NVIDIA's DOJ Subpoena: Antitrust Investigation and Market Impact

NVIDIA faces a DOJ investigation amid market volatility, raising concerns about potential antitrust issues and investor confidence.

### NVIDIA Under Investigation: Market Reactions and Implications for Tech Stocks
* 📈  The DOJ's investigation into NVIDIA intensifies as the company receives subpoenas, raising concerns about **potential antitrust violations** amidst a **historic selloff in tech stocks**.
* 💔  The semiconductor index experienced its **worst decline since March 2020**, with NVIDIA's market cap loss being the **largest in S&P 500 history**, shedding **$279 billion in a single session**.
* 🔍  Experts speculate that the DOJ is examining NVIDIA's **sales practices and market power**, potentially indicating a forthcoming **formal complaint against the company**.
* 🤔  NVIDIA's response to the investigation has been assertive, claiming they produce the **best products** and dismissing the investigation as **lacking merit**.
* 📉  The market remains volatile, with tech stocks like NVIDIA facing pressure from **macroeconomic factors and shifting investor sentiment** as the Fed hints at **potential interest rate cuts**.
* ⚖️  Antitrust discussions draw parallels to past cases involving Microsoft and Google, emphasizing the **need for competitive practices** in the **rapidly evolving tech landscape**.
* 🔄  As investors navigate uncertainty, they are urged to **reassess their portfolios** in light of **potential market corrections** and the ongoing **regulatory scrutiny** facing major tech players.
* 🌐  The broader implications of the investigation could **reshape the competitive dynamics** in the AI and semiconductor industries, impacting **supply and pricing strategies**.

>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK AND SAN FRANCISCO, THIS IS BLOOMBERG TECHNOLOGY. THE DOJ'S NVIDIA INVESTIGATION HEATS UP. IS IT ANTICOMPETITIVE? WE DISCUSS AFTER THE HISTORIC SELLOFF. ED: TECH WITH SAWS AS INVESTORS QUESTION WHETHER THE AI EUPHORIA WILL GO FAR. CAROLINE: INTEL'S FRUSTRATION ABOUT ACCESSING MONEY FROM THE CHIPS ACT. WE HAVE A BLOOMBERG EXCLUSIVE REPORTING. WE CHECK IN ON THESE MARKETS. AFTER HISTORIC SELLOFF, I SHINE A LIGHT ON THE SEMICONDUCTOR INDEX.

IT HAD ITS WORST SELLOFF SINCE MARCH 2020. WE BOUNCE BACK AND WE ARE STILL OFF BY 6.3%. THE NITTY-GRITTY WAS PRETTY AMAZING. ED: ONE OF THE BIGGEST CONTRIBUTING FACTORS WAS NVIDIA. I GO STRAIGHT TO THE PICTURE, IT'S AT A SESSION HIGH. IT HAD BEEN DOWN AS MUCH AS ALMOST 3.5% IN THE SESSION SO WHIPSAW IS THE RIGHT WORD. THE BIGGEST DROP SINCE APRIL OF THIS YEAR. AT TIMES IN THE SESSION ITS BIGGEST SINCE MARCH OF 2020 AND IT SHED THE MOST MARKET CAP IN A SINGLE SESSION IN THE S&P 500'S HISTORY. MARKETS ARE WEIRD AND THEY ARE KIND OF SANGUINE. THE NEWS REPORTING IS KEY HERE. CAROLINE: LET'S GET INTO THE MICRO PARTICULARLY COMES TO NVIDIA.

IT RECEIVED SUBPOENAS FROM THE U.S. Department of Justice as part of an escalating investigation. Ian, you along with colleagues have been reporting about this since June. What has changed now, how has it wrapped up? Ian: This subpoena element of this makes it more significant. There's a legally binding request to companies for information that may be germane in an antitrust investigation, and what that signals to everybody is we are getting perhaps closer to a formal complaint if that's what they feel they have evidence for. Ed: Sources tell us NVIDIA received a subpoena and others received subpoenas about NVIDIA. What I don't understand is what is the accusation from an

ANTITRUST PERSPECTIVE AGAINST NVIDIA. ANTITRUST MEANS YOU HAVE AN ABUSE OF MARKET POWER OR MONOPOLY. IN WHAT SENSE? IAN: WE WON'T KNOW THAT UNTIL WE SEE THE FORMAL COMPLAINT BUT ARE REPORTING SAYS WHAT THEY ARE LOOKING AT, NVIDIA MAKES NETWORKING, IT MAKES SOFTWARE AND MODEL SERVICES AND OF COURSE THE CHIPS. IF YOU JUST WANT CHIPS AND DON'T WANT THE REST MAYBE YOU DON'T GET THE RIGHT AMOUNT OF SUPPLY YOU WANT MAYBE YOU GET A HIGH PRICE. THAT KIND OF THING IS WHAT WE BELIEVE THEY ARE LOOKING AT. CAROLINE: WE WILL GET A NUANCED TAKE PIT -- PARTICULARLY WHAT IS IN E.M.. FROM YOUR PERSPECTIVE THIS COMES AT POSSIBLY THE WORST TIME IN TERMS OF MARKET DYNAMICS FOR NVIDIA AND ITS SHARE PRICE.

WHAT DO YOU THINK INTERNALLY THEY ARE THINKING RIGHT NOW? IAN: ALL WE CAN GO UPON IS THEIR STATEMENT, AND THE STATEMENT WAS FAIRLY STRONG. WE MAKE THE BEST STUFF, THAT'S WHY PEOPLE BUY IT. IF THEY DON'T LIKE IT, THEY CAN GO BY OTHER STUFF. IT HAS NOTHING TO DO WITH ANYTHING ELSE GOING ON. SO THEY ARE CLEARLY NOT HAPPY WITH THIS INVESTIGATION AND DON'T BELIEVE IT HAS MERITS. ED: THERE IS MORE TO UNDERSTAND ABOUT THE ANTITRUST REVIEW OF NVIDIA. JOINING US IS REBECCA ALLENSWORTH, AN ANTITRUST PROFESSOR AT VANDERBILT LAW SCHOOL. THE RESEARCH HAS BEEN CITED BY THE SUPREME COURT, THE WHITE HOUSE, AND CONGRESSIONAL REPORTS. I GUESS PROCEDURALLY, GOOD MORNING TO YOU. WHAT IS THE SIGNIFICANCE OF THE

JUSTICE DEPARTMENT ISSUING SUBPOENAS TO NVIDIA BUT ALSO THEIR PEERS IN INDUSTRY? >> THE PROCEDURE HERE IS THE DOJ IS GETTING MORE SERIOUS ABOUT THEIR INVESTIGATION. THEY ARE LOOKING TO HEAR FROM NVIDIA ABOUT SALES PRACTICES, ABOUT THEIR INDUSTRY AND ARE PROBABLY LOOKING AT THEIR PEERS NOT BECAUSE THEY ARE IN TROUBLE BUT MORE BECAUSE THEY WANT TO HEAR ABOUT THEIR EXPERIENCE IN COMPETING WITH AND BUYING FROM NVIDIA. THIS IS ALL A RAMP UP IN A POTENTIAL LAWSUIT I THINK IS THE IDEA BEHIND THE SUBPOENAS. >> CAN YOU GO INTO PRECEDENCE OF MAKING IT HARD TO SWITCH SUPPLIERS OR PERHAPS PUSHING CUSTOMERS FOR EXCLUSIVE DEALS. IS THAT PART OF THE COURSE OF DOING THE BUSINESS IF YOU'VE

