Senator bill haggerty of tennessee. Caroline we will sit down with the ceo of wiz to talk m a valuations. Before we get to private markets lets get to the public ones. A little bit of nervousness ahead of the allimportant for decision tomorrow. Some chips coming off the table as we try to digest how far and fast the magnificent seven nai has taken us. Thats a crowded trade over at bank of america. Those majors fall but we are seeing the two year yield come down for basis points. Generally the macro picture has been inflationary pressures. Where will we see the dot plot, the signaling of have any rate cuts will come this year . Three . Two . The dollar still stronger versus the japanese yen. Finally that era of negative Interest Rate policy is off the table. Arbery seeing rate hikes . That has not been signaled by the boj. The dollar higher by a percentage point. Look it was happening in crypto. From the highs come the lows and we will see a dialing back. Flash crashes happening on some exchanges. 62,000 handle on that. Its a volatile ride when it comes to crypto. Flows into certain etfs have back. Ed nvidia is what everyone around the world is talking about. Next generation Ai Accelerator blackwell. The stock is down 2 . This is a cell that is kind of move. We have exactly what we thought was coming in the context of blackwell. A lot of the focus is on the performance of the blackwell super chip, two gpus. They are comparing that to what nvidia said he could do relative to the h 100, the think we have in talking about the for the last 18 months. The performance is better. We will dig into a later. There are stocks that are pushing higher. Nvidias ceo name checked these names on stage at gdc on monday night. Either customers are he was praising where they sit in the Ai Infrastructure buildout we are seeing around the world in the context of data centers. Dell one of those names moving to the upside. Caroline kingmaker of other stocks, not his own. The processor is the showcase of the chip companys gt c conference. It will extend dominance of intelligence computing. Hopper changed the world. This is blackwell. [applause] caroline named after the mathematician and game theorist david blackwell. This new platform has multiple times superior at ai models and inference then its preto sesser. Hes lining them up predecessor. Hes lining them up next to the other. Antoine chkaiban covers nvidia and ai. Its clear when you look at the market cap position, didnt live up to the thirdmost valuable company in the world . Antoine yes. Thanks caroline. Our main takeaways from the keynotes yesterday is at the competitiveness of nvidias products is getting stronger. Blackwell offers up to four times higher performance and 30 times entrance performance than its predecessor hopper. The next time you hear someone announce a chip that is 10 times faster than in nvidia, a year later nvidia will also have a chip 10 times faster. Alternatives to nvidia can have an advantage that last at best one generation and a year later the advantage goes away. Last but not least, this advantage often comes at a cost. First giving up on the flexibility that gpus offer and the customer not able to leverage the ecosystem. Yes, it lives up. Ed there was a lot more emphasis on inference then there has been historically. The story was around the role h100 played in training fling which models with tens or hundreds of billions of parameters. Are you convinced if we are in a world will remove from more training to more inference nvidia continues to lead in that side of the market as well . Antoine yes, i think so. I think jensen demonstrated that well. Inference is a complex problem that involves very complex optimization. You have a workload across dozens of gpus. I think what jensen showed yesterday is that nvidias mode is about being able to optimize gpus to solve the complex problem efficiently. 30 times better than hopper. It clearly illustrates nvidias very much delivering on that front. Ed what were you most excited about from jensen . Hes like being compared to steve jobs. He is the man of the moment. He wears his leather jacket. Are you convinced by the things he says about the future when hes on stage . Antoine i think i was most excited about innovation beyond just gpus. If you look at the fact that nvidia announced material improvements for secondary chips like the gray cpu, tpo, various networking chips, we can conclude only half the performance include vent improvement is coming from the gpu and the other half is from the rest of the hardware stack and system level integration. Nvidias mode is not just about designing great gpus, its great systems optimized to unleash the capabilities of this gpus. That is what i was excited about when i looked at the keynote yesterday. Caroline it is perhaps an impact on rival chip companies. Md is one of the worst performance of the day. Does this mean to have it all locked up . With the new paradigm shift to inference and the hyper scalars ought to be making their own chips, does that longer term competitive issue . Antoine i think nvidias competition will thrive because demand is so strong at the moment. Everybody will continue to buy as much as they can until the end of next year. That does not mean they will challenge the dominance of nvidia. That will make room for alternatives. At this point in time we step aside in both nvidia and amd. The uncertainty beyond 2025 means the riskreward ratio is getting thinner and thinner as the stocks keep having a run. What happens beyond 2025 nobody knows. It depends on the performance of next generation, larger models, and adoption and monetization of ai. I would say there is room for challengers like amd to also gain a lot of share in the market. Probably in the 10 to 20 region is something we would see as reasonable. Caroline i want to dwell on the supplyside issues. Packaging is being highlighted time and time again. Are we going to see an issue never with the man but with how much can be made, how quickly it can be made, and who by . Antoine i think demand is something we will have to look at. We have to