Meta to Deploy Homegrown Chips, Uber to Offer Zoox Rides

11 Mar 2026 · 41 min · 21 chapters

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Podcast Episode Summary: Meta to Deploy Homegrown Chips, Uber to Offer Zoox Rides

Podcast Title

Bloomberg Tech Description: A daily news program focused on technology, innovation, and the future of business, hosted by Caroline Hyde and Ed Ludlow.

Episode Title

Meta to Deploy Homegrown Chips, Uber to Offer Zoox Rides

Episode Overview In this episode, Hyde and Ludlow discuss significant developments in the tech world, including:

  • Oracle's robust third quarter sales and optimistic outlook amid ongoing demand for AI computing.
  • Meta's plans to introduce four new generations of in-house AI chips by the end of 2027.
  • Uber's partnership with Zoox to provide Amazon's robotaxi services in Las Vegas starting this summer.

Key Highlights

  1. Oracle's Third Quarter Performance
  2. Sales Performance: Oracle reported a fiscal year sales forecast of $90 billion, with capital expenditures holding steady at $50 billion.
  3. Investor Confidence: The strong results provided reassurance to investors amid previous anxieties regarding execution and operational risks.
  4. AI Demand: There is sustained demand for AI computing, with Oracle's new co-CEO highlighting timely deliveries to major clients, indicating robust operational performance.
  1. Meta's In-House AI Chips
  2. Chip Development: Meta is developing four generations of its AI chips (MTIA 300, MTIA 400, MTIA 450, and MTIA 500) to enhance its AI workload capabilities. The goal is to optimize performance, cost, and energy efficiency.
  3. Production Timeline: MTIA 300 is already in production, while MTIA 400 is set for deployment. Future generations will focus on large-scale AI inference by 2027.
  4. Supply Chain Strategy: Meta intends to balance custom silicon development with acquisitions and partnerships with established chip manufacturers like NVIDIA and AMD.
  1. Uber and Zoox Partnership
  2. Robotaxi Services: Uber plans to incorporate Zoox's autonomous vehicles into its platform, allowing customers in Las Vegas to hail robotaxis.
  3. CEO Insights: In an interview, Uber CEO Dara Khosrowshahi emphasized the distribution benefits of the partnership, noting synergy between Uber's established customer base and Zoox's innovative technology.
  4. Customer Experience Focus: The initial rollout will prioritize the quality of the customer experience and data sharing between Uber and Zoox to enhance operational efficiency.

Additional Discussions

  • AI's Impact on Employment: Goldman Sachs' Matthew Weir discussed the broader implications of AI on the job market, indicating a potential displacement of jobs juxtaposed with job creation in new sectors.
  • Investment Trends: The episode covers ongoing investments in technology and AI, highlighting the dynamic nature of the tech landscape as companies adapt to rapid innovation cycles.

Conclusion The episode reflects on the resilience and adaptability of tech businesses in the face of evolving demands and competitive landscapes. Both Oracle and Meta are positioned to leverage their innovations in AI to maintain market leadership, while Uber's foray into autonomous vehicle services marks a significant shift in urban transportation dynamics.

Listening Information For more insights and detailed discussions, listeners can find the podcast on Apple, Spotify, and iHeart.

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

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Oracle's Strong Sales Report

1:40 to 2:05

Analysis of Oracle's latest sales report and outlook for AI demand.

“Coming up, Oracle reports strong sales and issues in Outlook that suggests little let up in demand for AI computing.”

Market Reactions to Oracle

2:05 to 2:58

Discussion on how Oracle's performance affects market perceptions and investor sentiment.

“There's one big mover in technology and it's Oracle on track for its best day since September, up around 11, 12 percent.”

Inside Oracle's Earnings Call

2:58 to 4:21

Insights from Oracle's earnings call and expectations for AI capacity delivery.

“Right now, it's all about, as you both said, that execution risk.”

Goldman Sachs on Capital Expenditures

4:21 to 5:48

Discussion on capital expenditures and its significance in evaluating the market.

“that, you know, despite the noise, we're handing over capacity just like we said we would.”

AI's Impact on Jobs and Economy

5:48 to 7:54

Exploring the effects of AI on job displacement and economic growth.

“You have a very clear line, which is the primary determinant in equity markets and equity prices is earnings.”

Long-term Effects of AI

7:54 to 11:20

Analyzing the long-term implications of AI on the workforce and the economy.

“there's certainly a competitive risk, but we certainly don't think that this is an existential one where there's so much focus on the terminal value.”

Meta's AI Chip Development

12:39 to 14:01

Details about Meta's in-house AI chip program and future plans.

“So there's a lot of noise about AI, but time's too tight for more promises.”

Meta's Chip Deployment Plans

14:01 to 15:10

Learn about Meta's strategy for in-house chip development and AI workloads.

“Those go into liquid-cooled servers like these.”

Acquisitions to Boost Chip Talent

15:11 to 16:30

Explore how Meta's acquisitions are enhancing their chip-making capabilities.

“own chip plans, the in-house and custom silicon with Bloomberg's Riley Griffin, who came with me to Fremont.”

Insights from Bloomberg's Chip Facility Visit

16:31 to 17:41

Get insights from a visit to Meta's chip-making facility and their current projects.

“do that in parallel with that additional headcount?”
Show all 21 chapters

NVIDIA's Investment in AI Infrastructure

17:43 to 18:34

Understand NVIDIA's strategic partnership and investment in AI data centers.

“Now, in other news, NVIDIA will invest$2 billion into Nebius.”

Databricks' GenieCode Launch

18:35 to 21:04

Discover how Databricks' GenieCode streamlines code deployment for AI models.

“What we've just had news this week of Nscale and the fact that they've got new funding, got more people on the board, Nick Clegg, Sheryl Sandberg.”

