Plus alphabet and meta are in talks with Hollywood Studios. Canva takes on adobe users. Lets get a check on the markets. Lots of green on the screen. A nice way to end the week. The nasdaq tech heavy, the semiconductor index, both rebounding, moving higher after inflations expert patient Inflation Expectations data made us feel more comfortable with rate cuts. We are going to talk about this throughout the program. It is down one percentage point but on track to have its best week in a year. Lots to discuss with the potential of spot etfs with sonali basak. Lets go to the private markets. Bloomberg is reporting spacex is considering an offer that would value the company at 200 million. That is where a company allows staff, employees, and some early investors to sell the shares they already own, existing shares, to outside investors. The price is set by elon musk, the cfo, and a lead outside investor. We are hearing the price could be up to 110. You do the math and that would be a jump in valuation to 200 million. That is a big number. Lets talk about it with max, stored columnist at Bloomberg Businessweek covering technology and someone who has covered Elon Musk Companies closely. The main point for me is simple. Spacexs valuation keeps going up. I think the last number we had heard, the last private valuation was 180 billion. This is a sizable jump. It is also a reflection, look, this is a fairly which are company. It is private. You need to be able to find a way, elon musk needs to find a way to give employees and venture capitalists who may need or want to get out a method to do that. Because spacex has so much dominance in the market, it is not hard to find other investors willing to take over the shares at a premium. Ed you have documented throughout your career like in the early days of spacex, things were financially precarious. Now, spacex basically dominates the industry for sending payloads, human and inorganic, from earth into orbit. Summarize where they are in the industry. Max thanks to the long collaboration with nasa, and nasa deserves a lot of credit for backing spacex with early contracts, but they are now the way the u. S. Sends people and supplies to the International Space station. It is a very lucrative business. There is the possibility the u. S. Would like to get another source. Boeing is working on its own systems. It is not like there is no competition. But when you take a few steps back and look at the volume of launches worldwide, spacex is dominating. It is sending up a very large percentage. With the expansion of starlink, elon musks satellite internet platform, that has created this additional demand for launches, additional traffic coming on top of these substantial government contracts. Ed i want to share elon musks post on x again with our audience. Republished this story we published this story and this was his response. Spacex has no need for Additional Capital and will be buying back shares. We do liquidity rounds every six months approximately. My take is he is confirming the bloomberg reporting. They do not issue new shares and do not gain proceeds from the share. It is a transaction between employees and wouldbe buyers. Max i read it the same way. Every now and then, you have a tender offer that could come with additional funding. I think he probably chimed in that this is not an effort to raise capital, this is just an effort to allow employees, early investors, however, to exit shares. You do wonder, is elon musk going to be among the shareholders . He is the worlds richest man but still owns a huge amount of spacex. It would be interesting to see if he would unload shares. I dont think we have any indication that would happen. That is something i will keep my eyes on as this story develops. Ed i did write to him and ask him. Elon musk, if you are watching, please reply to my email. Test number four for starship as early as june 5. That could move. Based on how successful starship test three was, set the scene for what starship test four might look like. Max they have not made it into orbit yet but they have made it into space. I think it is important to keep in mind this is going to be a long process. This is a totally new spacecraft. We have seen the previous launches end in fireballs. That is not necessarily a failure for this aircraft. They are still in development mode. This is a situation where things will progress slowly. Ultimately, the goal is to have a functional, reusable, and much larger spacecraft than has ever flown that elon musk believes could be useful to send missions to mars. There are so many what ifs. Despite the fact this is using technology that spacex has been developing over a long time, the size is different, the scale is different. And then, there are questions about what you do with this in the interim. I do not think we will have a mars colony in the next couple of years. Elon musk is going to want to find some thing to send into space to fill up these giant rockets. Ed starship test four as soon as june 5. What a way to end the week. Sticking with the world of elon musk, x ai is slated to complete a funding round in june that could value the company at more than 24 billion which includes the latest influx of cash. The source also said the final close has not happened in the deal but the company is getting closer to the 6. 5 billion target in terms of the raise the next few weeks. Coming up, we will be joined by cameron adams, chief product officer and cofounder of canva, on the heels of their customer conference. This is a company that i think has adobe in there sites th eir sites. Stick with us. This is bloomberg technology. Awkward question. Is there going to be anything. Left over . Yeah. Oh, absolutely. inner monologue my kids dont know what they want. You know who knows what she wants . Me with empower, we get all of our financial questions answered. So you dont have to worry. Empower. Whats next. Ed canva just unveiled his biggest redesign in more than a decade yesterday with new work based product and a new subscription to meet growing command and adoption by larger organizations. There is a lot more as well. Lets bring in cameron adams, chief product officer and one of the cofounders. I have used canva on and off over the last decade. It is a significant redesign. I wanted to get to what prompted that, why you felt this was time for canva, 2. 