Nvidia's Jensen Huang Heads to China, Archer Aviation's Air Taxi Plans
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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. ♪♪

Live from San Francisco, this is Bloomberg Technology. Coming up, NVIDIA under pressure as Jensen Huang heads to China. Plus, arch-raviation plots in New York City network for flying taxis. And TSMC earnings project confidence ahead of a critical week of tech.

We have some breaking news crossing the Bloomberg terminal. A federal judge says Google illegally monopolized some online advertising technology markets. It is a blow to a very key part of this company's business. We're showing the stock

It moved to a session low, down 2% following those headlines. Bloomberg's Kayleigh Lyons joins me from Washington. Okay, the judge has given a partial ruling. So in some areas, yes, it says that Google has a monopoly in advertising tech markets, not in others. What is the language the judge used? What do we know?

Yeah, that's exactly right, Ed. The judge is finding that Google has violated the Sherman Antitrust Act, Section 2 of it specifically, by willfully, and this is the judge's words, acquiring and maintaining monopoly power in the open web display publisher ad server market and the open web display ad exchange market. So servers and exchanges are what they have found to be

found to violate antitrust laws here. And the judge goes on to say that the court is going to be setting a briefing schedule and a hearing date to determine the appropriate remedies for these antitrust violations. It becomes a question, of course, of what those remedies are, knowing that this is not the first antitrust difficulty that Alphabet is facing, as Google already was found in a separate case to have also monopolized the search market. And the Justice Department is looking for a spinoff of its Chrome browser.

specifically in a case related to search. So it becomes a question of whether or not there may be advertising portions of Google's business that also will be looking at spinning off if that is what the U.S. pursues. The judge is going to consider all avenues. But the point here, Ed, is this is a second big loss for Google in the courts as they have been found to violate antitrust rules when it comes to ad exchanges and servers. The judge did not

find justification of a monopoly for a third market of tools that is used by advertisers to buy display ads, but still on two out of three, essentially, the judge has ruled against this giant technology company. Often antitrust headlines, the stock can be insulated from it, but we're down 2%. There's a clear reaction here, Bloomberg's Katie Lyons, out of DC with an excellent summary of that breaking news. There is a lot happening in financial markets right now. This is a sort of picture of the session. And

The themes of the moment are very similar to what we've discussed all week long. We're down about four-tenths of a percent on the NASDAQ 100, but the underperformance is in the semiconductor space. That's the Philadelphia Semiconductor Index, or SOX. It is under pressure in large part because of NVIDIA. NVIDIA's market cap now below $2.5 trillion. The news continues to be that the United States requires them to hold an export license to ship

H20s, the custom chip they made for the China market to that market. They did a write-down. We're waiting to see what happens next. Jensen Huang is in Beijing as we speak. TSMC is now at a session kind of low. It's up four-tenths of a percent, but it's lost a great deal of its gains. Very simple story. This is the contract manufacturers of the world, the fabricator of the key chips in AI. They said that AI revenue will double and that they will grow 20%.

and that the demand from what they're seeing is still intact. And that's where I want to start the analysis. Let's get to Bloomberg's Mandeep Singh of Bloomberg Intelligence. I mean, there is a difference between a headline on tariffs and the real-world impact.

on the supply chain for semiconductors. When you read the commentary that TSMC gave, it seems particularly in the context of capital expenditures from the hyperscalers, things are still going well. They are and look, they gave a long-term guide when it comes to AI revenue which they expect to expand at a five-year kicker of mid 40%, very impressive numbers.

And even with this macro environment, they didn't see any demand destruction on the AI side. And I think that's key because, you know, we saw NVIDIA and AMD take a charge on the H20s. I mean, you could think, you know, they may have some capacity that goes underutilized, but certainly that's not the case. They did say smartphones were still...

week. So if we talk about a pull forward scenario, I think it's definitely happening when it comes to AI chips, but probably not so much at least in TSMC's numbers when it comes to smartphones.

Nvidia is worth discussion. The stock's down 4%, but I don't see any single catalyst, right? We know that Jensen Wang is in Beijing. Jensen Wang goes to China all the time to meet with employees principally. My interpretation of doing a write-down is that this is not America saying H20 doesn't conform to the rules, but the write-down indicates that...

the license requirement, NVIDIA probably won't apply or has not applied. How do you read that, Mandeep? I mean, look, I think the fact that they have to go through the process all over again, it's going to take some time. And we know things move really fast when it comes to this AI chip wave. I mean, they're already to their next architecture, Blackwell, and they're talking about Rubin. So from that perspective, I don't know how they'll be able to sell to that market, you know, chips that are...

two generations behind the current one that they are selling and that's where you know it's hard to sell that to someone else even though the market is under supply that's what we are hearing from tsmc so clearly there is a lot of demand but probably not for chips that are two generations behind and i think that's how i would look at it

Mandeep Singh, who leads the team covering tech at Bloomberg Intelligence. Thank you. Two key names in the market. Let's take a deeper look at the chip sector. Jordan Klein, buy-side desk analyst at Missouri Americas. And I'm trying to understand the pressure that's in the market right now. TSMC's ADRs are just modestly higher, but that was...