The Future of Databricks and AI Models

21:05 to 24:19

Learn about Databricks' expansion and how it plans to enhance AI offerings.

“we were talking about things that were out of completing code.”

China's Restrictions on OpenClaw AI Apps

24:20 to 27:59

Examine China's recent restrictions on AI applications due to security concerns.

“So we will be public, but I don't think now is a very good time.”

Uber and Zoox's Robo-Taxi Collaboration

28:00 to 32:00

Learn about the partnership between Uber and Zoox to introduce robo-taxis.

“Earlier, the CEOs of both companies sat down with Ed in an exclusive interview.”

Michelle Volz on Defense Tech and Supply Chain

34:40 to 39:31

Explore insights from Michelle Volz on investing in defense technology.

“We've outsourced a lot of our manufacturing overseas to China, and now we're realizing we need to be able to resupply our weapon systems, our components.”

Tech News Updates: Anthropic, Grubhub, and AI in Chip Design

39:31 to 42:00

Get the latest tech news including developments from Anthropic and Grubhub.

“Yeah, it's time now for Talking Tech, Ed.”

Engineering Software and AI Models

42:00 to 42:56

Explore the nuances of engineering software and the integration of AI models.

“You're one of the biggest EDA names, right?”

Google's Strategic AI Investments

42:56 to 43:34

Learn about Google's investment in Animage and its implications for AI content.

“And it's aiming to battle AI slot videos on YouTube and YouTube Kids.”

Understanding AI Slop and Its Impact

43:34 to 44:32

Discuss the concept of AI slop and its effects on children's content consumption.

“They have had a problem over at YouTube, especially over the last year or two, with AI slop and with content that a lot of parents and child experts think is more exploitative than educational for children.”

Animage's Role in Kids Media

44:32 to 45:16

Examine Animage's position in the children's media landscape and competition.

“bit more attention on AI slot for toddlers, babies, and children.”
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Transcript

Automatic transcript. May contain errors.

0:00Caroline Hyde:Adobe is turning AI promise into marketing reality. A reality where personalization feels more human, automation feels authentic, and customers feel more connected to your brand. From AI frenzy to ROI, it starts with Adobe.

0:17Ed Ludlow:So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions. Not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business.

0:44Caroline Hyde:Let's create smarter business. IBM.

0:51Caroline Hyde:With Bali from iShares, you get access to both monthly income and growth potential in one simple ETF. It's the best of both worlds. Discover Bali. iShares large cap premium income active ETF. iShares. The market is yours. Visit www.iShares.com to view perspectives for investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. Risks include principal loss and the use of derivatives, which could increase risks and volatility. Monthly income is not guaranteed. Prepared by BlackRock Investments, LLC. Bloomberg Audio Studios. Podcasts.

1:23Caroline Hyde:Radio. News.

1:29Caroline Hyde:Bloomberg Tech is live from coast to coast with Caroline Hyde in New York and Ed Ludlow in San Francisco.

1:40Ed Ludlow:This is Bloomberg Tech. Coming up, Oracle reports strong sales and issues in Outlook that suggests little let up in demand for AI computing. We break down the results. Plus, Meta plans to deploy four new generations of its in-house AI chips by the end of 2027 to help power its rapidly expanding AI workloads. And Uber will let customers hail robo-taxis from Amazon Zoox starting in Las Vegas this summer. We'll hear from both companies in an exclusive interview later this hour. There's one big mover in technology and it's Oracle on track for its best day since September, up around 11, 12 percent.

2:16Ed Ludlow:The numbers are very clear. Sales of$90 billion for the fiscal year starting in June. Capital expenditures holding at$50 billion. The backlog is rising. And so the market's looking at this and saying, OK, the AI demand story is intact. Now it's about execution risk and credit risk. And how is Oracle going to manage cash to fund all of this? There's a lot more behind the numbers, Caro. There is. And we can dig into them and the results of Bloomberg's Brody Ford. Look, they did enough to stay off any anxiety. They're sticking to just that 50 billion in capital expenditure. And the numbers thus far, particularly in the offering of cloud and the infrastructure side, really strong.

2:57Caroline Hyde:Exactly. Right now, it's all about, as you both said, that execution risk. I mean, we have to remember that Oracle was kind of the poster child for Wall Street getting scared about all these big data centers not going quite right or the margins being upside down. But the results last night gave a lot of comfort, right? They showed that things are progressing, they're recognizing revenue, the margin is reasonable. And so these are kind of all the messages that investors were hoping to hear from Oracle.

3:25Ed Ludlow:broody take us inside the earnings call what was it like you know going into it we had broken this story about abilene not expanding from what was a set 1.2 gigawatts to potentially two gigawatts and the markets reacted as far as i can tell on the transcripts it didn't come up but there were lots of questions about like how oracle is going to pull this off yeah for sure i think the big

3:49Caroline Hyde:question underlying a lot of it is how are the big builds going, right? And the indicator that some of these are going well is that the revenue is getting recognized. That means capacity is getting handed over to big customers like OpenAI. The line in the transcript I thought was interesting was that their new co-CEO Clay McGuirk said that 90 % of what we delivered this quarter was on time or ahead of schedule. I think that was probably a kind of response to a lot of anxiety out there about potential delays or things kind of going sideways that, you know, despite the noise, we're handing over capacity just like we said we would.

4:27Ed Ludlow:Brody's got the Tech in Depth newsletter out about how Oracle's pulling every lever in its AI cash crunch. Really worth reading. Brody, thank you very much. That's the story right now, right, in markets. What is happening on the demand side? What is happening in the supply side? And what is happening in the cash supporting all of it? Matthew Weir, Goldman Sachs Managing Director, joins us now. It's really interesting because for a very long time, we were zeroed in on capital expenditures, and that was the be-all and the end-all. There are stories on the Bloomberg Terminal today about the credit profile and CDS, for example, on Oracle.

