Bloomberg Technology: NVIDIA, AI Trends, and SpaceX Milestones

NVIDIA's resurgence is fueled by strong demand and positive analyst commentary, easing prior concerns about future growth.

### Innovations and Market Movements in Technology and AI
* 📈 "NVIDIA is on track for a **record close**, bouncing back after concerns about product delays and long-term growth plans."
* 💻 Adobe embraces AI, kicking off its annual Adobe Max conference, showcasing its **commitment to integrating artificial intelligence** into its products.
* 🚀 SpaceX celebrates a milestone as it successfully **catches its rocket booster midair**, marking a **significant achievement in commercial space exploration**.
* 📊 The NASDAQ 100 is up 0.5%, reflecting a **risk-on sentiment** as investors gravitate towards major tech names, while Bitcoin and cryptocurrency also see a **5% increase**.
* 🔍 TSMC is expanding its operations in Europe, focusing on **AI chip production**, with the construction of a **new chip plant** in Dresden, Germany.
* 💡 Portfolio manager Michael Green discusses the exuberance around chip companies, suggesting a potential "**positive bubble**" that may lead to **future disappointments**, similar to the .com era.
* 🚗 The gig economy is evolving, with the rise of platforms like **Uber and Lyft** providing alternatives to traditional employment, though challenges such as **driver lockouts** are impacting incomes.
* 🎥 Adobe announces the launch of its new AI video generator, Firefly, as the company aims to **integrate advanced AI tools** into its suite of creative applications, with **future monetization strategies** in place.

>> 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. NVIDIA ON TRACK FOR A RECORD CLOSE. SHARES BOUNCE BACK AFTER SUCCESSFULLY, WHEN CONCERNS ABOUT THE PRODUCT DELAYS AND ITS LONG-TERM GROWTH PLANS. ED: ADOBE'S EMBRACE OF AI. WE WILL TALK ABOUT AI AS THEY KICK OFF THE ANNUAL ADOBE MAX CONFERENCE. CAROLINE: SPACEX CELEBRATES A MILESTONE OVER THE WEEKEND WITH THEIR ROCKET SUCCESSFULLY CATCHING THEIR BOOSTER MIDAIR. LET'S CHECK ON THE MARKETS.

CAROLINE: PRESIDENT BIDEN ANNOUNCING $612 MILLION IN RECOVERY AID FOR AREAS STRICKEN BY HURRICANES AS HE SURVEYED THE AFTERMATH IN FLORIDA. HE SAID THE DAMAGE FROM MILTON ALONE COULD BE $50 BILLION BASED ON EARLY ASSESSMENTS. LET'S TALK ABOUT ACCESS TO AID AND HOW TECHNOLOGY MIGHT BE ABLE TO HELP. FTW VENTURES FOUNDER AND GENERAL PARTNER BRIAN FRANK IS JOINING US. YOU ARE ALL ABOUT FOOD SECURITY, FOOD SAFETY AND INNOVATION AROUND THAT. WHAT INNOVATION IS NEEDED IN THESE MOMENTS? BRIAN: WE ARE IN EARLY STAGE VENTURE FUND FOCUSED ON A SUSTAINABLE FOOD SYSTEM. WE BELIEVE TECHNOLOGY PROVIDES UNLOCKS TO SAFETY, SECURITY, ACCESS, OPTIMAL NUTRITION, AND

ARE TRYING TO DEBATE HOW TO HANDLE SHORT-TERM RENTALS. OTHERS ARE TRYING TO FIND A COMPROMISE THROUGH LIMITS AND REGULATIONS. YOU JUST SAW HER IN THE PACKAGE, WE NOW HAVE NATALIE HERE TO TALK ABOUT SOME OF THE CONCERNS, IF THEY WORK. WHAT ARE WE CURRENTLY SEEING A CITY LIKE NEW YORK TRYING TO COMPROMISE ON? >> NEW YORK CITY INTRODUCED ALMOST A DE FACTO BAN ON SHORT-TERM RENTALS LAST YEAR, BASICALLY RULING OUT SHORT-TERM RENTALS OF LESS THAN 30 DAYS. MORE THAN A YEAR INTO THE LAW WE HAVE SEEN VACANCIES HAVE NOT GONE UP. HOSTS HAVE NOT RELEASED THOUGH SHORT-TERM RENTALS AS EXPECTED, TURNING INTO LONG-TERM RENTALS. THE RENT DECREASES WE HAVE SEEN

META, GOOGLE. THE ADOBE CEO SHANTANU NARAYEN JOINS US NOW ON THE BACK OF THE ANNOUNCEMENT IN MIAMI. WHAT IS INTERESTING IS YOU ARE EATING INTO THE HANDS OF USERS FASTER THAN RIVALS. IS IT BASED UPON WHAT IT IS TRAINED UPON? HOW ARE YOU ABLE TO GIVE IT TO US SO QUICK? >> THANKS FOR HAVING ME ON THE SHOW. MAX IS OUR BIGGEST CREATIVITY EVENT. IT IS THE TIME OUR ENGINEERS TAKE IT UPON THEMSELVES TO SHOW THEIR MAGIC TO THE ENTIRE CREATIVE COMMUNITY. AS YOU POINT OUT, WE HAVE BEEN HARD AT WORK ENSURING OUR FIREFLY MODELS WORKS ON THINGS LIKE IMAGES, VECTOR, AND DESIGN. TODAY IS A BIG DAY BECAUSE WE HAVE BEEN RELEASING OUR FIREFLY VIDEO MODELS. OUR STRATEGY HAS ALWAYS BEEN IT

THE NASDAQ GOLDEN DRAGON INDEX, WHICH TRACKS KEY TECH NAMES IN CHINA TRADING IN THE U.S., IS DOWN BY A PERCENTAGE POINT EVEN THOUGH CHINESE STOCKS WRAPPED UP HIGHER. WE ARE STILL WAITING FOR THE FISCAL STIMULUS FROM CHINA. CHINA BEING FACTORED INTO CRYPTO MORE BROADLY. BITCOIN IS TRADING AT ITS HIGHEST SINCE JULY AS WE DEBATE WHAT IS HAPPENING WITH THE U.S. ECONOMY. HAVE A LOOK AT OVERALL BIG NAMES THAT DRIVE US HIGHER. ADOBE UP 2.3%. WE HAVE A CONVERSATION WITH THE CEO. THE EUROPEAN SHIP EQUIPMENT MAKER'S UP 2.6%. EARNINGS COME OUT OCTOBER 16. NVIDIA IS HELPING TAKE BENCHMARKS HIGHER, ALL BASED ON

MEANS FOR SPACEX EXPLORATION. LAUREN BRESCIA JOINS US. THEY WERE ACTUALLY TWO MILESTONES AND WE NEED TO TALK AND THE STARSHIP COMPONENT OF IT, BUT LET'S START WITH THE BOOSTER, WHY THAT WAS SIGNIFICANT, THE IDEA OF RAPID REUSABILITY. LAUREN: THIS WAS A BIG HURDLE THAT SPACEX NEEDED TO CLEAR IN TERMS OF THE DEVELOPMENT FOR STARSHIP. THE PROMISE IS THAT STARSHIP WILL BE FULLY REUSABLE. SO BOTH PORTIONS OF THE VEHICLE NEED TO SURVIVE AFTER THE LAUNCH. WHEN THEY FIRST PROPOSE THE IDEA, PEOPLE WERE SKEPTICAL. SPACEX HAVE PERFECT LANDING ITS ROCKETS WITH ITS FALCON 9 BUT WHEN THIS WAS PROPOSED, CATCHING THE ROCKET IN MIDAIR RATHER THAN LANDING IT, A LOT

