus born officials and tech execs push trump administration to rethink the u.s. global chip strategy and export limits as the debate around ai regulation heats up. alibaba chairman criticizes the u.s. tech giants from their massive spending on ai infrastructure and warns of a potential bubble in data center construction. we shine a light on what is happening in the markets and bring you breaking news as well as we understand russia is currently -- the u.s. is saying russia agrees to ban on striking ukraine energy assets. that is something that had been discussed in the previous end to the show but we are seeing the united states saying russia agrees to a ban on the striking of ukrainian energy assets. we will bring you more in that story in a moment and the implications to the broader market. right now we look at what is happening the tech space. nasdaq off .5% after yesterday's

rally. some of individual companies on the move. after the phenomenal rally we saw in tesla yesterday it is off only about .2%. that is in that significant drop once again in european sales that are down 40% for february after following a similar amount in the month of january. we are now down 43% over last two months. the light is off more than 4% or 5% off yesterday's rally as it finally shows it crescendoed further than tesla in terms of its revenue for fiscal 2024. i am pleased to welcome craig trudell. the mood music has been sour for tesla in terms of sales when it comes to asia and europe and this is more of the same. it is not dragging on the stocks too much today. craig: it has been something to watch the last few days we have seen this rally in the shares.

they were getting beaten down and we saw the trump administration sort of mount this push. howard lutnick saying by tesla stock, it will not be this cheap again. we did not see an immediate perking up of the shares as a result of that but they furiously rallied to begin this week and despite the fact these numbers from the european auto manufacturers association are really ugly as you say, this is not just a last couple of months , it is 10 of the last 12 that we have seen the red as this chart shows. matt: what is important -- caroline: what is important is to sign a light on how does the opposite of the trend in europe. ev sales are up more than 30%. it is an outlier. craig: should note this is not

just a story about elon musk and potential brand damage. there is a tradition of the model y that is important to keep in mind. when you change a vehicle from one generation to the next it mean some disruption in your output. that is having an effect on tesla to begin the year. this is also the case that the industry was preparing for 2025 being a much tougher compliance year from an emissions perspective. tesla also is going to have a lot more to deal with in terms of competition because other carmakers feel the need to bring their emissions down for those compliance reasons. matt: if competition -- caroline: if competition was not stiff enough. craig trudell, we thank you. cathie wood's remaining bullish on tesla but calling for the stock to hit $2600 in five years, almost 10 times its current price. bloomberg sat down with the exclusive interview with the ceo

at hsbc global summit in hong kong. cathie: china is very important to tesla and i think elon musk and his mother are ambassadors for the united states. to answer your question directly, if china were to fail, that would be a short-term hit to the stock. would it take us away from $2600? no. the robotaxi story is much more a function of the western world where ride-hailing costs are so much higher than they are in china. cathie: let's get the take from bailey -- caroline: let's get the take from bailey lipschultz who has been delving into the position from ark invest. this is not about blips of european sales, this is about a long time focus on ai and robotaxis. bailey: as craig trudell pointed

out she has been pointing to the dawn of robotaxis from tesla since 2017. if you look this company when it trades on its multiple, if you pull up the pe on tesla, pe is north of 90. caroline: are you saying tesla does not trade on fundamentals? you shock us. bailey: they don't trade on fundamentals. if you bought art you are lacking the s&p by 125% and the nasdaq by 150%. nonetheless, cathie wood is stiffing to those guns. it sounds like some of the retail investors i talked to in the idea the cybertruck was only part of the thesis now we are looking to driverless taxes as well as the humanoid robots. caroline: she does not factor in the humanoid robots. bailey: that is an eight and a half trillion dollar company with her forecast. they will be dealing a lot with driverless technology even if you add up some of the bigger