That was seen as a sort of projection of confidence in the face of tariffs. What were the phone calls like that you had this morning and the things that crossed your desk? Well, hey, Ed, thanks for having me. I mean, it's relatively quiet, which I don't know if it's a good thing or a bad thing. I think there would have been a lot more discussion in incoming calls had TSM changed their outlook or not provided a very positive second quarter guide.

I think people are really in that watch and wait mode. Obviously, TSM and ASML this week in the semiconductor space were the two big earnings reports that people were going to react to. ASML was a bit disappointing. Stock fell 7%. TSM was very good, and it was expected to be good.

But it was all signs clear, everything looks good, both on the consumer front, because they make a lot of product for Apple and PCs, as well as the AI front, so think NVIDIA. And I think it's pretty disheartening for people when they see the stock fading most of the early gains, because this creates sort of a, well, if the companies that are reiterating and sounding positive are not really trading up,

what's that going to mean when the rest of semis or even tech reports and possibly lowers guidance? What are the stocks going to do then? So that's why I think no one's really rushing to buy either strength or add to any names until they really see the stock reactions.

we should point out uh in america uh it's a short trading week or shorter four-day trading trading week uh and though markets don't close early or anything on thursday i'm sure that there's some consideration of that towards the end of the week but you said in your note that

that investors are highly engaged. What does that mean? They're going deeper on the research into supply chains or they want to know specifically about each of the fabless chip names exposed to China or the fabs exposed to China. What do you mean by that, Jordan?

Well, what I mean is that people are definitely reaching out, asking questions, wanting to know what their peers in the investment community are doing and thinking. That's because the fundamentals really don't matter that much right now, unfortunately. So everyone's kind of feeling around trying to get a sense of these macro headlines, what would be perceived as positive or negative, and what would cause people to get off their hands and deploy more capital.

So that's what I mean by people are very engaged. They're not actually, how do I say this? They're not anxious to go out and buy the dip. They're basically, but they do have a short list, I think, of names that they would prefer or names they would avoid. But they're very curious to see, like, what is it going to take to get people in the investment community incrementally more positive or negative? And unfortunately, we just haven't seen enough yet to go off of.

Next week we get earnings reports from the likes of Tesla and Intel. What do you need to see from those reports to give you some confidence?

Well, they're very different, obviously. I mean, for Tesla, I think it impacts a lot more of the retail investment community. I don't tend to speak to a lot of large mutual funds or institutional owners who are, you know, hanging a lot on how Tesla sounds. I think the bar is relatively low for Tesla.

Um, so I think it's more about plans for new potential vehicles and timing on that front because most of the checks and the initial monthly reports have, have not been great in terms of their unit sales. I think for Intel, um, it's not about the numbers. I think this quarter should be fine. Uh, there is some risk that maybe there's a little bit of downside next quarter. Uh,

I think more so it's the new CEO taking charge and outlining some of the strategy. And recall that the bigger event for Intel probably is going to come, I think, on April 29th when they're hosting an investor update on their foundry business. I think that's where you'll get more details, again, on their strategy and the technology that they're trying to move forward.

Jordan Klein of Missouri, it's great to have you back on the program. Thank you very much. Now, coming up on Bloomberg Technology, the week comes to a close for the FTC antitrust case against Meta. We'll bring you the latest next. This is Bloomberg Technology.

We've been covering the FTC antitrust trial against Meta all week. Yesterday, Meta's former COO, Sheryl Sandberg, was on the stand talking about the company's efforts to block competitors from advertising on the platform. Bloomberg's Riley Griffin, who covers Meta for us, is back here in the San Francisco studio. That's interesting, Sheryl Sandberg kind of returning as a witness in this case.

what was she asked, what was she talking about and where did we end the week? Yeah, it's really a great question, Ed. One of the things the FTC has argued is that the introduction of ads to the platforms have actually degraded the quality of the services. And Sheryl Sandberg, the former CEO, actually reversed that point and said that it has been a boon to the product, it has benefited users,

and really countered the argument the FTC has been making in this milestone of a week. Over the course of this short week, Meta stock is down 7%. It's hard to draw a causal relationship between what's happening in that trial and the events of the stock market.