LYFT SOON FOLLOWED SUIT. >> NORMALLY, YOU WOULD BE ABLE TO CLICK THE BUTTON AND GO ONLINE, BUT WHEN YOU ARE LOCKED OUT, WHEN YOU PRESS AGO, NOTHING HAPPENS. >> INDIVIDUAL LOCKOUTS CAN HAPPEN ANYWHERE FROM FIVE MINUTES UP TO EIGHT HOURS. >> WE UNDERSTOOD THIS STEMMED FROM A SIX-YEAR-OLD PAYROLL. >> I STARTED DRIVING UBER TO BE ABLE TO WORK ON MY OWN SCHEDULE. I WENT THROUGH A LOT OF TRAUMA WITH A DIVORCE. I WAS A MESS EMOTIONALLY. BASICALLY, A LOCKOUT IS WHEN YOU CANNOT GO ONLINE TO WORK. ESSENTIALLY, YOU ARE MICRO FIRED. EVERY DAY, I WOULD GET LOCKED OUT OF UBER. IT WAS VERY FRUSTRATING. IT WAS ALSO AFFECTING MY SELF-RESPECT.

THE OUTCOMES WE ALL WANT TO LIVE A HEALTHY AND HAPPY LIFE, ESPECIALLY IN TIMES OF NEED WITH WARS AND DISASTERS TAKING A TOLL ON OUR FOOD SYSTEM. ED: ARE WE TALKING ABOUT HARDWARE OR SOFTWARE? BRIAN: WE ARE TALKING ABOUT ALL OF IT. FROM TECHNOLOGY, BIOTECHNOLOGY, ALL OF THESE TECHNOLOGIES PIONEERED FOR GENERAL AND OTHER INDUSTRIES CAN BE APPLIED DIRECTLY WITHIN THE FOOD SYSTEM. WE ARE TALKING ABOUT REPLACING KOSTAS -- PLASTICS WITH SUSTAINABLE MATERIALS, AI TO SPEED AND OPTIMIZE THE SUPPLY CHAIN. ANY AND ALL TECHNOLOGIES CAN BE APPLIED WITHIN THE FOOD AND AGRICULTURAL SECTORS. CAROLINE: WHAT SIZE OF CHECK ARE YOU HAVING TO WRITE AT THE MOMENT? HOW COMPETITIVE IS IT IN THE

NASDAQ 100 UP .5%. WE WERE HIGHER BY A PERCENTAGE POINT IN THE EARLIER TRADE BUT MONEY WANTED TO GO INTO THE MAGNIFICENT SEVEN NAMES. ACROSS THE BOARD, A RISK ON FEEL. WILL CHINESE STIMULUS COME INTO PLAY? QUICK LOOK AT CRYPTO. WE ARE UP 5%. NASDAQ AND BITCOIN AT THE HIGHEST LEVEL SINCE JULY. WHAT ARE YOU WATCHING? ED: NVIDIA. IF YOU ARE JUST JOINING US THIS MORNING, IT IS A NAME THAT WE WILL WATCH ALL DAY. ON A CLOSING BASIS, IF WE TRADE AT THAT LEVEL, 138, JUST BELOW 139 DOLLARS A SHARE, WE WILL THE CLIPS THAT RECORD HIGH THAT WE CLOSED THAT IN JUNE. PROBABLY ONE DOLLAR AWAY ON AN INTRADAY BASIS FROM A RECORD AS

OVER THE PAST YEAR, WERE RELATED TO OTHER FACTORS. AIRBNB IS ARGUING THE LAW IS NOT AFFECTED AS THE CITY AT HOPE. ED: AS WE RODE IN THE PIECE, THERE ARE TWO SIDES TO THE STORY, AND IN THE MIDDLE, THERE IS COMPROMISE. WHERE HAVE THE COMPANIES AND THE HOST THEMSELVES -- BECAUSE THEY WANT TO MAKE MONEY -- AND THE REGULATORS DOWN COMPROMISE? >> AIRBNB HAS RELEASED A CITY PORTAL, BASICALLY ENCOURAGING MORE TRANSPARENCY, SHARING WAYS THAT CITIES CAN ACCESS THE DATA ON LISTINGS, SO THEY CAN ENSURE BETTER LICENSING REGISTRATION AS WELL AS EASIER WAYS TO COLLECT TAX REVENUE. BY INCREASING THE DAY-TO-DAY SHARE, CITIES CAN ENSURE BETTER ENFORCEMENT. CAROLINE:

IS NOT JUST ABOUT THE MODELS THAT PEOPLE DEVELOPED, BUT THE INTEGRATION WITH THE APPS WHERE THE REAL MAGIC IS. WE HAVE HAD 13 BILLION GENERATIONS WHERE PEOPLE HAVE USED PHOTOSHOP OR ILLUSTRATOR TO DO IT. TODAY, THAT MAGIC COMES TO VIDEO IN PREMIER PRO AND FIREFLY.COM. ED: THE MOST INTERESTING PART IS THE ACCESSIBILITY. THERE ARE NO USAGE LIMITS, ONE. BEYOND THE BASICS OF DESCRIPTION FEES, YOU ARE NOT CHARGING FOR THE AI TOOLS. WILL THAT CHANGE? >> OUR FOCUS IS ON DEVELOPING GREAT MODELS. THEY ARE DESIGNED TO BE COMMERCIALLY SAFE. THEY HAVE BEEN TRAINED ON LICENSING AND PUBLIC DOMAIN CONTENT. WE WANT PEOPLE TO EXPERIMENT WITH IT. THE IMAGING VECTOR AND DESIGN FRONT WE HAVE SET AS PART OF THE SUBSCRIPTION.

OPTIMISM AND AI MORE BROADLY. WE HAVE AN INTERESTING TAKE ON AI. ED: BUCKLE UP. OPENAI IS GOING TO WAR WITH A MAN WHO OWNS A WEBSITE WITH THE NAME OPEN AI, WITH THE SPACE. THIS MAN CLAIMS TO HAVE INVENTED THE VIDEO SHARING TECHNOLOGY LATER MADE FAMOUS BY TIKTOK. IT IS AN INCREDIBLE TALE. INCREDIBLE REPORTING. IT IS PROBABLY ONE WHERE CHRONOLOGY IS IMPORTANT. LET'S START AT THE BEGINNING. OPEN AI AND OPENAI WERE BORN AT THE SAME TIME. TAKE US FROM THERE. >> GUY RAVINE, A TECHNOLOGIST, INVENTOR, WHO LIVES IN SILICON VALLEY HAD COME UP WITH AN IDEA, AND HE CAN DOCUMENT THIS, FOR OPENA AI. THE IDEA WAS IT WOULD BE A NONPROFIT ENGAGED IN DEEP LEARNING RESEARCH AND THE WAY