carmakers, you're still not close to what that would look like. she has been bullish. she has pound the table for bitcoin to hit $1 million at some point. definitely something to take with a grain of salt. caroline: he was a long-term bull on nvidia but removed her options and ultimately exposure to the company just as it started to rally. with tesla she has remained committed but they have pulled some of their chips off the table. bailey: it is a lower percent of the holding would you look at the flagship etf. now about 11% or 12% of the etf is allocated to that. that is closer to 1/5 we look for the beginning of the year and last year. fulling back but as the stock was rallying, it is down a third the year to date. nonetheless ticking that long-term view as retail investors will say, you've been right about tesla for five or six years. at this point you're sitting strongly in the green. if you look at the rest of the

investments arc has been leading into they have not all worked out and that is why there's been such a lag between the flagship etf and every other tech index. caroline: bailey lipschultz bringing us one investor take when it comes to tesla. let's go broader in terms of the overall market analysis when it comes to the eb numbers. -- the ev numbers. you currently have a hold rating on tesla but a price target of 250. below where we currently are after yesterday's rally. why are we not sinking more on these dire sales news out of europe? seth: i think there is a lot of enthusiasm with the full self driving technology. yesterday's notice that. driving was approved in china bodes well for china sales and it is a far bigger market than europe. we have the robotaxi testing that will be launched in austin. the self-driving unsupervised

launch in austin that will come to california later this year and with the positive news of being able to launch the supervised level two version of self-driving in china that bodes well for tesla deliveries. that is the momentum that is carrying heavier today versus the european deliveries being down. caroline: is that optimism enough to vindicate the 100 times future earnings we currently trade at for tesla as we were just hearing from bailey? seth: tesla is a high growth stock and has been for years and with tesla still having strong growth prospects, whether that is the energy storage system or robotaxis, there is still a lot of room for the tesla growth story to play out. i think the market is still evaluating but tesla does have a lot of growth left, even if the model 3 and model y are approaching that limit of deliveries. they still have the new affordable suv that should push

deliveries back into growth. caroline: get into the details. is it the fact they've not had an overhaul of their current product that is limiting current sales in the mismatch as they try iron out a new form of production or is it the politicking of elon musk taking effect here? seth: it is still unclear what the drivers art before the first decline especially in the european market. you could have a lot of consumers waiting for the new model y which does begin to increase in europe in march so consumers could have been holding off until they could secure a new model y. you also have the more affordable vehicle being launched. some consumers waiting for a lower price point vehicle from tesla and the european market you have long-range ev competition at a comparable price stop for years to tesla model 3 or model y was at least 400 kilometers or more offerings at the same price that would be the same as an ice after

subsidies. for markets like germany and the u.k. the tesla was the most affordable long-range eb. now you have other competitors marketing long-range ev's at a similar price point and now there is competition for the first time in the european market that could lead some consumers to choose a different vehicle. caroline: latin america and europe and canada can access byd. i was interested in cathie wood's take that byd is not a competitor when it comes to av but we have heard they are focusing on av technology. could it start to ramp up and take on the robotaxi future? seth: byd as a level two product that they offer in china. that could lead some consumers to choose a byd inside of china in china is unique market because the data for ev testing has to state within china.

china may be a different market altogether where byd is more comparable to a tesla but if you're looking at a market like the u.s. or europe i think tesla would be more compatible with alphabets product as robotaxi. caroline: with the current price we are trading at, more than your $250 call, you hold and you brace for further volatility. are we ever going to see a calm and up into the right trajectory for tesla stock? seth: if there are months and quarters of good news we could see tesla stock start to rally. when it was trading in the high for hundreds like it was in mid-december we had a one star rating. we thought tesla was a self because we thought a lot of the good news was priced in and a lot of it was priced for perfection. even if you're looking at value of the robotaxi business we decide a lower valuation is the

