>> 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: live from new york i am caroline hyde and this is bloomberg technology. the nasdaq whip sawing ahead of president trump tariffs. we will distrust -- we will discuss the impact. elon musk impacts his role with doge is taxing him.

spacex and a crew of four passengers are said to embark on a journey around earth's poles, the first time humans have thrown dutch have flown such a mission. markets -- have flown such a mission. off of our lows today but from a points perspective it is the magnificent seven dragging us the most. apple is in the green but nvidia, microsoft, amazon, tesla. drill into the individual moves that pushes lower whip to shine a light on what is happening with tesla. analysts shining a light on the fact that this is politically entwined in many ways. the consumer reaction to one elon musk. we are off 5.5%. they had outperformed when we first got the hints of auto tariffs. now ev's and tesla might be hurt less than competitors. here is elon musk over the weekend speaking at a town hall in wisconsin about the doge

impact on tesla share price. >> it is costing me a lot to be at this job. they're trying to put pressure on me and tesla to stop doing this. my tesla stock went roughly in half. it is a big deal. caroline: let's get you analysis. bloomberg's max chafkin joins us now. host of the elon musk podcast and intertwined with his movements. it is interesting he is admitting some of the knock on effects. max: we have seen huge drops in sales in europe where elon musk has been stirring the pot politically to say the least. we have seen sales declines going on for some time and those declines are colliding with a business that also has all of these other struggles. you throw elon musk comp controversial branding, these provocations he is been doing on the daily with actual struggles

with the business as well as all of the uncertainty around tariffs and the economy in general. it is a perfect storm. it is a bunch of things working together to hurt what had been a company that had been soaring even a couple months ago. caroline: soaring on vibes. often this stock is not related to fundamentals even when earnings disappoint and sales disappoint we have seen shares push higher. can he restore vibes or do we start to look at the fundamental issues? max: the vibes were based on this idea that elon musk is this amazing business super here. he can do things nobody else can do and so much of that brand was built on elon musk as an innovator, someone who invents new products, particularly new products involved with alternative energy and that flatter the sensibilities of a certain consumer. what we have seen over the last couple of years and in a much more intense way over last

couple of months is elon musk subverting that brand, taking that brand and throwing it out the window and presenting a new brand which is elon musk as a cost cutter come as a vehicle of trolling austerity. it is very different than the story he had been telling before and that will make it harder to write the ship. caroline: does that give a new source of demand? for many that loathe the new version many love it. many like the fact. there is a new source of buyer who had not looked at it from an environmental perspective. max: this is something we have heard from some people who have defended some of these moves and if you squint you can say he's is trying to sell pickup trucks so maybe it makes sense to signal more to the right. what we have seen from elon musk goes way beyond signaling to the right. he is saying things that are racially tinged, he is making

gestures that to many people look like he is saluting hitler's that a trump rally. these are not things even a lot of trump supporters are not necessarily going to be comfortable with these moves. that is one issue. the other issue is the cybertruck has not performed as a pickup truck. it is not competing well with the likes of the ford f1 50. sales have disappointed. it has become a great way to signal your support of donald trump, not necessarily winning fans in the truck driving class. caroline: always great to catch up with max chafkin. go listen to all things elon as well. elon musk's artificial intelligence startup purchased x a combined stock deal. let's bring in kurt wagner. elon musk is a very business man and one of his startups buying another one and there is a big boing for the x shareholders in

equity or debt. kurt: they are the biggest winners in the whole thing. think about what happened in the last is doing a half years. there been a ton of uncertainty. we have seen advertisers flee, we seen users flee, we've seen the value of that company cut in half if not more. if you are an x investor today, we could go you were owning shares in the struggling social networking business. now you own shares in an ai startup worth double the price and growing. this is a big win for them more so than anybody else. caroline: there were initial analysts reactions saying this makes sense. wolfe research feeling the combination make strategic sense. many also questioning why they needed to do it at all. already gronk was deeply infused in x.

why did they need to make the tie up and are there more questions than answers? kurt: this is my biggest question. on paper this makes sense. an ai company buying the social network like x. getting access to that data. getting distribution of grok. all of those things make sense on paper. the difference is elon musk owns both companies. there is no fear x was going to strike a deal with a competitor. there were already using x's to train grok. they have the relationship already. that is why do not understand why they needed to spend $33 billion or $45 billion to buy this company they pretty much had all of what they needed from an already. caroline: a key question for me, not only who leads x, but is how

he got an $80 billion valuation on x ai. there was no new funding. it seems to be a number plucked out of the air. kurt: exactly. the last time x ai had a funding round was in november. there has been new new -- there has been no new raise and suddenly x ai is worth $80 billion. you have two privately owned companies represented by the same bank. he is able to make up these valuations and say i think x is worth this and that means ai is now worth that and it is done. as long as shareholders are not revolting at these decisions, i think elon musk has a lot of latitude to value these things where he wants them to be valued. caroline: kurt wagner, thank you so much.