GOT SOME AND WANTED TO REMAIN WITH YOU VERTICALLY OR IS THAT EVER DOWN TO COMMITTEE. -- CAN IT BE DEEMED ANTICOMPETITIVE. REBECCA: THIS IS NOT THAT DIFFERENT FROM SOME OF THE ACCUSATIONS IN THE MICROSOFT CASE, WHICH IS ONE OF THE BIGGEST ANTITRUST CASES OF THE LAST 25 YEARS. SOME OF THE IDEAS BEHIND THIS THEORY OF THE CASE, WHICH WE DON'T REALLY KNOW WHAT THE THEORY OF THIS CASE IS, PAID SIMILAR FROM THOSE FROM MICROSOFT. EXCLUSIVE DEALING WAS THE PROBLEM IN THE GOOGLE CASE THAT GOOGLE JUST LOST. THESE THINGS CAN BE ANTICOMPETITIVE. THE QUESTION IS, ARE THEY UNDERTAKEN BY A MONOPOLIST? PLENTY OF THINGS YOU DO IF YOU'RE NOT A MONOPOLIST. AND THEN THE OTHER QUESTION IS, ARE

THEY INSTEAD PROVIDING SOME VALUE TO THE CONSUMERS. IS THERE PROCOMPETITIVE REASON TO PROVIDE YOUR GOODS IN THIS SPREAD. ED: A SOMEWHAT ACADEMIC QUESTION OR INDEED A POLICY QUESTION. NVIDIA WOULD TELL YOU THEY ARE AMERICA'S DARLING. THEY FOLLOW AMERICAN LAWS AND THEY ARE PUTTING AMERICA FIRST IN TERMS OF THEIR LEADERSHIP OF THE INDUSTRY. WHY WOULD THE JUSTICE DEPARTMENT GO AFTER THEM IN THAT RESPECT? REBECCA: WHY WOULD WE KILL OUR GOLDEN GOOSE. SO PART OF THE POINT HERE IS WE ARE NOT TRYING TO KILL ANYTHING, WE'RE TRYING TO MAKE THIS MARKET WHICH IS CRUCIAL FOR THE AI RACE, CRUCIAL FOR AMERICA'S FINANCIAL WORLD LEADER STATUS. WE ARE TRYING TO MAKE IT

COMPETITIVE BECAUSE MARKETS WORK BEST. THIS PRECEDENT EVEN A FEW YEARS AGO FOR THE AGENCY GOING AFTER NVIDIA DOING SOME OF THE PERCEIVED AS ANTICOMPETITIVE AND THEY STOPPED IT. THIS WAS AN ACQUISITION FROM 2022. NVIDIA WENT ON TO DO ALL IT'S DONE OVER THE LAST TWO YEARS. IT'S THAT WE WANT -- WE CANNOT EXPECT COMPANIES TO SELF REGULATE. WE WANT THEM TO WORK HARD. WE LOVE THE SUCCESS NVIDIA HAS HAD. BUT WE HAVE TO CREATE THE COMPETITIVE ENVIRONMENT FOR THOSE TO WORK PROPERLY. CAROLINE: I'M SURE AND AND INTEL FEEL THEY COULD BE IN ALSO RAN A LITTLE MORE THAN THEY CURRENTLY DID BY THE MARKET. WHEN THIS SORT OF POLICY ACTION IF WE GET A FORMAL INVESTIGATION WE UNDERSTAND IT'S JUST SUBPOENAS AND THE

GROUNDS WORK. IF SOMETHING DOES OCCUR, HOW MUCH DESTRUCTION ENDS UP BEING FOR BUSINESSES AND THE MOMENT WE HAVE THE PROBLEM OF DEMAND OUTSTRIPPING SUPPLY. REBECCA: LEGAL STUFF IS DEFINITELY A DISTRACTION. SOMETHING THAT META AND GOOGLE HAVE BEEN USED TO FOR MUCH LONGER. THEY HAVE MUCH LARGER INFRASTRUCTURE AND SETS OF LAWYERS THAN NVIDIA DOES. THERE IS A COST IN THE UNCERTAINTY. THIS REGULATION, THIS ENFORCEMENT IS NOT TOTALLY COSTLESS. AT THE SAME TIME, IT'S REALLY THE PAYOFF I THINK IS REALLY SIGNIFICANT. I THINK THEY'RE NOT BEING ENOUGH CHIPS OUT THERE IS PART OF THE PROBLEM. SO WHAT WE WANT IS A COMPETITIVE MARKETPLACE THAT MAXIMIZES OUTPUT. SO THAT'S WHAT'S AT STAKE HERE. THE MEDIA IS AN ESSAY IF YOU

COME AFTER US. THAT MEANS EVEN FEWER CHIPS FOR THE MARKET, BUT I DON'T THINK IT'S A ZERO-SUM GAME IN THAT WAY. >> THANK YOU FOR A DEEP DIVE ON WHAT IS ANTICOMPETITIVE AND COMPETITIVE. TECH STOCKS LOOKING TO REBOUND FOLLOWING THE BIGGEST ONE-DAY DECLINE IN SEVEN WEEKS. THIS IS BLOOMBERG TECHNOLOGY. >> WE MUST CHECK IN ON THE SLIGHT MARKET RECOVERY AFTER THE EXTORT NARES SELLOFF YESTERDAY. THE WORST CHIP SELLOFF IN FOUR YEARS. WE GET SO MANY DETAILS. EXTRAORDINARY. IT WAS PAID MARCH 2020. WAS THE WORST DAY. WHAT WERE YOU HEARING. >> EARLIER THIS MORNING, IT FELT LIKE THE MICROS WAS STILL MOVING THE MARKET. THE NEWS ABOUT THE SUBPOENA AT NVIDIA.

DRIVING THE MARKET LOW ARE AND NOW WE ARE SEEING THE MACRO IS MORE IMPORTANT. AT LEAST FOR THE LAST HOUR AFTER WE SAW THE JOLT STATE A COMING UP. WEAKER THAN EXPECTED, A BOND YIELDS MOVING LOWER. STOCKS MOVING HIGHER. THE IDEA STOCKS ARE STILL MOVING ON THE IDEA OF A RATE CUT. THE FED WILL BE MORE DOVISH. IS STILL BULLISH FOR STOCKS. REALLY THE FACT STOCKS OF RUN-UP SO MUCH OF THIS YEAR IT'S A DELEGATE BALANCE. WE CAN HAVE DATA SHOWING THE ECONOMY IS TOO WEAK BUT WE ALSO CAN HAVE DATA SHOWING THE ECONOMY IS TOO HOT. MICRO PARTICIPANTS -- MARKET WHICH IS MEN'S ARE WATCHING, WE'VE ALREADY SEEN HOW STOCKS REACTED TO THE JOLT DATA AND WE WILL HAVE TO SEE IF THAT

CONTINUES ON FRIDAY. >> IRRESPECTIVE OF THE DRIVER IN THE SESSION IS MACRO OR MICRO. TECH CONCENTRATION IS A MASSIVE FACTOR FOR PARTICIPANTS. THAT SEEMS TO BE REFLECTED IN OUR MARKETS COVERAGE DAILY AT THE MOMENT. >> I JUST WROTE ABOUT A NEW ETF FILING. THIS IS GOING TO BE AN ETF THAT TRACKS 45% IN THE NASDAQ 100. IF YOU LOOK AT THAT RIGHT NOW, IT'S GOING TO BE AN ETF, YOU KNOW, THE NAMES PAID APPLE, MICROSOFT, NVIDIA, BROADCOM, AMAZON, REALLY SPEAK TO THE FACT THAT INVESTORS AND ISSUERS ON THE PRODUCT SIDE ARE TRYING TO CAPTURE THAT HUNGER TO JUST TRACK JUST A FEW NAMES. THOSE MEGA CAP TECHNOLOGY STOCKS THAT HAVE DRIVEN THE MARKET FORWARD. WE ARE SEEING AN APPETITE.