more bullish forecast because when you think of robotaxi it will be a cheaper price point which will be a lower total adjustable market for consumers and for tesla's profitability and they cannot just take a 30% take like an uber can. they have to manage a whole set of additional overhead expenses. i think it'll will be a profitable business but maybe not as profitable as the markets imply. caroline: how worried have you been with wrist with tesla, concerns about access to the pay and the focus he has at the white house? seth: elon musk has always had multiple positions. whether that was buying twitter a couple years ago are helping to lead spacex, he was not the ceo but he still does take a leadership position in that company. i would imagine elon musk is still focusing most of his time and energy at tesla. they'd last week's event

highlighted that. he is probably taking a step back and other companies, leading management teams at places like space-x and x take more of a leadership role so he can spend more time at the white house. i'm not too concerned he will leave tesla. i think they will work on a deal that will be a favorable compensation package. there is a lot of shareholder support for elon musk to get paid. i think what we will see as elon musk will get a pay package and stay at tesla. caroline: great catching up with you. coming up, major tech companies and foreign officials are pushing the trump administration to rethink the country's global semiconductor strategy. we have the details next. let's talk about the key tech executives and companies. nvidia, broadcom, also intel. an interesting report from analysis at ubs.

intelligence strategizing to rejuvenate its chips. could this be about securing these clients, nvidia, broadcom? this is "bloomberg technology." ♪

caroline: foreign officials at major tech companies are lobbing the white house to loosen trade restrictions placed on ai chips. that was in the final days of the ai -- of the biden administration. bloomberg's mike sheppard joins us for more. there is an ai diffusion rule and it seems like oracle or

nvidia are the companies that would like this not to go into act. mike: they have the most at stake and remind our audience of what this rule does to help understand where the companies are, this rule divides the world into three tiers. it sets up a first-tier of countries and closest u.s. allies. about 20 of them that get unlimited access. there is another tier of countries that adversaries of the u.s., say china and russia that are cut off from access to the most advanced ai chips. there is this big fat middle of nations and that includes israel, the united arab emirates, and even india which all have their own tech ambitions and are all markets were nvidia and oracle are looking to do a lot of business and the prospect of having to face restrictions on how much computing power they can sell to any one nation or having to deal with guard rails that could prove to be regulatory hurdles that might steer business elsewhere is what is prompting

this lobbying push by nvidia and also by foreign leaders. caroline: if you're not able to house over 70% of your compute capacity that will impact oracle as plans over at malaysia. what they want a complete repeal? are we likely to see a complete repeal? michael: the reporting from our colleagues, jenny leonard and mackenzie hopkins, into shout out for the great work they did with this report. but they turned up is nvidia and oracle are most steadfastly against this rule. they are the ones who want to see it nixed altogether and started again from scratch. everyone recognizes there is a need for some sort of governance about where ai chips go. they do provide a security advantage or risk if they spread too widely in the u.s. is already subjected nvidia to restrictions on exports of chips

also used in ai to china. we have seen that come up with deepseek. what they want to do is we want this story from scratch. other companies like google, they are willing to work. we like to see it recast in ways that are more favorable. caroline: bloomberg's mike sheppard on the ai diffusion rule. coming up, alibaba warns of a data center bubble. more on that next. this is bloomberg technology. ♪

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caroline: and tiktok executive steps down. they will step into an advisory role as part of a reorganization. his latest management changed by the social media company as it faces in april for the deadline to reach a u.s. sale deal. according to information at least eight other executives have left tiktok since 2025. deepseek revealed its latest model providing better programming capabilities. the chinese startup drop the update without a formal announcement as it looks to remain competitive against its rivals. alibaba chairman says ai data centers may be at the beginning of a bubble. he was speaking at the hsbc global investment summit in hong kong and set a lot of u.s. data center announcements were

duplicative and overlapped with each other. let's get more on that exact story with who blurts -- with bloomberg's peter elstrom. trying to push against these giants about their commitment to ai infrastructure. peter: interesting comments. he is the chairman of alibaba and has been through this for many years. he got his start in the dot-com bubble so he has seen some of these bubbles in the past and he is calling it out. he was in the conference in hong kong talking with tech investors and said he is concerned about the ai bubble forming around data centers. we have seen incredible amounts of money getting poured into these data centers, especially from u.s. tech companies, amazon and microsoft and google reporting tens of billions of dollars in the data centers. you will recall that openai am softbank talk about spending 500 billion dollars on data centers in the u.s.. they are crazy numbers.

