Relations with china. Ed and we talk to an expert on a. I. And Bank Earnings. Caroline we look at chip developer rivos is about to bring its first product. We discuss the race for a. I. Infrastructure and so much more this hour and focus on the Public Markets which in the United States, relatively sanguine and the nasdaq is off by a 1 4 of a percent. Europe is trading and asia with a bench mark. And because of whats happening in the u. S. And bonds at a two year yield and jay powell we look for him and what he says about the policy with Inflationary Pressures. We look at a dollar that rises five Straight Days with the best run and the bit down is down at 62,000. Were looking at it on the micro. Ed im looking at tesla, a two day chart with the stock down another 4 . We broke the news job cuts closer to 20 and elon musk said more than 10 . We drew the story a 18year veteran and four named executives resigned and he confirmed it on social media. The milestone is tesla is 500 billion below market cap and theres questions that well ask about this quarter about what comes next for the e. V. Name. Also looking at microsoft up half a percentage point. Had a slow start to the session. The headline on news is the 1. 5 billion investment in g42. Theres a back story which is, you know, ive been looking into for a few months. G42 really likes what sam outman and open a. I. Is doing. They have a relationship with microsoft and wonder if that helps. The back story is a split one as well, g42 is now safe for a u. S. Company to invest in and its very complicated but a name well hear more about. Caroline lets talk about microsoft and the deal. You come with microsoft expertise covering all things of that business. Take a step back, what has to happen first and what led to the divestment or move away from china . What a bunch of plugger dina what theyve been talking about is g42 and that resulted in a secret pack which g42 agreed to divest from china. They were under a lot of criticism from the u. S. Government and some members of congress for its close ties to some Chinese Companies and were under threat they might not have access to the key and video chips they need for their a. I. Work. This secret pack resolved and eased the way for this microsoft deal. Ed its worth explaining to our audience what g42 is, its essentially a investment term but in all conversations i have, g42 comes up with the sam outman initiative and that g42 wants to give them lots of money and i dont think we stopped and ever said what is g42 . Dina its essentially the biggest a. I. Company in that region, the u. A. E. And large parts that part of the world. Its a company focused on a. I. And has its hands in a lot of different parts of a. I. Theres Significant HealthCare Initiatives that is working on Artificial Intelligence. For microsoft, its a multistage deal and they want to take part in what g42 offers them, including what microsoft president brian smith told us yesterday, in the later stage of the deal theyll put microsoft data in g42 centers and use that to access markets in central asia and africa where microsoft doesnt have a presence but their own centers and another role g42 plays, easing the speed of cloud and a. I. In those regions where u. S. Companies dont really have access and part of the reason why the Biden Administration wanted to make sure that it removed g42 from the chinese sphere influence and got closer to the u. S. Technology companies and the u. S. Technology industry. Ed bloombergs dina bass one of the bilines reported on bloomberg this tuesday. Weve had the reporting and details, lets get more analysis and reaction with dan yves. Youve covered this from microsofts perspective and written a few notes about the Bigger Picture of open a. I. And the a. I. Buildout. Give us your scorecard on this redman and u. A. E. Operation. Dan its a massive strategic bet. For g42 they had a choice, china and u. S. Or redman. Youll take microsoft every day of the week right now along with nvideo. For microsoft, just another doubling down. Theyre playing chess and others are playing checkers. Ed dan, microsoft is forming a lot of relationships with a lot of different people. Are they making sure theyre covered, basically . Dan they know their way ahead and theyre putting the guardrails up around the world to any blind spot, the middle east being one of them, theyre betting on the big horse and they ultimately had to divest the chinese piece, also making sure within the beltway, the 202 area code. And microsoft is miles ahead and further and further gaining share from a a. I. Perspective given the a. I. Revolution, where they, altman, the golden child of a. I. Resides. Caroline in this case the u. S. Government played a role. In other areas, i think what happened last week with the u. K. , c. M. A. Worrying from a regulatory perspective about certain key players having a web of relationships and crossing over too much in the world of a. I. Will this be regulated from a competition per expectative . Dan brad smith knows as well as anybody, hell be proactive that they are good with this because they dont want to go 18 months from now this being a bigger issue. They checked all the boxes and the g42 diverse which i occur he divestiture. And amazon is trying to play catchup and theyre making aggressive bets and they continue to be the lead from an a. I. Perspective. Caroline phenomenal game of chess we referenced and whats on many players minds right now is where are the bottlenecks and it has to do with energy and a. I. Infrastructure. Is that what you hear from the leaders of these companies and how much more investment will we see to see a solution globally from that . Dan ed, when he was talking about the chip side, theres a