coming up, preparing for trump's reciprocal tariffs. more on the global terror of impact on the tech sector. that is next. this is bloomberg technology. ♪

caroline: markets are in selloff note ahead of president's reciprocal tariffs sit to begin this wednesday. this as he says he is prepared to enact secondary tariffs on buyers of russian oil if vladimir putin refuses a cease-fire. kailey leinz joins us with a macro focus and we want to whittle it down to technology.

there is a lot of angst come evidently so today. kailey: a lot of angst because there is a lot of uncertainty. at this .2 days ahead of the so-called liberation day announcement the president is planning there is -- on what exactly these reciprocal tariffs will look like, whether or not there will be any exemptions a what will take to get those exemptions. the president told reporters this will initially start out with countries that throw little bit of cold water on the idea he may have made some exception right from the jump. he is also suggesting it is not so much about 10 or 15 countries. he said he had not heard that rumor even though it was something floated by his own treasury secretary scott bessent who suggested there is a dirty 15 and according to bloomberg economic analysis of what those 15 countries are, nine of them that have the largest trade deficits with the u.s. are in asia.

a lot of components like semiconductors could be impacted. that is just keeping in mind that whatever reciprocal levies are put on there is always the chance that even more tariffs are layered on top of that. the president has floated semiconductors pacific tariffs at some point in the future as well as on things like pharmaceuticals. it is unclear what that timeline will be and how all of these work in conjunction because he is also talking about secondary tariffs on purchasers of russian oil if he does not like the way vladimir putin is conducting cease-fire negotiations between the u.s. and ukraine. the big buyers of russian oil are china and india. both of which come in china's case already have tariffs in place and india could be threatened given the high imports it has on u.s. imports with high reciprocal tariff rates. caroline: you point us towards the semiconductor effect. we also have to take into account the deadline around tiktok. that embroiled in this geopolitics right now. kailey: it absolutely is.

when the president was asked about this deadline he actually suggested that if china and the chinese commonest party would agree to acquiesce to a sale of tiktok's u.s. operations, that could result in a lower tariff rate, suggesting he sees trade policy is a mechanism for negotiating unrelated things. he also said if that cannot be done by saturday which is the deadline he could always extended as we saw him do at the very beginning of his term, extending it 75 days which is why the deadline is this weekend rather than being back in january. as for the details of what a deal could look like and who that purchaser could be and how much control they have over the algorithm specifically, it is a question and we may have a few days to go. caroline: we just had some breaking news as you can see across your screens. more ecb officials appear ready to accept an april rate pause, basically ending the cutting cycle we have currently seen.

this partly to do with the viewers around the fallout from tariffs, the inflationary effects. let's go more deeply into the global terror of impact. novo capital managing partner is with us. novo capital is a private fund managing over 2 billion assets. your core value brings particular exposure to chinese company. you are the perfect voice. are you struggling with a lack of clarity or do you feel you can invest at this moment? ben from: a chinese perspective the company is well-positioned. china started much earlier than any of the other american trade partners in starting to think about off shoring, friend-shoring, near shoring, investors were threatened with 60% tariffs before trump's election. a lot of those very high noise

numbers are already baked in. we see the chinese market outperforming this year relative to its u.s. counterparts. caroline: it has also been outperforming because of the generative ai wave of news. is that something you've been betting on? ben: innovation was always there. the issue is global investors cannot price it correctly. the chinese market was fundamentally undervalued for the last few years. you have chinese equivalents of their american companies valued at many multiples lower and some of these more visceral understandable concrete actions like the deepseek sputnik moment awakened global investors to reevaluating these businesses on their fundamentals and they recognized there were huge amounts of innovation going on in china, particular where china was always can put the u.s., it is not just deepseek.

