'Bloomberg Technology' Full Show (05/25/2023)

>> FROM THE HEART OF WHERE INNOVATION, MONEY, POWER

COLLIDE IN SILICON VALLEY AND BEYOND THIS IS BLOOMBERG

TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW .

>> I AM SCARLET FU IN FOR CAROLINE HYDE AT BLOOMBERG

WORLD HEADQUARTERS IN YORK.

>> I AM ALEX IN FOR ED LUDLOW IN SYMPHYSIS GO THIS IS

"BLOOMBERG TECHNOLOGY."

>> THE BLOWOUT FORECASTED SPARKS AN AI RALLY, WE WILL

BREAK DOWN RESULTS AND HOW TO TRADE THE AI RALLY.

>> AS A CATASTROPHIC DEFAULT LOOMS WE WILL BE TO ONE VETERAN

WHO JOINED CEO'S IN WRITING A LETTER TO CONGRESS ON A CONCERN

ON THE MATTER.

>> WE WILL DISCUSS WHY IT IS ACQUIRING DESKTOP METAL WITH

ITS CEO, ALL THAT MORE COMING UP.

WE WANT TO GET YOU A CHECK ON THE MARKETS ON MIDDAY ON THIS

THURSDAY.

S&P 500 MOVING HIGHER BY .5%, ALL THINGS TO TECHNOLOGY.

LOOK AT THE PHILADELPHIA SEMICONDUCTOR INDEX HIGHER BY

ALMOST 6% THINK TO NVIDIA BETTER THAN EXPECTED SALES

FORECAST. IT IS NOT AS IF ALL CHIPMAKERS ARE RISING, WE HAVE

WEAKNESS IN INTEL AND ANALOG DEVICES AS WELL, THERE IS A LOT

OF ANGST OVER THE DEBT CEILING HOW LITTLE PROGRESS THERE SEEMS

TO BE AS WE GET CLOSER TO JUNE 1, THE YIELD ON THE TWO-YEAR

RING UP ON SEVEN BASIS POINTS COME THE 10TH STRAIGHT DAY

YIELDS HAVE MOVED UP REFLECTING A PERSISTENT DECLINE IN DEMAND

FOR THAT SECURITY. FITCH PUT THE U.S.

ON CREDIT WATCH FOR A POSSIBLE DOWNGRADE ALTHOUGH IT SAYS IT

EXPECT A DEAL AT THE LAST MINUTE.

MARKETS ARE PRICING IN INCREASED ODDS THE FEDERAL

RESERVE WILL RAISE INTEREST RATES AT THE NEXT TWO MEETINGS.

THE GDP REPORT SHOWED A FASTER RATE OF GROWTH THAN WHAT HAD

BEEN PREVIOUSLY ESTIMATED, WITH THE U.S.

DOLLAR STRENGTHENING LET'S CHECKUP -- CHECK THE BOARDS.

COMMODITIES ARE LOWER, LIKE NEW

YORK CRUDE, WTI OFF BY 4% ON THE MOMENT, SNAPPING A THREE

DAY ADVANCE. SAUDI ARABIA SAME PEOPLE

SHORTING THE ORAL MARKET SHOULD -- OIL MARKET SHOULD WATCH OUT,

RUSSIA SAID IT IS UNLIKELY OPEC AND ITS PARTNERS WILL BE

CUTTING PRODUCTION IN THE NEAR-TERM.

GOLD FUTURES ARE DOWN, 9/10 OF A PERCENT, WAS READING ONE

ANALYSTS SAID,. WHEN INSTITUTIONAL INVESTORS

LOOK FOR SOMEWHERE TO HIDE OUT THEY GO TO GOLD, WHEN

INDIVIDUAL INVESTORS LOOK TO HIDE OUT THEY GO TO THE GOING.

IT IS -- BITCOIN. IT IS AN INTERESTING

EXPLANATION. ALEX: I WANT TO BRING YOU TO SOME OF

THE RED ON THE DAY SNOWFLAKE TAKING ITS BIGGEST PLUNGE IN

OVER A YEAR. REPORTING A DISAPPOINTING SALES

OUTLOOK FOR THE CURRENT QUARTER THE SOFTWARE COMPANY IS KNOWN

FOR CHARGING CUSTOMERS ON A PAY-AS-YOU-GO MODEL.

IT SAYS THE UNCERTAIN ECONOMIC CONDITIONS HAVE CLIENT SLOWING

DOWN AND USING THE PRODUCTS. LET'S MOVE ON THE GREEN, DISH

IS IN TALKS TO SELL HIS NEW MOBILE PHONE SERVICE THROUGH

AMAZON. THEY USE AMAZON CLOUD TO USE --

RUN CORE ELEMENTS OF THE 5G CLOUD, THIS WOULD GIVE THEM

ACCESS TO AMAZON'S MILLIONS OF CUSTOMERS.

ONTO SOME OF THE BIGGER MOVERS OF THE DAY MICROSOFT TRADING AT

A 16 MONTH HIGH, INVESTORS ON THE HUNT FOR THE NEXT AI TRADE.

WE TALK ABOUT SAFE HAVENS AND THIS COMPANY HAS BEEN ON AN --

OUT FRONT ON THE AI TRADE, NOT NEW NEWS MICROSOFT HAS BEEN OUT

FRONT IN AI, BIGGEST STAKEHOLDER IN OPEN AI AND

BRINGING ARTIFICIAL INTELLIGENCE TO ITS CLOUD

OFFERINGS AND SOFTWARE. WHAT IS GIVING IT A LITTLE BIT

OF A LOOK IS A HALO EFFECT ON THE TOP STOCK I AM WATCHING

TODAY. I WILL TAKE US TO NOW LET'S GO

TO NVIDIA. EVERYONE LOOK OVER THE NEXT AI

TRADE THIS IS WHY, NVIDIA UP A ROBBING 27% AT RECORD HIGH

LEVELS AND FLIRTING WITH THAT BIG STICKER $1 TRILLION

VALUATION. THE CHIPMAKER REPORTED A

REVENUE FORECAST THAT SURPRISED THE MOST BULLISH OF ANALYST ON

THE SALES OF ITS PROCESSES USED IN AI TECHNOLOGY.

SELLING TO CUSTOMERS LIKE

MICROSOFT AND OUT -- ALPHABET, THEY CALLED THIS THE GREATEST

BEAT OF ALL-TIME OF ANY EARNINGS REPORT THEY HAVE SEEN,

THE STOCK COULD BE BENEFITING FROM THAT SAFE HAVEN EFFECT WE

HAVE SEEN IN TECH STOCKS LATELY. WE WILL DIG INTO THAT SHORTLY.

FIRST I WANT TO GET MORE ON NVIDIA AND THE AI DEMAND THAT

HAS BEEN MOVING. LET'S BRING IN BLOOMBERG'S IAN

KING. BIG REPORT OUT OF NVIDIA TODAY

-- YESTERDAY. LOTS OF EXCITEMENT ON THE

FORECAST. DIG INTO THE NUMBERS.

>> THEY EMBARRASSED WALL STREET. THE PREDICTION OF 11 BILLION,

THE BIGGEST QUARTER EVER FOR THE CURRENT PERIOD, 83% HIGHER

THAN WHERE THE AVERAGE EXPECTATION WAS -- 53% HIGHER

THAN THE AVERAGE EXPECTATION. EVEN THE PALTRY LONG FORGOTTEN,

NOBODY CARES ABOUT EASY BUSINESS IS LOOKING BETTER FOR

THEM -- PC BUSINESS IS LOOKING BETTER FOR THEM.

