ed: mark gurman, thank you. amazon has told investors that profits will need to take a backseat in favor of heavy spending on artificial intelligence. here is ceo andy jassy on his bullish view for the new technology. >> we remain very bullish on the impact of ai and -- in every business we no one can imagine. the progress may not be one straight line. generative ai is iterative and companies have to build muscle around the best ways to solve customer problems. ed: but wall street did not like that. shares down more than 11% in today's trading session, on track for the biggest drop since april 2022, working out about $200 billion in market cap. it's good analysis with put them goya -- poonam goyle. >> it is higher than we had expected. we did not expect them to continue, so it is a shocker. if you think about the longer-term the investments will pay off. the cloud investment at a 100 billion dollars run rate, going to $200 billion by our estimates. also for amazon to pay -- play catch up on iterative ai. you nee

that's a well reported story by mark gurman. it's interest is different and so common. the cloud providers or the tech names to have a financial relationship with those on his technology they are relying, aws and anthropic in the context of bedrock for example. it's almost par for the course right now in the industry. sonali: thank you for your time and reporting. joining us more with everything ai is a long time tech entrepreneur, the chairman and cofounder of vc firm tribe capital and the co-ceo of term in a -- termina ai. your firm has invested in x ai. you have a close view on how these llm's have been developing and the competition between them. what do you think of this latest ai funding round and the corporate interest abounded? >> the corporate interest, especially from a company like nvidia, it's more if you look at the portfolio diversification of where they are, the fastest growth in the future will come from companies like openai and the types of developers they support moving forward. that means nvidia isn't just a hardware and comp -- a hardware company. i

mark gurman makes an interesting point that what apple is doing is saying don't retire senior executives. just step back a bit and stick with us. scarlet: great context for what is happening in the c-suite's at apple. abigail mentioned nvidia. it is due to report tomorrow. it is the last of the mag seven to report. i know that you will be speaking exclusively with the cofounder and ceo. give us an idea of how you plan to approach this conversation. ed:ed: the reality is it all comes down to the data center business. i always go to mod oh on the bloomberg terminal and look at the quarters that have gone and the estimates to be. on a year on year basis under the data center business, you are still looking for a massive growth. 142% year on year. there is a sharp deceleration sequence chile. they are lapping tough comps. the only question is the staying power of this investment cycle into ai accelerators or high-performance gpu's that go into data centers. we had the guy from the other mag seven names already. that would indicate it is there. it is going to be a high-pressure, high-stakes c

we go to mark gurman for more. why step back and why is the number two getting promoted?> this isn't that interesting, in the sense that it has been long planned. apple has been telegraphing this over the last year. one of maestri's seconds resigned and became the ceo of sonos, so to me it became clear that they were making way for a transition and that it would be the job of kevin barak. he had a series of jobs around analysis and earnings with investor relations. he picked up that financial planning and analysis of job at the end of last year, moving into the old office at the time. he has been the heir apparent for some time now to maestri. this is something that has been in the works for several months now. maestri just turned 60, he's been a cfo for decades. he has obviously made a lot of money at apple. he actually at some points in his career has commuted many miles to the apple campus. this is obviously a tough role, not a rule that you want to be in for more than a decade with everything at stake. he took over for peter oppenheim, so it made sense. the bigger pic

mark gurman, thank you very much. coming up, mcafee launching the world's first deepfake detector.ll discuss with the cto next. more earnings, more movers, what is going on? caroline: more than 15% higher earnings. the database software company is strong for the second quarter results, beating expectations. some analysts cities are encouraging results. not all is perfect with the overall growth rates have come down. this is "bloomberg technology." ♪ (♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com caroline: this is "bloomberg technology." you are looking at a live shot of the principal room. check out the podcast. this is bloomberg. ed: let's get a check on the markets. bitcoin. for everything that has been going on, take a look at the last five days. we are below $60,000 p

joining us from the event fresh off location is mark gurman.ted line of pixel phones but what google is trying to convince us of is that we need a hardware for the best integration of gemini and use of gemini in the real world. what did you make of it? mark: these launches have been happening since 2016. these phones, they announced parts of the phones and post pictures and they tweet them out. there are so many leaks, people go hands-on before they are announced. by the time that they announce, the phone is already essentially been announced. so we had long anticipated what these features would be. there are interesting things and why i think it is so interesting is how tightly they have integrated everything. we had the news about the doj looking to break up the company. how do you break up a company now so tightly integrated? they made a decision to fold the devices group together a few months ago. caroline: that is exactly the push ahead for regulators worrying that the amount of ecosystem that alphabet and google controls allows the ai off

mark gurman, thank you so much forget coming up on the show, we will take a look at ipo trends with mitchellen from lead as capital. that conversation coming up next. this is "bloomberg technology." ♪ every 3 minutes a child is born with a cleft condition. in the u.s., children are healed at birth. but in parts of the world where the right medical care doesn't exist, children like nezifa suffer severe social stigma because of their cleft lip. children like lexi struggle to speak and babies like cesar face malnutrition or worse. without surgery, some will die. children born with cleft conditions have nine times the risk of dying before their first birthday. those who do survive face extreme challenges. imagine not being able to eat, speak or live life to your fullest. imagine becoming an outcast even in your own family. together, we can change this. with your help. operation smile works to heal children born with cleft conditions. with volunteer medical teams in more than 30 countries worldwide. we provide free cleft surgery and care , including dentistry, speech therapy and more , so that ch