THE RISK IS WHEN YOU BUY AN ETF BUT IS SO CONCENTRATED IN A FEW NAMES. IF THOSE NAMES CAME BACK AND WE SEE THE TRADING WE SAW THIS MORNING, THAT WILL DRIVE THE FUND LOWER. OTHER INVESTORS WANT MORE OF AN EQUAL WEIGHTED EXPOSURE, BUT WE ARE SEEING A TON OF FILINGS FOR THESE ULTRA-CONCENTRATED ETF'S. ED: EMILY ALL OVER THE MARKETS FOR US ON BLOOMBERG TECHNOLOGY. FOR MORE ON THE MARKETS, WE GO TO THE SWISS SENIOR MARKET ANALYST. YOU HAVE THE DIFFICULT TASK OF EXPLAINING WHAT'S HAPPENING. I LOOK AT EACH INDEX IN THE BIGGEST POINTS BOOSTER IS NVIDIA, AND WE SAY -- WE SEE THAT THEY WHIPSAWED IN THE SESSION, HAVING ITS BIGGEST DROP SINCE APRIL.

AT TIMES THE BIGGEST DROP SINCE MARCH OF 2020, WHICH DRAGGED THE STOCKS TO ITS BIGGEST DROP SINCE MARCH OF 2020. WHAT IS HAPPENING? >> THERE ARE TWO MAJOR EXPLANATIONS. THE FIRST IS THE AI FATIGUE. WE SAW NVIDIA HAD LOWER RESULTS, BUT INVESTORS WERE NOT SATISFIED. THE SECOND PART OF THE STORY IS MACROECONOMIC SET UP WHERE THE FED IS EXPECTED TO START CUTTING INTEREST RATES FROM SEPTEMBER THIS YEAR, AND THAT IS A ROTATION FROM TECHNOLOGY COMPANIES TO NON-TECHNOLOGY POCKETS OF THE MARKET. BECAUSE NVIDIA HAS BEEN ONE OF THE STARS OF THIS TECHNOLOGY RALLY, AND IT'S NORMAL INVESTORS ARE GOING AFTER NVIDIA WHEN THE MARKET CONDITIONS ARE NO LONGER IDEAL. CAROLINE: DO WE BRACE OURSELVES FOR MORE

DAYS LIKE YESTERDAY? IPEK: YES, WE DO. WE EXPECT TO HAVE VOLATILITY MOVING FORWARD. RIGHT NOW, THE MARKET NARRATIVE, THE FOCUS IS SHIFTING FROM INDIVIDUAL CORPORATE NEWS, WHICH REMAINS ROBUST, TOWARDS AN IDEAL MACROECONOMIC SETUP, WHICH IS EXPECTED TO BE A BEARISH TECHNOLOGY OF THIS MARKET. AND BECAUSE STOCKS LIKE NVIDIA HAVE GONE TO VERY LOFTY VALUATION LEVELS, WE EXPECT TO SEE A SIZABLE DOWNSIDE CORRECTION IF INVESTORS DECIDE TO KEEP THIS ROTATION GOING. ED: I DO THINK IT IS IMPORTANT WE DISCUSS THE BIG NEWS ITEM, WHICH IS OUR REPORTING THAT NVIDIA RECEIVED A SUBPOENA FROM THE DEPARTMENT OF JUSTICE. AND WE LOOK AT THE MARKET REACTION, THE STOCK IS UP NEAR SESSION HIGHS.

WHAT DOES THAT TELL YOU ABOUT THE MARKET'S ATTITUDE TOWARDS THIS STORY IN AND OF ITSELF? IPEK: THE ALLEGATIONS, ANTITRUST INVESTIGATIONS ARE PART OF THE DATA BIG TECHNOLOGY STOCKS. THEY COME AND THEY GO. SOMETIMES THEY NEED A DEEPER INVESTIGATION, SOMETIMES THEY LEAD TO LEGAL ACTIONS, AND SOMETIMES THEY LEAD TO FINES. WE HAVE SEEN IN THE PAST, SO THESE INVESTIGATIONS OR FINES OR ACTIONS AGAINST THE TECHNOLOGY COMPANIES HAVE NOT STOPPED THEM FROM BECOMING BIGGER, BETTER, AND MORE INFLUENTIAL. FROM AN INVESTOR PERSPECTIVE, THE DOJ INVESTIGATION IS NOT THE MAJOR ISSUE. RATHER, THE RISE IN COMPETITION WHICH WILL START EATING INTO NVIDIA'S HUGE PROFIT MARGINS.

CAROLINE: WHAT THEN? HOW DO INVESTORS PROTECT THROUGH ANYMORE BOUTS OF VOLATILITY PAID? WHAT IS THE MARKET TELLING YOU AS TO THE WAY THEY ARE SEARCHING TO PROTECT ON THE DOWNSIDE? IPEK: YOU HAVE ALL THE FINANCIAL PRODUCTS. WHAT INVESTORS SHOULD REALLY THINK ON THEIR PORTFOLIOS IN A WAY TO ADOPT THEM FOR A PERIOD OF LOOSENING MONETARY POLICY FROM THE FED AND POTENTIALLY FURTHER ECONOMIC SLOWDOWN. THIS IS I THINK VERY MUCH IMPORTANT. LAST YEAR WE HAVE SEEN THE TECHNOLOGY STOCKS AS THE SAFE HAVEN WHERE INVESTORS SEEK REFUGE FROM THE HIGH INTEREST RATES AND NOW THE OPPOSITE SCENARIO IS ABOUT TO HAPPEN. IN ALL CASES THIS TECHNOLOGY STOCKS WILL REMAIN UNDER A DECENT SELLING PRESSURE BUT NOW

IT DOES NOT MEAN THE RALLY IS OVER. WE JUST EXPECT TO SEE SOME DOWNSIDE. TECHNOLOGY STOCKS IN PORTFOLIOS HAVE TO BE RESHUFFLED ACCORDINGLY. >> LET'S FINISH THIS DISCUSSION WITH THE CALENDAR. THERE IS STILL MORE TO COME. AND THEN THE FED BECAUSE IT'S TOP OF MIND FOR EVERYONE PAID. WHAT HAPPENS NEXT? IPEK: BROADCOM IS EXCITED TO ANNOUNCE STRONG QUARTERLY RESULTS. PART OF IT IS THE GROWING AI DEMAND, AND PART OF IT IS DUE TO THE REBOUND WE HAVE SEEN IN EQUIPMENT SALES. PART OF IT IS DUE TO THE TRANSITION FROM SALES DESCRIPTION MODEL. SO WE DO EXPECT BROADCOM TO COME UP AND ANNOUNCE BETTER-THAN-EXPECTED RESULTS. NOW UNFORTUNATELY, DOES NOT MEAN RESULTS WILL STOP IN BROADCOM.