look at many dimensions. We are on the lookout observing the industry on all fronts. I dont think at this stage anyone can determine what is going to happen beyond 2025. Between now and 2025 we have strong visibility. All data points suggest nvidia is going to do very well. Amd is going to be well. Broadcom will do well. We see the industry shaping up. Supply capacity for instance doubling again this year. All the data points to everything remaining strong until 2025 but there is no way to determine what happens beyond 2025 yet. We have leading indicators on that front like adoption and monetization of ai. Ed i love carolines question. Blackwell has 208 billion transistors. In the tentacle so many it is actually two chips and a multidi format. Tmc will make them. Something you said, the forecast and fiscal 2025 is 110 billion of revenue, up from 61 billion in 2024. Do you have a sense of how quickly blackwell will be revenuegenerating . I think they said it would be launching later this calendar year. Antoine yes. When you look at nvidias prior cycles, hopper that launched in late 2022 represented maybe midsingle digit of sales. Mostly in the fourth quarter. That quickly ramped in 2023. Maybe to about half of sales. We expect a similar trajectory to play out for blackwell. Ed antoine chkaiban, great to have you on the program reacting to the end of the year so far. We will bring you the latest on the other big story, the tiktok divest or ban. Why critics are saying Congress Needs to think a lot bigger. That conversation is next. Another chip mover. Caroline lets go back to the ai hype. We are seeing supply coming into action for super micro computer. Down 11 . They are offering to sell more shares, 2 million more in a Public Offering they could raise as much as 2 billion. This computer server maker has been on a tear. 1000 gain amid this wave of ai enthusiasm. This is bloomberg technology. Investment opportunities are everywhere you turn. Do you charge forward . Freeze in your tracks . Or, let curiosity light the way. At t. Rowe price, we ask Smart Questions about opportunities like advances in healthcare and how these innovations will create a healthier world tomorrow. Better questions. Better outcomes. Caroline senior officials from the Justice Department and other agencies will be holding closeddoor briefings in the senate to advance legislation that would allow tiktok to continue its u. S. Operations after being severed from its chinese owner. These briefings are likely to be held today and tomorrow. This is an ongoing lobbying battle over the divest door ban tiktok will after a very quick passage in the house last week. I sat down with her public and senator bill haggerty of tennessee to get his thoughts on the legislation earlier today. Sen. Haggerty it has to move through the comments committee and is controlled by maria cantwell. Not certain what the pace will be but im can tell you what the concerns are. The bill is trying to address a real concern with the National Security laws from china. Any company that is chinese owned is subject to their data being surveilled by the Chinese Communist party. There are no exceptions to that rule. That is Data Collected wherever it is around the world, including america. A concern the bill is try to get is the concern about the privacy of americans data and not be surveilled by the chinese commons party. The communist party. Theres another concern or take elite it is well. The last thing we want to see is more power shifted to the hands of Companies Like meta that have demonstrated a willingness to censor american voices, particularly conservative american voices. What we are talking got is who owns tiktok and whether divestiture can be achieved. Caroline you would want tiktok to remain as a competitor test under different ownership . Sen. Haggerty that is what the bill contemplates. We will see what the bill looks like in the senate but that is what i expect to see. Caroline theres been some heavy lobbying coming from tiktok on the hill. It was notable that almost the person who first got the ball rolling on analyzing the ownership of tiktok and its persistence in the u. S. Was former President Trump. Then he changed his opinion. He went on the concern around meta. Was that to do with loving . Lobbying . Sen. Haggerty it probably has to do with what we saw come out in the xfiles and the twitter tapes and the degree of censorship taking place between the Biden Administration and Companies Like meta and their willingness to get involved in elections. Everybody was deeply surprised and shocked with the suppression of the story but hunter biden suppressed from the new york post, the degree by which this government and this white house has been flagging posts of concern. That feels like censorship to most americans. That is the point in the concern President Trump is highlighting. Caroline to go the other route of many people feeling what they want to see happen is a lack of freedom of speech, and lack of an ability to use the platform. If it were to remain in the u. S. Who should own it . Sen. Haggerty i preferred americans to own it. That is the needle this legislation is trying to thread right now. Caroline should it be a social Media Company or individual investors . Your background is such. Sen. Haggerty it will be a large price tag. It is hard to predict. I think legislation should dictate who that buyer might ultimately be. We will see what happens. Caroline should have ban on divestment on tiktok be significant to the u. S. Public . Sen. Haggerty i think it would be quite significant because of the number of users, 170 million users of tiktok. There is great interest in what happens here. Congress is trying to thread the needle on balancing our security concerns and concerns about data privacy with concerns of free speech. Caroline have you received calls from people within your within tennessee wanted to see tiktok remains . Sen. Haggerty we have received calls on both sides. It is hard to say where the American Public lies on this. I have not seen polling on it. The concerns are both very real. The