alibaba has not been shy. they plan to spend more than $50 billion. the numbers are starting to add up. the question is whether those will pay off. caroline: it speaks to investor anxiety over last few months that we are putting too much money and and not getting enough out. mizuho analysis coming out that pointed out these pot shots being fired over nvidia and u.s. giants by china tech internet leaders and he said it is funny that straight after gpc we are getting negative in shots against nvidia and the entire investment narrative that centers around u.s. suppliers. is there a theme that this is almost geopolitical that this is china fighting back against u.s. and how the u.s. has ridden the wave of ai more than them so far? peter: these are individual

companies making individual choices. you look at how they add up there been more than 10 ai models over the last two weeks. they're coming on fast and furious after deepseek. their positioning themselves as quite different from the u.s. models. lower cost and much more efficient. not spending the same amount of money. part of that is u.s. restrictions. the u.s. has stopped them buying the highest end nvidia's chips. they are spending much more and they are using a lot of engineering expertise to be able to come out with models that are competent and competitive globally and they are innovative in a lot of ways. they are going at a different part of the market and they could be bringing down profits overall for the whole market. caroline: good to remind ourselves that alibaba ceo did say ai is a one in a generation opportunity. speaking from those guys sides of their mouth. -- speaking from two sides of their mouth.

google still struggling to figure out the future of search in the age of ai. other companies trying to remain the center of our digital lives of our digital lives in the executive leading the charge. from new york, this is "bloomberg technology." ♪

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caroline: welcome back to bloomberg technology, caroline hyde in new york. we remain tentatively higher after yesterday's big rally on the nasdaq across all benchmarks come up another .5% on the nasdaq 100. who leads us on a points perspective? on the downside, nvidia. we have anxiety around geopolitics on restraints for exporting for that name. companies on the higher side, apple from a points perspective,

currently up by 1.25%. maybe some feel-good factors for this particular name, but it is the biggest points contributor. the nasdaq 100, the beginning of march, nvidia is still the worst on the points downside come off by .8% as we try to understand how much they are going to be able to get their incredibly sophisticated chips more broadly around the world. tesla, flitting between gains and losses. negative when it comes to eu sales, down 40% again for february. we saw a significant rally yesterday come up almost 11%. maybe we pull back a little bit. down .3%. there is so much volatility in this market let's get a broader context. denise chisholm is with us. you put such a historical lens, which we need at this moment, because it often feels

unprecedented. how it makes the context of what it was like in the goal for -- gulf war? we've never had as much pessimism? denise: we've had a cluster of anomalous signals in this correction the correction has been one of the fastest on records, but the unique is the decline in sentiment. you can look at the measure from bullish to bearish, the google trends in terms of recession sentiment, and a lot of the sentiment indicators. the rotation into international stocks. all of these signals have been less than 3% and 1% of the time. much of it has been within war, crises, or prior recessions. without a recessionary event, this is incredibly unique. when you look at the signaling perspective and are willing to take a medium-term time horizon of six months to 12 months, all of these extreme signals are usually contrarian by signals by

the overall market. the extreme anomaly is the market isn't down that much. even over the last six months comedian say that it's flat. to the extent that investors are uniquely concerned that we are seeing google recessionary trends spiking to recessionary levels, to the extent that that has been the case in history should stocks go down to meet that recessionary sentiment, you actually find the opposite correlation. the less stocks are down when you are at these peak recession sentiment levels, usually that's better signals in terms of the stock market advance in the future. it's almost like the lack of correction in stocks gets it right, or that stocks are potentially looking through something. i think there are unique signals in the data that suggest opportunity. caroline: so, if you are willing to take on the abrupt fall or two going forward, are we nearing a bottom?