OF PEOPLE WERE WONDERING HOW THIS WOULD WORK. IT SEEMED TO WORK LIKE A CHARM, AT LEAST FROM WHAT WE SAW. I THINK THEY PROVED A LOT OF SKEPTICS WRONG OVER THE WEEKEND. CAROLINE: NOW NASA GOING FAR AS FAR TO CONSIDER THAT MAYBE WE ARE LANDING ON THE MOON, USING STARSHIP AS EARLY AS 2025. TALK ABOUT WHAT NEEDS TO HAPPEN TO GET US THERE. LOREN: THE CURRENT PLAN IS LANDING IN 2026 WITH PEOPLE. JUST TO CAUTION, THERE IS STILL A LONG ROAD AHEAD FOR STARSHIP. THIS WAS OBVIOUSLY A HUGE MILESTONE FOR THE COMPANY, BUT NEXT THEY NEED TO SHOWCASE THEY CAN REFUEL STARSHIP IN ORBIT. THAT IS ESSENTIALLY LIKE FILLING UP AT THE GAS TANK BUT WITH A LOT MORE ENGINEERING CHALLENGES. THIS WILL BE CRUCIAL TO THAT

AM I JUST A ROBOT GETTING LOCKED OUT? I'M A PERSON, I HAVE TO FEED MY FAMILY. >> LOCKOUTS HAPPEN EVERY HOUR OF THE DAY, EVERY DAY, DESPITE UBER SAYING THEIR SCHEDULE OF OPEN ACCESS TIMES, WHERE PEOPLE SHOULD NOT BE LOCKED OUT. WE FOUND MORE THAN 400 INSTANCES OF LOCKOUTS HAPPENING. THERE IS DEFINITELY POTENTIAL IMPACT ON CONSUMER PRICING. A LOT OF PEOPLE THROUGH OUR INTERVIEWS LEARNED THEY ARE WORKING WAY BEYOND THEIR USUAL HOURS TO MAKE WHAT THEY MADE BEFORE. ♪ ED: CHECK OUT THE BIG TAKE DAILY PODCAST ANYWHERE YOU GET YOUR PODCASTS. THAT IS ONE THAT YOU DEFINITELY WANT TO CHECK OUT. CAROLINE: MORE ON THE SHERMAN ECONOMY BECAUSE CITIES AROUND THE WORLD

SPACE, OR NOT? BRIAN: THE VENTURE INDUSTRY HAS TAKEN A TURN RECENTLY. WE HAVE SEEN THE AMOUNT OF CAPITAL COMING DOWN. WE ARE STILL WRITING SIGNIFICANT CHECKS OF $250,000, MILLION TO EARLY-STAGE START-UPS THAT TRY AND INNOVATE WHERE THEY ARE BRINGING THE FIRST TECHNOLOGY OUT OF THEIR LABS AND OFFICES TO APPLY IT TO THE FOOD AND AGRICULTURAL SECTORS. ED: IS THIS U.S. CENTRIC OR HAPPENING AROUND THE WORLD? BRIAN: IS HAPPENING AROUND THE WORLD. AT FTW, WE FOCUS ON NORTH AMERICA. WE ARE WORKING WITH REGIONS LIKE SINGAPORE AND SOUTHEAST ASIA TO BRING FOOD SECURITY AND SAFETY TO THEM AS WELL. I AM PERSONALLY AN ADVISOR TO THE FOOD ACCELERATOR.

THEY NEED MORE TRANSPARENCY ULTIMATELY ON WHAT PEOPLE ARE MAKING IN ORDER TO MAKE A WIN-WIN WITH THE TAX REVENUE TO THE GOVERNMENT. NATALIE: THAT IS THE ARGUMENT BASICALLY. AIRBNB IS SAYING A BLANKET BAN LIKE NEW YORK CITIES IS A CAUTIONARY TALE AND THAT CITIES SHOULD NOT GO THAT FAR. ED: THE QUESTION IS WHAT HAPPENS NEXT. NEW YORK CITY IS AN INTERESTING EXAMPLE WHERE THERE IS A DEBATE ABOUT WHETHER LAWS GET CHANGED. NATALIE: INTERESTINGLY, A MONTH AGO, THIS RULE CAME INTO EFFECT, AIRBNB TOOK STOCK OF THE EFFECTIVENESS OF THIS RULE, SAID THEY ARE APPEALING TO THE CITY TO PERHAPS ADDRESS SOME PROVISIONS IN THE LAW SO THAT SOME HOSTS CAN COME BACK TO THE PLATFORM. ED:

WELL, WHICH I KNOW THE TEAM WILL BE WATCHING CLOSELY. IT IS KIND OF LIKE NVIDIA IS BACK, AND THAT IS OUR FOCUS, AS IT HAS BEEN FOR THE LAST TWO YEARS. CAROLINE: WHY IS IT BACK, UP 11 PERCENT OVER THE MONTH? TALK GOES THROUGH THE RISK ON FEEL OF NVIDIA. WHAT HAVE THEY MANAGED TO TELL THE MARKET? >> THANKS FOR HAVING ME. RECENT WEAKNESS IN NVIDIA SHARES WERE LARGELY ABOUT THE BLACKWELL CHIPS, SOME ENGINEERING SNAGS. PEOPLE DIDN'T KNOW HOW TO SUSS OUT THE IMPACT THIS WOULD HAVE ON FUTURE GROWTH. HOWEVER, THE CEO TALKED ABOUT HOW STRONG DEMAND HAS BEEN, POSITIVE ANALYST COMMENTARY LOOKING AT ORDERS FOR THE BLACKWELL CHIP. THAT HAS HELPED TO EASE

DO NOT WANT YOU TO THINK ABOUT CREDIT. WE JUST WANT YOU TO EXPERIENCE THE MAGIC THAT EXISTS. VIDEO MIGHT BE A LITTLE DIFFERENT. WE HAVE ANNOUNCED IT IS AVAILABLE IN A BETA FORM. THE COST OF PRODUCING VIDEO IS CLEARLY MORE EXPENSIVE. WE WANT TO GET IT IN THE HANDS OF PEOPLE, HAVE THEM TRY IT, GIVE US FEEDBACK, MAKE SURE IT IS SPECIFIC. AS THE AMOUNT OF VIDEO BEING GENERATED IS EXPANDING, WE WILL PROBABLY HAVE DIFFERENT PRICING MODELS FOR THAT. ED: ONE OF THE FEATURES IS TO TAKE AN EXISTING PIECE OF VIDEO AND USE GENERATIVE AI TO EXTEND IT. AS SOMEONE WHO TRAINED IN THE EARLY CAREER ON PREMIERE, I AM EXCITED TO USE THAT. HOW TECHNICALLY DIFFICULT WAS IT FOR ADOBE TO ACHIEVE THAT,

BECAUSE THEY HAVE TO CATCH AND THEN RELAUNCH THE BOOSTER OVER AND OVER AGAIN WITH BACK-TO-BACK LAUNCHES IN ORDER TO PERFORM THOSE REFUELING MISSIONS. ED: STARSHIP GETS TO ORBITAL ALTITUDE, SPEED, GOES AROUND THE WORLD, CONTROL LANDS INTO THE INDIAN OCEAN. TALK ME THROUGH THAT PART. LOREN: DURING THE LAST FLIGHT, STARSHIP STRUGGLE COMING BACK FROM SPACE, WE SAW IT BURNING UP AND BREAKING APART PLUNGING THROUGH THE ATMOSPHERE. SPACEX SAID THEY DID A TOTAL REVAMP ON THE HEAT SHIELD ON STARSHIP, AND FROM WHAT WE SAW, IT SEEMED TO SURVIVE RELATIVELY INTACT. DEFINITELY NOT AS SIGNIFICANT AS THE PRIOR FLIGHT. SO IT DID SURVIVE. WHEN THEY TRIED TO SPLASH DOWN

CONCERNS THAT PEOPLE HAD ABOUT THE STATUS OF THIS TRIP, FUTURE PRODUCT ROADMAP, AND IN GENERAL THE COMPANY'S ABILITY TO KEEP DELIVERING THESE CHIPS, WHICH ARE OF COURSE AT THE FOREFRONT OF THE WHOLE AI TRADE. ED: WHAT IS INTERESTING ABOUT NVIDIA, IT IS CONSTANT COMMUNICATION. JEN-HSUN HUANG DOES A LOT OF INTERVIEWS, BUT HE ALSO APPEARS ON STAGE ALL THE TIME. HE IS AT INVENT CIRCUMFERENCES ALL THE TIME. YOU COVER A BROAD RANGE OF TECHNOLOGY COMPANIES. HAVE YOU EVER KNOWN A COMPANY TO COMMUNICATE THAT MUCH? >> GREAT QUESTION. CERTAINLY, HE IS OUT THERE A LOT, AND INVESTOR FAVORITE, SO EVERY TIME HE SPEAKS, EVERYONE LISTENS. EVERYTHING THAT HE HAS BEEN SAYING HAS BEEN PRETTY POSITIVE.