5:02Ed Ludlow:Are investors starting to look deeper and at different data sets to assess the health of what's going on?

5:08Caroline Hyde:Yeah, absolutely. We look, though, at the structure of the national economy and we look at CapEx as a share of GDP. What's interesting to note is that capital formation as a share of GDP is the same level as a percent as it was in 2018. So while we've seen a tremendous amount of investment, especially in the tech and AI space, from a national standpoint, it doesn't feel imbalanced. Now, rightly, investors are starting to wonder what is the return going to be on all of the investment going into AI? We think that there has been a lot of excitement, perhaps over exuberance in places. But clearly, as you mentioned, Ed, that there is a lot of demand still.

5:45Caroline Hyde:And that's something that we think can continue to go.

5:48Ed Ludlow:You have a very clear line, which is the primary determinant in equity markets and equity prices is earnings. 100%. We just had an astonishingly detailed earnings print from Oracle. Yes. What did you learn about the world from it?

6:01Caroline Hyde:Yeah, well, I think going back to what you just said, that demand for AI CapEx is still very, very high. When we think about what determines equity returns, whether you're looking at history since World War II or even the last year, for the S &P 500, 80 % to 90 % of the return comes from earnings. And so the outlook for prices is really predicated on, do you expect earnings to grow? And we do think so. We think earnings growth for the S &P 500 will be about 10 % this year. That is largely predicated on an economy that we think will be growing above trend. We're expecting 2.4 % real GDP growth versus trend growth for the U.S.

6:36Caroline Hyde:of about 2%. That we think will generate that 10 % earnings growth. We think, though, in our base case that the total return, though, for S &P 500 will be about 7%, which means not all of that earnings growth makes its way into the total return, primarily because we think multiples will come down a little bit from their currently elevated levels.

6:56Ed Ludlow:Interesting, because you've sort of been talking about the tech sector not being in a bubble, Matthew, talking about how valuations are relatively reasonable. and certainly Oracle's come down some in terms of its own PE ratios. But talk to us a little bit about the anxiety in the software part of the business. And Oracle spoke and pushed back against that. Have you pushed back against that more broadly?

7:16Caroline Hyde:Yeah, we do think that there should be some concern about the software sector. This, though, is reminding us of a few episodes historically, whether it was the global financial crisis and there were concerns about the U.S. financial sector and existential concerns. If we go back to COVID, there are concerns about the office real estate sector and whether it was dead. We don't think this time is different. Investors, unfortunately, tend to move en masse, especially when pessimism takes over. We think this time is no different. Reality is probably somewhere in between what we've seen in terms of the status quo and the existential concerns that investors have.

7:51Caroline Hyde:We think of this more as an evolution of the sector. there's certainly a competitive risk, but we certainly don't think that this is an existential one where there's so much focus on the terminal value. We think these are absolutely very competitive companies that will continue to evolve over time.

8:08Ed Ludlow:There was a lot of anxiety in the market initially about software. And then look, there was the geopolitical risk that we're now combating day in, day out for a 12 state straight day over with the Middle East and conflict with Iran. Matthew, does that change in any way your perspective on investing into this moment in where you are in the market?

8:27Caroline Hyde:Yeah, we're very focused on Iran. It's terrible from a humanity standpoint. I think, though, we would focus, though, on from an investment standpoint that this resembles what typically happens when there's a geopolitical shock. Over the near term, there is a reaction by financial markets. What we've seen historically and specifically, we've looked at the last 40 years, there are 21 airstrikes in terms of the U.S. in the Middle East, and we do see some patterns emerge. The first is that the initial reaction in markets is that risky assets like equities initially sell off, but then we see the dollar appreciate, we see oil rise, we see bond prices rise, but after about eight weeks, fundamentals, whether economic or corporate fundamentals, reassert themselves.

9:13Caroline Hyde:And the prior trend in financial markets resumes such that after eight weeks, 95 % of the time, U.S. equities are actually above their pre-strike levels by an average of about 4%. So as a consequence, we haven't changed our views. We have a key investment tenant at Goldman Sachs that history is a useful guide. The words this time is different we think are very dangerous. We think that history will repeat itself here and eventually markets will resume their foretrend.

9:45Ed Ludlow:Every day trying to understand the long-term impact of AI on inflation and labor markets. And I know the Goldman House call is that AI may displace a million jobs a year, but there is also job creation happening in parallel. Just what you said about how one might approach that as an investor, from your desk and your perspective, what happens in the short, medium, and long term?

10:08Caroline Hyde:So we think technological innovation is a feature and not a bug of the U.S. equity market and the U.S. economy. The U.S. economy is by far the most innovative globally. It's a key reason that we recommend our clients be strategically overweight U.S. assets. Now, certainly AI is going to boost productivity, and unfortunately, it is going to displace workers. But as you mentioned, Ed, there's a tremendous amount of new job creation each year. Bear with me some numbers here. Sure. There are 170 million jobs in the U.S. Each year, there are about 25 to 30 million jobs either lost or destroyed. But on the other side of that, and this is creative destruction, new jobs are created and there are more new jobs created than jobs destroyed.

10:49Caroline Hyde:So as we put that one million number into context, we think that a lot, if not all of those jobs lost to AI, will be replaced by new jobs. Think about the investment we've seen so far, whether it's the construction of data centers. Think about rising financial market prices. That's increased net worth. And it's increased consumer consumption. And so as we think about the net impact longer term, we're bullish. And we think that this is something that will be additive, even though over the short term there will be some tough adjustments.

11:19Ed Ludlow:Matthew Weir of Goldman Sachs. Great to have your expertise today. Thanks for coming in. Meanwhile, next, Meta plans to deploy homegrown chips to handle AI workloads. I'll have the details next. This is Bloomberg Tech.