is that the signal you are from historical context? denise: i think when you look at it historically, in terms of picking bottoms i think that the signals i look at from a probability perspective are longer-term in nature. when i say you want to look out six months to 12 months and absorb the volatility, there are opportunities and that, it isn't that the bottom is today or two months from now. but it is to say that after the correction it might need too late to be bearish to the extent that you have the year long time horizon. caroline: we have seen a flip around in terms of who has outperformed. health care dominating and technology has lagged. is it now that we see people recommit? how fundamentals have changed at the same time as human anxieties and pessimism across the broader markets? denise: back to the defensive rotation, the defensive sectors, consumer staples, health care,

and utilities have outperformed by about 1100 basis points. less than 3% of the time in history, and you usually see a cyclical rotation after that, despite the fact that fundamentals may in fact deteriorate. which is to say that a lot of that concern around numbers or the economy has been somewhat priced in. i think there are opportunities in technology. i think the intriguing part about technology is that we've seen really more multiple compression than a decline in earnings estimate. once you are out of the top quartile, when i look back in history and say you're out of the top quartile of relative pe and in the muddy middle, usually have a positive risk reward to the extent that fundamentals continue to improve. caroline: the positive risk-reward dominates any particular part of technology? are we still thinking hardware, the picks and shovels are where we reallocate? or software, which hasn't had so

much whiplash, continue to support, too? denise: software looks the most intriguing in my data set, data going back to 1962. in the bottom half of the distribution on any valuation measure, and software is there, you are getting in cheap relative to where software usually trades, you have a positive risk reward. you don't have to necessarily be right on fundamentals because you have about 50-50 odds of outperformance even if fundamentals deteriorate. this is to say that software is set to outperform this second, but from historical context, downside is limited.to the extent that you have a call option for future growth, your upside is shifting the positive risk-reward. of the three major subsectors, hardware, software, and semiconductors, software looks the most intriguing to me. caroline: thank you so much for joining this show denise chisholm of fidelity investments. cathie wood spoke exclusively

with bloomberg in hong kong to discuss the global economic outlook. let's get the context of how ai can help in the long term. cathie: we think the economy is getting hit by a lot of uncertainty. i think a lot of people are scared for their jobs in the u.s. anyone involved with the government, federal, state and local, or quasi-government and in the health care and education space. that can be as much of 30% -- as much as 30% of the labor force. then we have another layer of uncertainty. we are seeing middle management teams actually being let go because of the productivity gains associated with ai. their bosses can handle more and more and more over time. that's another source of uncertainty, but we think that that will play out positively longer-term.

technology and breakthroughs in technologies are always associated with new jobs that we can't even imagine. we are very impressed by what is going on in china. of course, there was the deepseek moment, which, for china was the equivalent -- for china and the rest of the world, of what chatgpt was in late 2022. that was a wake-up call. so interesting, yes, they might have done it less expensively, maybe much less expensively, we are quite sure, but the algorithm is very creative. it had not been created in the west. this is from china. it is open source. now, everyone is starting to use it. we love that idea and we are copying it. what we have learned and did not know until we started studying the open-source movement in

china is that it really started a decade ago. a lot of software providers from the western world weren't providing their software to china out of fear of ip theft. china said, ok, let's do it ourselves and move open-source. i love open-source. i think it's going to create a lot of competition out there, which, when it comes to innovation, is a very good thing, especially for the end consumer. caroline: cathie wood there. let's talk about competition, sticking with chatgpt and the impact. for decades google dominated online search. the competitiveness from openai is forcing the company to rethink its most popular product. elizabeth reed is a google veteran. she has big overhauls to do, and she is doing them?