THAT THEY WOULD LURE RESEARCHERS AWAY FROM GOOGLE WAS THEY WOULD SAY THAT EVERYTHING WOULD BE OPEN. THE RESEARCH WOULD BE OPEN. IT WOULD ALL BE DONE FOR THE BENEFIT OF HUMANITY. IF YOU KNOW ANYTHING ABOUT OPENAI, THAT IS ALSO THEIR ORIGIN STORY. THEY JUST LAUNCHED SOME MONTHS AFTER RAVINE CAN DOCUMENT HE WAS PITCHING THE STORY, THEY LAUNCHED IN DECEMBER OF 2011. CAROLINE: THE PITCHING IS IMPORTANT BECAUSE YOU INITIALLY THOUGHT HE MIGHT BE A SCAMMER AND THEN YOU WENT TO KEY NAMES IN SILICON VALLEY AND ASKED IF HE IS LEGIT AND ONE KEY PERSON SAID HE IS. >> THAT IS WHAT MAKES THIS STORY SO INTERESTING AND DIFFERENT. IT AT FIRST SEEMED LIKE THIS

IT IS HAPPENING EVERYWHERE. WE ARE TRYING TO BRING THE BEST TECHNOLOGIES NEEDED TO FEED 10 BILLION PEOPLE ON THE PLANET BY 2050. CAROLINE: BRIAN FRANK, THANK YOU FOR JOINING US. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. WE STILL HAVE ALL EYES ON RECORD HIGHS FOR NVIDIA. ED: KEEP AN EYE ON NVIDIA. THERE MAY BE A FRESH RECORD. PLENTY TO RECAP ON THE BROADCAST. SHOUT OUT TO THE TEAM IN NEW YORK CITY. THE BIG TEAM IN SAN FRANCISCO. ONE DAY DOWN, FOUR TO GO. THIS IS BLOOMBERG TECHNOLOGY. ♪

NATALIE LUNG ACROSS TWO IMPORTANT STORIES IN THE GIG ECONOMY. APPRECIATE IT VERY MUCH. COMING UP ON THE SHOW, ONE GIANT LEAP FOR SPACEX AS IT STUNS THE WORLD, CATCHING A ROCKET BOOSTER MIDAIR, AS YOU ARE SEEING ON THE SCREEN. IT'S A REALLY BIG MOMENT FOR COMMERCIAL SPACE. CAROLINE: EXTRAORDINARY MOMENT. KEEPING AN EYE ON ROBLOX. APPARENTLY, THEY ARE HAVING SOME CONCERNS. CURRENTLY OFF BY 1.2% ON THE GAMING COMPANY. THIS IS BLOOMBERG TECHNOLOGY. >> WE CAN SEE THOSE CHOPSTICKS. [CHEERS] ED: SPACE X CAUGHT THE ATTENTION OF THE WORLD OVER THE WEEKEND, MAKING A FIRST HISTORIC CATCH MIDAIR FOR ONE OF ITS BOOSTERS. FOR MORE ON WHAT THIS LEAP

VERSUS THE WORK YOU HAVE DONE IN PHOTO? >> EVERY TIME YOU SHOW SOMETHING IN PHOTO AND PEOPLE SAY THAT IS MAGIC, TO YOUR POINT, THE ABILITY TO EXTEND THAT INTO VIDEO ACROSS EVERY FRAME IS SO MUCH MORE COMPUTATIONALLY INTENSIVE AS WELL AS CHALLENGING TO DO. THE USE CASES ARE SO DRAMATIC. YOU HAVE A VIDEO FOR SOME REASON. UNFORTUNATELY, IT GOT CLICKED OFF AND WANT TO EXTEND IT. YOU HAVE VIDEO YOU WANT TO ALIGN WITH AUDIO. THE SONG IS NOT LONG ENOUGH. HOW DO YOU DO IT? I THINK THE GENERATIVE EXTENT CONCEPT WHICH IS PERVASIVE IN VIDEO EDITING IS SOMETHING THE CUSTOMERS WOULD REALLY LIKE. THE OTHER THING WE HAVE DONE IS BECAUSE WE CAN NOW ANALYZE EVERY FRAME, WHEN YOU WANT TO REMOVE SOMETHING THAT INADVERTENTLY CAME INTO THE

IN THE OPEN, THEY WERE ABLE TO FLIP AND DO A PRETTY PRECISE LANDING. IT REALLY WAS A BIG MILESTONE FOR BOTH THE BOOSTER AND STARSHIP, SHOWCASING MAYBE THIS ROCKET CAN BE FULLY REUSABLE. TO BE FAIR, SOMETHING THAT SPACEX HAS NOT BEEN ABLE TO ACHIEVE YET WITH ITS FALCON 9. PART OF IT IS STILL DESTROYED AFTER LAUNCH, SO THIS WOULD BE A PARADIGM SHIFT FOR SPACEX AND THE LAUNCH INDUSTRY IN GENERAL. CAROLINE: LOREN CRUSH, FANTASTIC TO GET YOUR EXPERTISE. CAROLINE: WELCOME BACK BLOOMBERG TECHNOLOGY. WE HAVE A RISK-ON FEEL THAT WE ARE DIALING BACK FROM THE PREVIOUS HIGHS ON THE NASDAQ. ALL EYES ON EARNINGS AND CHINA.

YOU MAY HAVE TO GO BACK TO SOMEBODY ELECTED STEVE JOBS, I GUESS. CAROLINE: GOING BACK TO COMPANIES THAT ARE THAT MUCH IN THE SPOTLIGHT, APPLE ONE OF THEM WITH STEVE JOBS, NOW NVIDIA. WHAT IS THERE PERHAPS REMAINING IN TERMS OF CONCERNS? IT LOOKS LIKE PEOPLE HAVE A RUNWAY OF ORDERS FOR THE NEXT 12 MONTHS. >> THEY ARE CONSIDERED PRETTY FAR AHEAD OF THE CURVE AS FAR AS COMPETITION GOES. A LOT OF OPTIMISM ABOUT THE NEW CHIP. WE HAVE SEEN A LOT OF THEIR MAJOR CUSTOMERS STICKING WITH THEIR CAP EXPLANTS, SO THERE IS NOT A CONCERN THAT PEOPLE WILL PULL BACK ON THEIR SPENDING, THAT THEY WILL SEE A DROP OFF IN DEMAND RELATED TO THAT. OUTSIDE VALUATION, THAT IT MAY BE THE BIGGEST CONCERN THAT YOU