IF THE ECONOMIC DATA DOESN'T SUPPORT MARKET MOVES. CAROLINE: WE THANK YOU SO MUCH. COMING UP, WE WILL BE JOINED BY THE CEO OF INFORMATICA TO DISCUSS THE IMPACT OF GENERATIVE AI. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: NOW FOR TODAY'S AI IN ACTION SEGMENT. BASICALLY, YOU ARE IN THE BUSINESS OF MANAGING, PROCESSING DATA, CLEANING IT UP FOR YOUR CLIENTS SO THEY CAN HARNESS THE POWER OF GENERATIVE AI. FOR MANY, WE ARE QUESTIONING THE HEIGHT. HOW ARE YOUR CLIENTS USING IT. AMIT: WE ARE IN THAT PHASE WHERE WE HEARD SO MUCH ABOUT AI WHERE EVERYONE IS READY FOR AI EXCEPT THE DATA. WE ARE HELPING CUSTOMERS TRULY CONVERT ALL THEIR MISSING DATA, CLEAN IT UP, PUT IN SOME STRUCTURE SO IT CAN GO INTO AN LLM AND TURN THAT DATA CHAOS

INTO SOMETHING ACTIONABLE. ED: YOU HAVE A RELATIONSHIP WITH NVIDIA, WHICH IS LIKE YOUR ENTERPRISE DATA MANAGEMENT OFFERING, IS IMPROVED, EMPOWERED BY THE ACCELERATED COMPUTER OFFERING. HOW DOES THAT RELATIONSHIP WORK? AMIT: I THINK FOR GP USE, WHAT WE ARE DOING IS HELPING OUR CUSTOMERS TAKE ALL THAT DATA WHERE THEY'RE LOOKING LIKE PROFESSIONALS AND SURE THEY CAN GET THE RIGHT PROFESSIONALS AT THE RIGHT PLACE TO MANAGE WHAT DRIVES SEASIDE AND CARE. ENSURES COMPANY TO DO CLEAN PROCESSING FASTER AND MORE EFFICIENTLY. THOSE OF THE USE CASES THAT ALLOWS CUSTOMERS TO USE THE UNDERLYING INFRASTRUCTURE POWERED BY THE HYPER SCALARS ON NVIDIA AND DRIVE THAT ACTIVITY. CAROLINE: TALKING OF THAT INFRASTRUCTURE, YOU USE NVIDIA GP USE YOUR

TALKING TO CLIENTS. HOW MUCH ARE THEY SEEING NVIDIA AS THE ONLY GAME IN TOWN? HOW MUCH YOU SEEING EVERYONE DEPENDS ON THEM A LITTLE TOO MUCH? AMIT: I SAID THAT A COUPLE TIMES EVEN YESTERDAY, GENERATIVE AI IT'S TREMENDOUSLY OVERHYPED IN THE SHORT TERM BUT AT THE SAME TIME TREMENDOUSLY UNDERESTIMATED IN THE MARKET. WE ARE VERY MUCH IN THE EARLY STAGES OF VALUE CREATION, THE BUILDOUT IS HAPPENED. BUT THEN IT COMES TO THE BUILDUP TO APPLICATION, THAT'S WHERE OUR CUSTOMERS ARE. THEY ARE DEPENDING A LOT OF A LOT OF INFRASTRUCTURE. NVIDIA HAS A HUGE LEG UP. THE DATABASES, ALL OF THOSE ARE EMPOWERED SO NEEDLESS TO SAY BUT NOW THE WORK HAS BEEN DONE TO SAY HOW DO I BUILD THE BEST

IN CLASS ANALYSIS APPLICATION TO TRULY GROW REVENUE. THAT'S WHERE THE ROA COMES INTO PLAY. FIRST PRODUCTIONS GOING TOWARDS THE FALL OR EARLY NEXT YEAR. IT'S WHEN OPERATED -- SO THE BUILDOUT WILL BE CONVERTED TO USE. ED: YOU USE THE WORD EXPERIMENT AND SAID THE VALUE CREATIONS IN THE EARLY INNINGS. YOU'VE SEEN THEM GO TO CAP ASK. ARE YOU SEEING SOMETHING TANGIBLE IN TERMS OF VALUE CREATION FOR ALL THE INVESTMENT IN AI. AMIT: THAT'S WHERE WE SEE CUSTOMERS PUTTING THE WORK IN. EVERYONE'S READY FOR AI. SO I TALKED ABOUT CUSTOMERS, THEY ARE ALL DOING THE WORK TO EITHER FIGURE OUT HOW TO SERVE CUSTOMERS BETTER. HOW TO MAKE SURE CLAIMS ARE MOVING FASTER AND THEY ARE MUCH

CLEANER. HAPPY MAKE SURE WHEN A CUSTOMER CALL COMES IN WITH A LOT MORE INFORMED OPINION OF CUSTOMER. CUSTOMERS ARE DOING THE WORK. BUT THAT TAKES A LITTLE BIT OF TIME. I THINK WE ARE AT BEST BOTTOM OF THE FIRST AND I DO SEE THE NEXT 12 TO 18 MONTHS TO BE THE ONES WHERE YOU WILL ACTUALLY SEE THE LIVE USE CASES, OUT AT SCALE. I SEE THE USAGE OF THE PRODUCT FOR CUSTOMERS USING IT, WE SEE THE TRACKING OF WHERE THE DATA IS GOING AND I SEE THOSE SCALING UP. >> WILL THE PRODUCTIVITY GAINS BE ENOUGH TO VINDICATE THE HUNDREDS OF BILLIONS BEING SPENT. AMIT: I CAN GIVE YOU SOME EXAMPLES. THE CLAIM PROCESSING TOOK MONTHS WAS CONVERTED TO A WEEK. WHAT WE NEED TO BE CAREFUL IS THE EXPERIMENT AND

OPERATIONALIZE THAT. WE ALSO TO THINK ABOUT GOVERNANCE AND COMPLIANCE WITH THOSE CASES. I THINK THERE'S PRODUCTIVITY IN THAT. BUT WE HAVE TO GIVE IT SOME TIME. WHEN YOU PUT IT OUT IN SCALE, IT WILL TAKE SOME FIZZING. WE DON'T WANT TO BE COMPLETELY -- AND CREATE A BIGGER ISSUE FOR US. ED: COMING UP ON BLOOMBERG TECHNOLOGY, THE BIDEN ADMINISTRATION'S ON INTEL TO REVISE U.S. CHIPMAKING IS IN TURMOIL. FROM SAN FRANCISCO AND NEW YORK CITY, THIS IS BLOOMBERG TECHNOLOGY. ♪ CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. ED: THE MARKETS ARE MOVING IN REAL TIME AND CHANGING DIRECTION. WE ARE PROBABLY OFF THIS HIGH OF THE SESSION REBOUND WHEN COMES TO INDICES OR INDEXES,