>> liz reed is a fascinating rising star in google. she's in the top job leading google search. she came to this role from the maps division where she spent most of her career. while she new search very well, she was less wedded to some of the traditional ways of doing things. she brought a more experimental spirit, which has been crucial in this new age when so many of the basics about search are being challenged. caroline: and here comes ai overviews, for example. you go back in history a little bit, talk about why there was a lack of real innovation on the product side of things. why were people curtailed from upending what we knew and understood in terms of the blue links? >> with our reporting, we unearthed new examples of how

google search employees are pushing to roll out generative ai in search well before the launch of chatgpt, but they faced a lot of resistance. i think that there was a lot of self-regulation happening that googlers weren't inclined to challenge the fundamental business model. executives were also concerned about if the technology could deliver the necessary level of accuracy, because people hold google to such a high bar. much higher than a start up be held to. caroline: and there is the frustration. the question is, monetization. have they gotten to the bottom of that? many are worried. what about the as that you can put into an ai overview? julia: that remains the question. google has incorporated adds into ai overviews, and so far the search market share is pretty much unchanged, but there are some concerns among analysts that growth in search will begin

to level off. in the meantime, google's embrace of generative artificial intelligence is raising huge concerns for all of the publishers who depend on google for traffic. caroline: a fascinating deep read. coming up, u.s. drone makers are battling for a bigger share of the domestic market. the growth and chinese competition. up next on bloomberg technology. ♪ only the servicenow platform connects every corner of your business, putting ai agents to work for people. like secret agents? no, more like autonomous minions that you control. to do what? well, jim's agents resolve simple customer issues. and patty's agents flag network problems. - proactively. - yup. i'm lovin' my agents. wait, you all have agents? oh yeah. and on the servicenow platform,

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caroline: you are looking at a live shot of the principal room. check out the bloomberg technology podcast on the terminal and online on apple, spotify, and iheart. this is bloomberg. caroline:

market is dominated by chinese makers. u.s. lawer foothold in markets, including the u.s. domestic one. joining us is the ceo of a drone maker. i love a quote that you have been making, saying that drones are evolving from toys, to tools, to infrastructure. how do you break down your growth now in those three contexts? >> i think we are at a very exciting moment for the industry . historically, drones have been manually flown. people have done all kinds of amazing things in that operating paradigm. the shift is you can put the drone in a dock ation, it can be flown remotely and autonomously. the use cases you unlock when you do that are incredible. one of the areas where we are seeing this accelerate the most

is public safety, where you can put drugs in docking stations and they can autonomously fly out in response to 911 calls. they get there in a few seconds and give responding officers better situational awareness. i think that we are at the beginning of this entirely new chapter of drones as infrastructure. caroline: talk about the chapter of u.s. versus chinese-made drones in police and fire department demand. how much are you able to fulfill it? adam: there is interesting historical context. a drone at its core is basically consumer-electronics combined with a radio control airplane or helicopter. that's the origin of the industry. historically, both of those things have been made in china. the chinese companies got out to a substantial early lead, especially in the toy market, and then the tools market. we believe very strongly that it's critical that there are strong u.s., western companies

that can provide this technology. it is still early days for the industry and it will become more important over time. we are installing these things across our cities, critical infrastructure, and the risk from a data perspective, national security perspective, cybersecurity perspective are substantial. our goal is to build the best products in the world for this new chapter of drones in the u.s. we made big and early vets on ai and autonomy when we started 10 years ago and we are starting to see those pay off. caroline: talk about the payoff. when we think about what china has done so well, it's about efficiency, about the scale of which they've been able to streamline production. how are you managing to replicate that in the u.s.? adam: there is another kind of thing that won't happen overnight. the strength of the chinese companies that we compete with are in their hardware scale, cost leverage come the ecosystem they take advantage of in china.

