7 billion flowdan to Crypto Assets last week we will discuss that with the delta plot we will discuss them in so much more throughout the hour. Lets get to markets, a hotter than expected cpi print that drove the narrative. In the equity space it was a negative reaction at first. We havent changed her mind about the idea that if a rate cut is coming from the Federal Reserve is not coming until june. We are now up by a percentage point and a lot of the legwork coming from the earnings story. Semiconductors higher. Even as you see rates creep i. The 10 year yield was creeping up and bitcoin is down 1. 36 . Just above 71,000 u. S. Dollars per token. Talking about this upside and equities is probably oracle that accounts for that. The story, 20 5 topline growth in this cloud business. If you look at the analyst known there is an ai detail went. Lets get right to the conversation and bring forth brody, bloomberg oracle chief. The performance of the cloud unit, that was pretty good. They booked a lot more business than anyone expected in the executives attributed that to the cloud business. Everybody needs more Cloud Computing power, ai, training models and mass digitalization. Theres not enough computer power going around. We should see that turn into revenue in the coming quarters. Ed one of the great things about you is you can take any Technology Company on paper can be a bit dry. The use all this jargon that we dont understand and in oracles case, remaining performance obligation. If anyone called and said that you would fall asleep. This is a mighty impressive backlog of business in the street is paying attention. Brody its a backlog, business that is been signed. The reason it is a backlog because they dont have the physical space. The clouds data centers in virginia and they need to build more of them. In the next year they will spend 10 billion building out their data Center Presents around the country. Think of that capex compared to two years ago. Thats giving investors confidence that they are building up their footprint in response to customer demand. Ed i talked about the ai tailwind and that is what the bulls see. But what is oracle story and how do they fit into whats going on. Brody there is some real thirdparty voices saying oracles cloud is particularly good for training these ai models that are notoriously resource intensive. Weve heard of a lot of folks going to oracle to train their models and that his and fueling some of this demand. There is some skepticism. Brett was on hill yesterday saying the current amount of revenue ai workloads is not massive. In the coming year as the ai becomes mainstream in the tech stock that will increase. Ed oracle, a real contributor to the upside we see and equities particularly in the equity sector. Lets turn to another top story. The latest elon musk lawsuit. Openai in a court filing that the billionaires claims rest on convoluted, often incoherent factual premises. The spring in bloombergs ai reporter, rachel must. What is open ai trying to say here are normal people speak . They are echoing a number of things that they put up in a blog post from last week and internal memos we got a hold of. They are saying there was no agreement for us to do what you said and what youre saying is in correct incorrect. Your argument is incoherent and funny about this is a procedural filing. They were putting in this filing to say we want this court case to be classified, is known as a complex case in california. It would give it a tiny bit of treatment by a judge they can understand this stuff and get it done quickly. Ed one of the early ai investors was on the show in one of the things he was arguing for is openai is critically important from a National Security standpoint. If they want to be competitive in ai we need to support openai in doing that and one of the thing they did with this filing is to say, if we go through with this lawsuit the discovery process will give away all of her seekers in the context of ai. They did argue that. To be fair, one could argue that any discovery process might have a risk of bringing up things you dont want shared with the public. As part of what makes it interesting to the rest of us. Hopefully we will get interesting information in some of the things they want to keep her priority will be cap kept proprietary. Ed another big story in the world of Technology Nvidia and another said josh they allege nvidia built their models on the library of pirated digital ebooks they were filed on march 8 and the joint dozens of authors suing tapia Companies Including openai and meta. Bitcoin hovers near their alltime high. Can the cryptocurrency run the sustain 71 692 right now . Arm chip design form. The lockup ascending in the concern that the insiders are free to sell shares will do so. It is a story that happens for many in the post cycle if you think about the number of tech name set of listed. This is Bloomberg Technology. [sfx wind, rain and rolling thunder] [music up and under] crowd get in [crowd cheers] american announcer justin rose has done it. British announcer hes a 17 year old phenom. Nobodys born with grit. British announcer this is hard to watch. Its something you build over time. American announcer thats 21 missed cuts in a row. [car trunk slammed shut] but creating a future only you can see, demands relentless pursuit. For 88 years, Morgan Stanley has offered clients the same determination and forward thinking that define justin roses career. Because the only way to reach your full potential. American announcer rose, back in the winners circle. Is to pair the vision of whats possible with the grit it takes to make it happen. [crowd cheers] american announcer hes done it [music out] you dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh ed coins recordbreaking brand showed few signs of slowing with large amount of capital inflows, Strong Demand