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12:19Caroline Hyde:Red Lion makes it easy to feel welcomed, comfortable, and connected wherever the road takes you. Whether you're traveling for business or pleasure, you can spend less and make more of every trip. When you sign up for Sinesta Travel Pass, you'll get their best rates instantly. Go to Sinesta.com to book your stay and unlock the best rates with Sinesta Travel Pass. Here today, roam tomorrow. Join now at Sinesta.com. Terms and conditions apply. So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results.

12:50Ed Ludlow:At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions. Not noise, proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business.

13:12Caroline Hyde:Let's create smarter business, IBM.

13:22Ed Ludlow:this is meta's chip lab in fremont california inside the company's developing the next generations of mtia short for meta training and inference accelerator its in-house ai chip program it's a long-term effort to build the most efficient architecture for meta's internal workloads with four new generations of chips planned over the next two years from ranking and recommendations to large-scale gen ai inference when chips come in from the fab this is where they're validated, tested at the chip, rack and workload level before deployment into Meta's data centers. MTIA 300 is already in production, supporting ranking and recommendations training, helping decide what shows up in your social feed.

14:01Ed Ludlow:Those go into liquid-cooled servers like these. MTIA 400 is moving towards deployment, expanding into broader AI workloads, including Gen AI. Future versions 450 and 500 push further into Gen AI inference with deployments planned in 2027. The effort hasn't always moved as quickly as Mark Zuckerberg and Meta had hoped. Meta has made some acquisitions. It has tried to make some others in an effort to strengthen its in-house chip talent and accelerate progress. AI models are evolving faster than traditional chip cycles, so Meta is speeding up the design process, aiming to improve performance, cost, and power efficiency at scale.

14:40Ed Ludlow:At the same time, the company is striking major supply deals with leading chip makers securing gigawatts of AI computing capacity. The strategy is buy compute at scale from NVIDIA and AMD, but also use custom silicon where Meta's workloads are uniquely its own. Because in the AI race, it isn't just about the models. It's about the compute behind them. Okay, so we broke the story on this one this morning. The reaction in Meta share is kind of muted. Remember, Meta is still a big buyer of NVIDIA and AMD GPUs. Let's get more on Meta's own chip plans, the in-house and custom silicon with Bloomberg's Riley Griffin, who came with me to Fremont.

15:17Ed Ludlow:And it was an interesting experience, right? Like this is both. They want to do custom silicon because they have a lot of internal workloads, lots of AI inference, but they're going to have to keep buying from the big names as well.

15:29Caroline Hyde:Yeah, it's a strategy of more is more is more. And that is for the chips. That is for gigawatts. That is a total diversification approach to securing that compute, given the insatiable demand, Ed, right now for that.

15:44Ed Ludlow:Talk to us a little bit about the M &A that was involved, Riley, to beef up the team, because Ed hinted at it in his piece there, but they were pushed back by one Japanese company, but then were able to buy a local chipmaking focus.

15:58Caroline Hyde:Yeah, so early last year, Meta had made an approach for Furiosa AI, a Korean chipmaker, that rebuked it. It turned down that$800 million offer we then reported in March. Later towards the end of the year, we also reported that Meta was successfully able to acquire Revos. And with that, it's bench of talent. And that was really the key here. They were able to bring in more than 400 employees who are now peppered across MTIA, this team, some of whom we met in Fremont that are making these four different chips. And they're able to do that in parallel with that additional headcount?

16:34Ed Ludlow:I think the specifics really interesting. Like MTIA 300 is real. You know, Meta tells us it's in production and they still regard that as AI, right? Training the AI that results in what shows in your timeline, targeted ads. But actually the next step is Lama running the model. So when you put a request into Meta AI, what else did you see there? I mean, the facility was large and from a dollar perspective, they seem very committed here?

Read the full transcript

17:01Caroline Hyde:It seems like a massive investment. They wouldn't give us a specific figure to how much they're spending on their own in-house chip work. But just seeing the products on the table, you got to believe there are billions at play here. One thing I would have loved to see was MTIA 450 and 500. These are the next generation.

17:20Ed Ludlow:We asked. They showed us the CADs or the EDAs.

17:25Caroline Hyde:No finished product yet. And we're looking to 2027 for that. So two more being released next year. And in six-month increments, which is really notable. Yeah.

17:37Ed Ludlow:It was a great deep dive. I'm looking forward to seeing the next chips. Riley Griffin, thank you very much indeed. Now, in other news, NVIDIA will invest$2 billion into Nebius. Now, as part of a strategic partnership to develop and build AI data centers, you guessed it, which will help Nebius deploy more than, get this, five gigawatts of NVIDIA systems by the end of 2030. Again, this age-old circular financing question comes once more, and NVIDIA putting it in to the end customer for its chips. Nebius, though, has a fascinating history. Of course, it's the Dutch company. It was the holding company of what was once Yandex.

18:15Ed Ludlow:In fact, it's still led by Yandex's co-founder, the Russian business. And it's basically, you know, it's one of the European names. The stock reaction, I guess, not that surprising, right? NVIDIA has made several multi-billion dollar investments in one or another layer of what's happening in AI infrastructure. But at one point, up 18 % on track for its biggest jump since September. I guess a vote of confidence from the main market leader for GPUs that go into the data centers. Yeah, certainly. What we've just had news this week of Nscale and the fact that they've got new funding, got more people on the board, Nick Clegg, Sheryl Sandberg.

18:47Ed Ludlow:so there's a real heating up of those NeoClouds over in Europe as well as CoreWeave over in the US. It's another day and it's another big bit of AI agent news. Databricks is launching GenieCode. It's a built-in autonomous AI assistant for really technical talent. Joining us now in New York, CEO Ali Gozi, who's here for a big sales event that you host here in the city. And Ali, what is this particular bit of code equipment going to do for your talent?