people woke up out of their sleep and recognized the market was fundamentally undervalued. caroline: what about innovation in the united states as we see tariffs taken impact. is it hurt? ben: i don't think so. the american innovative spirit remains intact. global top mines flock to the united states and are integrated through our universities and the american workforce, most of them becoming green cardholders or u.s. citizens. the same query was asked of the chinese when they were taking their steps to rein in entrepreneurs a couple years ago. we saw the antitrust measures taken against alibaba. was a similar narrative. was innovation being hurt. i don't think that is the case. if anything america will put its foot on the gas for innovation during the trump era. we will see a lowering of a lot of red tape. the regulatory hindrances.

here are chrissy that was getting in the way. more -- the bureaucracy that was getting in the way. caroline: you are close to the administration. when you are trying to give advice to those currently in washington or any other investor trying to search for clarity, do you help people ultimately eat their vegetables with might -- with what might longer-term be an innovation boost. there must be pressure on certain parts of innovation when it comes to robotics or semiconductor access. ben: things are not as volatile or unpredictable as people think. we are essentially doing what the president said he would do. if you want to know where we are going read what he said and watch what he said. this is not a huge the prize to anyone following him over the last decades. certainly there is going to be short-term pain. a lot of the key inputs to our supply chain be it automotive,

robotics, the rare earth materials across all kinds of different inputs, all of those are going to be hit in the short term, which will mean some pain, but ultimately we have to find a way to wean ourselves off of dependence on chinese inputs. we need to onshore those supply chains or friend sure those with countries we know we can rely on. i think this will ultimately serve to protect america supply chains and ensure it is not going to be vulnerable to a geopolitical adversary over the coming years. caroline: what about some of the winners, 2023, 2024? nvidia comes to mind. some of the key chipmakers which now many are worried will not be able to access some of their demand points. geopolitics getting in the way of that. is that sacrifice were that? -- is that sacrifice worth it? ben: that is not new.

we were soon shipped fans out of the biden administration. many of the american ship manufacturers saw 30% to 40% of their exports going into china and china has done incredibly well building five and ultimately 60 hardware. -- and ultimately 6g hardware. it is a market for those consumers. we have to continue to do business with china without giving them are most cutting edge chips and ensure chinese consumption is helping fund american research and development but make sure we are still ahead on the most cutting edge chips. that is where these chip bands come into effect and we have to ensure there's are not being circumvented by third-party countries as well. caroline: investor in china come investor innovation, investor in soccer as well which is the background we see you. we thank you. coming up, while wake ramps up -- huawei ramps up tech

spending. we discuss that next. this is bloomberg technology. ♪ if you're living with diabetes, i'll tell you the same thing i tell my patients. getting on dexcom g7 is one of the easiest ways to take better control of your diabetes and help protect yourself from the long-term health problems it can cause. this small wearable... replaces fingersticks, lowers a1c, and it's covered by medicare. not managing your diabetes really affects... your health for the future. the older you get, the more complications you're gonna see. i knew i couldn't ignore my diabetes anymore because it was causing my eyesight to go bad. before the dexcom g7, doctor's appointments were not something i looked forward to. for my patients, getting on dexcom g7 is the biggest eye opener they've ever had. when i got dexcom g7,

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♪♪ no other cgm system is more affordable for medicare patients. don't miss out you may be entitled to this valuable benefit. call the number on your screen now to talk to a real person. caroline: francis find apple 162 million dollars over ios data consent rules. antitrust regulators say apples app tracking system does not allow developers to comply with europe's privacy rules and forces apps to display multiple pop-ups. apple said it was disappointed and similar decisions are underway in germany, poland, and romania. nokia and amazon have settled a global patent dispute over at screaming technologies.

nokia had alleged amazon had used its streaming services without authorization. the settlement resolves all patent regulations globally. japan is preparing his much is 5.4 billion dollars in additional aid for chip startup rapidus, the latest move for the country to bolster it semiconductor industry. that brings japan's total public funding of advanced chips to $11.5 billion. let's take a look at those u.s. and china tensions with a focus on huawei reporting a 9.5% rise in revenue in the december quarter based on annual results. it also posted a net loss of more than $40 million due to aggressive spending on research and develop meant. let's talk about it with peter elstrom. china is all in on r&d because limitations in access to chips in the u.s.. >> that is right. this is a remarkable financial report from huawei. while wake revenue -- revenue

grew almost 10%. that is largely because of gains in their smartphone business, in particular in their cloud computing business. they were largely out of the smartphone business because of this u.s. ban of them getting access to the most advanced chips. they have now been able to get access to those in the smartphone business is growing, cloud computing is growing. the headline number is the loss they have. they've not lost money for many years. they are pouring money into r&d. huawei has become national champions for china and tried to make breakthroughs in these key technologies that are important to them strategically. they have developed their own operating system to replace android on smartphones which was very common in their pouring money into semiconductors. they have come out with their