WILDLY SURPRISED EVERYONE ON THE UPSIDE AND GAVE INVESTORS

EXACTLY WHAT THEY'RE LOOKING FOR.

SHOW ME THE COMPANY ACTUALLY MAKING MONEY OUT OF THIS AI

THING.

>> IT SEEMS LIKE IT IS HITTING ON ALL CYLINDERS.

WHEN YOU ZOOM OUT, NVIDIA ALWAYS SEEMS TO BE ON THE FRONT

LINES OF WHATEVER THE NEW HOT THING IN TECH IS.

I REMEMBER SUPER HIGH-END VIDEO GAMES, NVIDIA IS THERE.

BITCOIN MINING, NVIDIA'S THERE. NOW AI, NVIDIA IS THERE.

>> THE FUNDAMENTAL LEVEL FROM THE CEO, YOU'RE TALKING ABOUT

WHAT HE CALLS A SHIFT IN COMPUTING TO ACCELERATED

COMPUTING. THE IDEA THAT INSTEAD OF USING

A TYPE OF CHIP THAT DOES EVERYTHING QUITE WELL.

AN INTEL CPU, USE A CHIP AS -- THAT HAS A SPECIFIC PURPOSE

THAT IS REALLY GOOD AT DOING SIMPLE THINGS RELATIVELY, BUT A

VERY PARALLELIZED WAYS. IT IS A HUGE RUSH TO AI

TRAINING SOFTWARE OR TAKING THE SOFTWARE AND DOING THE

IMPLEMENTATION OF IT. RECOGNIZING CATS IN VIDEO OR

WHAT YOU SAY TO YOUR ALEXA SPEAKER AND MAKING THAT MORE

EFFICIENT.

ALEX: I DO NOT WANT TO DAMPER ON THE

DAY FOR NVIDIA THEY'RE HAVING A BIG ONE.

IT MIXED ME WONDER WHEN YOU THINK ABOUT THE HYPER SCALARS,

THE FOLKS LIKE MEHTA, THEY ARE -- META, THEY ARE KNOWN FOR

WANTING TO VERTICALLY INTEGRATE THE INFO STRUCTURE STACK.

WHEN DO YOU SEE CUSTOMERS CREATING THEIR OWN SILICONE?

>> YOU WROTE ABOUT IT RECENTLY, THIS IS THE QUESTION HANGING

OVER THEM AND NVIDIA HAS TWO ANSWERS TO THAT.

ONE IS WE CAN RUN FASTER THAN THEY CAN BECAUSE WE HAVE A HEAD

START ON THIS. THE SECOND ANSWER TO THIS IS,

IF AI IS ULTIMATELY THE PRESERVE OF MICROSOFT, META,

AMAZON, EIGHT OF U.S., IT IS NOT GOOD ENOUGH -- AWS, IT IS

NOT GOOD ENOUGH. THEY HAVE BEEN MAKING DEVICES

AND CLOUD SERVICES AND THEIR OWN SOFTWARE THAT WILL HELP

PHARMACEUTICAL COMPANIES. ROBOTICS COMPANIES.

AUTOMOTIVE COMPANIES GET INTO THIS.

THEY ARE TRYING TO HEDGE THEIR BETS THERE AND STAY AHEAD OF

THE GAME. ALEX: THEY HAVE DONE A GREAT JOB OF

STAYING AHEAD OF THE GAME. WE HAVE BEEN TALKING ABOUT HOW

WALL STREET STRATEGIST MICHAEL HARTNEY A BANK OF AMERICA SAYS

THERE IS A MINI BUBBLE IN AI AND A BUBBLE IN TECHNOLOGY.

IS THERE ANY ACKNOWLEDGMENT OF THIS IN SAN FRANCISCO, GROUND

ZERO OF THE TECHNOLOGY THAT THINGS ARE GETTING A BIT FROTHY?

GUEST: IF YOU LOOK AT THE INBOX OF ANY

JOURNALIST IT WILL BE FULL OF PICTURES WITH THE WORD AI IN IT.

WHAT DOES THAT TELL YOU? WE HAVE BEEN THROUGH THIS

BEFORE, OBVIOUSLY. NVIDIA IS A REAL GOOD CASE IN

POINT AND THE WAY THE MARKET HAS REACTED IS A GOOD CASE IN

POINT. NOT EVERY CHIP STOCK IS UP

TODAY. INTEL IS DOWN.

SOME OF THE OTHERS ARE SLIDING OUT, THERE IS A LITTLE BIT MORE

SOBRIETY AT LEAST IN MY SECTOR. IN TERMS OF OTHER AREAS THERE

IS A LOT OF TALK. ALEX: NVIDIA IS DELIVERING AND IT IS

PROFITABLE COMPARED TO COMPANIES IN PAST MOMENTS OF

EXCESSES. IAN, THINK YOU FOR YOUR DECADES

OF EXPERIENCE COVERING SEMICONDUCTORS IN ASIA AND THE

U.S.. LET'S BRING IN MONA, EVERY JONESES SENIOR INVESTMENT

STRATEGIST. YOU LISTEN TO US TALK TO IAN JUST NOW.

WHEN THE S&P 500 UP 610 7%, CLEARLY -- .6%, CLEARLY POWERED

BY TECH NAMES THE DOW LOSES BECAUSE IT DOESN'T HAVE TECH

EXPOSURE. IS THIS A STRONG STOCK MARKET

OR A FRAGILE STOCK MARKET GIVEN HOW NARROW THE WINNERS ARE?

>> THIS YEAR THE S&P IS UP 7% PLUS IT IS BEEN VERY NARROW

LEADERSHIP. ONLY THREE SECTORS ARE

OUTPERFORMING THE BROADER MARKET.

TECHNOLOGY, COME SERVICES, CONSUMER DISCRETIONARY.

THE QUALITY GROWTH PARTS OF THE ARGOT SOME OF THE SECTORS ARE

UP 20% PLUS, BACK IN BULL MARKET TERRITORY.

THE CYCLICAL MORE DEFENSE PARTS OF THE MARKET ARE MORE LAGGING.

WE WOULD LIKE TO SEE A BROADER PARTICIPATION IN A MARKET RALLY

THAT TO US AS A MORE HEALTHY SIGN THAT THE ECONOMY, THE

UNDERLYING FUNDAMENTALS IN THE MARKET BROADLY HAS MORE ROOM TO

RUN. THE NARROW LEADERSHIP DRIVEN BY

A FEW SECTORS AND A FEW NAMES, WE ALSO SEEING VALUATION

EXPANSION CREEP BACK INTO THE MARKET AS WELL.

ALTHOUGH EARNINGS GROWTH THIS PAST QUARTER DID EXCEED

EXPECTATIONS, WE ARE STILL LOOKING AT NEGATIVES EARNINGS

BOTH. -- THREE BACK TO BACK NEGATIVE

EARNINGS QUARTERS. VALUATIONS HAVE BEEN EXTENDED,

BREATH AND HAVE SPEND NARROW. SOME OF THE REASONS AND

INVESTORS HAVE GONE BACK INTO THE MARKET THEY DO HAVE THIS

ALTERNATIVE SITTING IN CASH AND CASH LIKE INSTRUMENTS IS

BECAUSE SOME OF THE TECHNOLOGY PLAYERS HAVE PROVIDED A

COMPELLING REASON TO GET INVOLVED. SCARLET:

LET ME BROADEN OUT THE CONVERSATION.