19:13Caroline Hyde:Yeah, so what it is is, you know, we've heard a lot about cloud code and coding agents and so on. But what they do, they're kind of like interns that can write code for you. That's great, but how do you get that code into production? And for that, you need to be sure that, you know, nothing's going to go wrong, that you can measure it and so on. So GenieCode is really about how do you actually get your code into production? How do you measure the data pipelines that power all of the dashboards that you see? And how do you even start building AI models? So what GenieCode can do is it can build a machine learning model for you that can predict prices or estimate how much you're going to sell of this.

19:48Caroline Hyde:And it can do this itself. It just goes, builds machine learning models, iterates on them, does a lot of the things that data scientists previously had to do themselves. It just automates all of that for you. And it's not getting things incorrect.

20:01Ed Ludlow:As the work continues, there's still been a lot of concern that these things are hallucinating the longer term that they work.

20:07Caroline Hyde:Yeah, this is a big problem in the industry. So with this, this is like one piece of the puzzle is what I talked about. the other piece of the puzzle is we also acquired a company called Quotient. And these are the folks behind GitHub Copilot's quality measurement. So there are folks focused on quality measurement, making sure that they can do monitoring of how things are going. So this is the other piece of the puzzle, so that we can actually do that. So when you launch these things and they're running, how can we oversee it to make sure that nothing is going wrong? Or it's sort of, if it's going off track, we can stop it, restart it.

20:39Caroline Hyde:So that's equally important, maybe even more important than the first part.

20:42Ed Ludlow:Ali, it's great to have you back on Bloomberg Tech. Taking in aggregate, launch of Genie Code, acquisition of Quodient, how much at this stage for Databricks is it about product diversity, kind of broadening the offering or suite or platform for your customers?

20:59Caroline Hyde:Yeah, I mean, that's super important, right? Because the space is moving so fast. And just, I think, six months ago, we were talking about things that were out of completing code. To now, everybody has agents that can write the code. So the question is, how do we actually make the code that has been written into production, make sure that they're powering up everything inside of the enterprise, and making sure that we're monitoring it, making sure that we can actually start doing more interesting things with it? Can we build AI models automatically for the business that can predict the business?

21:28Caroline Hyde:So to complete that puzzle and have all the different puzzle pieces, you have to expand. So it is about that. And that's why Quotient and also Genie Code have been added to this.

21:40Ed Ludlow:how defensive was that move? I think about the interest in Cursor right now, what Claude is offering on Anthropic through the coding side, your awareness of the battlefield in AI.

21:54Caroline Hyde:Yeah, I mean, those are great partners and customers that we work with, and we use actually Cursor, and we use Cloud Code internally at Databricks as well. You do, yeah. We do. But those things, they focus on how can we write, how can we help software engineers? What GenieCode really can do is it brings it to the knowledge worker The people that create your dashboards inside of an organization and they make sure that your revenue numbers are correct or the people that make sure that the data that's coming in every day into the organization is correct, nothing breaks, there's not an outage, you don't have a blue screen, the dashboard is out and you can't see it.

22:23Caroline Hyde:Or the people that are building machine learning models that can predict your prices or your costs or doing risk assessment with machine learning models. It automates that portion. So it's sort of very complementary to cloud code and cursor.

22:36Ed Ludlow:And Replit. And I'm interested in vibe coding, like we're all talking about it. And indeed, you've got some slightly less technical talent inside your business who are using Replit. And in fact, Databricks Ventures invested in Replit as of today. So how are you seeing the adoption of AI agents? What does it mean actually for the strength of your data business?

22:56Caroline Hyde:Yeah, so that's a great point. So GenieCode is really for data scientists, for data engineers. These are people that are the knowledge worker that understands data. At Databricks, we have 10 ,000 employees. About 3 ,000, 4 ,000 of them are in this category that they're quite technical, and Genie Code will help them. But we have 5 ,000, 6 ,000 people that are sitting in marketing or in HR or in finance, and they don't have those technical skills. Replit is excellent. They love it. These are people that would never otherwise even touch code, and they're now using Replit themselves, and they're building things that actually work.

23:26Caroline Hyde:And the best part of it is whenever you build a piece of software that works with Replit, it uses a database behind the scenes. And actually, we have very deep partnership with them. so it uses our lake-based offering behind the scenes. So it uses that database that we offer, which is perfect for these kind of agentic tools. So I think Repli is really amazing for democratization to the broader masses. The people that you would never imagine would write a single line of code.

23:48Ed Ludlow:Hey, Ali. Yeah. I'm sorry to interrupt. We just got 30 seconds. I've got to ask you, where are we on Databricks' path to the public markets? Yeah, I knew you were going to ask.

23:59Caroline Hyde:Look, I don't think right now is the best time to be public, so I'm pretty happy to be private to this very moment, right, with everything that's going on in the markets, we are really excited about what we can do with AI. As you can see, we're doing all these acquisitions, we're investing, we're hiring people. So we're focused on this long-term revolution that's happening with AI rather than having to be bogged down about EBITDA and what's happening in the market today. So we will be public, but I don't think now is a very good time.

24:25Ed Ludlow:Ali Gozi, Databricks CEO, I had to ask. Up next, Uber and Zoox. This is Bloomberg Tech.

24:40Ed Ludlow:Okay, China is moving to restrict state-run enterprises and banks from using OpenClaw AI apps, citing security concerns. According to sources, notices have been sent to various agencies in recent days that warned against installing OpenClaw software. Shares of Chinese AI and tech stocks slid on the report. Here with more Bloomberg executive editor Peter Elstrom. I think explain the reporting a bit, you know, the sort of rule or notice that was sent out. And I guess also what OpenClaw is and how it's used in China in the context of that report.