own ai chip to compete with nvidia because nvidia cannot sell its highest end chips into the market. while wake is taking -- huawei is taking some of that business. they are still quite a ways behind nvidia but they are making progress. caroline: this feeds into a moment where we are thinking generative ai is being upended by china because they can do more with less and less powerful chips. does that counteract that a little? >> the constraints the u.s. has put on china and chinese companies have led to creative innovations. we sought with deepseek where they had access to some nvidia chips but not the most advanced. it still made progress. now huawei is trying to feed into that by buying chips that are not as sophisticated but at least giving chinese startups an opportunity to develop ai services. caroline: great to have you on the show with your asia focus. coming up, stephen balaban will be with us talking about what he

sees will be the huge driver of ai adoption. that is coming up next in bloomberg technology. ♪

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caroline: back to bloomberg technology. a quick check on these markets. we are bouncing off our lowest. we have been underwater throughout the trading day and following on from friday's anxiety. we are off 1.4%. your leaders on the downside or the who's who of the magnificent seven, microsoft, amazon, alphabet. only apple is in the green. we are assuming gibson seven off 2.4%. nvidia off another 4% for what had been the star performer. i will show what happened to core we've -- to coreweave after

it went public last week. now we are below the initial price. no wonder in a risk off attitude but also as we continue to question the ultimate need for compute. let's discuss with a company whose business overlaps with coreweave, lambda. your business has breadth. i was the market responding to the need for compute? stephen: a lot of the demand for compute in the future is priced in but we we are seeing in the short's general market fluctuations. what i've been seeing with openai new image generation tools is there is a lot more compute demand coming down the pipe. caroline: that is where the tension lied, particular on friday. sam altman is saying his gpu's are melting because everyone is

so keen to play with his updated model. can you square that for us? how much will demand of generative ai ultimately push forward your business? stephen: sam is tweeting they are seeing the biblical demand for the image generation tools they have launched. a lot of the businesses there publicly traded are being valued on a forward basis to say the projections their management team is providing is how they are being valued. there is a lot of wood to chop to get to those run rates which is the basis for the valuations. there's a lot more than just animate image generation and means. the biggest leap is these are the first generation of models

that perfect text rendering fidelity. instead of an ai generated image being an embed inside the presentation, you will see the entire presentation generated by a neural network. what that means is we are getting closer and closer to the future where nearly every pixel you see on a computer screen will be rendered by a neural network. caroline: therefore that means compute goes up into the right as it weaves into our enterprise life, our personal life. stephen: every presentation come every piece of sales collateral come every videogame you will see more and more ai compute embedded in those things which means demand will grow more than especially. caroline: we have the infrastructure ready for that? stephen: everyone is working hard to keep up with the demand, even with all of the high expectations and ambition openai has their stirrers -- their

servers are still on fire and they have underestimated the amount of demand they are seeing now. caroline: you have developers across the entire ai developing cycle. how are you mentioning to scale to meet that level of demand? stephen: one way of looking at lambda versus coreweave, coreweave has a lot of customer base in openai. what we are doing is servicing everybody else, a lot of hyperscalers and over 150 thousand individual developers use lambda cloud to chait -- to train their models. what we will see with new advances in image generation is that openai will have their time in the spotlight, continue to grow their market share and then open-source models will come in and we will start to see a lot of that compute demand and clouds like the hyperscalers and lambda. caroline: will then open-source

winning come from china? how much we going to see it being u.s.-made startups or how much will this be a global offering? stephen: it is hard to predict. my bet will be we will probably see a high-quality chinese model first and then the rest of the world will continue to publish there's. i am generally bullish of open source internationally, whether it is in the united states or china or elsewhere. caroline: for those who are currently aware of the hype cycle, seeing the valuations skyrocket than come back down and are still waiting for generative ai to affect their everyday working world, how soon will that,? how soon before every powerpoint display we make is ultimately a neural network? stephen: i think what you are starting to see is more and more of the productivity you do will be coming from tools like chatgpt. you might not actually end up seeing the embedded inside of powerpoint and it may actually just be please generate this

presentation for me, you're the key talking points. and it perfectly renders a pdf at the end of it. that is the big shift that is happening. neural networks are replacing the software we use every day. caroline: perhaps not particular beautiful mute music for some of these public he traded companies and their products we use often. stephen balaban, cofounder and ceo of lambda. from ai data centers to compute for crypto. the trump family is launching a bitcoin mining venture called american bitcoin, which will focus on bitcoin mining and strategic bitcoin reserve development. eric trump will serve as american bitcoin's chief strategy officer. bloomberg's michael reagan has been helping at the stories and evermore the administration and family of the ministration becoming intertwined with crypto. michael: obviously this is the latest of several trump family projects in the crypto space.