WAS WHAT THEY CALL A TRADEMARK TROLL LAWSUIT. LIKE MAYBE HE IS TRYING TO USURP IT FROM THEM. BUT THEN, IT TURNED OUT SOME OF THE PEOPLE HE PITCHED TO, ONE IN PARTICULAR, TOM GRUBER, THE COINVENTOR OF SIRI, RESPECTED NAME IN AI, HE IS BACKING GUY RAVINE UP. HE SAYS NOT ONLY DID HE PITCH ME THIS IDEA, I CAN DOCUMENT HE HAD IT BEFORE OPENAI LAUNCHED. IT IS NOT A CASE OF SOMEONE JUST CLAIMING SOMETHING OUT THERE. THERE ARE PEOPLE TO WHOM HE PITCHED AND THERE ARE DOCUMENTS SHOWING HE PITCHED THE IDEA BEFORE IT LAUNCHED. WHETHER THAT LEGALLY MATTERS IS GOING TO BE DECIDED IN THE COURTS. ED: IF YOU ARE JUST JOINING US ON BLOOMBERG TECHNOLOGY,

IMAGE, YOU DO NOT HAVE TO GO THROUGH THE ENTIRE PROCESS AGAIN. YOU CAN DO POST-PRODUCTION CHANGES. PRETTY INCREDIBLE STUFF. WE ARE EXCITED TO SEE WHAT OUR CUSTOMERS DO WITH THIS. CAROLINE: YOU TALKED ABOUT THE COMPUTATIONAL FEAT, THE INTENSITY. WHAT ABOUT YOUR OWN ACCESS TO COMPUTE? >> WE HAVE PARTNERED WITH NVIDIA FOR YEARS MAKING SURE ALL OF THIS STUFF IS AVAILABLE. IT WAS GREAT TO HEAR FROM JENSEN THIS MORNING WHEN HE HEARD ABOUT OUR NEW ANNOUNCEMENTS. WE ARE PARTNERING WITH ALL OF THE CHIP MANUFACTURERS AS WELL AS ALL OF THE HYPER SCALARS BECAUSE OUR INTENT IS NOT JUST TO MAKE THIS MAGIC AVAILABLE THROUGH THOSE CHIPS BUT ALSO INCREASINGLY PEOPLE ARE TALKING ABOUT HOW YOU CAN MAKE THIS AVAILABLE ON A MOBILE VISE OR

WILL HEAR BUT PEOPLE ARE PRETTY POSITIVE. ED: ON AN INTRADAY BASIS, MORE LIKELY ON A CLOSING BASIS, HEADING FOR A FRESH RECORD. THANK YOU. TSMC IS EXPANDING ITS GLOBAL FOOTPRINT AND PLANNING MORE PLANTS IN EUROPE WITH A FOCUS ON THE MARKET FOR AI CHIPS, ACCORDING TO THE TAIWAN NATIONAL SCIENCE MINISTER WHO DID NOT SPECIFY A TIMELINE FOR THE EXPANSION IN EUROPE. THIS AS TSMC BROKE GROUND ON A CHIP PLANT IN DRESDEN, GERMANY. >> THEY HAVE STARTED THE CONSTRUCTION OF THE FIRST FAB IN DRESDEN. THEY ARE ALREADY PLANNING THE NEXT PHASE FOR DIFFERENT MARKET SECTORS AS WELL. OF COURSE, THE MOST IMPORTANT WOULD BE THE AI MARKET.

THIS REALLY IS A MUST READ IN THE BUSINESS MAGAZINE. THERE IS THE TRADEMARK DISPUTE. THERE IS A SUIT. UPDATE US ON THE LATEST. >> OPENAI HAS PREVAILED IN THE ARGUMENT SO FAR. THEY GOT A PRELIMINARY INJUNCTION AGAINST GUY RAVINE SO HE CAN NO LONGER USE THE TRADEMARK OR THE DOMAIN OPEN. AI WHICH HE BOUGHT WILL BEFORE OPENAI LAUNCHED. HE FILED A COUNTER SUIT AGAINST THEM CLAIMING THEY STOLE THE IDEA FROM HIM. MOST OF THE COUNTERSUIT WAS DISMISSED AND HAVE BEEN REFILED. HE HAS HAD SETBACKS IN COURT BUT THEY ARE A LONG WAY FROM WHAT WOULD EVENTUALLY BE A JURY TRIAL IF THEY GOT THAT FAR. THAT WOULD BE A MINIMUM MONTHS IF NOT OVER A YEAR AWAY. CAROLINE:

IN A HYBRID ENVIRONMENT. AS LONG AS THEY KEEP PERFORMING IN TERMS OF WHAT THEY ARE DOING INNOVATION ON THE CHIPS, WE WILL TAKE ADVANTAGE OF EVERY SINGLE AVAILABLE GPU AND CPU FOR OUR CUSTOMERS. CAROLINE: THAT IS EXPENSIVE. INVESTORS HAVE BEEN EXCITED AROUND GENERATIVE AI. THEY WANT TO SEE THE REVENUE. THEY WANT TO SEE THE PROFITABILITY. DO YOU FEEL YOU ARE ABLE TO GIVE MORE CLARITY TO THE MARKET AS TO WHEN THIS BECOMES VERY REVENUE-GENERATING? >> YOU ARE ABSOLUTELY RIGHT. ALL OF THE FOCUS THUS FAR HAS BEEN ON TRAINING. PEOPLE HAVE BEEN CREATING ALL OF THE MODELS. ALL OF THE INVESTMENT HAPPENING IS ON THE TRAINING SIDE OF THE EQUATION. HOWEVER, I THINK ADOBE HAS DELIVERED MORE GENERATIVE AI

CAROLINE: LET'S GET AN INVESTOR TAKE. MICHAEL GREEN IS A PORTFOLIO MANAGER AT SIMPLIFY ASSET MANAGEMENT, $6 BILLION UNDER ASSET MANAGEMENT. YOU HAVE A RICH HISTORY OF THINKING THROUGH THE MACRO. WHAT DO YOU THINK ABOUT THE EXUBERANCE STILL AROUND CHIP NAMES, IS IT RIGHT TO HAVE THAT? MICHAEL: THIS IS A NATURAL CHALLENGE, WHAT WE CALL A POSITIVE BUBBLE, DRIVING INNOVATION IN A SPACE THAT REQUIRES IT, BUT THERE IS ALMOST NO REAL OPPORTUNITY FOR THE COMPANY IS CURRENTLY INVOLVED TO EARN THE RETURNS ACTUALLY BUILT INTO THESE EXPECTATIONS. WE MAY SEE THAT NOT HAPPEN THIS MONTH OR THIS QUARTER, BUT AS WE LOOK FORWARD, THERE WILL INEVITABLY BE A PERIOD OF DISAPPOINTMENT.