THE NASDAQ 100 BASICALLY FLAT. THE STOCKS RECOVERING COVERING UP 8/10 OF 1% AND HAD ITS BIGGEST DROP YESTERDAY SINCE MARCH OF 2020. THERE ARE SOME SPECIFIC SINGLE NAME STORIES BEHIND THAT. NVIDIA IS TOP OF MIND. AND YOU WILL SEE NVIDIA, SO MUCH COVERAGE BUT THE REPORTING ON THE DOJ ACCORDING TO SOURCES ISSUING SUBPOENAS TO THAT NAME. THE MARKET SEEMS CALM ABOUT IT. INTEL IS A SLIGHTLY DIFFERENT STORY. IT CONTINUES TO LAG. IT'S HAD A CHOPPY SESSION. SOME BLOOMBERG REPORTING IS A PART OF IT. THE BIDEN HARRIS ADMINISTRATION'S BIG BET ON INTEL TO LEAD THE U.S. CHIPMAKING RENAISSANCE IS IN TROUBLE WITH THE MOUNTING

FINANCIAL STRUGGLES. THIS COULD CREATE A POTENTIAL DAMAGING SETBACK FOR THE COUNTRY'S MOST AMBITIOUS POLICY IN DECADES. I THINK IN SIMPLE TERMS. MACKENZIE SOURCES TELL US INTEL'S FRUSTRATED BECAUSE THEY WANT ACCESS TO THE MONEY. ON THE GOVERNMENT SIDE, THE WHITE HOUSE IS FRUSTRATED BECAUSE INTEL IS NOT DOING WHAT THEY NEED TO IN ORDER TO GET ACCESS TO THE MONEY. >> 30,000 FOR PERSPECTIVE, THE U.S. SET ASIDE $39 BILLION IN GRANTS TO BRING CHIPMAKING BACK TO THE UNITED STATES. TO REVITALIZE MASTIC PRODUCTION OF THESE CRITICAL ELECTRONIC COMPONENTS. INTEL WAS TO BE THE BIGGEST WINNER. THEY TRAVELED TO THE COMPANY'S FACILITY AND SAID 8.5 BILLION.

DOLLARS IN GRANTS. INTEL IS IN LINE AS IT PULLS OUT. THE COMPANY HAS BEEN IN DIRE FINANCIAL STRAITS AND HOSTED A PRETTY DISASTROUS EARNINGS REPORT AT THE BEGINNING OF LAST MONTH. NOW, WHILE THE CHIPMAKER SAYS THIS HAS MOVED FASTER, BY DEMONSTRATIONS MAINTAINING THE STANCE IT HAS THE ENTIRE TIME BECAUSE THAT'S UP LUMINARY AGREEMENT. AND EVEN THEN, INTEL HAS STATED KEY MILESTONES. CAROLINE: WE ARE ANTICIPATING HEARING FROM PAT GELSINGER LATER TODAY AT A CITY EVENT. WORKING HARD TO ADDRESS CERTAIN ISSUES. WHAT IS INTEL LIKELY TO DO NEXT TO COME TOGETHER AND DECIDE WHETHER THEY BUILD, WHETHER THE NEED TO GET A PLACE TO GET THE MONEY. >> INTEL HAS A BOARD MEETING IN MID-SEPTEMBER, AND THAT'S WHEN

YOU'LL SEE COMPANY EXECUTIVES CONSIDERING A RANGE OF POTENTIAL OPTIONS, INCLUDING SPINNING OFF THEIR MANUFACTURING DIVISION OR PAUSING OR SCALING BACK GLOBAL FACTORY PROJECTS. THE BIGGEST OF THE FACILITIES ARE AN EXPANSION OF THE ARIZONA FOUNDRY PROJECT. BIDEN HAS CALLED A QUOTE UNQUOTE FIELD OF DREAMS. IT'S PRETTY SAFE TO SAY IF INTEL WERE TO PARE BACK ITS U.S. MANUFACTURING DIVISIONS. ED: THERE ARE SOME DETAILS ON THE REPORTING, CITING SOURCES THAT THE COMMERCE DEPARTMENT IS KEY HERE. ONE OF THE THINGS THEY DECIDED TO DO WAS CONVINCE OTHER CHIP NAMES AND MANUFACTURING BUSINESS AND WAS NOT SUNDAY THE INDUSTRY WAS INTO. >> ONE OF THE BIGGEST METRICS IS FIGURING OUT IF THEY WILL BE COMMERCIALLY VIABLE.

IT IS UNAMBIGUOUSLY THE WORLD LEADER IN THE TYPES OF CHIPS HOPING TO MAKE IN THE U.S. COMMERCE SECRETARY GINA RAIMONDO REACHED OUT TO EXECUTIVES AT BOTH OF THOSE COMPANIES AND ASKED THEM TO CONSIDER MANUFACTURING INTO HIS OHIO PLANT. AND THE OTHER MAJOR CUSTOMERS THAT INTEL HAS ANNOUNCED FOR ITS GLOBAL MANUFACTURING OPERATION HAVEN'T GONE TO FULL PRODUCTION YET EITHER. CAROLINE: IT'S ALSO EXTRAORDINARY BECAUSE YOU WOULD'VE THOUGHT THE HUNGER, THE DESIRE FOR AI-RELATED CHIPS IS SUCH THAT INTEL WOULD MANAGE TO BE THERE. WE CLEARLY SEE THAT HUNGER FOR THE AI. TALKING ABOUT HOW SAM ALTMAN IS ALSO BUSY TALKING TO, TOGETHER WITH THE INFRASTRUCTURE

REQUEST. >> THIS TENS OF BILLIONS OF DOLLARS VISION HAS BEEN IN THE WORKS FOR MONTHS NOW, AND WE ARE STARTING TO SEE SOME DETAILS TAKE SHAPE IN WHAT ALTMAN PICTURES OF SOME KIND OF A COMPLIMENT TO THE CHIPS ACT. BUILDING OUT DATA CENTERS, ENERGY INFRASTRUCTURE, AND OTHER U.S. PROJECTS WITH A GLOBAL ALLIANCE OF INVESTORS TO SORT OF LEVERAGE THE RESOURCES NEEDED TO MAKE AI POSSIBLE. IF YOU THINK ABOUT THE CHIPS THAT INTEL MAKES, THOSE OF THE INPUTS FOR ARTIFICIAL INTELLIGENCE, AND PART OF THE PLAN INVOLVES RECEIVING INVESTMENT FROM INVESTORS IN COUNTRIES INCLUDING JAPAN, SOUTH KOREA, CANADA, THE U.S., AND UNITED ARAB EMIRATES, WHICH HAS BEEN INTERNATIONAL SECURITY FOCUS FOR THE U.S. AS THE ADMINISTRATION WANTS TO

PARTNER MORE WITH COUNTRIES IN THE GULF AND THROUGHOUT THE GLOBAL SOUTH TO ENCOURAGE INVESTORS THERE TO INVEST IN AMERICAN FIRMS RATHER THAN CHINESE ONES, BUT IS ALSO WORRIED ABOUT THE RISKS OF TECHNOLOGY SHARING AND OTHER NATIONAL SECURITY CONCERNS. ED: WE'VE BEEN TRACKING THIS ONE FOR SOME TIME. IT'S GONE BEYOND JUST SEMICONDUCTORS. I THINK SAM AND HIS TEAM ARE THINKING A LOT ABOUT ENERGY AS WELL. ONE OF THE OTHER AREAS THEY ARE TRYING TO FLUSH OUT? >> ENERGY IS A REALLY BIG ONE AND THAT'S A CONCERN FOR THE CHIPS ACT WORLD AS WELL. THESE DATA CENTERS REQUIRE MASSIVE AMOUNTS OF ENERGY ON A SCALE OF MULTIPLE NUCLEAR REACTORS TO POWER A COUPLE OF CHIPMAKING FACILITIES.