twoparter here and ultimately will lead to more investment from the middle east to some of the altman and chip adventures going on with open a. I. And microsoft. Of course, Energy Continues to be the constraint but use cases are exploding across the board and now this Fourth Industrial Revolution is here being led by jenson and adele. Caroline we thank you. Lets go to a key player, apple, pledged to buy more components and accessories and devices from vietnam suppliers. The move is a big boost for the Southeast Asian companies and vietnam emerges as a Electronics Hub and apple is looking to shift production of their gadgets away from china to minimize the geopolitical use and theyre exploring india and vietnam which has seen a four poll increase in companies assembling apple products over the last decade. Lets talk about Global Regulation for a moment and joined with the european commissioner of Financial Services to discuss all Things Digital finance and regulation, ed. Ed were looking at erickson, the swedish shares, 2 higher as it stands and the u. S. A. D. R. Is higher even still than that. Beat on earnings and its really interesting, a Company Going through restructuring at a time the mobile phone cell carriers are not spending on 5g Network Infrastructure but the market likes what it sees. Stock up 2 . This is Bloomberg Technology. Ed the European Union is back in Silicon Valley and this time the focus is payments, crypto, and the impact of Artificial Intelligence on banks. The commissioner of financial has met with plaid and have meetings lined up with apple and stripe. The commissioner joins me on set. Its been a while since i was on this side of the country. Ed its interesting the ongoing relationship between the commission and Silicon Valley based companies, you forget theres more than 400 Million People in europe who have access to those companies and their products. Just summarize the purpose of your visit and objectives. Its always good to meet colleagues. Can you talk to my phone but being here in person matters. Were at a critical stage and this commission is coming towards of end. We have Artificial Intelligence and digitalization and were here to exchange views and see whats happening on the ground here because its a fast moving area, even since my taking up this role weve seen a huge evolution in banking, covid accelerated the use of ding tom payments and we want it to be instant and we have registration around legislation around that and were trying to harness niece technologies and looking at the risks that might be involved in them. Our idea is no to stifle innovation and this is where innovation flourishes. Ed id like to take off crypto, coin base was on the show last week and have is a number of grievances, like regulation instead of going through courts. What were the grievances they brought up in context of europe. Mariead they feel that europe has provided certainty with our legislation. There may be issues but they know how theyll be regulated at the european level and here its different and we talked about the benefits of certainty. And often europe can be accused of being rules based which is a good accusation because rules matter but sometimes overregulating. I was very interested to hear how certainty is important for a company like coin base. I also was interested this was an area of concern a few years ago. But when you listen to that company and vision for what could come next in terms of innovation and they believe regulation is important, i was concerned about that. We didnt have grievances but issues they would talk to us about and were open to talking with those who are using our legislation and those who need clarification. Caroline im reading a report from tether, for example, nowhere near as much oversight as the previous business we were talking about. But a key player within stable coins, the player of stable coins have gone on record saying the message being sent is europe does not want crypto, and regulation is had that is largely limiting access especially for retail investors. Brussels effect for many feels like a cooling effect. Mairead everyone has a different opinion and we had three options when it came to crypto, ignore us and let things evolve or ban it because we couldnt control it and this is the approach we have taken, regulate it so those in the industry have certainty when theyre dealing with clients within the European Union. We took the right course and its a fast moving area and many in that space originally came to it because they didnt want to be in the regulated zone, if you like. But i do thinking theres more maturity now that those who want to have a lifetime in this business which will evolve over that time want certainty in terms of their dealing in the European Union and we have provided that certainty. And i think thats all to the good of the industry itself. In one sense a. I. Has overtaken some of the conversations around crypto because crypto has been around for some time. And it looks like it will prevail and there are different views in europe whether crypto is and asette or not and we have all these conversations. What we do in the commission is bear in mind the greater good, so is the balance of regulation better than allowing things evolve without any guardrails and our view is caroline the a. I. Guardrails, for example, the a. I. Act, how much do you think a. I. Is a concern in terms of, well, Financial Stability right now . Mairead thats a very big question. Ed we need Big Questions on this show. Mairead when you listen to the scary stories about a. I. You want to stop it immediately but is not something you can contain. What we can do is try and look in a measured way of what are the risks . Because not only a. I. Is