THESE THINGS ALWAYS TAKE A LOT OF TIME. WHAT DO YOU THINK THE RESPONSE WILL BE FROM OPENAI TO THE INVESTIGATION? HOW HAVE YOU BEEN TALKING TO THE COMPANY, WITHOUT A SPACE? EVAN: THE COMPANY DID NOT HAVE MUCH INTEREST IN COMMENTING. THEY FILED A LOT OF ARGUMENTS IN COURT. THEIR COMMENTS ARE IN THEIR LEGAL BRIEFS. THE ONLY GENERAL COMMENT WAS WE TOOK LEGAL ACTION TO STOP THE INTENTIONAL USE OF OPENAI FROM INTENTIONALLY MISLEADING USERS. ONE OF THE BIG QUESTIONS IS, WHY DO THEY NOT JUST SETTLE THE LAWSUIT? THE MONEY THEY ARE SPENDING IN LAWYERS IS PROBABLY YOU COULD GUESS ALREADY GREATER THAN THEY MIGHT HAVE SETTLED THE LAWSUIT FOR. THE LONGER THAT GOES ON, THE MORE THAT IS TRUE. WHETHER THEY WANT TO MAKE AN EXAMPLE OF GUY RAVINE OR WITH A

SOFTWARE THAN VIRTUALLY ANY OTHER LARGE COMPANY THAT HAD A TRADITIONAL BUSINESS. IF YOU THINK ABOUT WHAT WE HAVE DONE WITH ACROBAT, PHOTOSHOP, AND CLEARLY THE EMPHASIS HAS TO GO ON INFERENCE BECAUSE THAT IS WHERE PEOPLE ARE SEEING VALUE AND WHERE IT IS GETTING EMBEDDED IN WORKFLOWS. WE WILL HAVE THREE OR FOUR DIFFERENT WAYS IN WHICH WE MONETIZE IT. WE HAVE A FINANCIAL ANALYST Q&A WHERE WE WILL TALK ABOUT THIS AS WELL. CERTAINLY, OUR SUBSCRIPTION TIER PRICING WILL HAVE THE ABILITY TO USE SOME OF THE AI. WE WILL HAVE ADD-ON SERVICES. FIREFLY SERVICES IS USED BY EVERY LARGE ENTERPRISE. THEY WANT TO UNDERSTAND HOW THEY CREATE A CUSTOM MODEL WHERE THEY CAN HAVE BLOOMBERG ASSETS IN A CUSTOM MODEL WHERE ONLY BLOOMBERG IS ALLOWED TO GENERATE WITH THAT CONTENT.

VERY SIMILAR TO THE BUILDOUT AROUND THE .COM CYCLE WHERE THE INTERNET EXCEEDED OUR EXPECTATIONS, CHANGING HOW WE SHOP AND LIVE OUR LIVES, BUT AT THE SAME TIME, EXTRAORDINARY DISAPPOINTMENT, AS MANY OF THE COMPANIES INVOLVED WERE NOT ABLE TO REALIZE THEIR POTENTIAL. ED: THAT PIECE OF NEWS ABOUT TSMC IN EUROPE SHOWS THERE IS DATA CENTER AND CHIP CAPACITY ACTIVITY IN THE STATES, THE SAME IN EUROPE. ARE THERE PROS AND CONS TO FOCUS YOUR ATTENTION AS AN INVESTOR ON JUST ONE? MICHAEL: I'M NOT REALLY SURE I WOULD EMPHASIZE ONE VERSUS THE OTHER. AGAIN, THIS IS ALL DATA THAT CAN BE TRANSMITTED. A LOT WHAT HAPPENS IN EUROPE WILL BE SEPARATE FROM PRIVACY RULES AND WE WILL SEE INVESTMENT AROUND THAT.

NEW FUNDING ROUND. IT DOES NOT MATTER HOW MUCH THEY SPEND; THOSE WILL BE THE QUESTIONS. I THINK THE PRESSURE MOUNTS THE CLOSER YOU GET TO ACTUALLY HAVING A JURY TRIAL. CAROLINE: EXTRAORDINARY STORY, GO READ IT. EVAN RATLIFF, THANK YOU. WHAT HAVE YOU GOT? ED: MANY MORE STORIES IN TODAY'S TALKING TECH. BANK OF AMERICA HAS FOLDED ITS FINTECH INVESTMENT BANKING TEAM INTO THE TECH PRACTICE, MOVING ABOUT 50 BANKERS INTO THE 200-STRONG TECH GROUP, ACCORDING TO THE CHAIRMAN OF GLOBAL M&A. THIS IS A MOVE REFLECTING AN INDUSTRYWIDE SHIFT IN FINANCIAL SERVICES TOWARD SOFTWARE. SPEAKING OF FINTECH, SOFI HAS REACHED A DEAL TO USE $2 BILLION OF FUNDS FOR THE ORIGINATION OF PERSONAL LOANS.

I THINK WE HAVE MULTIPLE WAYS IN WHICH WE MONETIZE IT TODAY ALREADY. PERFORMANCE MARKETERS WILL HAVE A NEW PRODUCT TODAY WHICH IS CALLED GEN STUDIO SO YOU CAN INCREASE THE AGILITY BY WHICH YOU PLACE ADS ON EVERY ADVERTISING SYSTEM. WE ARE EXCITED ABOUT THE TECHNOLOGY AND THE VALUE BUT WE ARE ALSO CONFIDENT CUSTOMERS WILL SEE THE VALUE AND ENABLE US TO MONETIZE IT. ED: INTENSE INTEREST IN YOUR M&A STRATEGY. WE WERE WITH THE RUNWAY CEO LAST WEEK. WILL YOU LOOK AT COMPANIES LIKE RUNWAY? >> WE ARE PARTNERING WITH RUNWAY. AS IT RELATES TO MODELS, WE BELIEVE ADOBE FOR ITS CORE DOMAINS SUCH AS IMAGING AND DESIGN, AND WE WILL HAVE OUR OWN MODELS, BUT PEOPLE WANT US TO SUPPORT THIRD PARTY MODELS IN OUR APPLICATIONS BECAUSE THAT IS THE INTERFACE EVERYBODY

THE UNITED STATES IS JUST HEAD AND SHOULDERS ABOVE THE REST OF THE WORLD IN TERMS OF DATA CENTER CAPACITY. I FORGET THE EXACT NUMBER, BUT IT IS ABOUT 10X THE NEXT LARGEST COMPETITOR. AT THE SAME TIME, WE ARE SEEING EXTRAORDINARY GAINS IN THE EFFICIENCY OF THESE CENTERS, WHICH MEANS THE CAPACITY ENDS UP MUCH GREATER THAN WE THOUGHT. SAME UNDERLYING PHILOSOPHY THAT WE SAW WITH THE FIBER-OPTIC BUILDOUT IN THE 1990'S WHERE WE EXPECTED TO USE TONS AND TONS OF DARK FIBER, BUT WE ONLY USE A SMALL FRACTION OF IT AS OTHER FORMS OF TECHNOLOGY IMPROVED ALONGSIDE IT. IN THIS CASE, WE ARE SEEING EFFICIENCY GAINS FROM REWRITING ALGORITHMS TO OPTIMIZE THEM FOR AI, DATA CENTER APPLICATIONS.