THE EXCITEMENT OVER NVIDIA AND

ANY COMPANY WITH TIES TO AI IS PAPERING OVER WEAK SPOTS IN THE

OVERALL MARKET AND THE ECONOMY.

IT PUT -- FITCH PUT THE U.S. MARKET ON A POSSIBLE DOWNGRADE

ON ITS CREDIT RATING. IS ANY OF THE THREE BIG

CRAVINGS -- CREDIT COMPANIES DOWNGRADING U.S.

ENOUGH REASON TO SELL? I WANT TO GET AHEAD OF -- >>

INTERESTING QUESTION IS, THE BASE CASE IS, THE U.S.

DOES NOT DEFAULT ON ITS DEBT AND BOTH SIDES OF CONGRESS COME

TOGETHER IN A NEGOTIATED RESOLUTION.

WE HAVE SEEN HISTORIC PRESIDENT FOR THAT, 78 TIMES CONGRESS HAS

COME TOGETHER TO RAISE THE DEBT CEILING SENSE 1960, 20 THIS

TIME SINCE 2011 AND SIX OF THOSE IS USING EXTRAORDINAIRE

MEASURES. THERE IS PRESIDENT FOR THAT AND

WE THINK IT IS THE LIKELY PASSPORT.

IN THE MEANTIME -- LIKELY THE PAST FORD.

IN THE MEANTIME WE WILL GET CONSTERNATION.

THE PINCH -- FITCH WARNING IS PART OF THAT. IF THE U.S.

DOES DEFAULT ANY OF THE -- WE WILL HAVE THINGS LIKE PAYMENTS

TO KEY AREAS TO THE ECONOMY, SO SECURITY, MEDICARE, DEFENSE,

ETC.. THERE ARE REAL MEANINGFUL IMPACTS OF THE DOWNGRADE AND

THE DEFAULT ITSELF. WE ARE HOPEFUL AS WE APPROACH

THE BIG STATE, BOTH SIDES -- X DATE, BOTH SIDES WILL COME

TOGETHER, THEY WILL CONCEDE TO SOME EXTENT AND WE WILL GET THE

NEGOTIATED RESOLUTION.

>> IF WE DO HAVE THE OUTSIDE CASE A DEFAULT, EVEN IF WE DO

NOT, SOME ECONOMISTS ARE SAYING THIS BACK-AND-FORTH COULD PUSH

US INTO A MILD RECESSION. IF THAT DOES HAPPEN HERE, WHERE

DO ROTATE YOUR INVESTMENTS? BACK TO CASH?

WHAT ARE YOU LOOKING AT IF THAT IS A SCENARIO YOU CAN SEE THE

NEXT 12 TO 18 MONTHS? GUEST:

I THINK CERTAINLY THE MILD RECESSION SCENARIO IS ONE THAT

IS BAKED INTO MARKETS. IF YOU LOOK AT THE BLOOMBERG

CONSENSUS ESTIMATES Q3, Q4 TWO BACK TO BACK QUARTERS THEY ARE

CALLING FOR NEGATIVE GDP. MINOR NEGATIVE, .5 PERCENT,

STILL SUBZERO GDP FOR TWO QUARTERS.

THAT IS PROBABLY NOW THE WELL ADVERTISED MILD RECESSION ON

THE HORIZON. IF WE DO GET MORE MEANINGFUL

VOLATILITY AROUND THE DEBT CEILING, THAT COULD CREATE

FEEDBACK LOOPS AROUND THE CONSUMER CALLS BACK.

THERE IS HAVE IT -- HESITATION TO INVEST IN SAFE HAVEN ASSET.

THAT HAS IMPACTS AND RIPPLE EFFECT THROUGH EQUITY AND BOND

MARKETS. IN THAT SCENARIO YOU WANT TO BE

MORE DEFENSIVE. DEFENSIVE STILL MEANS AREAS OF

THE MARKET LIKE STAPLES, HEALTH CARE, UTILITIES.

STILL OVERWEIGHT SOME OF THOSE CASH AND CASH LIKE INSTRUMENTS.

THAT ARBEL BETWEEN THE EQUITY AND THE BOND MARKET ON THE

DEFECT -- BARBELL BETWEEN THE EQUITY IN THE BOND MARKET ON

THE DEFENSE SIDE. IF THE ECONOMY GOES TO A MILD

RECESSION AND LOOKS TOWARDS RECOVERY THAT IS WHEN YOU

REALLY THINK ABOUT A MORE BROADENING PARTICIPATION.

THE RECOVERY PLAYBOOK SHOULD INCLUDE LEADERSHIP FROM AREAS

LIKE SMALL-CAP STOCKS LIKE INTERNATIONAL, EM EQUITIES AND

ALSO OF COURSE LONGER DURATION BONDS AND CYCLICAL.

NOT JUST TECH LEADING THE WAY WE DO THINK AS WE LOOK TOWARDS

THE BACK HALF OF THE YEAR AND A POTENTIAL RECOVERY, WE WILL

HAVE A MORE SUSTAINABLE BROADER LEADERSHIP IN THE MARKET AS

WELL. SCARLET: I HAVE TO ASK ONE LAST ONE ON

TECH DID SEE DURING THE PANDEMIC EURO COME -- ERA.

BIG TECH WAS GAINING, DIGITAL ADVERTISING, E-COMMERCE, WHEN

THAT TIME PERIOD ENDED, INVESTORS TURNED BACK TO THE

FUNDAMENTALS, IS THERE A RISKIER FOR BIG TECH NAMES THAT

ARE GETTING A LOT OF LOVE THESE DAYS -- RISK HERE FROM THE BIG

TECH NAMES ARE GETTING A LOT OF LOVE THESE DAYS.

WE SEE A BIG SELLOFF AND THAT SECTOR?

>> THERE IS A CASE TO BE MADE IN A CREDIBLE CASE THAT WE ARE

GETTING INTO OVERBOUGHT TERRITORIES.

A PULLBACK IS NORMAL, HEALTHY IN SOME CASES, GIVEN THE EXCESS

MOVES WE HAVE SEEN. THAT BEING SAID, IN AN ERA OF

LOW GROWTH, LOW ECONOMIC GROWTH INVESTORS DO TEND TO GRAVITATE

TOWARDS HIGHER GROWTH PARTS OF THE MARKET.

ESPECIALLY THOSE WITH DEFENSIBLE BUSINESS MODELS,

STRONG FREE CASH FLOW AND THOSE THAT ARE RETURNING VALUABLE --

VALUE TO SHAREHOLDERS TO BUYBACKS.

THERE IS PERHAPS CONSOLIDATION VOLATILITY AHEAD.

THE LONG-TERM PICTURE RE-THINK LOOKS BALANCED AND HEALTHY --

WE THINK LOOKS BALANCED AND HEALTHY FOR TECHNOLOGY. ALEX:

THANK YOU FOR TAKING US THROUGH TODAY AND TO THE FUTURE.

WE APPRECIATE YOU JOINING US. COMING UP WE WILL SPEAK TO THE

CEO OF STRAT

SCARLET: IN THE 3D PRINTING WORLD

STRATASYS AGREED TO ACQUIRE DESKTOP METAL, GRITTING A

LEADING COMPANY IN THE INDUSTRY AT ONE POINT BILLION DOLLARS,

JOINING US NOW IS -- 1.8 BILLION DOLLARS.