for the cryptocurrency recent alltime high of 72,881 on monday. With some investors eyeing a target of 80,000 u. S. Dollars in the mediumterm. Grayscale investment is looking to launch a clone of the Worlds Largest bitcoin fund, saw more than 11 billion of outflows from his gb tc fun. Lets get the analysis. Theres something going on in the shortterm and there is the debate about whats going on in the longterm. The star the short term. The flow status seems to imply sustain momentum. Give me your assessment of the here and now . If i look at the shortterm i really see the demand has surprised a lot of peoples expectations. We have always expected that before the coin if the prices go up but even with this all pressure, we see the bite is too much. Its been a very interesting cycle for bitcoin. Ed something ive been bringing upon aaron the last few days there is a scenario where those who are bullish on cryptocurrencies especially bitcoin, and those that are bearish on bitcoin seem to agree on one thing. From where we are now, is likely bitcoin goes to a higher milestone. We talked about 80,000 as a medium term call and ive also seen a hundred thousand but many agree they all pulled back. Whats your understanding of the why behind that . The first thing is, after the bitcoin having we see some sort of a plateau, we are also expecting a lot of people the Interest Rate to be cut down before the elections. The elections bring josh will redefine the political roadmap procrit do or not so much procrit do. Beyond bitcoin we have seen the technology laterally with polygon and solano and that will define this roadmap. Ed theres an interesting news story this morning where the riksbank governor, is central banker gave his opinion that he wanted to minimize bitcoins influence, presence in the financial sector. He said i want as little bitcoin is possible in the swedish financial system. What you make of the central bank in like that . We have seen that again and again, every bull cycle we see a Reputable Institution saying this could be a problem and did the bear market they said see, we told you it was a problem. And then more and more countries started using it. Its not new, saying that is beyond any particular state, city, country all the way to the u. S. Where we do have bitcoin etfs where even three years back will it even exist or not . Ed the Central Bank Governors argument is not a threat to Financial Stability but worried about the impact on consumers that may or may not choose to hold that is a risk asset. Whats the big picture happening here beyond bitcoin . We always talk about the claim in crisis. In ft by some hollywood actor but the real thing is the technology and the decentralization of things used by some of the biggest companies, institutions globally. You are seeing altcoins, Technology Tokens whether it is polygon, optimism is doing well. I think its about the technology, adoption and supply chains, and i think we need to Start Talking about in the Mainstream Media about the underlying tech than just the price movement. Its amazing when you have trillions of dollars to talk about but i think the technology should be making the highlights now. Ed on this technology in the longterm, there seems to be bipartisan not support but probably acknowledgment of whats happening of cryptocurrency. Do you agree with that, thats whats happening in d. C. In particular . D. C. Is much more informed today that it was 4, 5 years back. At the same time we should look at blockchain as a trusted technology whether its a cash currency of the coin. You were just talking about openai, you can grab data from anywhere but the verification of the data has always been a problem. Thats what gives you the verification of data, ownership of that content and who to give it back to. Very similar to what the New York Times and news media tried to blame and sue gpt. At the end of the day whether it is a blockchain, bitcoin were talking about the traceability, verification, decentralization technology. More and more people are getting informed about it but the channel blocking. Prices are just too difficult to get away from the. Ed we didnt get to a theory about theres a lot of investment in the area him system. Etherium system. Using a case study of katie porter running in california. Looking at shares of apple. Apple will allow you to download applications from the web outside of ios localized on the device. It didnt do much for the shares, 0 on the stock. We sat down with Morgan Stanley strategist Morgan Wilson who had this to say on Artificial Intelligence. We do believe in ai, we have been front footed on this front in the last year, 1. 5 years. The real question is when this diffuses on the economy and that still very early days. Okay yall we got ten orders coming in. Big orders starting a business is never easy, but starting it eight months pregnant. Thats a different story. I couldnt slow down. We were starting a business from the ground up. People were showing up left and right. And so did our Business Needs the chase ink card made it easy. When you go for Something Big like this, your kids see that. And they believe they can do the same. Earn unlimited 1. 