THE ONLINE BANK SAID THE AGREEMENT WILL EXPAND THE LOAN PLATFORM BUSINESS BROKERING DEALS FOR PREQUALIFIED BORROWERS AND ORIGINATING LOANS ON BEHALF OF THIRD PARTIES. SOUTH KOREA'S EXPORTS AND TECH PRODUCTS SLOWED FOR A THIRD STRAIGHT MONTH, INDICATION GLOBAL DEMAND MAY BE PEAKING ACCORDING TO GOVERNMENT DATA. IT SHOWED MEMORY CHIP SHIPMENTS STARTING TO LOSE MOMENTUM. CAROLINE: LET'S TALK THE FAST FASHION GIANT'S POTENTIAL LONDON LISTING THAT HAS ATTRACTED CONTROVERSY. THE U.K. PRIME MINISTER ADDRESSED THESE CONCERNS TODAY WITH STEPHANIE FLANDERS. >> WE HAVE TO THINK ABOUT WHAT IS RIGHT. WE HAVE TO HAVE HIGH STANDARDS. WE DO HAVE HIGH STANDARDS. NOT LEAST FOR EXAMPLE TO SAY BETTER RIGHTS AND PROTECTION

USES. WE HAVE DEMONSTRATED THAT WITH VIDEO WITH RUNWAY. WE WILL SUPPORT CUSTOM MODELS. IF YOU CALL FOR NIKE OR BANK OF AMERICA, YOU HAVE ACCESS TO THAT. THIS IS GOING TO BE SUCH AN EXCITING AREA. EACH MODEL I BELIEVE WILL HAVE ITS OWN PERSONALITY. RATHER THAN TRY TO CREATE ONE MODEL THAT IS A SUPERSET, WE WILL SUPPORT ALL OF THESE MODELS BECAUSE THEY WILL DO SOME THINGS DIFFERENTLY AND BETTER. ED: ADOBE CEO SHANTANU NARAYEN, IT IS GREAT TO FINALLY HAVE YOU ON BLOOMBERG TECHNOLOGY. THANK YOU FOR YOUR TIME. WE WILL TALK ABOUT HOW FOOD TECH CAN HELP PEOPLE IN NEED OF AID DURING A DISASTER. BRIAN FRANK JOINS US NEXT. STAY WITH US. THIS IS BLOOMBERG TECHNOLOGY.

IN BOTH PLACES, WE WILL FIND WE HAVE EXCESS CAPACITY THAT EMERGES. INVESTORS IN BOTH CASES SHOULD BE CONCERNED. EUROPE PROBABLY OFFERS A BETTER CONSTRUCTION ENVIRONMENT BECAUSE THEY HAVE DIFFERENT RULES. THEY WILL NEED TO MAKE THEIR OWN INVESTMENTS. CAROLINE: EVERYONE GOING ALL IN ON THE INFRASTRUCTURE BUILDOUT, BUT WHERE ELSE IN THE VALUE ADD OF AI SHOULD YOU BE BROADENING OUT TO? MICHAEL: WE ARE STARTING TO GET TO THE POINT WHERE YOU WANT TO THINK ABOUT THE IMPLICATIONS OF THIS. FINANCIAL INSTITUTIONS CAN BENEFIT FROM THE ABILITY TO RUN ANALYSIS OR PROCESS COMPONENTS. WE ARE STARTING TO SEE SHOPPING ALGORITHMS. CERTAINLY SEEING THINGS LIKE SUPPORT BOTS IN TERMS OF THE TRADITIONAL CALL CENTER WORK, EFFICIENCY GAINS.

FOR PEOPLE IN THEIR WORKPLACE ARE GOOD FOR GROWTH. WE ARE CLEAR WHERE WE STAND ON STANDARDS. WE ARE PRAGMATIC. SUBJECT TO THOSE STANDARDS, WE WANT INVESTMENT INTO THE UNITED KINGDOM BECAUSE WE DESPERATELY NEED GROWTH IN THE ECONOMY. WE HAVE NEEDED IT FOR 14 YEARS. WE ARE DETERMINED TO TURN IT AROUND. >> THE GOVERNMENT WOULD NEED TO BE SURE SHEIN IS NOT USING FORCED LABOR BEFORE IT COULD LIST IN THE U.K.? >> I'M NOT GOING TO GO INTO INDIVIDUAL BUSINESSES. WHAT I WILL SAY IS HIGH STANDARDS DO MATTER TO US SO OF COURSE WE WILL FOCUS ON THAT WAS A FEATURE ON THE RIGHTS OF THE WORKFORCE. WE HAVE BEEN REALLY CLEAR WE SEE THAT AS TWO SIDES OF THE

THERE ARE IMMENSE. ONE OF THE REAL CHALLENGES WE WILL FACE IS THAT DISRUPTION. WE ARE UNCERTAIN OF IT. PEOPLE REMEMBER THE COMPARISONS OF AMAZON TO BARNES & NOBLE, AND NOW THEY NO LONGER REMEMBER BARNES & NOBLE EXCEPT FOR A COLLEGE TEXTBOOK DESTINATION. MY HUNCH IS WE WILL SEE THE SAME THINGS. THE WORLD IS CHANGING RAPIDLY, A PERIOD OF UNCERTAINTY. YOU HAVE TO PRICE THAT INTO THE OPTIONALITY OF THESE NAMES. ONCE YOU REALIZE THAT, IT MAY TURN OUT THE VAST MAJORITY ARE UNABLE TO DELIVER ON THE OPPORTUNITY IN FRONT OF THEM. WE ARE SEEING LOTS OF INTERESTING OPPORTUNITIES BEING CREATED IN MORE MUNDANE AREAS LIKE FIXED INCOME, WHERE WE ARE BEGINNING TO RECOGNIZE THE

SAME COIN WHEN IT COMES TO GROWTH. GOOD EMPLOYMENT RIGHTS AND PROTECTIONS ARE NOT A DRAG ON GROWTH. THEY ARE FUNDAMENTAL FOR GROWTH. I THINK ALL GOOD BUSINESSES UNDERSTAND THAT. IN MANY PLACES, THEY HAVE ALREADY PUT IN PLACE THE RIGHTS AND PROTECTIONS WE ARE BRINGING FORWARD IN LEGISLATION. ED: COMING UP, ADOBE LAUNCHES A NEW AI VIDEO GENERATOR. WE WILL SPEAK WITH THE ADOBE CEO NEXT. WHAT A CONVERSATION. THIS IS BLOOMBERG TECHNOLOGY. ♪ EXCLUSIVE INTERVIEW TOMORROW AT 12:00 EASTERN. THIS IS BLOOMBERG. ADOBE MAKES ITS AI VIDEO DEBUT, ANNOUNCING NEW TOOLS ALLOWING FOR VIDEO GENERATION. THE COMPANY CALLS IT FIREFLY, AND IT IS SET TO BE IMPLEMENTED, TAKING ON THE LIKES OF OPENAI.

LEVEL OF INTEREST RATES IS UNLIKELY TO BE SUSTAINABLE. ED: SORRY TO INTERRUPT YOU. WHEN WE CONSIDER THE U.S. ECONOMY ON BLOOMBERG TECHNOLOGY IN PARTICULAR, IT IS OFTEN THROUGH THE LENS OF INFRASTRUCTURE, THAT END OF THE ECONOMY. BUT SPECIFICALLY WHEN IT COMES TO THE LABOR MARKET, YOU ARE THINKING ABOUT THE GIG ECONOMY. WE ARE GOING DEEPER ON THAT LATER IN THE PROGRAM, SO I WONDER IF YOU COULD OUTLINE YOUR THESIS FOR US. MICHAEL: ONE OF THE THINGS WE ARE DEALING WITH IS THIS RADICAL CHANGE. 2009, UBER, APP-BASED ECONOMY, THAT SHIFTED WITH LYFT AND UBER X, TO ALLOW ANYONE TO USE THEIR CAR TO MAKE

ADDITIONAL MONEY AS A SIDE JOB OR SUBSTITUTE FOR UNEMPLOYMENT. THE INTERESTING THING THAT HAS HAPPENED, WE HAVE NOT HAD A NORMAL PERIOD OF UNEMPLOYMENT. ONE OF THE THINGS WE ARE FINDING IS THE GIG ECONOMY IS EFFECTIVELY A BETTER DESTINATION THAN FILING FOR UNEMPLOYMENT CLAIMS. THAT WOULD IMPLY THAT THE LABOR MARKET IS QUITE A BIT WEAKER THAN WE ARE GETTING IN THE HEADLINE DATA. WE ARE SEEING THIS IN SENTIMENT SURVEYS OF CONSUMERS AND HOUSEHOLDS, BUT IT IS NOT SHOWING UP IN THE OFFICIAL DATA. ONE EXAMPLE I GIVE IS CALIFORNIA. IF YOU FILED FOR UNEMPLOYMENT, YOUR MAXIMUM BENEFIT IS 450 DOLLARS A WEEK OR A MAXIMUM OF 26 WEEKS. THAT PUTS YOU AT HALF THE