world liberty financial being the most high-profile, a platform launched by trump and members of his circle. this was new news this morning that we did not know who was coming but eric trump and donald trump jr. are investors in a company that is forming a joint venture with hud 8, they will be the majority owner. they are transferring all of their bitcoin money to this new subsidiary and it will be called american bitcoin. remember on the campaign trail president trump made this promise that he wanted all bitcoin to be mined in the usa, which a lot of people in the industry were skeptical he would actually be able to fulfill that promise because of the decentralized global nature of bitcoin. we've not heard much from the president about how he plans to follow through on that plan. we do know now that the trump sons are part of this operation

to mine bitcoin in america. caroline: it all about bitcoin. you've been writing great stories across your team. what is up with a theory on which is the number two -- what is up with etherium which is the number two story still? michael: etherium had so much potential two years ago. there is competition on both sides that is pretty fierce. if you're an investor who just wants exposure to cryptocurrency , bitcoin has proven to be the token of choice for that. a big part of the reason why is because of that famously limited supply of bitcoin. there were only ever be 21 million bitcoin in existence. ethereum does not have a cap on how many tokens will be issued their already six times as many

tokens out there. from an investor standpoint it is clear people looking for long-term exposure to the growth and prices of crypto are sticking with bitcoin and the etf flows have been off the chart for bitcoin and not so much for ethereum. below ethereum the other competition is solana. ethereum innovation is you could trade more than the ether token s. point exists just a trade bitcoin. ethereum opened up the world to possibilities of nft's. you can roll your eyes on nft's. for wall street hungry to tokenized real-world assets, that is the proof case of how that can be done. the problem is solana is doing it at a cheaper and faster transactions beat and is providing stiff competition for ethereum.

caroline: a moment of truth in a moment. coming up will be joined by catherine bracey on her new book "dissecting the impact of venture capital on society at large." this is bloomberg technology. ♪

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caroline: you are looking at a live shot of the principal room. you can find the pond cast on the terminal or online at apple, spotify, and i heart. this is bloomberg. alphabets ai based drug discovery unit isomorphic labs just said it raised $60 million in its first external funding round.

the goal is to develop its ai drug design engine to support drug candidates into clinical testing. now we will take a slightly different approach to the industry. a new book says bad practices some venture capital are bleeding into all industries and damaging the economy. it is called world eaters: how venture capitalist cannibalizing the economy. catherine bracy joins us now. it is the word cannibalizing i'm interested in. can you articulate what the argument is, the bad behavior? catherine: essentially it is that the hour venture capital is chasing has become about chasing financial returns instead of chasing new technologies. since there is so much money chasing very few companies that can actually deliver venture scale returns, the money has gone and fought out areas of the economy where it should not be. that is why the book is called

"world eaters," a play on reid hoffman's essay from 2011, software it in the world, i don't think it is software it in the world, it is venture capital business models. caroline: the latest fundraising round, the record one is $40 million in new equity. shirley generative ai, large language model that would not have the money to continue in less it looked to be zero private funding, surely that is the right kind of business to get venture capital funding? catherine: i interviewed sam altman for the book and he told me technology behind openai is the kind of thing government should be investing in, the same with his other big startup in nuclear. government is not doing it so venture capital has to step in and the reason he set up openai is a nonprofit was to protect the technology from the mandates of venture capital is much as possible. we see how that has ended up and what it means for companies that

may be pursuing these breakthroughs that have a lot of danger in the world to be driven by the incentives of investors and not the incentives of what is best for society. caroline: is there a way to realign incentives? ultimately the u.s. government is trying to pull back on spending and turning more to the private markets to fund ai infrastructure. we have money going into at least generative ai helping with health breakthroughs we just reported from alphabets. how do you realign at this moment? catherine: i think there is a role government can play for market crafting, creating the incentives for venture capital to seek out the startups that are not getting invested in. what i found in my research is the big product in some companies and many others could create a lot of great value.