25:16Caroline Hyde:Sure, sure. Well, you guys have talked about OpenClaw a few times in the past. Of course, it's this agentic AI service that started here with Peter Steinberger, who released it to the public. And it was kind of a hit a few months ago. What people may not know quite as well is that in the past couple of weeks, there's just been a frenzy in China about OpenClaw and the service. And this idea that agentic AI can really begin to do things for you if you connect it to your messaging, your finances, to all sorts of other maybe company documents, too. So it's supposed to be a plug-in that you can use through your messaging service, a WhatsApp or WeChat in China in particular.

25:56Caroline Hyde:And there's been this huge uptake over the past couple of weeks. We've seen companies like Tencent and Minimax introduce plugins to be able to use open-claw services that are slightly modified, and their shares have really been soaring on this news. So consumers have begun to adopt it. Some companies have begun to adopt it. And that leads us to where we are today, where this is an exclusive from Bloomberg, where we found out that Beijing has told the state-owned enterprises, the military, government agencies, that they can't adopt this kind of technology because there are risks. You're giving tons of access to a lot of information that could be confidential through the service, and they don't want these organizations to do that.

26:38Ed Ludlow:I mean, Austrian developer Peter Steinberger, who's now gone over to OpenAI, Peter, he was the first to admit that security and safety wasn't his first focus when building out what has become a hugely popular tool. And so, therefore, is China a little bit late to the party here, not only adopting a Western-made piece of tech here, an open source one, but also one that had been admittedly already pushed back by U.S. institutions because for fear that it would go rogue.

27:04Caroline Hyde:I think that's right. I think Steinberger was quite vocal about some of the risks here. I think he was more focused on trying to prove that Gen2K can be useful and that it can be easily accessible if you're able to tap into it through WhatsApp, for example. So I think he was more focused on that side of it. He was kind of deprecating about what the service could actually be used for. But now we're seeing it being taken up in a number of different places, certainly in the US and Europe also, and in Asia with this China explosion of interest. I think the Chinese tech companies have been very quick to pick it up and see how they can adopt it for their own market too.

27:38Caroline Hyde:And I think with those advances, you've seen these organizations take it on, and some of these risks are coming to the fore. I think you're exactly right, though. Cybersecurity experts have been quite worried about agentic AI in general and OpenClaw specifically. good.

27:51Ed Ludlow:Max Claw being relaunched. I mean, so many of them taking on the news. Peter Elstrom, great to have the breakdown. Thank you. Let's take another look at Uber shares right now, because as you see, they earlier in the session had spiked and now still holding on to 3 % gains after the ride-held company announced it would offer users the chance to ride in robo-taxis from Amazon Zoox, starting in Las Vegas this summer. Earlier, the CEOs of both companies sat down with Ed in an exclusive interview.

28:18Caroline Hyde:That hasn't changed. We're doing that. And I've also told you that we'd be practical about our commercial deployment. This is a big market. And so talk to Dara in Las Vegas and L.A. We're really looking forward to bringing our experience and sort of this way to ride to the Uber platform in addition to also being available.

28:43Ed Ludlow:The way to ride is interesting. You know, Uber is not a ride. It is a platform, a marketplace for increasingly different kinds of rides. What is it, Dara, that you think you can help Zoox do that I guess they wouldn't otherwise be able to do on their own?

28:57Caroline Hyde:Well, we bring enormous distribution on a global basis. And I think that there's this narrative of it's either or. Either you go direct to your customer or you go through a platform. And the fact is, if you look, for example, on Uber Eats, you have some of the best brands in the world, whether it's a McDonald's or a Starbucks or Chipotle, having a direct interaction with customers through their own apps, but also using the platform to expand their distribution. And I see the same thing with Zeus as well. You know, Zeus is on his way to create one of the best brands in the business and transportation.

29:31Ed Ludlow:Which you've experienced recently, right? Absolutely. You went and took a ride.

29:33Caroline Hyde:It's a great experience. It's a purpose-built vehicle. And to have that experience on Uber, we think will only magnify what Zoox is bringing to the marketplace.

29:42Ed Ludlow:This is small scale in the first instance, right? You know, Las Vegas and where you're already active and then LA. The mechanics of it are interesting, right? Because as a rider, you are not guaranteed in the first instance that you can choose a Zoox. It's algorithmic. It depends on the circumstances for you to have. I think the language you use is the opportunity to be matched with the Zoox. I guess supply in the first instance is why you've pursued that plan at first.

30:11Caroline Hyde:Yeah, but really, no, because look, it's a platform. It's a global platform. It's available. You have all kinds of people who show up in Las Vegas. Some might know about Zoox, some might not. And the ones who don't probably know about Uber. So why not take advantage of that? That's really all it is.

30:30Ed Ludlow:This is early, but would you just explain, I guess, longer term what the business plan is? Is there a per ride revenue share agreement? How do you split the fare when you're able to charge a fare?

30:41Caroline Hyde:I think for us now, the focus is going to be the customer experience. We want to make sure that whether, obviously, the Zoox direct experience is going to be best of breed, but also having the experience through Uber is going to introduce you to the differentiated experience on Zoox as well. that's really going to be what Aisha and I are focused on.

31:02Ed Ludlow:I would say the economics take care of themselves over the long term. Data is going to be critically important here. So let's start, I guess, Dara, with what data sets can Uber provide Zoox that help them with scale and data sharing that you've got in place?

31:18Caroline Hyde:Well, we are certainly going to work with Zoox in terms of traffic patterns. And now Zoox is going to have access to that data directly as well. But I think the combination of the traffic patterns that we see and the customers that we see, whether local or international, along with Zoox's proprietary data, I think is going to help Zoox be even more efficient as an entity going forward. Yeah, and I'll add to that also the experience of dealing with things or just starting to deal with large events, things that Uber knows how to do in their sleep and will essentially speed up our knowledge of doing that.