5 cash back on every purchase with the chase ink business unlimited card. Make more of whats yours. Ed it is time for talk tech, jamie dimon has once again hailed an official intelligence pointing to their unbelievable potential for the banking system. Ai across functions like risk, fraud, marketing and Customer Relations has caused it to grow in importance within the company. In this Electronics Firm has had his intraday sales for a year after it announced selling his longawaited electronic vehicles is bunk. It is a redhot contest in chinas ev market led by tesla and byd and legislation that would force tiktoks chinese parent to sell itself or face a ban is picking up speed and congress placing a debt limit after President Trump suggested the ad should not be banned after all young tiktok users would go crazy without it. Lets stick with tiktok and turn to its current place in the political landscape. Every election cycle one platform emerges as a means to connecting with young voters in this cycle is pointing to tiktok but is campaigning on tiktok even with that . Bloombergs alice parenchyma has done the scientific reporting of examining katie porters campaign that relied heavily on tiktok. I look to katie porter and adam schiff who were the front runners in their performance on tiktok. Porter is known as beloved tiktok her. Her engagement rates are better than even the best influence. We wanted to see how that played out in the open race for the Senate Primary which goes to the top two vote getters. Katie porter well are performed adam schiff. She had twice as many views in her engagement rates were stellar and going into the primary in early march she was pulling incredibly well with young voters. The vast majority of voters under 30 porter came in third which means she will not be on the ballot. Why . Those young people did not show up. Only 10 were under 30, 47 work over the age of 65 and i dont know if they are spending their time on tiktok. Ed i was up on super tuesday here at the desk covering california. The same number of voters over 65 as under 35. I think there are about 170 million users of tiktok. Just put that in perspective with the context of this bill playing in d. C. In this primary lays bare a pain point of the democrats. They really need young voters to show up. They showed up for by then and the midterms. For those 170 million they say they often get their news on tiktok. This is certainly a place for politicians to spend their time because those traditional tv ad dollars theyre looking away from those to reach out to voters. In november for a camp like biden who was on tiktok its not only reaching them in speaking the internet language like katie porter was so good at but also getting those folks to agitate and align to get to the polls. For bided in particular as he battles the narrative around his age, tiktok seems to be a place he could be relatable, authentic, a candidate for those voters. He will have to clear some of the bars to not just vote with their fingers but to get on their feet and head out to the polls. Ed i recommend you read that reporting on katie porter on bloomberg. We will take the pulse of the ipo market. Lets take a look at the markets. These are your major indices. After that hot cpi. Markets and traders were braced for the worst Case Scenario but a reality, nothing has really changed. They are still betting a first rate cut will come in june if it all and if you look at the nasdaq 100, a slight our performance relative to the s p 500 a big part of that is oracle and its earnings. This is Bloomberg Technology. Welcome back to Bloomberg Technology with ed ludlow in san francisco. Read its ipo is still the talk of credit. Last night the Company Posted an ama, and asked me almost anything and read it added mens invited writers to ask questions to the ceo, cfo through the end of march 12. Then read it reddit plans to respond march 18 in a video because legally it cannot respond in the comments. As of this morning the most of voted post by redditers posed this question. The general consensus vibe among reddit users about ipo and what it returns for the future of the site seems extremely negative. Why do you think that is . That speaks to us historically combat of redditers have on the website. Lets talk about the listing with the cofounder and managing director of rainmaker securities. Lets start with your reaction to the idea that this shall Media Company is trying to market 8 of the offering to rioters who dont seem to like the company offering. Greg it is smart. Clearly there is a risk ed reddit sees being a commercial enterprise at all and selling themselves as a Public Company trying to maximize for profits kind of violates the relationship they have with their users that contribute a vast amount of content for free. Now the potential commercialization becomes a risk factor. How do they mitigate that . They make their users and their content generators part of the company. They give them economic incentive to say positive things about reddit. Because, now they will hopefully be ipo shareowners motivated to speak well of reddit. I think it is smart, but there is a risk that the reddit backlash from people that dont own shares or people that shirk the opportunity to own shares because they want to remain in bohemia community. There is part of that risk but i think it is part of what reddit is doing. Ed they were flexing on the timing of all this. I remember in 2021 when they confidentially filed. 2021 was the better year for the u. S. Ipo market. How do you frame the timing of whether they missed the boat or actually were right to wait until this point . Greg lesson, it would have been great if they could have gone out in 2019 or 2020 and had a few years of the zero Interest Rate environment we had. Sort of, to sure off their aftermarket performance. I think going public at the end of 2021 was a big mistake. I think their valuation would have been hammered. They would have lost the affect of being a new Public Company. They were clearly way behind in revenue at that point. They did not have an ai story like they are trying to tell now beef up their valuations. I think it is good they did not go public then. I think the markets are more favorable now for a longterm successful story. I think they will price their ipo at a more reasonable valuation now than they would have in 2020 one. 2021. Ed i want to talk about the valuation and also ai. You said they are now telling the story, that essentially, what we can do is license the content that those two does that want the data to tr