we've been manufacturing drones in the u.s. from the beginning. we didn't start doing it because we thought that it would be critical for national security. we felt it was the best way to build the best product. we have gotten to the point where we shipped nearly 50,000 drones, small relative to our chinese competitors, but our market share in the enterprise segments that we focus on, public safety, critical infrastructure, energy utilities, is substantial. the more scale we get up to the more cost advantages we get. on the hardware, we've gotten to be very competitive with the chinese companies and have more advanced capabilities in ai and autonomy. it is tough competition for sure. you have the exciting position of being the u.s. underdog against chinese incumbents. as things become more ai-driven, more ok, more capabilities defined through software, that place to our strengths as a

company and as a country. caroline: what is on your wish list? adam: we are a product and technology company focused on making our products as useful as they can be. i think, looking back, the first trump administration deserves a lot of credit for recognizing the nature of competition with china, the unfair trade practices that they've been partaking in, and that has now become mainstream consensus view. we are optimistic seeing people from the tech world in there who understand technology at a deep level. it is still early days, but we are optimistic. caroline: skydio ceo, optimism, thank you for joining us. the new podcast, taking a deep dive into the rise of deep fake pornography online. that is next on bloomberg technology.

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caroline: levittown, a new six-part podcast series from bloomberg investigating the rise of deepfake pornography online, telling the story of young women

in a new york city suburb horrified to learn that their photographs have been manipulated and posted online and how they took matters into their own hands. we are joined now for more. you go back to 2020, you discuss how one in particular finds a manipulated photo of herself online, but this is a global story of deepfake pornography, but start in levittown. >> absolutely. we start with kayla. it is not even kayla who discovers a seemingly pornographic image of herself, it is her father. her father hands her a phone and says, what is this? we unraveled this horror story that engulfs dozens of women in levittown. they later realize that they are part of a small network, nonconsensual deepfakef pornography, revenge porn,

connected to one website. they meet lots of investigators, prosecutors, and victims all around the world. caroline: the story podcast is based in 2020, and then you wrote up a key piece in 2023. is this all still an issue that we are currently seeing? margi: the story that we are covering began in 2020. we reported on it in 2023 and now in 2025 we have this podcast . a lot has changed. the problem hasn't gone away. we are seeing dozens of school cases where there have been children deepfaking their classmates. we are hearing more about celebrity nonconsensual deepfake or knocker free amidst the rise of generative ai. we had a figure recently from a traffick analysis company showing a 600% increase from

last year for nudifying apps. you can screenshot a photo from someone's social media account, run it through the outcome and in minutes you remove the clothing from the photo. a lot of those are involved in school cases and they are completely soaring in popularity they're very cheap and easy to use. caroline: law enforcement and the government are targeting it? margi: it has been a challenge. we've spoken to law enforcement, cops, prosecutors, lawmakers. internationally, it's challenging because there are patchwork laws in different countries. in different states in the u.s., they have different laws. right now, there's hope that an actual federal law will be brought into force. a bill passed through the senate last month, and it will go

through the house this month, hopefully. the take it down act. it would put pressure on the platforms where the images are being shared to take the images down as quickly as possible. and also penalized people posting them. caroline: the right time to catch the podcast series on spotify and iheart. this is bloomberg technology. ♪ you think those phone guys will ever figure out how to keep 5g home internet from slowing down during peak hours?

their customers have to share a wireless signal with everyone in their area. oooh. -you know, it's kinda like when you bring a really big cake for your birthday, and then there is only a piece left for the birthday girl. well, wish her a happy birthday. happy birthday... -it's... ...to her. -no, it's me. have your cake and eat it, too. don't settle for t-mobile or verizon 5g home internet. get super fast xfinity internet you don't have to share. forty's going to be my year.

>> we are live from bloomberg's world headquarters in new york. >> welcome to bloomberg crypto, looking at the people, transactions, technology shaping the world of decentralized finance. >> this hour, we will speak with crucible capital about the sentiment arounden