31:55Ed Ludlow:That was Uber CEO Dara Khosrowshahi and Zook CEO Aisha Evans. Now, coming up, Michelle Volz, formerly of the American Dynamism team at Andreessen Horowitz, joins us to discuss her new fund and its focus on investing in technical superiority. What a conversation to come. This has been Beck Tech.

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33:55Ed Ludlow:The conflict with Iran. While it's highlighting a concern, some investors and many others have been flagging for a while. Expensive, hard to replace weapons are being used to counter cheap Iranian missiles and drones. Now today, Michelle Volz is joining us, who's a former member of the American Dynamism team over at Andreessen Horowitz. She's been investing in startups looking to address the costly, the slow, the sometimes missing parts of the U.S. industrial supply chain. And Michelle, you've just launched a new firm, Pax VC. You've raised$50 million. You're looking at early stage. But I'm really interested in just this moment that we're in of geopolitical tension, of conflict, and you as an investor in defense tech, but more broadly in supply chain and American dynamism, what do you make of this moment?

34:39Caroline Hyde:Yeah, I think the conflict has really highlighted the gaps that we have in our industrial base. We've outsourced a lot of our manufacturing overseas to China, and now we're realizing we need to be able to resupply our weapon systems, our components. We need to manufacture these things domestically in-house. We need to shore up our critical mineral supply chain. And so many of the companies that I'm investing at and looking at, whether back at Andreessen Horowitz or now, are really focused on this industrial base and making sure that we can, in any sort of future conflict, have the capabilities domestically to be able to fight back.

35:19Ed Ludlow:I mean, the name says it all because Pax, we think of Pax Britannica or Romana or Pax Americana of like sort of the dominance of one particular global force and the stability that brings. But you've talked about how in this competitive area that we're currently in, maybe Pax Americana isn't so solid, but you're looking at Pax Technica. So where in particular are you excited about? Which particular technology innovations have you found it worth to put your money in? Totally. And I mean, I think the name

35:48Caroline Hyde:impacts, like you said, says it all, where the eras of relative stability have been defined by who is in power and who has the most technological power. And I think for us in America to be able to ensure continued relative stability in the world, we need to make sure our robotic systems are incredible, our supply chain and our ability to mine and refine critical minerals. I invested in a mining company called Mariana Minerals that's working to reshore all of our capacity to bring all these critical minerals to the industrial base. I think looking around corners, what should we prepare against for future threats?

36:30Caroline Hyde:We should be looking at biosecurity and biodefense. We should be looking at all sorts of things on the AI and what that does for cybersecurity. And so I think there's an element of like, how do we reshore and re-industrialize? And how do we see around corners for what are the threats coming next?

36:48Ed Ludlow:Michelle, hi, it's Ed. It's good to see you. Welcome to the show. I'll go back to basics just for a second. So you were at Andreessen Horowitz and you were part of this American Dynamism team. And the thesis was like simply supporting the national interest. And you've decided to go out and do something almost solo, right? And I just wonder if you reflect a little bit on the decision making behind that, the pros and cons of going from such a big team within a big firm to doing this with PAX.

37:18Caroline Hyde:Totally. And Andreessen Horowitz is an incredible place. Some of the most brilliant people, lots of scale. But I love the early stage and I love the sort of zero to one when companies are just getting off the ground. And at that point, you don't quite need the firepower of a big multi-stage. You almost need a trusted partner in the trenches with you, helping block and tackle for all the small things, like getting a company off the ground. And then you can bring in these big multi-stage firms that have all these resources to really pour gasoline on the fire that starts burning. And so it's just my favorite stage to be, and I love being really, really close with the founders there.

37:58Ed Ludlow:Without putting words in your mouth, you talk about this idea that often the founders themselves, themselves, they're kind of ahead of the VCs that are backing them, even if they're like, you know, VCs that have the operator background or the founder background. How are you going to catch up? You know, how are you going to put yourself in a place where you are moving at the same rhythm or pace as the people you want to back?

38:20Caroline Hyde:Totally. I would say my style of founder that I like is somebody that has a lot of experience in the domain they're going after and a sort of unique view or unique right to win, even if that is the category that hasn't yet been mainstream or people have seen. Like the founders should be the ones dictating what is the future. And if you start to see patterns of, okay, a lot of smart people are working in this category, it feels like even if I haven't seen it, they are seeing something and I should really spend more time and get up to speed. But really it's all about having a network of experts in these domains to be able to bounce things off of and get the ideas, you know, solidified.

39:02Caroline Hyde:But like the founders should be the smartest people in the room. Venture capitalists should not be.

39:08Ed Ludlow:Michelle, just really, really quick. Did you take any portcos with you? Like, how does that work? We just have 15 seconds.

39:16Caroline Hyde:I invested through my fund in some of my old Andreessen Horowitz portcos, which was a very big honor for them to want me back on their cap table.

39:25Ed Ludlow:Appreciate that. We just wanted to check that one. Michelle Bowles, founder and managing partner of Pax VC. Thank you for your time. Carrie, we've got some more news. Yeah, it's time now for Talking Tech, Ed. And first up, Anthropic. But it's told a judge it could lose billions of dollars in revenue this year after the Trump administration declared the company a U.S. supply chain risk. Now, the startup made a case for urgency to the San Francisco judge a day after it was sued, it sued the Defense Department. Now, a hearing is set for March 24th. Plus Grubhub, well it's going to test drone delivery of takeout orders for the first time as part of a limited three-month pilot program in the area of Greenbrook, New Jersey, starting next week.

40:02Ed Ludlow:Now this is the company's latest experiment with automation technologies after using sidewalk robots on some US college campuses. And Nintendo. Shares gained as much as 10.5 % in their biggest rally since April as the surprise success of the new Pokemon game helped offset those worries about rising memory costs. Physical copies of Pokemon Pocopia have sold out at several major retailers in the U.S., with Amazon even raising its price to around$80.