National Security concern that are dated with the exposed to surveillance for the Chinese Communist party and weaponization by the communist party is something americans dont want. Also we concerned we not put too much power in the hands of those Large Media Companies that have shown their desire and willingness to censor conservative voices in america. Threading the needle is where the legislation needs to go. Caroline the republican take from senator bill haggerty as the bill begins to slowly move through the senate. Lets look at some of the overall concerns. The opponents, the critics, the issues thinking that it should not just be a divest or van legislation ban legislation but privacy oversight coming to every single social media platforms. Alex rinker is here. As many republicans might try to articulate they have been concerned with other platforms and their voice within. Should there just be a broader privacy oversight here, a broader log rather than targeting one individual company . Alex that is what is interesting. What the senator laid out, the concern about data privacy is the impetus for the bill. Some folks are looking at that saying we need to go bigger. The bill is not about data privacy. Its about ownership and ownership by foreign adversaries like china. We talked to experts for a story coming out in businessweek magazine. They are saying why dont we think bigger about this and not just focus on one company or one country . Actually set federal data privacy regulations in the u. S. , which the u. S. Does not have. I chatted with folks at epic like a general counsel whos been lobbying for broader privacy regulation for a while. She had a really great comparison. She said if the internet is a colander, plugging tiktok plugging one hole is the equivalent of this tiktok bill. It is one small hole and data is slipping it elsewhere so lets address this on a broader scale. Ed its important on what we reported last week. Tiktok is not promising to divest at all. They are saying we put forward a user data solution that we will stick with. Listening to carolines interview, this seems to be a Political Group saying is just about tiktok. Ownership of tiktok. There is a group that says this is much bigger, its about censorship via social media platforms and a blanket controlled by government. Which choice is loudest right now . Voice is loudest right now . Alex its a bit of both. The department of justice is briefing senators this week, encouraging them to vote for the bill and also tiktoks passing out a one pager that i was able to review batting down some of those concerns on data privacy. The doj is putting out they collect names, addresses, phone numbers. Tiktok says that the same information any social Media Company, particularly the ones lobbying them like meta and x and the like, those rivals collect the same amount of data. When i think about the social Media Industry it is not lacking for infractions when it comes to user data getting out. What has been lacking is actual legislation. We have seen the ceos come through for hearing after hearing. Think about mark zuckerberg, how many times hes arrived on the hill the talk about this stuff. We have yet to see any kind of data privacy regulation. That is why folks like Elizabeth Warren have in the past few days said we like some of the ideas behind this bill. We need to be protecting american users data. Lets set up a framework that does that holistically and does not just target one company and a bill that the language of it could actually be deemed illegal has tiktok will probably take this to a legal fight of the passes. Ed i think it is worth saying it is a divest door van bi or ban bill, not sweeping regulation. Thank you. Coming up, reddit is up for its ipo this week. We will break down what to expect. That conversation is next. This is bloomberg technology. Ed social platform reddit gearing up for its ipo this week. For more what to expect this bringing lynn down. We have been waiting years. What are you looking for . Lynn i will give you an idea of what we are expecting here at the new side. A lot of details dropped this week. Reddit and some of its existing stakeholders are planning on selling a total of 22 million shares of the total. 15 million shares are respected to be sold by the company itself. They see them going for as much is 34 each at the top range. It could end up with a market value of 5. 4 billion, making it what i think would be the biggest ipo so far this year. You never know was going to happen with these things. We are told the ipo will start trading today after tomorrow. That will be the big moment of truth. Caroline the moment of truth in the final innings. Incomes nokia was some legal patent issues. Lynn yeah. That surprised us all to see that. I was talking to a colleague about it earlier this morning. I thought, gosh, all these are heading so close to the ipo. We were thinking this is also the moment when companies tend to drag all the skeletons out of the closet and disclose everything upfront and say you need to know what you are in st forore in store for. That Patent Infringement complaint is something worth watching. I dont think the company would have disclosed it if it was not material. That being said caroline we have to leave. Sorry to cut you off. This is bloomberg. Thanks to avalara, we can calculate sales tax automatically. Avalarahhhhhh what if tax rates change . Ahhhhhh filing sales tax returns . Ahhhhhh business license guidance . Ahhhhhh crossborder sales . Ahhhhhh item classification . Ahhhhhh does it connect with acc. . Ahhhhhh ahhhhhh ahhhhhh ed welcome back to bloomberg technology. Caroline connan lets get a check on the markets. We have been selling ahead of the meeting. Nasdaq is off by. 6 . Big tech is under pressure. This is a crowded trade. Of course, after nvidias allimportant tech event is upon us, the woodstock of developer conferences. Maybe there is a little bit of chips on the table. Ending the policy negative Interest Rate. We still anticipate where they will go later in the year. Bitcoin up by almost 7 certain and seeing concern