SO THE TEAM IS THINKING ABOUT TRANSMISSION LINES AND WHETHER WE CAN GET CLEAN ENERGY RESOURCES DEVOTED TO THESE PROJECTS. BUILDING OUT DATA CENTERS LIKELY TO INCLUDE SOME EXISTING PARTNERS TO ACTUALLY RUN AND HOUSE THESE OPERATIONS ON AMERICAN SOIL. THE PLANS SPAN SEVERAL STATES. CAROLINE: MACKENZIE HAWKINS ACROSS ALL THE ELEMENTS OF AI INFRASTRUCTURE TODAY, THANK YOU. ALSO OUT OF WASHINGTON THE JUSTICE DEPARTMENT IT WON'T PRESSURE TOMB REMOVE OR BLOCK CONTENT WHEN THE GOVERNMENT SHARES INFORMATION ABOUT FOREIGN THREATS TO NATIONAL SECURITY OR ELECTIONS BUT THAT FOLLOWS A LETTER TO CONGRESS FROM THE CEO OF META, MARK ZUCKERBERG WHICH ALLEGES FACEBOOK WAS PRESSURED BY THE BIDEN ADMINISTRATION TO CENSOR COVID RELATED CONTENT.

THE IDEA HERE, ED, WAS THAT META TOOK ITS OWN DECISIONS AROUND CERTAIN CONTENT AND DECIDED TO CALL BACK MARKER BIRD -- MARK ZUCKERBERG SAYING HE REGRETTED SOME OF THE ACTION TAKEN. IS THIS THE NEXT ANSWER TO THAT FROM THE DOJ? ED: IT WASN'T THAT LONG AGO THAT META'S POSITION WAS IT SHOULDN'T BE OUR DECISION. OVERSIGHT IS STILL SOMETHING PEOPLE HAVEN'T COME UP WITH A FRAMEWORK FOR. CAROLINE: OVERSIGHT OF THOSE THAT DON'T DO ANY CONTENT ADMINISTRATION OR VERY LITTLE LIKE TELEGRAM. THE CEO CURRENTLY HOLDING FAST. WE WILL DISCUSS AI IN MANY OTHER WAYS. WE WILL DISCUSS THE BRAND-NEW AS WELL AS APPLE, SPOTIFY AND I HEART. CAROLINE: FIRST UP, LYFT PLANS TO SELL

SOME OF ITS BIKE AND SCOOTER BUSINESS. AS THE RIDE-HAILING COMPANY STILL FOCUSES ON TURNING PROFITABLE PLUS ALIBABA WILL EMPLOY CHECKOUT VIA $.10 WECHAT PAY. AS THE CHINESE ECONOMY STRUGGLES FOR THE DOWNTURN. THE $43 BILLION GIANT HOROWITZ DITCHING MIAMI AFTER BUILDING AN OFFICE BRAID THEY LEFT IN MAY BECAUSE EMPLOYEES WERE NOT USING IT ENOUGH. ED: A PIECE OF NEWS IN STARTUPS AND VENTURE CAPITAL. YOU.COM HAS RAISED $50 MILLION IN A NEW FUNDING ROUND INCLUDING BACKING FROM NVIDIA AND TUK-TUK GO AMONG OTHERS. HEAR FROM MORE JUST HERE FOR MORE IS THE CEO. NVIDIA MADE A SIZABLE CONTRIBUTION. WHAT DO YOU THINK THEIR INTEREST IN BACKING YOU.COM IS.

THANKS FOR HAVING ME. WE ARE VERY EXCITED ABOUT THIS ROUND. THEY HAVE SEEN THE FUTURE USUALLY FIRST COMES ON YOU.COM. WE MADE THE MULTIMODAL IF YOU ASK FOR STOCK PRICE WILL SEE A STOCK TICKER AND IS MUCH AS I LOVE NATURAL LANGUAGE PROCESSING. ED: PLEASE CONTINUE. RICHARD: THEY WANT TO PARTNER WITH THE FOLKS THAT BRING THE FUTURE, BRING THEM INTO NEW MARKETS. WITH USING TECHNOLOGY IS MOVING UP THE STACK AWAY FROM JUST GPU'S. CAROLINE: WHEN WE FIRST ON THE SHOW WHICH IS ALL ABOUT AI SEARCH THERE SOME OTHER KEY PLAYERS. OF COMPLEXITY, A THING OF GOOGLE GETTING ITS ACT TOGETHER. WHAT ELSE ARE YOU TRYING TO ADD INTO THE BUSINESS MODELS SO YOU'RE NOT SORT OF CRUNCHED HERE. RICHARD:

PEOPLE CAN STILL USE YOU.COM AS GOOGLE REPLACEMENTS. WAS NOT QUITE A PIVOT BUT WILL BE REALIZED IS WHEN YOU REALLY WANT TO LOOK FOR A BETTER EXPERIENCE. IT'S HARD WHEN PEOPLE MAKE VERY SIMPLE QUERIES. WHEN YOU ASK HOW OLD IS OBAMA OR WHAT IS THE WEATHER TOMORROW, IT'S HARD TO BE 10 AT BETTER THAN GOOGLE ON THOSE TYPES OF QUERIES. WHEN YOU SEE THAT IS WHEN COMPANIES START USING YOU.COM TO BE MORE PRODUCTIVE FOR ACCOUNT EXECUTIVES TO GET A COMPANY BRIEF AND HENCE HAVE THE AI AGENT THAT WRITES THAT BRIEF FOR HER OR HIM. THAT'S WHERE WE'VE SEEN 10 X IMPROVEMENTS AND THAT'S WHERE WE'RE SEEING A LOT OF CUSTOMER TRACTION WITH BIG COMPANIES AND SMALL START RELYING ON YOU.COM.