0. Cameron it is great to hear that you have used it. We have seen more people bringing canva into the workplace and using it with their teams across the enterprise. We thought now was the perfect time to give it a glow up to make sure the interface and User Experience matched what people were doing in the workplace. We also have the launch of our new canva enterprise package which is a Product Offering designed for Large Organizations where thousands of people are using canva and giving people like cios and i. T. Teams the tools they need to roll out canva at scale for multiple teams within the organization for the thousands of folks using it and be able to give each of them a customized experience. Ed is one of these situations where canva is like a Global Startup and you blink and it has grown so quickly. 185 million monthly users. More than 2 billion in revenue. I want to go deeper. You talk about enterprise. Do you have a clear split and what is the individual Consumer User base and enterprise base . Cameron a lot of the growth the last 10 years has been our passionate community. They take it from using in their personal lives or side hustle. They often take it into their workplace. There will be one person using it and they will spread it through their team, maybe it is the marketing team, and it grows and grows. We see this rampant growth in so Many Companies now where we have canva used in 90 of the fortune 500. And a lot of those places, literally thousands of people are using canva. It is a way for the company to consolidate usage, make sure all of their i. P. Is the same platform, that they are paying through the right channels, and those teams can work and collaborate with one another. Ed i got on the canva website. I am going to lay this out for me simple perspective. I look at all the things offered. You guys are gunning for and taking on adobe, right . That is what you are trying to do here . Cameron ever since day one, we have identified this space in the market no one was really looking at between productivity and creativity. There is an intersection that is really interesting. It has obviously resonated with people. We have 185 Million People that use the platform now and we continue to grow like crazy. We have proved out this next generation of visual content creation that needs to happen for all types of folks from marketing, to sales, to h. R. , too creatives. We are continuing to see amazing growth. People are obviously resonating with what we are putting out. Ed you are the chief product officer. We talked about the redesign and the offering. You are also one of the cofounders. Lets talk about what happens next. You are growing. You are a richly valued startup. Do you go in the ipo direction . Or do you look at the m a direction . Where is your head at . Cameron we do not have much to share yet on ipo. We recently did a secondary for staff. It was one of the most subscribed secondaries in history which was a real vote of confidence from existing investors who wanted to reinvest and brought on high profile new investors. We are happy where we are at the moment and do not want to get acquired by anyone. Ed cameron adams, chief product officer and one of the cofounders of canva, really appreciate the update. It has been interesting to track your company growth. I want to correct something discussed earlier with max chaffin. We were talking about starship. The test is going to happen as soon june 5 according to spacex. He said starship three had not reached orbital velocity. Actually, in the test from march, it did reach orbital velocity. I want to correct that. We will get back to that launch later in june. Coming up, here is what we will be talking about on bloomberg technology. A lot of crypto discussion and in the world of startups. Stick with us. This is bloomberg technology. In minutes how . A. I. impressed ay i like it who wants to come see the future . get your Business Online in minutes with godaddy airo you know whats brilliant . Boring. Think about it. Boring is the unsung catalyst for bold. What straps bold to a rocket and hurtles it into space . Boring does. Boring makes vacations happen, early retirements possible, and startups start up. Because its smart, dependable, and steady. All words you want from your bank. For nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled. Which is pretty unboring if you think about it. So, what are you thinking . Im thinking. speaking to self about our honeymoon. What about africa . Safari . Hot air balloon ride . Swim with elephants . Wait, can we afford a safari . Great question. Like everything, it takes a little planning. Or, put the money towards a downpayment. On a ranch. In montana. With horses lets take a look at those scenarios. J. P. Morgan Wealth Management has advisors in chase branches and tools, like wealth plan to keep you on track. When youre planning for it all. The answer is j. P. Morgan Wealth Management. Ed it is time for talking tech. Source code capital is raising one of chinas largest b. C. Fund with a target of 300 million according to sources who say the goal is per luminary and could change. Source code capital was one of bytedances earliest backers. Tiktok is making it easier for content creators to make money. Although unofficially announced, users have noticed the threshold to drop the Affiliate Program dropped from 5000 to just 1000 followers. It promotes products and collects commissions on sales per delayed move could bring in users and bolster opposition to u. S. Law that would force bytedance to sell the