JOINING US NOW IS THE CEO, YOUR COMPANY REJECTED A COMPANY

TAKEOVER OFFER FROM RIVAL DIMENSION.

YOU ARE GETTING READY TO BUY DESKTOP METAL, WHY DOES THIS

EXPENSE? -- MAKE SENSE?

>> IT WILL RESHAPE THE INDUSTRY. THE 3D PRINTING INDUSTRY IS

FAILING TO DELIVER WHAT MANUFACTURING REALLY NEEDS.

THE COMBINATIONAL GREAT THE SCALE TO DELIVER. SCARLET:

WITH THAT SCALE OTHER CERTAIN CLIENTS OR SLICES OF INDUSTRY

YOU THINK YOU CAN SELL INTO NOW THAT YOU ARE PULLING IN

ADDITIONAL FUNCTIONALITY WITH THE ACQUISITION? GUEST:

DEFINITELY WE ARE LEADING IN THE AEROSPACE AND AUTOMOTIVE

MARKETS, WE ARE LEADING IN DENTAL AND MEDICAL.

WE DID NOT HAVE THE METAL PARTS, WE'RE FOCUSING ON

POLYMER. TO GET THERE WE ARE SELLING TO

THE SAME CUSTOMER THROUGH THE SAME CHANNELS, MUCH BIGGER PER

FOLIO, BROADER PORTFOLIO AND VERY PROFITABLE TO LEDGER -- TO

LEVERAGE OUR SCALE.

>> WHEN YOU SAY PROBABILITY TALK TO IS DAY ONE WHAT IS THE

FINANCIAL IMPACT ON STRATASYS FROM BRINGING THIS COMPANY INTO

THE FOLD? THE IMMEDIATE REVENUE BOOST,

MARKET INCREASING?

>> STRATASYS IS THE ONLY PROFITABLE BUSINESS IN THE 3D

PRINTING ARENA. DESKTOP METAL ANNOUNCED THEY

WILL BE PROFITABLE BY THE AND OF THE YEAR.

WHEN WE -- END OF THE YEAR. WHEN WE COMBINED TOGETHER WE

ARE THE FIRST $1 BILLION COMPANY IN THE INDUSTRY.

IN 2025 YOU WILL SELL 1.1 BILLION WITH A MARGIN OF 10 TO

12%. THIS IS NOT EXIST IN MANY FACTION BECAUSE WE ARE NOT

MATURE ENOUGH. ALEX: I APPRECIATE YOU POINTING OUT

THAT YOU ARE PROFITABLE AND A LEADER IN THE SPACE, 3D

PRINTING IS A FRAGMENTED SPACE RIGHT NOW.

GIVE US A SENSE, ONCE YOU COMBINED WITH DESKTOP, THEY

WILL BE ABLE TO BETTER COMPETE WITH NOW BEYOND THE 3D PRINTING

ECOSYSTEM?

>> WE WILL BE BETTER EQUIPPED TO COMPETE WITH THE ENTIRE

SECOND-TIER BECAUSE WE ARE NUMBER ONE.

THE BROADEST PORTFOLIO, UNMATCHED MATERIAL PORTFOLIO,

MATERIAL AND SOFTWARE IS KEY IN INDUSTRY, THOSE ARE TWO

GENERATE THE PROFIT. WHEN WE ARE COMING TO CUSTOMERS

WE HAVE TWO HUGE ADVANTAGES, ONE, WE ARE COVERING THE WHOLE

TECHNOLOGICAL SPACE. WE ARE SELLING -- IF THEY'RE

NESTLING WITH THEY NEED, WE SOME OF THE NEED.

-- THE CUSTOMER DOES NOT NEED

TO LOOK OUTSIDE OUR PLATFORMS. SCARLET:

ANOTHER ADVANTAGE YOU COULD HAVE OR COULD TAP INTO IS THE

SHAREHOLDERS OF DESKTOP.

DESKTOP METAL WENT PUBLIC IN 2020 THROUGH ICEPACK, ONE OF

THE BIGGEST SHAREHOLDERS IS ALPHABET -- THROUGH A SPAC, ONE

OF THE BIGGEST SHAREHOLDERS IS ALPHABET WITH A 3% SHARE.

DO YOU EXPECT TO WORK CLOSER?

>> NO DOUBT WE WILL BENEFIT AND COOPERATE WITH A GREAT

SHAREHOLDER BASE. IT IS A GROUP OF PEOPLE THAT

BELIEVE IN INNOVATION, IT IS BRINGING THE INNOVATION TO THE

TABLE, WE ARE BRINGING THE ESTABLISHMENT TO GO TOMORROW,

THE INFRASTRUCTURE TO MAKE THIS -- TO GO TO MARKET, THE INPUT

STRUCTURE TO DELIVER VALUES TO THE BEST MARQUEE CUSTOMERS THE

WORLD. ALEX: WHAT'S PHYSICALLY OR WE TALKING

ABOUT WHEN YOU THINK ABOUT THE ALPHABETS OF THE WORLD AND HOW

THEY CAN LEND THE INNOVATIVE SPIRIT TO YOU AS WELL?

>> DESKTOP METAL, LOCATED IN BOSTON.

THEY ARE HIGHLY LINKED TO M.I.T..

THAT IS THE ENTIRE STORY. IT IS SO HARD TO FIND TALENT IN

OUR INDUSTRY.

THE ABILITY TO HAVE GREAT LINKS AND ACADEMIA PLUS GREAT

SHAREHOLDERS THAT ARE INTERESTED IN BREAKTHROUGH

TECHNOLOGIES. I THINK IT IS A GREAT WAY

FORWARD.

ALEX: THANK YOU FOR WALKING US THROUGH THIS ACQUISITION

STRATASYS CEO. MICROSOFT IS PUSHING BACK

FORMALLY FILING TO APPEAL THE U.K. DECISION TO BLOCK ITS

MEGAMERGER WITH ACTIVISION BLIZZARD. MORE ON THAT NEXT.

THIS IS BLOOMBERG.

KEEPING YOUR ION SHARES OF SPLUNK REPORTING A FIRST

QUARTER THAT NEED EXPECTATION AND A SECOND QUARTER FORECAST

HIGHER THAN ESTIMATES. THE SHARES ARE RIGHT ABOUT

UNCHANGED WE WILL CONTINUE TO WATCH THROUGHOUT THE SHOW.

THIS IS BLOOMBERG.

ALEX: IT IS TIME FOR TALKING TECH.

FIRST UP GRAB CO-FOUNDER AT STEPPING DOWN FROM HER

OPERATIONAL ROLES IN THE COMPANY AT YEARS AND.

SHE STARTED THE COMPANY MORE THAN A DECK IT AGO AND LAZY

ECOLOGY AND CORPORATE STRATEGY

GAMES -- TEAMS. MICROSOFT PRESIDENT BRAD SMITH SAYS THE

U.S. SHOULD MAKE A NEW AGENCY TO REGULATE ARTIFICIAL

INTELLIGENCE. THE LICENSING REQUIREMENTS

NECESSARY TO OPERATE THOSE AI TOOLS.

OUTLINING THE COMPANY POLICY REGARDING AI AND ECHOING

SENTIMENTS FROM OPENAI, SAYING GOVERNMENT OVERSIGHT ENSURES

THAT HUMANS WILL REMAIN IN CONTROL OF THE TECHNOLOGY.