SO WE ARE LEANING INTO THAT ENTERPRISE SPACE IN THAT PRODUCTIVITY ENGINE. ED: PAUL WROTE UP THE DETAILS OF THE REPORT AND I WAS READING IT AND LISTENING, WHAT I'M HEARING IS BUSINESS MODEL. IS THAT FAIR? YOU LOOKED AT SEARCH AND SAID I THINK WE'VE GOT TO WORK OUT WHAT OUR BUSINESS MODEL IS LONG-TERM. RICHARD: WE LOOKED AT HOW CAN WE DIFFERENTIATE FROM A PRETTY BUSY SPACE AND THE NUMBER ONE IS ACCURACY, NUMBER TWO IS LOOKING AT THE CUSTOMER SUCCESS THAT'S POSSIBLE AND THEN HEARING FROM A LOT OF COMPANIES THEY BOUGHT SOME LARGE LICENSES FROM SOME OF THE LARGE VENDORS OR EVEN BUILT THEIR OWN PROTOTYPES. BUT THEN THEY DON'T SEE THE ADOPTION WITHIN THEIR ORGANIZATION. SO WE WANT TO ALIGN INCENTIVES AND NOW FOR A LARGER ENTERPRISE

CUSTOMERS, THE CONSUMPTION BASE MODEL RATHER THAN PERCEIVED LICENSE MODEL, AND HELPING THEM ACTUALLY ADJUST ON THEIR WORKFLOWS TO THIS NEW GENAI WORLD. CAROLINE: IT MAKES ME THINK OF YOUR OLD EMPLOYER OVER AT SALESFORCE. SALESFORCE TRYING TO FIGURE OUT THE REVENUE GENERATION FROM AI, AND THEY ARE GOING ALL IN. THAT'S KIND OF WHERE YOU'RE GOING ALL IN ON AS WELL. ARE YOU WORKING ALONGSIDE SALESFORCE? ARE YOU WORKING FOR SALESFORCE? WILL ULTIMATELY THE JUST BE THIS SOME SORT OF PURCHASE? RICHARD: WE COMBINE EXTERNAL DATA WITH INTERNAL DATA, AND THEN MAKE THEM USEFUL FOR KNOWLEDGE WORKERS. IF YOU WANT TO BUILD THE COMPANY AND YOU WANT TO START A NEW MARKETING CAMPAIGN, WANTING TO RESEARCH AS A BIOTECH

ENGINEER HEDGE FUND MANAGER YOU CAN DO THOSE THINGS ON YOU.COM. THE AGENTS HELP AUTOMATE CERTAIN TYPES OF WORKFLOWS, AND IN THOSE CASES, WE END UP REPLACING 10 TYPES OF GOOGLE SEARCHES AND PROVIDE A BETTER EXPERIENCE. AND WHAT USED TO TAKE YOU AN HOUR OR TWO WILL NOW TAKE YOU MINUTES. ED: I WANT TO GO BACK TO ANSWER ON THE RELATIONSHIP WITH NVIDIA. SAYING YOU WANTS TO WORK WITH THEM NOT JUST GPU'S AND THE BIG STORY TODAY IS BLOOMBERG'S WERE ON DOJ ISSUED SUBPOENAS TO NVIDIA. THEIR REPORTING EXPLAINING WHAT'S GOING ON REFLECTED ON SOMETHING I SPOKE ABOUT LAST WEEK. THEY DON'T WANT TO JUST SELL GPU'S; THEY WANT TO BE THE SYSTEMS VENDOR. AND NOW THE SOFTWARE.

COULD YOU EXPLAIN ON THE OTHER TO THE TABLE HOW THAT WORKS. YOU BUY A BIG PACKET FROM NVIDIA AND THEY GIFTED TO YOU, WHAT IS THE MECHANICS? RICHARD: AT A HIGH LEVEL YOU CAN THINK OF THE PARADOX HERE WHERE A LOT OF THINGS ARE GETTING MORE EFFICIENT, BUT AS THINGS GET MORE EFFICIENT, NOW IT'S WITH INTELLIGENCE. AS INTELLIGENCE GETS CHEAPER AND CHEAPER, WE WILL BE USING MORE INTELLIGENCE AND WE CAN AUTOMATE MORE WORKFLOWS. FOR NVIDIA IT'S A NATURAL EVOLUTION TO MOVE UP THE STACK FROM GPU'S TO MORE AND MORE CAPABILITIES ON TOP OF THAT. WE AS A START UP OR USING A LOT OF GPU'S ARE EXCITED TO PARTNER WITH THEM ON DEVELOPING THESE KINDS OF TECHNOLOGIES. ED: THANK YOU VERY MUCH.

ELON MUSK'S STARLINK CAPITULATES AND BLOCKS ACCESS TO X IN BRAZIL AS PART OF A COURT ORDER. WE ARE ALSO WATCHING SHARES OF UBER. SOMETHING IN THE INVESTMENT AND CREDIT MARKET. THE DEAL SIZE EXPECTED TO BE ABOUT $3 BILLION ACCORDING TO BLOOMBERG'S REPORTING. THIS IS BLOOMBERG TECHNOLOGY. ♪ CAROLINE: NVIDIA SHARES FLUCTUATING COMING OFF OF ITS BIGGEST ONE-DAY DECLINE IN MARKET CAP ON RECORD. ABIGAIL DOOLITTLE TAKING THROUGH WHAT'S HAPPENING NOW. ABIGAIL: IT OPENED SHARPLY LOWER, RELATIVE FOR THE SHARES OF NVIDIA. TWO TO 3% DECLINE NOT SO MUCH BUT THAT HIGHER GRADE LET'S LOOK AT THE LAST FIVE DAYS. YOU SEE A STEEP DECLINE DOWN

15.9%. THESE ARE THE WORST FIVE DAYS FOR NVIDIA GOING BACK TO SEPTEMBER OF 2022 AND OF COURSE THEY REPORTED EARNINGS LAST WEEK, YES THEY BEAT AND BOOSTED BUT IT WAS LESS THAN WHAT IT WAS LESS THAN WHAT MIGHT NORMALLY BE. A BIT OF A DISAPPOINTMENT FOR A STOCK THAT ONE DAY YEAR-TO-DATE THIS YEAR WAS UP 180%. A WAY OF SAYING TOO FAR TOO FAST. THIS WEEK THERE IS THAT THEY DECLINE ABOUT 10%, THE MARKET CAP SHED YOU ARE TALKING ABOUT. LET'S PUT THAT INTO CONTEXT. IT IS ON A SPLIT ADJUSTED BASIS PAID YESTERDAY WAS THE WORST DAY SINCE APRIL SO IF WE HAD NOT HAD THE 10 FOR ONE SPLIT IN JUNE THIS MARKET CAP LOSS WOULD NOT HAVE BEEN AS GREAT.