POVERTY LEVEL FOR A TWO-PERSON HOUSEHOLD. IF YOU ALREADY HAVE A CAR AND YOU ARE FACING THE DEPRECIATION OF DRIVING IT, UBER ALLOWS YOU TO REPLACE A MUCH LARGER FRACTION OF YOUR INCOME, UTILIZING AN ASSET THAT YOU NO LONGER USED TO COMMUTE TO WORK. THAT IS A KEY STAR WE HAVE TO FIGURE OUT. I WANT TO EMPHASIZE, I THINK IT IS BETTER THAT PEOPLE ARE FINDING ALTERNATIVES IN THE PRIVATE SECTOR, BUT THOSE HAVE THEIR OWN FEEDBACK LOOP. AS MORE PEOPLE FIND THEMSELVES DRIVING FOR UBER, THE DEMAND FOR THESE SERVICES AND THE GIG ECONOMY CONTINUES TO DECLINE, AND THE COMPETITION FOR THE REVENUES ASSOCIATED WITH THEM INCREASES. WE ARE STARTING TO SEE THE SIDES OF THAT. PEOPLE DRIVING FOR UBER ARE

DISCOVERING THAT THEIR INCOMES ARE STARTING TO FALL SIGNIFICANTLY. THIS WILL BE A CHALLENGE FOR OUR TIME. DO WE UNDERSTAND THE DATA COMING IN, PARTICULARLY WITH CENTRAL BANKERS TRYING TO BE AS DATA-DEPENDENT AS THEY CAN? THAT DATA CAN CHANGE RAPIDLY IF WE HAVE A MISUNDERSTANDING OF THE SYSTEM. ED: MICHAEL GREEN, PORTFOLIO MANAGER, THANK YOU VERY MUCH. COMING UP, WE WILL GO IN DETAIL INTO A BLOOMBERG INVESTIGATION WHICH LOOKS INTO HOW UBER AND LYFT USES A LOOPHOLE TO DENY DRIVERS IN NEW YORK CITY MILLIONS IN PAY. ALSO A QUICK LOOK AT SHARES I THINK OF SNAP WHICH GOT A DOWNGRADE IN THE MARKET EARLIER THIS MORNING, TAKING A LITTLE BIT OF A HIT. NOT AS SEVERE AS IT WAS IN THE

MARKET OPENED DOWN A PERCENTAGE POINT. 1.1%. WE WILL GET MORE ON THAT LATER IN THE PROGRAM. THIS IS BLOOMBERG TECHNOLOGY. ♪ ED: THIS WAS THE BLOOMBERG BIG TAKE OVER THE WEEKEND. UBER AND LYFT HAVE FOUND A MONEY-SAVING LOOPHOLE IN NEW YORK CITY. LOCKOUTS. BY SIMPLY PROVIDING THAT PREVENTING DRIVERS FROM LOGGING INTO THE APP, THE COMPANY CAN SAVE HUNDREDS OF MILLIONS OF DOLLARS IN DRIVER PAYOUTS, ACCORDING TO BLOOMBERG ESTIMATES. LISTEN TO THIS. >> THE SUMMER OF 2024 WAS A STRESSFUL TIME TO BE AN UBER OR LYFT DRIVER IN NEW YORK CITY. >> THERE ARE LOCKOUTS CURRENTLY. >> UBER BEGAN PREVENTING DRIVERS FROM WORKING RANDOMLY HOURS AT A TIME.

Nvidia Roars Back and Adobe Unveils AI Video Generator Tools | Bloomberg Technology 10/14/24

Welcome to the Bloomberg Technology YouTube channel. Subscribe for original series and mini-docs on game-changing technologies, profiles on innovators, live conversations with experts, and breaking technology news & analysis from Bloomberg TV.

Bloomberg Technology

NVIDIA's shares are rebounding, driven by strong demand for its Blackwell chips and positive analyst commentary.

The company's CEO's frequent communication and positive outlook have eased concerns about future growth.

Meanwhile, TSMC is expanding its global footprint with new chip plants in Europe, focusing on the AI market.

Airbnb's Response to City Regulations and SpaceX's Historic Milestone

Airbnb is promoting transparency with a city portal to help cities access listing data and improve licensing and tax revenue collection.

The company is appealing to New York City to address provisions in the new law, aiming to bring some hosts back to the platform.

Meanwhile, SpaceX made history by catching a rocket booster midair, a significant step towards rapid reusability and its goal of fully reusing the Starship vehicle for future missions.

Adobe's Generative AI: Transforming Video Production

Adobe's generative AI tools, now available in Premiere Pro and Firefly.

com, focus on accessibility and experimentation, with no usage limits.

The company's approach to video production is different, offering a beta version and planning to implement varying pricing models as demand grows.

Adobe's partnership with chip manufacturers and hyper-scalers aims to provide the necessary computing power, while the company plans to monetize its AI services through subscription tiers and add-on services for large enterprises.

SpaceX's Milestone and OpenAI's Legal Battle

SpaceX's Starship and booster achieved a precise landing, potentially marking a shift towards fully reusable rockets.

The NASDAQ is experiencing a pullback, with Chinese tech stocks impacting the market and Bitcoin trading at its highest since July.

OpenAI is in a legal dispute with Guy Ravine, who claims to have invented the idea for the organization, leading to a trademark dispute and counterclaims.

OpenAI's Legal Challenges and Industry Moves

OpenAI has been facing legal challenges, with the company's comments primarily found in their legal briefs.

The pressure is mounting as the lawsuit drags on, raising questions about the company's spending on legal fees.

In other news, Bank of America is restructuring its fintech team, SoFi is expanding its loan platform, and South Korea's tech exports are slowing down.

Additionally, the UK Prime Minister addressed concerns about the fast fashion giant's potential London listing, emphasizing the importance of high standards and worker protections.

Lastly, Adobe has launched a new AI video generator, Firefly, aiming to compete with other tech giants.

The Impact of Data Centers and the Gig Economy

Data center and chip capacity activity is increasing in both the U.

having 10 times the capacity of its closest competitor.

Efficiency gains in data centers are leading to excess capacity, similar to the fiber-optic buildout in the 1990s.

The gig economy, driven by companies like Uber and Lyft, is becoming a better destination for workers than filing for unemployment, indicating a weaker labor market than the official data suggests.

Adobe's New Product and Food Tech Innovation

Adobe is launching Gen Studio to enhance ad placement agility and is confident in its monetization potential.

The company is partnering with Runway and plans to support both its own and third-party models in its applications.

FTW Ventures is focusing on sustainable food systems and is investing in early-stage startups to innovate and improve food security and safety globally.

The Impact of Uber and Lyft's Practices on Drivers

Uber and Lyft are using lockouts to deny drivers in New York City work, saving the companies millions in payouts.

These random lockouts, lasting from five minutes to eight hours, have caused significant frustration and financial strain for drivers.

Despite the companies' promises of open access times, over 400 instances of lockouts have been reported, leading to increased competition for work and a decline in driver incomes.