OTHER MICROSOFT NEWS, THE COMPANY HAS FILED AN APPEAL

AGAINST THE U.K., AFTER THE ANTITRUST AGENCY BLOCKED THE

$69 BILLION DEAL TO BUY ACTIVISION BLIZZARD.

CMA SAYS IT STANDS BY ITS DECISION, ARGUING WOULD LET

MICROSOFT TO SET THE TERMS OF THE MARKET.

>> LOOK AT SHARES OF NINTENDO THE LAST FEW WEEKS IT TOOK

THREE DAYS FOR THE LATEST INSTALLMENT IN THE LEGEND OF

ZELDA FRANCHISE TO SELL MORE THAN 10 MILLION COPIES

WORLDWIDE. 4 MILLION IN THE AMERICAS WHERE

THE NEW GAME BECAME NINTENDO'S FASTEST SELLING GAME EVER.

FROM NEW YORK AND SAN FRANCISCO. THIS IS BLOOMBERG.

ALEX: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." SCARLET:

LET'S GET A CHECK ON THE MARKETS RIGHT NOW.

THE NASDAQ IS FLYING HIGH THE MOMENT THINGS TO NVIDIA'S

BLOWOUT SALES FORECAST ON THE BACK OF DEMAND FOR ITS AI CHIPS.

YOU LOOK AT THE INDEX, THAT HAS THE -- NEW YORK FANG INDEX WITH

THE BIGGEST WAITING, -- TRADERS BETTING AGAINST NVIDIA HAVE

SUFFERED MASSIVE LOSSES, $2.3 BILLION PAPER LOST JUST ON THE

DAY ALONE, BECAUSE OF THE BIG SPIKE HIGHER.

ON THE DOWNSIDE YOU HAVE ETF THAT TRACKS SHORTER DURATION

TREASURIES. ONE TO THREE YEAR MATURITIES,

IS DOWN 18% ON THE DAY. WHEN THERE IS A SELLOFF IN

BONDS YIELDS GO OUT, AND THAT IS WHERE I WANT TO GO NEXT.

THE DEBT CEILING DRAMA DOMINATES AS THE MARKET IS

OVERALL HIGHER TODAY. LOOK AT THIS CHART.

A SNAP SHOT OF THE U.S. GOVERNMENT CHECKING ACCOUNT.

THE AMOUNT IT HAS ON HAND TO PAY ITS BILLS.

INTEREST ON HIS DENT OR PAYING OUT SOCIAL SECURITY CHECKS.

TUESDAY AFTERNOON TO HAD ABOUT $76 BILLION THAT WAS HIGHER IN

MID APRIL, WE CAN SEE THE LITTLE BLIP IN THE LAST PART OF

THE CHART WAS A RESULT OF PEOPLE AND COMPANIES PAYING

THEIR TAXES. TREASURY SECRETARY JANET YELLEN

HAS IDENTIFIED JUNE 1 AS THE DATE THE GOVERNMENT MAY RUN OUT

OF MONEY TO ON RISK OBLIGATIONS -- TO HONOR ITS OBLIGATIONS.

IT WILL DROP BELOW 30 BILLION FOR JUNE 8 THROUGH JUNE 9, THAT

IS THE BARE MINIMUM FOR MEETING OBLIGATIONS.

>> WHILE THE NEGOTIATIONS PROCESS TO THE RISK OF THE

FAULTING FOR THE FIRST TIME IS GROWING.

THAT IS WHY WE MORE THAN 140 CEOS ON WALL STREET EXECUTIVE

HAVE SOUNDED THE ALARM BELLS. IN A LETTER TO THE PRESIDENT

AND CONGRESSIONAL LEADERS, THE GROUP WROTE THAT HIGH INFLATION

CREATED STRESSES IN OUR FINANCIAL SYSTEM INCLUDING

SEVERAL RECENT BANK FAILURES. MUCH WORSE WILL OCCUR OF NATION

DEFAULTS ON OUR DEBT LEGATIONS. WE STRONGLY URGE THAT IN ACCORD

BE REACHED QUICKLY SO THAT THE COUNTRY CAN AVERT THIS

POTENTIALLY DEVASTATING SCENARIO.

JOINING US NOW WITH MORE INSIGHT WITH CHARLES PHILLIPS,

MANAGING PARTNER AND COFOUNDER OF RECOGNIZED PARTNERS.

ONE OF THE MANY THAT SIGNED THE LETTER. THAT WAS SENT MAY 16.

IT HAS BEEN A FEW DAYS SINCE THEN WE HAVE HAD HEADLINES

CROSSED LIKE SPEAKER KEVIN MCCARTHY SAY TODAY I DID NOT

KNOW IF WE WILL HAVE A DEAL TODAY, HE SAID YESTERDAY THEY

NEED 72 HOURS, THEY WILL HAVE THE 72 HOURS TO REVIEW AND PASS

ANY BILL THAT DOES COME THROUGH. HOW DOES THE URGENCY CHANGE

SINCE YOU AND YOUR FELLOW CEOS AND LEADERS WROTE THAT LETTER

JUST A LITTLE OVER A WEEK AGO?

>> THERE IS A REASON THE MARKET ARE STARTING TO REACT.

YOU CAN SEE THE CREDIT DEFAULT SWAPS SPREADS ARE CHANGING.

IT JUST SO HAPPENS, THAT WE HAVE A BUNCH OF TECHNOLOGY

COMPANIES THAT HAVE AN ANNUAL MEETING THIS WEEK.

ALL THE COMPANIES WERE IN, ALL THE INVESTORS WERE INCOME

NORMALLY TALK ABOUT OPERATIONAL AND PREVENTS NOW YOU HAVE TO

TALK ABOUT THIS -- OPERATIONAL IMPROVEMENTS AND NOW WE TALK

ABOUT THIS. WE HAD A BANKING CRISIS, NOW WE

HAVE TO DEAL WITH THIS. WILL THE COST OF CAPITAL BE

HIGHER IN THREE MONTHS, SIX MONTHS?

THE PLANNING ASPECT OF THIS IS WREAKING HAVOC ON PEOPLE.

THE UNCERTAINTY IS SOMETHING PEOPLE DID NOT LIKE DEALING

WITH RIGHT NOW. ALEX: THAT IS INTERESTING THAT YOU

HAVE THESE MEETINGS AND IT KEEPS COMING UP.

HOW TO THE DEBT LEADERS AND EXECUTIVES PLAN AROUND THIS OR

THROUGH THIS? GUEST: WE DO NOT USE A LOT OF LEVERAGE

IN OUR PURPLE TIER WE HAVE SOME COMPANIES BUT IT MADE US THINK

-- IN OUR PORTFOLIO, WE HAVE SOME COMPANY'S BUT WE HAD TO

THINK DIFFERENT THE ABOUT IT. FEWER DEALS GET DONE OR GET

DONE 80 DIFFERENT PRICE. PSYCH -- AT A DIFFERENT PRICE.

WE RELY ON STATE AND LOCAL BUDGETS.

THEY CANNOT ON THE INFRASTRUCTURE -- FIND THE

INFRASTRUCTURE THAT WE NORMALLY RELY ON.

WE HAVE IT RIPPLED DOWN TO THE STATE AND LOCAL LEVEL AS WELL.

>> THAT IS INTERESTING AND SOMETHING PERHAPS A LOT OF

LAWMAKERS IN WASHINGTON MAY NOT BE IMMEDIATELY AWARE OF.

IN YOUR CURRENT ROLE YOUR AROUND ANGELA NORA'S ALL THE

TIME, LEARNING TO -- AROUND ENTREPRENEURS A LOT OF THE TIME.