BUT THE SPLIT DID HAPPEN. 279 BILLION DOLLARS WORTH OF MARKET CAP LOSS YESTERDAY ALONE. THAT IS MORE THAN THE VALUE OF CHEVRON TODAY. THAT'S MORE THAN THE VALUE OF ADOBE TODAY. ANYTHING ABOUT BOEING THAT HAS A MARKET CAP AROUND 00 BILLION IT'S MORE THAN TWO BOEINGS. THAT'S A BIG DECLINE ON YESTERDAY'S TRADING SESSION FOR NVIDIA. THE QUESTION IS WHETHER OR NOT THE SELLING IS DONE. IF YOU LOOK AT THE TECHNICALS, THIS CHART IS WONKY BUT SOME PEOPLE ARE TALKING ABOUT WHETHER OR NOT NVIDIA WILL GO SUB 100 OR HIT 100. I WOULD SAY THAT'S GENEROUS BASED ON THE CHART. YOU CAN SEE LAST YEAR THE STOCK HAD BEEN ON A SPLIT ADJUSTED BASIS CLOSER TO 40. WE ARE SEEING A BIT OF A

REVERSAL HERE. THIS ENTIRE AREA LIKELY TO TAKE THIS STOCK DOWN CLOSER TO 70. POSSIBLY EVEN 40. THAT WOULD BE QUITE THE DECLINE PAID SOMETHING TO STAY TUNED FOR IF THAT DOES HAPPEN. ED: SOME OF THE BEST SIZE AND SCOPE I'VE SEEN OUT THERE FOR A LONG TIME. ELON MUSK SATELLITE INTERNET PROVIDER STARLINK REVERSED CALLS AND SAID IT WOULD COMPLY WITH AN ORDER BY BRAZIL'S TOP COURT TO BLOCK ACCESS TO X, THE BILLIONAIRE SOCIAL NETWORK. KIRK HAS ALREADY WRITTEN THE BOOK ON TWITTER. YOU TRACK IT DAILY BUT THIS IS A CONCESSION BY ELON IN THE COUNTRY OF BRAZIL. KURT: ABSOLUTELY. THIS IS HIS INTERNET SERVICE PROVIDER CHOOSING TO BLOCK HIS

SOCIAL NETWORK. SO ONE PART OF HIS EMPIRE IS WORKING AGAINST ANOTHER AND THAT'S BECAUSE OF THE PRESSURE APPLIED BY BRAZILIAN REGULATORS AND THE JUDGE THERE TO BLOCK THOSE ACCOUNTS. WE ARE SEEING THE LEVERAGE BEING USED ON STARLINK IMPACT X. CAROLINE: I LIKE WHAT YOU CALL IT HIS CONSTELLATION OF BUSINESSES. IN MANY WAYS IT CAN BE DEEPLY ADVANTAGEOUS AND IN OTHERS MAKE IT FAR MORE COMPLEX IN CERTAIN COUNTRIES. KURT: THE BENEFITS, WE HAVE SEEN INVESTORS FLOCK TOWARDS ANYTHING HE DOES IN THE HOPES OF GETTING ON BOARD THE SPACEX IPO. WE SEE THEM SHARE RESOURCES AMONGST THESE COMPANIES. THE FACT HE HAS THESE HELP THEM BECOME THE RICH POWERFUL PERSON HE IS. RIGHT NOW LIVE WE ARE SEEING

THE DOWNSIDE OF THIS, WHICH IS THAT A COMPANY -- A COUNTRY OR REGULATORS CAN APPLY PRESSURE ON ONE PART OF HIS EMPIRE TO GET TO ANOTHER. I DON'T THINK BRAZIL IS THE ONLY COUNTRY WHERE THIS COULD HAPPEN, AND NOW THAT WE ARE SEEING IT PLAY OUT AND WORK A LITTLE BIT, IT IS THE KIND OF THING I COULD SEE HAPPENING MORE REGULARLY GOING FORWARD. ED: YOU WRITE IN THE PEACE, THE MORE COMPANIES HE'S ASSOCIATED WITH, THE MORE VULNERABLE HE IS. JUST GO FURTHER WITH THAT, EXPLAIN IT? KURT: A GOOD EXAMPLE WOULD BE TESLA IN CHINA, FOR EXAMPLE. X DOES NOT OPERATE IN CHINA, BUT YOU COULD IMAGINE A WORLD IN WHICH THE CHINESE GOVERNMENT, TRYING TO GET TO X OR ANOTHER PART OF HIS BUSINESS, IS GOING AFTER TESLA.

THE MORE TOUCH POINTS HE HAS, THE MORE WAYS PEOPLE CAN GET AFTER HIM. CAROLINE: THANK YOU ON ALL THINGS X. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. FOLLOW US ON X AND PLENTY OF OTHER WAYS. ED: IT IS ASTONISHINGLY PACKED IN NEWSPRINT. WE RECAP ALL OF THAT ON THE PODCAST. WHEREVER YOU GET YOUR PODCAST, OF COURSE ON THE BLOOMBERG PLATFORMS AS WELL. FROM NEW YORK CITY AND HERE IN SAN FRANCISCO, HAPPY WEDNESDAY. THIS IS BLOOMBERG TECHNOLOGY.

The DOJ Investigates Nvidia and Tech Stocks Whipsaw | Bloomberg Technology

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NVIDIA's Antitrust Investigation Intensifies

NVIDIA is facing an escalating investigation from the U.

Department of Justice, receiving subpoenas for information related to potential antitrust violations.

The investigation is focused on NVIDIA's market power and business practices, with concerns about its impact on chip supply and pricing.

The DOJ's actions signal a potential ramp-up towards a formal lawsuit, as they also seek information from NVIDIA's industry peers.

NVIDIA's business practices are being scrutinized for potential anticompetitive behavior, drawing parallels to the Microsoft antitrust case.

The goal of the Justice Department's investigation is to create a competitive environment in the crucial AI market, rather than to harm NVIDIA's success.

The current chip shortage is part of the problem, and the aim is to maximize output through a competitive marketplace.

The Impact of Tech Concentration on the Market

Tech concentration is a significant factor for market participants, with a new ETF filing aiming to track 45% of the NASDAQ 100's mega-cap stocks.

NVIDIA's recent drop in stock value has been attributed to AI fatigue and a macroeconomic shift, leading to increased volatility in the tech sector.

The Department of Justice's subpoena for NVIDIA has not significantly impacted the stock's performance, as investors are more concerned about rising competition affecting profit margins.

Broadcom is expected to announce strong quarterly results driven by AI demand and equipment sales rebound.

Informatica is helping clients clean and structure their data for generative AI, aiming to convert data chaos into actionable insights.

The relationship with NVIDIA is crucial for empowering enterprise data management, but the value creation from AI is still in the early stages, with tangible use cases expected to scale up in the next 12 to 18 months.

Intel is facing financial difficulties and frustration in accessing government grants, causing turmoil in the Biden administration's plan for U.

The company is considering various options, including spinning off its manufacturing division and pausing global factory projects, in response to its dire situation.

The Commerce Department is actively reaching out to other chip manufacturers to encourage them to consider production in the U.

, but Intel's major customers have not yet gone into full production.

Altman's plan involves a multi-billion dollar investment in U.

projects, including data centers and energy infrastructure, with support from a global alliance of investors.

The initiative aims to leverage resources for AI development while addressing national security concerns and technology sharing.

The team is also focusing on clean energy solutions to power data centers, with plans to partner with existing organizations to run operations on American soil.

com is positioning itself as a viable alternative to Google, focusing on providing a better user experience for specific queries and boosting productivity for businesses.

The company's strategy includes a consumption-based model for enterprise customers and automating workflows using AI agents.

com is also partnering with NVIDIA to leverage their GPU capabilities and develop advanced technologies for workflow automation.

NVIDIA's Recent Struggles and Elon Musk's Business Dynamics

NVIDIA's stock has faced a significant decline, losing 15.

9% in a week and shedding $279 billion in market cap, the worst day since April.

The company's earnings report, despite a boost, was seen as a disappointment after a 180% year-to-date increase.

Meanwhile, Elon Musk's Starlink reversed its decision and complied with a Brazilian court order to block access to his social network, X, highlighting the complex dynamics of his business empire.