app or face being banned. Openai is releasing past employee from a nondisparagement clause that tied together exit contracts and equity awards. Workers raised concerns after a report last week that would allow openai to call back stock if employees spoke out against the company. Openai issued an apology for the contract and said it would remove the language from exit paperwork going forward. Alpha back and met have held discussions with major Hollywood Studios about distancing content for use in the ai Generation Software according to sources. Lets bring in lucas shaw who leads our screen time coverage and broke the story. That is interesting. These are sizable deals we are talking about. Who is involved in the conversation . There are conversations happening between anyone with a big ai video model and Hollywood Companies, much as you are seeing conversations between Large Language Models related to text and news organizations, you can expect to see that with film and television studios. The difference is while we have seen some news organizations brokerdeals with companies and we have seen lawsuits, and on the music side we have seen dealmaking and lawsuits, the video side is less mature. There are a lot of conversations happening. There are larger Business Development conversations between companies. You have seen companies show a different willingness with some companies. Ed i feel it the ai industry is doing laps of hollywood. You reported in march openai were open to having similar conversations. Who has the upper hand . Is it the sellers of content in a position of power . It is a subject of some debate. On the one hand, you could argue the people who have the ai models have the upper hand because they tend to believe using a lot of this can be fair use could some believe they have already scraped a lot of information Hollywood Companies have. On the other hand, there is going to be a big debate over who controls things. There may even be a debate between the studio and the talent. There is some kerfuffle this week involving Scarlett Johansson and openai. I have seen credible people argue right now the companies have a decent amount of leverage because they have something these Companies Want and they might as well try to extract the most favorable terms while the ai models are still very nascent and not that powerful. Ed bloombergs lucas shaw was another important piece of reporting on screen time. Thank you. Lets go to another big story. Intuit shares slipped by the most in more than a year after the Company Reported losing one million customers who use the Turbotax Service for free, stoking concerns about demand for the software. Joining us is brody ford. The problem is a lot of what is on offer you can find somewhere else for free in some cases. Yeah. What is so surprising is a big part of intuits valuation is the idea that when you use it, it is rare to stop using it because you get all of your data in there, it becomes easy, it will import previous years information. I have used turbotax the last couple of years because it is easy. Seeing one million free users leave makes investors say, what is going on at the low end of the market . Part of it is there are other places you can get this. One example is the federal government had a Pilot Program this year where about 150,000 people used it and they get a Similar Service for free. Ed i did something highly unusual this year. I was a turbotax user. I did something no one is doing. I hired and engaged with a human being to do my taxes for me, like the antiai play. The point is there are other things intuit does. It is not just turbotax. They are trying to be a onestop shop. Is that enough to keep them going . That was the dynamic we saw in earnings this year. People like the high touch, assisted methods that in some ways replaces your local tax store. At the high end of the market, they are doing well. From people saying i do not need this c. P. A. , i am not doing this, they are the ones who might have turned over to tax slayer or sites that look a little fishy but probably work fairly well. Ed yeah. Maybe no comment on the complexity of human versus website taxes. Real quick. You probably heard a minute ago we had cameron from canva on. The last thing he said, we do not want to be acquired. I thought that was interesting. What do you make of it . Think about would acquire canva. It would have to be a massive company, probably with creative overlap. That is a small universe of companies. Microsoft, adobe . We saw what happened when adobe tried to acquire figma. They were not allowed to do it. Ed brady ford, happy friday. Thank you so much. One final story before we go to break, shares of alibaba, the news overnight is in the credit markets. They sold 4. 5 billion of convertible bonds, a record dollar denominated sale by an asian company. The finances of alibaba and its many arms are of intense interest. They were one of the laggards of the china Consumer Tech period we just had. Stick with us. We have much more to come. From san francisco, this is bloomberg technology. Ow whoa watch where youre going. Yeah mom, Pay Attention. What if its a concussion . Hang on, ill look it up. Uh. Im probably fine. Probably . We noticed something wasnt right and got her to a doctor. I thought i was okay, but i had a concussion. Sometimes, its hard to tell on your own. Dont mess with your melon. If you hit it, get it checked. Ed welcome back to bloomberg technology. Ed ludlow in san francisco. We are ending the week on a high in equity markets. The nasdaq 100 is my go to tech heavy index. It is trading at a record high. We are also on track for the fifth straight week of gains which is the longest streak of weekly gains going back to february. The story this week has been about nvidia propping up the market following its blockbuster earnings. Other names moved to the downside. We had the softer secondary data this morning. Consumer Inflation Expectations, that made us thin