40:34Ed Ludlow:Last year, Synopsys closed a$35 billion acquisition of engineering software firm Ansys. Now, the focus turns from integration to execution. We spoke with CEO Sussinghazi about how AI is transforming chip design and manufacturing. Take a listen.

40:51Caroline Hyde:What our customers are facing, beside the supply chain challenges and the global stress that we're dealing with, there's a shortage of engineering. They cannot get enough engineers to deal with that complexity. So AI helps augment the existing engineers. The second aspect of it, reducing the cost. You can reduce the cost by improving the yield. Memory is a fantastic example. No matter how much the memory companies try to expand capacity by building factories, you need to be able to have better yield. That's where we come in to help them design the actual physics of manufacturing with the design phase to improve the yield.

41:34Caroline Hyde:So those are the components and reducing the design cycle. Traditionally, chip design was 18 to 24 months. Now you have customers like NVIDIA and other talking about the design rhythm of 12 months. That is not possible without injecting AI everywhere in the flow. And when you go to manufacturing, you're able to improve your yield.

41:56Ed Ludlow:So, Sassim, what conclusions did you reach in recent weeks after the sell-off in software names about the long-term definitive impact that AI will have on EDA? You're one of the biggest EDA names, right? But you're not the only one.

42:14Caroline Hyde:Unfortunately, it was a naive approach to say that all software is the same. You're going to have some software where LLMs, foundation models, yes, is a perfect application to, let me call it, replace. But when you look at the engineering software, I'll go back to the physics aspect of it. We run, we code, and we deliver software to our customers, but that's not the moat. The key differentiation are the solvers to translate from an architecture design to an actual manufacturing product. So I believe it was absolutely an overreaction by putting every company that delivers software in the same categorization.

42:57Ed Ludlow:Synopsis CEO, Sasin Ghazi there. Let's turn our attention to Google now. And it's aiming to battle AI slot videos on YouTube and YouTube Kids. By backing companies, it sees it actually creating high quality AI content. This includes a very small but focused$1 million strategic investment in an AI animation studio, Animage. Let's get more with Alexandra Levine, who covers social media for Bloomberg. Look,$1 million is but nothing to Google, but it's saying something about what content it wants to back.

43:28Caroline Hyde:Exactly. $1 million is nominal, not only for Google, but also for the company, which has raised a ton of money over the last several years. But I think what is significant about Google's backing of this company, Animage, is that it is really making a bet that AI can be used to make really strong quality content for children who are using both YouTube and YouTube kids. They have had a problem over at YouTube, especially over the last year or two, with AI slop and with content that a lot of parents and child experts think is more exploitative than educational for children. And so this is really a swing to try to take that on.

44:02Ed Ludlow:Alex, for the Blumeo Tech audience, what is AI slop?

44:06Caroline Hyde:AI Slop is what we are now often calling spammy, clickbaity, repetitive, low-quality, slimy-looking content that you see not only on YouTube, but also on pretty much every major social media platform at this point. And it is often repetitive, something that I think is particularly concerning for younger viewers because they are really developing their brains at early ages when they start watching a lot of this stuff. And so that's why there has been a bit more attention on AI slot for toddlers, babies, and children.

44:39Ed Ludlow:I mean, Animage, co-founded back in 2022, is an extraordinary, like billions of views. Why is it the first kids media business for Google to build?

44:48Caroline Hyde:So it is not the only kids media business out there. I think the biggest, probably best known competitor of Animage is Moonbug, Moonbug Entertainment, which is the company behind things like Cocomelon and Blippi. But I think that if you look at some of the Google AI accelerators, other investments, you'll see that they are very much focused on other companies in the media space. This is the first, I think, focus on the kids space, which I think says a lot about its priorities for 2026.

45:15Ed Ludlow:Bloomberg's Alex Levine. Thank you very much. Jam-packed, but that does it for this edition of Bloomberg Tech, Cara. Yeah, don't forget to check out the podcast. You can find it on the terminal. You can also find it online on Apple, Spotify, and iHeart. From New New York and San Francisco. This is Bloomberg Tech.

45:33Caroline Hyde:The news doesn't stop on the weekends. Context changes constantly. And now Bloomberg is the place to stay on top of it all. Hi, I'm David Gura. Join us every Saturday and Sunday for the new Bloomberg This Weekend. I'm Christina Ruffini. We'll bring you the latest headlines, in-depth analysis and big interviews. All the stories that hit home on your days off. And I'm Lisa Mateo. Watch and listen to Bloomberg this weekend for thoughtful, enlightening conversations about business, lifestyle, people, and culture. On Saturday mornings, we put the past week's events into context, examining what happened in the markets and the world.

46:07Caroline Hyde:Then on Sundays, we speak with journalists, columnists, and key political figures to prepare you for the week ahead. Join us as soon as you wake up and bring us with you wherever your weekend plans take you. Watch us on Bloomberg Television, Listen on Bloomberg Radio, stream the show live on the Bloomberg Business app, or listen to the podcast. That's Bloomberg this weekend, Saturdays and Sundays, starting at 7 a.m. Eastern. Make us part of your weekend routine on Bloomberg Television, radio, and wherever you get your podcasts.

From the publisher

Bloomberg’s Caroline Hyde and Ed Ludlow discuss Oracle’s strong third quarter sales and full year outlook as demand for AI computing shows no sign of letting up. Plus, Meta plans to deploy four new generations of its in-house AI chips by the end of 2027 to help power its rapidly expanding AI workloads. And the CEOs of Uber and Zoox discuss their new partnership that will allow Uber customers to get robotaxis from Amazon's Zoox in Las Vegas, starting this summer.

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