WHAT DO YOU THINK CONGRESS DOES NOT FULLY UNDERSTAND ABOUT HOW

THE ACTIONS REVERBERATE THROUGH THE PRIVATE SECTOR?

>> THE U.S. BRAND AROUND THE WORLD ACCRUES

TO EACH OF OUR COMPANIES, WE ARE YOU AS UNDERSTANDING

BUSINESS, VERY INNOVATIVE, COMING FROM A ECONOMY THAT IS

ROCKSOLID, RISK-FREE, AND HAS FISCAL DISCIPLINE.

WE BENEFIT FROM THAT BRAND. WHEN YOU QUESTION THAT, YOU GET

A CERTAIN -- AROUND THAT. PEOPLE BELIEVE THAT WE KNOW

WHAT WE'RE DOING BECAUSE WE ARE FROM THE U.S..

THE BRAND ASPECT PEOPLE DO NOT QUITE UNDERSTAND IT HURTS

ALTHOUGH THERE COMPANIES. -- ALL OTHER COMPANIES.

>> THE REPUTATIONAL RISK IS INTERESTING, I AM CURIOUS WITH

YOU AS AN INVESTOR YOURSELF, RECOGNIZE, DOES THAT

REPUTATIONAL RISK OF THESE CHAOTIC CONVERSATIONS, OF THE

BANKING CRISIS THAT WENT ON WITH SOME OF THE IMPORTANT

FUNDERS OF PLACES LIKE THE TECH CENTER -- SECTOR LIKE SVB.

DOES THE REPUTATIONAL RISK POSED CHALLENGES FOR U.S.

YOU LOOK AT YOUR GROWTH INVESTMENTS GOING FORWARD?

>> WE ARE COMPETING WITH OTHER INVESTORS AROUND THE WORLD.

WE WANT TO LOOK LIKE WE HAVE AN EDGE.

PART OF IT IS THE OPERATIONAL BACKGROUND.

PART OF IT IS THE U.S.. PART OF IT IS A LOWER COST OF

CAPITAL. IF ANY OF THOSE BREAKDOWN YOU

DO NOT LOOK AS STRONG AS YOU LOOK OTHERWISE.

PEOPLE ASKING THE QUESTION, WHAT IS GOING ON OVER THERE?

I THINK THE IMPLICATIONS FOR THE JOB MARKET, IN GENERAL.

IF YOU CANNOT PAY OUR BILLS, SO SECURITY, MILITARY, THESE

THINGS START TO BREAK DOWN IT LOOKS LIKE CHAOS TO EVERYBODY.

PEOPLE THOUGHT THIS COULD NOT REALLY HAPPEN, MAYBE THEY'RE

PLAYING A GAME OF CHICKEN BUT THEY ALWAYS WORK IT OUT.

NOW YOU NEVER KNOW BECAUSE THINGS HAVE GOTTEN SO PARTISAN.

IT COULD ACTUALLY HAPPEN. THAT IS WHAT IS DIFFERENT NOW.

THIS COULD BE A THING THAT HAPPENS. ALEX:

DO YOU START LOOKING GEOGRAPHICALLY TO REGIONS

OUTSIDE THE U.S. WHERE COMPANIES ARE NOT SITTING

IN A ROOM AND HAVING TO COPE WITH UNCERTAINTY OR A PAUSE IN

INNOVATIVE STRATEGIES BECAUSE THERE IS TOO MUCH CHAOS

POTENTIALLY LOOMING FOR THE ECONOMY IN THE U.S.? GUEST:

WE HAVE ALWAYS BEEN LEVEL. WE HAVE COMPANIES IN UKRAINE,

LATIN AMERICA, ALL OVER THE WORLD.

WELL INTO WHERE WE COULD BE INVESTING DOESN'T MAKE THE U.S.

LOOK AT LESS ATTRACTIVE THAN IT WOULD OTHERWISE?

SURE, THAT IS LIKE ANY OTHER GLOBAL INVESTORS.

CAPITAL CAN FLOW ANYWHERE.

>> YOU SERVED ON PRESENT OBAMA'S ECONOMIC -- PRESIDENT

OBAMA'S ECONOMIC RECOVERY BOARD AND ON THE FED.

HOW DO YOU THINK THE 2023 DEBT CEILING STANDOFF DIFFERS FROM

WHAT WE HAVE SEEN IN THE PAST? OR IS THIS BUSINESS AS USUAL?

GUEST: THIS ONE SEEMS MORE SEVERE, IT

WAS SHORTER IN 2011, WE LOST 2.4 TRILLION IN MARKET CAP.

THIS COULD GO ON LONGER BECAUSE THE SIZE OF IT IS SO MUCH

LARGER. WE HAD CERTAIN A THAT PEOPLE

HAD TO WORK IT OUT, THEY DID NOT WANT TO HAPPEN.

WE ARE NOT SURE OF IT RIGHT NOW. IT MAKES IT SEEM IT IS WORSE

THAN IT IS. ALEX: THANK YOU FOR BREAKING DOWN THE

PRIVATE SECTOR IMPLICATIONS FOR US.

THANK YOU TO CHARLES PHILLIPS MANAGING PARTNER AND COFOUNDER

OF RECOGNIZED PARTNERS. COMING UP THE IMPACT OF

GENERATIVE AI ON RETAIL.

WE WILL DISCUSS ALL THAT AND MORE WITH CEO OF BUY NOW PAY

LATER KLAMA. WE ARE WATCHING SHARES OF BEST

BUY, FIRST QUARTER PROFITS, TOP ESTIMATES, AND THE COMPANY

RE-ANNUAL -- REITERATED ITS ANNUAL TARGET.

THEY SAID THIS YEAR WAS THE BOTTOM OF DECLINE IN TECH

DEMAND. THIS IS BLOOMBERG.

ALEX: DOES NOT TAKE A LOOK AT THE

FUTURE OF RETAIL THAT COULD BE MORE PERSONALIZED AND TECH

BOAST IN THE CONTEXT OF THE GENERATIVE AI REVOLUTION.

THAT IS THE PROJECTION LAID OUT IN THE KLAMA RETAIL REPORT.

THE CEO JOINS US NOW FOR US -- ON THIS.

YOU LOOK AHEAD TO HELP PEOPLE WILL OPEN THEIR POCKETBOOKS HOW

WILL AI SHOW ITSELF IN TERMS OF HOW PEOPLE ARE SPENDING IT

RETAIL. GUEST:

FIRST OF ALL, I TRIED THIS IN NOVEMBER, WHEN IT STARTED

TRENDING IN TWITTER. I SAID WHAT IS THIS THING?

IT WAS MAGIC TO ME. I FELT LIKE WHEN I OPENED UP

THE INTERNET THE FIRST TIME 20 YEARS AGO.

IT FELT SUPER IMPRESSIVE. WE INSTANTLY GOT IN TOUCH WITH

SAM AND I SAID LOOK I WANT KLAMA TO BE YOUR FAVORITE

GUINEA PIG OVER AT OPENAI, THAT IS THE WAY TO DO THESE THINGS

WE SEE DRAMATIC SHIFT THIS.