high risk, in fact some of it is extremely useful. Again, our approach it sounds dull but is important to say it, its about balance. Allow the industry to evolve but allow those who are if you like in charge of watching these things like the commission and our parliament to have a say in how it evolves and we wanted to do good so we again look at the risks involved rather than allow an unfettered evolution of Artificial Intelligence which is already being used in the Financial System in any event. I gather i have one who talks to me on my banking app. We get on sometimes, not all the time. And i think behind all of this is a desire to Harness Technology but not remove the human dimension around technology. I think theres a risk that could happen so weve been mindful of all of these things and weve been careful to categorize where the risks are. Conscious, also, this will evolve. It is evolving before our very eyes. Caroline it is, commissioner and still conversations to be had. We wish we had more time with you. The european commissioner for Financial Services. Coming up, rivos raises more than 250 million in its latest funding round works and about to take on the likes with video and m. D. With a cheaper option. More on that next. This is Bloomberg Technology. Ed rivos is a Silicon Valley chip developer without a product offer yet but raised more than 250 million in an overdescribed funding round with Matrix Capital management, the largest investor in the round joining the board. This is an a. I. Chip based on risk 5 architecture. I hear a lot about that at the moment as an alternative to video. But lets go to the idea youre in design, in the r d phase, the 250 million, where does it get you . Thank for you having me on this show, first of all. Its an honor to be here. What we plan to do with this fundraise were announcing today is to really support our increasing customers and we have a huge demand coming at us. Ed p how do you increase numbers if you dont have anything to offer yet . Puneet theyre impressed by the design and what we have to offer. And what well do with this money we raised is expand globally and increase our hiring and engineering efforts and get to production of parts and really get to trials. Ed i hear increasingly there is a market for a risk 5 based a. I. Accelerator, an a. I. Chip and a point of differentiation from nvidia and forthcoming generations but doesnt seem like the market is here in america and no one is taking it seriously, is it in china . Puneet thats not true. It is here, too. In the last few days you saw an announcement, for example, from one of the big a. I. Drivers theyre using risk 5 in their chips already. So we definitely see a place for risk 5 in the a. I. Market and there are several companies in this marketplace already. Caroline who are not averse in risk 5 versus our architecture, talk about the alternative it offers, is it about cost or ability or efficiency . Puneet a combination of many factors, costs is saving a license fee, for example, rather than paying somebody else. Really the biggest thing drives a lot of innovation because its a brandnew architecture. Its open. So is that allows anybody to do research with that architecture and this is where we see innovation happening in the next 510 years and eventually will rethink displace many of the other players in the market, the existing incumbents. This is the lennox moment, which brings architecture for c. P. U. Designs. Caroline there is hammering going on about the access to a. I. Infrastructure and the need for energy. We talked about the teaming up of microsoft in g42, the obvious global conversation going around with access to chips. Who would be your customer . Who are you going after nvidias customers are those that can access nvidia . Puneet were going after any customer really using a lot of data. Any data driven business that needs more hardware support is our potential customer. Now, we know the big three or four players in the market, obviously nvidia is the biggest and a countera. Mdand intel and others in the industry Building Hardware for a. I. We think the field is growing fast enough that we have ample opportunity to address any of the players that cant get access to nvidia hardware, whether its cheaper or more power efficient and several factors go in the decisionmaking process. Ed you were associated with a company that was sold to apple. Theres been a piece of legal proceeding or litigation thats now been settled which came before this funding round. Could you just explain that and where we sit with it . Puneet what were celebrating today is our fundraise. What were really trying to do here is keep at our product. Yesterday was the litigation that is behind us but what were really trying to do today is focus on our product Going Forward and weve been at it for three years, laserfocused on getting where we want to get to and we really look forward to our product being around the next six months to a year. Ed come back when the product is ready to show. Puneet i would be delighted to. Ed coming up on Bloomberg Technology well break down the Bank Earnings we referenced earlier and what they told us about the a. I. Story in the world of banking, coming out next from san francisco. This is Bloomberg Technology. Caroline welcome back. We have seen perhaps a little more stability in the loop in the u. S. The nasdaq 100 turning green at the moment. It little bit in down as we await jay powell speaking later. All important for the bond market which saw a selloff earlier. Nevertheless, we see money going back into big tech. Msci all country under pressure. Bitcoin off by one point 3 as the u. S. Dollar marches higher. What will we hear on Inflationary Pressure . Move over, ha