there are not capital markets for them. honestly, there is nothing that policy has to change right now for the markets to change. limited partners could decide that chasing returns through venture capital is not always the best outcome. not every vc fund and be sequoia and not every limited partner will get into them. why not take a bet on fund managers they're putting their portfolios together around doubles and triples instead of chasing the elusive deck of goi. caroline: what are the areas you think are being overlooked? catherine: the what i focus on in my book is housing. the housing market is a clear opportunity. we need innovation. they're not that wendy -- they're not that many software-based solutions. there are longtime cycles here.

the regulatory burdens are high. the way fund needs to be structured to pursue innovation in the housing market is going to be different. i don't think there that many fund managers thinking outside the box. how might you construct an innovation fund, and early-stage risk capital fund to address solutions in the housing market that does not look like chasing power lot returns at every angle. caroline: catherine bracy, a fascinating read. ceeo of tech equity and the author of the book "world eaters." spacex is gearing up for the first of its kind mission around the earth's poles. we will have the details. this is bloomberg technology. ♪

caroline: spacex and apple are fighting for space, literally. according to the wall street journal the two companies are competing for satellite spectrum rights. the iphone maker has been working to expand its satellite connectivity services in a direct competition with spacex starlink. the move would allow apple to provide service to areas were regular cell phone service cannot. space-x has pushed for federal regulators to stall expansion efforts. let's stick with spacex because the company is preparing to launch four passengers around earth's poles. let's bring in -- the crew is

doing what is never been done before. >> exactly. it is the first human spaceflight to fly over the earth's polar regions which is pretty interesting. they will take off from florida and fly in a 90 degree circular orbit around the earth. matt: is all -- caroline: it is all being financed by a crypto billionaire. why is he so keen on the polls? >> they had a press conference last friday. the fram 2 mission based on a norwegian polar exploration ship. what the investors said is as a kid he'd always looked at the arts map and seen this white spot at the bottom and wondered what was up there. he is excited to view that from the space and is very into

visiting different countries, being an explorer and going on different investors is what he said. caroline: he is taking an extraordinary group with him. they are offering their own bodies up to research and taking on a lot of risk. >> definitely. one of the things they are doing on their mission is conducting research on the impacts of spaceflight on human health. they are also teaching other people about what it is like to be up there while they are putting their own bodies at risk. one of their projects will be capturing the first x-ray image of a human in space which will definitely be interesting for the research committee and science community. caroline: and the lift off in florida is this evening? >> they are targeting around 9:00 p.m. but there a couple of different launch windows if the 9:00 p.m. does not work out.

for now it is route 9: 30 p.m.. caroline: also at -- it is around 9:30 p.m. caroline: intel is holding its event to showcase intel technologies. that success hinges on this guy from intel's new ceo. he will be speaking for the first time this afternoon since taking on the job. let's ask mandeep singh from bloomberg intelligence what we think might be articulated. he has been talking to investors and writing letters to his own workforce. cuts, it seems. mandeep: they have already pared back so you can see the focus is shifting towards ai. that was one of the things i think pat gelsinger did do well was hone in on ai which is the growth market. if you look at all of the hyperscalers increasing their by 50% you would expect something

would trickle down to intel in terms of driving revenue upside. i am hoping that is the vision he articulates when he talks to investors is how intel is focused on ai. the foundry side, the government seems to be imported for intel to bring manufacturing onshore but that is a lengthier turnaround because one of the concerns for investors is the cash burn. you do not want to see cash burn. the message is we are really focused on ai opportunity and we somehow have to find a way to compete with nvidia. caroline: is the offering right? do they need to change up the talent they have? they've been changing up the board talent. mandeep: there is a lot they need to change of the product level. the product did not resonate very well with the market when it comes to the training on the ai side. this guy is coming from cadence so he has that software angle in

terms of thinking about what is it that intel can do in terms of the chip site as well as the software side and i hope he articulates that vision. caroline: there has to be some optimism there to. this has a -- this is a stock that has been wiped out. mandeep: any hint of good news around ai from a vision perspective and then he lays out clear markers, i think it will resonate with investors. caroline: mandeep singh, going to be attuned to the talk coming from las vegas. is also busy helping organize bloomberg intelligence's fourth generative ai conference that is happening on wednesday. i'm lucky enough to be talking to a few of them. that does it for this edition of "bloomberg technology." don't forget to check out our podcast. from new york, this is "bloomberg technology." ♪

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katie: welcome to bloomberg etf iq. let's get to the stories in the global etf industry. u.s. stock markets under pressure. the selloff lessening relative to this morning but investor fear is remain for president trump's next tariff rollout on wednesday. amid all of the market volatility emerging markets have outperformed the s&p 500. life and