I CODED MYSELF, WHEN MY BIGGEST REGRETS IS I NEVER BECAME AN

ENGINEER. WITH THAT SAID, WHAT IS CLEAR,

THE TOOLS OUT THERE, THE APPLICATIONS THAT ARE CHANGING

ANGST ARE NOT YET. THEY WILL COME IN NEXT SIX TO

12 MONTHS WE WILL ALL SEE BETTER SHOPPING EXPERIENCES.

SHOPPING ASSISTANCE, PROVIDING YOU A HIGH CONVERSION RATE FOR

RETAILERS.

ASSISTING CONSUMERS TO FIND BETTER PRICES, BETTER OFFERS,

ETC., I EXPECT TO SEE A EXPLOSION OF NEW TOOLS AND

SOURCES, NEXT 12 MONTHS TO UTILIZE THE TECHNOLOGY TO

PROVIDE A MUCH RICHER AND MUCH MORE ACCURATE EXPERIENCE FOR

CONSUMERS. SUPER SUPER INTERESTING TO

FOLLOW. ALSO THERE SEEMS TO BE, THE

STUDIES OF OUR SHOW, A HUGE BIG OPENING ON CONSUMERS.

THEY ARE WILLING TO TRY AND TEST THESE THINGS, THEY BELIEVE

CAN MAKE A DIFFERENCE. ALEX: WHEN I THINK ABOUT THE

EVOLUTION OF RETAIL WE HAD THE MALL START TO BRING THINGS

TOGETHER ON A REGIONAL BASIS OR A TOWN-BASED BASIS.

THEN WE HAD ONLINE SHOPPING WE CAN BUY ANYTHING FROM ANYWHERE.

E-COMMERCE PLAYERS SHOWED UP. IT HAS EVOLVED TO WHERE YOU

HAVE ALMOST TOO MUCH CHOICE. IF YOU LOG ONTO AN E-COMMERCE

PLATFORM IT IS HARD TO NARROW DOWN IF YOU DO NOT KNOW EXACTLY

WHAT YOU'RE LOOKING FOR. IS THAT A PROBLEM YOU EXPECT?

SOME OF THE EARLY APPLICATIONS MIGHT BE A LOW HANGING FRUIT TO

SOLVE WHEN IT COMES TO BRINGING AI IN.

PERHAPS TO HELP FOLKS DISCOVER THINGS ON THEIR PREFERENCES

MORE EASILY. GUEST: YOU ARE SPOT ON.

REMEMBER WHEN YOU WERE LIVING IN A SMALL CITY?

THERE WAS ONE DEPARTMENT STORE. THEY HAD NICELY CURATED

EVERYTHING NEEDED TO BUY FOR US. EVERYTHING WAS THERE, YOU DON'T

NEED TO LOOK ELSEWHERE. NOW YOU ARE OVER WALKED --

OVERWATCH WITH EVERYTHING.

YOU THINK ABOUT THE PRODUCTS, THE DURATION COMING THING ABOUT

THE TECHNOLOGY, THE LOGISTICS TO BRING THE TECHNOLOGY TO THE

CONSUMER.

ON THE CURE RATION SIDE COME -- DURATION SIDE HAS GONE CRAZY.

YOU HAVE SEEN INSTAGRAM PEOPLE TRYING TO INFLUENCE PEOPLE.

INFLUENCERS RECOMMEND PRODUCTS. RETAILERS, THE BRANDS

THEMSELVES TRYING TO CURATE. CURE RATION TO A POINT IS A

HUGE OPPORTUNITY. WE LAUNCHED SEARCH IN THE U.S..

THERE HAS BEEN NO ONE LAUNCHING SEARCH IN THE U.S.

AGAINST AMAZON FOR THE LAST 15 YEARS.

WE SEE TREMENDOUS TRACTION TO REINVENT PRODUCT SEARCH.

HOW DO YOU HAVE INTENT DRIVEN DISCOVERY AT THE RIGHT PRODUCT

IN THE RIGHT PRICE, ETC., BUT ALSO THE INSPIRATIONAL.

THAT IS THE AREA, CURE RATION IS CRITICAL.

IN CHINA, IT USED TO BE 80% SEARCH, 20% RECOMMENDATION BY

AI.

80% OF OUR PEOPLE BY ON TEEMU IS AI RECOMMENDATION, NOT

SEARCH ANYMORE. THAT SHOWS YOU WHAT TECHNOLOGY

CAN MEAN AS A SHIP. ALEX: GOOGLE CEO WROTE AN OP-ED

RECENTLY THAT BUILDING AI RESPONSIBLY IS THE ONLY RACE

THAT MATTERS INSTEAD OF BUILDING UP AI CHOPPED.

HE BROUGHT IN REGULATION. WHAT DO YOU SEE AS THE

POTENTIAL PROBLEMS OR PITFALLS FOR AREAS THAT MIGHT BE

CONCERNING THAT RESULT FROM THE USER INTEGRATION OF AI IN

SHOPPING IN YOUR WORLD?

>> AS YOU ARE A PAYMENT COMPANY, FRAUD IS A BIG ASPECT,

THERE IS INDICATIONS ON FRAUD PROTECTION.

I THINK ON A SOCIETY LEVEL, AS A SOCIETY, I RESPECT THAT A LOT

WHEN I SPEAK TO PEOPLE. TECH LEADERS.

I AM HAPPY TO HEAR THEM PROMOTE THE AMAZING OPPORTUNITIES IT

PRESENTS BUT ALSO HIGHLIGHT THE RISKS.

THAT IS MORE FROM A SOCIETY PERSPECTIVE.

IF I THINK MORE OF MY BUSINESS I THINK THERE IS ONE CRITICAL

THING THAT COULD ACTUALLY MAKE A HUGE DIFFERENCE.

IN SOME MARKETS IN EUROPE, SWEDEN IS A GOOD EXAMPLE, BASED

CURRENTLY, WE HAVE ELECTRONIC IDENTIFICATION THAT IS

AVAILABLE TO EVERYONE EVERYONE HAS IT ON THE PHONE.

THAT MEANS THERE IS NO FRAUD. THERE IS NO PROBLEMS WITH

PEOPLE PRETENDING TO BE SOMEONE ELSE.

THERE IS MUCH LESS FRAUD THAN IN MANY OTHER MARKETS WE SEE.

IT IS A CINCH -- SIMPLE THING, A DIGITAL PATH FOR JULY

DEFECATION. AND NOT -- DIGITAL IDENTIFICATION.

IF I CHAT WITH SOMETHING I NEED TO KNOW IF IT IS A HUMAN OR

COMPUTER. YOU HAVE THE RESPONSIBILITY BE

TRANSPARENT ABOUT THAT. THOSE JUICE OF THE THINGS THAT

COULD MITIGATE SOME THE EARLY RISKS -- THOSE ARE TWO SIMPLE

THINGS I COULD MITIGATE THE EARLY RISKS, CHANGES. SCARLET:

THERE ARE PEOPLE OUT THERE SAYING KLARNA IS PIVOTING TO AI

AND REGULATION TO AI AS REGULATION COMES FORTH TO BUY

NOW PAY LATER IN AUSTRALIA AND THE U.K..

HOW WOULD YOU RESPOND TO THAT? GUEST: FORGET IT.

BY NOW PAY LATER IS A FANTASTIC CREDIT PRODUCT FOR CONSUMERS.

EVERYONE SHOULD WATCH, HIM EXPLAIN ON NETFLIX.

YOU GET A 25 MINUTE SUMMARY OF ALL THE BAD PRACTICES.

ALL THINGS ANGST DO WITH CREDIT CARDS, THE BUILDUP THE -- BANKS

DO WITH CREDIT, TO BUILD UP THE BIGGEST ALLEN'S -- BALANCE.

IT IS INTEREST-FREE, IT IS FIXED INSTALLMENTS, WE DO NOT

PUSH IT IN YOUR FACE TO MAKE YOU BELIEVE YOU CAN SPEND MORE

THAN YOU HAVE. WE ARE TRYING TO BUILD A

RESPONSIBLE CREDIT CARD. IT IS STILL CREDIT.

ALL CREDIT HAS RISKS AND NEEDS TO BE OFFERED IN A RESPONSIBLE

WAY. AS A CREDIT FORM IT IS SUPERIOR

TO THE CREDIT CARDS. IT IS BETTER FOR US IN AN

UNCERTAIN ECONOMIC ENVIRONMENT. WE UNDERWRITE EVERY TRANSACTION.

WE SEE 40% BELOW CREDIT CARD TRANSACTION LOSSES.

HALF MY BALANCE SHEET IS UNDERWRITING THE NEW

METHODOLOGY. I CAN QUICKLY CHANGE TO AN

ECONOMIC ENVIRONMENT LIKE THIS ONE. BANKS WILL WAIT TWO YEARS

BEFORE THEY SEE A SHIFT IN THE BALANCE SHEET DUE TO CHANGES IN

UNDERWRITING. ALEX: ONE MORE QUICK WHEN ON AI

BECAUSE WE HAVE BEEN TALKING ABOUT THAT.

THE RACE IS ON, THE RACE IS ON FOR TALENT.

YOU JUMPED IN QUICKLY TO WORK WITH OPENAI.

WHAT DOES HIRING LOOK LIKE INTERNALLY AT KLARNA?

WHERE YOU FIND THE INDIVIDUALS TO MAKE SURE THAT TYPE OF

TECHNOLOGY CAN BE SEAMLESSLY TESTED, INTEGRATED INTO WHAT

YOU ARE WORK -- ROLLING OUT FOR CONSUMERS.

>> I THINK IT IS OBVIOUSLY AN IMPORTANT QUESTION, OBVIOUSLY

DATA SCIENTISTS ARE IN HIGHER DEMAND.

I WANT TO GET AGAIN HOW MUCH THIS IS JUST ABOUT CURIOSITY.

ENCOURAGING PEOPLE WITHIN YOUR CULTURE TO INNOVATE AND TRY AND

TEST. ONE WAY I MEASURE RIGHT NOW, KLARNA'S AI INVOLVEMENT.

WE OFFER THEM A CHAT GDP FOR -- 4 AI POWERED ACCOUNT.

WE ARE AT -- I WANT TO GET THE 5000. I WANT EACH ONE OF THEM TO

EXPERIMENT AND LEARN TO UTILIZE THE TECHNOLOGY.

IT TOOK YEARS FOR PEOPLE TO DISCOVER THE POWER OF GOOGLE 20

YEARS AGO HOW IT CAN SAVE YOU TIME, MORE PRODUCTIVE.

ONE SHOULD NOT OVERESTIMATE -- UNDERESTIMATE, ENCOURAGING

PEOPLE. SCARLET:

IS ABOUT EXPERIMENTING AND ENGAGING RIGHT NOW BEFORE WE

DRAW BIG CONCLUSIONS. REALLY THANK YOU FOR JOINING US

THE CEO OF KLARNA JOINING US. COMING BACK HERE TO THE U.S.

RON DESANTIS'S CAMPAIGN ANNOUNCEMENT ON TWITTER WAS

BESET BY TECHNICAL GLITCHES. MORE ON THAT NEXT.

THIS IS BLOOMBERG. AS WE HAD TO BREAK, KEEPING AN

EYE ON SHARES OF PALANTIR AS THEY SAID THEY WOULD HELP

DEEPEN RELATIONSHIPS TO RECONSTRUCT INFRASTRUCTURE.

THEY'VE BEEN WORKING WITH THE CRANE SINCE LAST YEAR PROVIDING

SOFTWARE AND INCORPORATING AI TECHNOLOGIES TO EMPOWER

BATTLEFIELD DECISION-MAKING.

SCARLET: FLORIDA GOVERNOR RON DESANTIS'S

LIVE EVENT -- ON TWITTER, WAS PLAYED BY TECHNICAL GLITCHES.

LED TO HIS ANNOUNCEMENT BEING POSTED ON VENTURE CAPITALIST

DAVID SACHS INSTEAD.

>> THAT WAS INSANE. SORRY WE ARE DOING THIS FROM

DAVID SACHS'S TWITTER ACCOUNT. LOOKS LIKE DOING IT FROM MINE

BROKE THE TWITTER SYSTEM. SCARLET:

JOINING US NOW TO BREAK DOWN THE LAUNCH OF HIS PRESIDENTIAL

RUN ON TWITTER IS SARAH. HOW MUCH OF THIS TECHNICAL

TRAIN WRECK CAN YOU TIED DIRECTLY TO ELON MUSK'S STAFF

FIRINGS AND VARIOUS COST CUTS?

>> THEY DID NOT HAVE A LOT OF THE PEOPLE THEY USED TO HAVE

WERE WORKING ON THIS KIND OF INFRASTRUCTURE STABILITY.

THEY GOT RID OF THE USE OF THE DATA CENTER THEY HAD IN

SACRAMENTO THAT INCREASED THE STRESS ON THE SYSTEM, THEY HAVE

BEEN MAKING PRODUCT CHANGES. THOSE FACTORS PLUS THE FACT,

THEY DID NOT REALLY PREPARE FOR THIS MOMENT, IT SEEMS, THEY DID

NOT STRESS TEST THEIR SYSTEMS OR THIS WOULD'VE NOT HAPPENED.

>> I WAS TUNING IN YESTERDAY, ELON MUSK SAID HOPEFULLY THIS

WOULD BE A PLATFORM WITH PEOPLE OF DIVERGENT POLITICAL VIEWS TO

EXCHANGE THOSE VIEWS. IN THE COURSE OF THAT

CONVERSATION DID THEY PUT DIVERSE CLINICAL VIEWS ON

DISPLAY -- POLITICAL VIEWS ON DISPLAY WITH RON DESANTIS?

>> ABSOLUTELY NOT. IT WAS PEOPLE FAVORABLE TO THE

DESANTIS CAMPAIGN. THIS COULD BLOWBACK ON MUSK.

HISTORICALLY SOCIAL MEDIA EXEC'S HAVE NOT TRIED TO ALIGN

THEMSELVES WITH A PARTICULAR COMPANY.

THEY TRY TO BE NEUTRAL TO GET THE WIDEST POSSIBLE USER BASE

AND WIDEST POSSIBLE SET OF ADVERTISERS SPENDING MONEY

TERESA'S USERS. IF TWITTER POSITIONS ITSELF,

THAT WE ARE MORE FRIENDLY TO ONE POLITICAL PARTY OVER THE

OTHER, I DO THINK SOME ADVERTISERS WILL SHY AWAY FROM

THAT. I DID SEE, THE NEW CEO, AND THE

ROOM. SHE WAS THERE.

>> SO WERE YOU.

>> SHE COULD FIX IT, MAYBE WE WILL SEE. ALEX:

THANK YOU FOR WRAPPING THAT UP FOR US, DAVID SACHS WILL BE

JOINING US ON BLOOMBERG TV TO TALK ABOUT THIS MORE.

THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY,"

DO NOT FORGET TO CHECK OUT THE PODCAST ON THE TERMINAL,