Where do we kind of leave it and I think it's probably important for the audience to understand This is a multi-week process. It's gonna go on for a while. We've got several weeks ahead of us. This was the Headliner if you will we had three days of testimony from Mark Zuckerberg ten hours And several revelations from his emails if you take a tour through them You'll learn that Instagram was considered to be spun was considered to be spun off in 2018 we also learned about a

a six billion dollar bid for Snapchat so a lot came up

up, but more weeks to come and I think we'll continue to see volatility throughout. Over to DC, a bipartisan house committee says Chinese AI firm DeepSeek is a quote "profound threat" to US national security, citing its ties to Chinese government interests and alleged circumvention of US export controls. Bloomberg's Mike Shepherd joins us with the details.

There's a lot going on right now in the political sphere, but we're paying attention to the commentary of this committee. Why and what was said, Mike? Well, this is an important episode in this long-running feud with China over advanced technology, especially artificial intelligence. Remember, DeepSeek made its big breakthrough right as Donald Trump was taking the oath of office. And in the following week, we really saw...

equities here in the U.S. slide on fears that maybe this AI boom was oversold and overpriced because DeepSeek was promising to do things cheaper and perhaps faster and more efficiently using whatever technology it may have had at its disposal. Now, the committee is raising questions about DeepSeek on a couple of different levels. One is just what it does, and it is echoing concerns it has flagged about TikTok.

And those are namely security related. One, it's concerned that the app is collecting user data here in the U.S. and siphoning it back to China. Two, it is concerned that it may have ties and it cited corporate filings to the Chinese government. Similar claim it's made with relation to ByteDance and its ownership of TikTok. And three, there's also concern that the platform itself

could be censored to reflect Chinese views. And we have seen if you just run a test on putting what happened in Tiananmen Square, you're going to get a very different answer and one that is much more in line with the Chinese government. The other question, Ed, though, is export controls. And the committee recommended those because there is a concern that maybe DeepSeek managed to get around those to obtain the chips that it used.

There was also a sort of forensic discussion of Nvidia's role with DeepSeek, the number of GPUs that DeepSeek had from Nvidia. And amongst everything, I saw the response from Nvidia, you know, in summary that they follow the instructions of the US government to the letter. That's consistently what Nvidia says. What else do we need to know?

Well, one thing that's important to understand here is that the committee is applying separate pressure on NVIDIA to get more information about how its chips are being sold across Asia. And they want information going all the way back to 2020 about its customers, not only in China, but in 11 countries.

in nations across the across the pacific rim they want to know how those each twenty chips that indeed that deep sea is believed to use have used may have ended up on mass in that firm's possession and helped it to develop that are one model and make it such a breakthrough the concern is that uh... in video maybe it knows its customers but maybe it doesn't as well invidia of course yesterday responding very quickly to say that it abides by all u_s_ export restrictions

and is eager to continue working with the US government even as it tries to protect its business in China which we see Jensen Huang doing with a visit to Beijing just in the past 24 hours. Bloomberg's Mike Shepherd, thank you very much. Now coming up on Bloomberg Technology, perplexity is nearing a deal with smartphone makers to take on the likes of Google's Gemini virtual assistant. We've got some details on Bloomberg reporting ahead. This is Bloomberg Technology.

♪♪

Welcome back to Bloomberg Technology. Ed Ludlow in San Francisco. I thought we'd look at markets over the course of five days, and that includes last Friday's session where the Nasdaq 100 in particular ended that week strong. It is a short trading week here in the United States. Friday is a market holiday.

The overriding story is tariffs and tariffs anxiety. But when it comes to technology, I'm showing the NASDAQ 100, but it could as well just as well be semiconductor stocks. It's also about technology export controls. We've been talking about that all week. On the five-day track, we're down about seven-tenths of a percent, six-tenths of a percent on the NASDAQ 100. In terms of single names,

We're now going to shift how we focus, right? All of the oxygen this week has been consumed by the chip names. Intel is down 3%, in part because on its earnings call, TSMC said, without naming Intel, it isn't working with anyone on technology or manufacturing sharing. That seems to have hit that stock. Tesla reports next week.

Very interesting, not just on the company and supply chain, but Elon Musk and his role with Doge and the US government. And then Netflix has buoyancy. If there's one name where things are different, it's in this name. Now, Wall Street's hoping Netflix can continue to provide the escapism it desperately needs. Shares of the streaming giant have risen nearly 8% so far this year, risen 8%, with many investors hoping it could be a safe haven away from the tariff turmoil that has roiled much

of financial markets, 9%, I should say, so far in 2025. Bloomberg's Ryan Veselica made this the subject of his musings and writing this morning. First thing I read, 2 a.m. Pacific time. Why is Netflix able to stand out in this environment?

Hey, thanks for having me. So I'll say what one analyst said in a recent research report. Netflix has both offensive and defensive characteristics. It's still growing quite strongly. It's improving profitability and cash flow. The multiple is coming down, especially relative to its own history. But at the same time, it is seen as quite recession resilient. People say that

you know, if there is a broader economic contraction or weakness and Netflix subscription is not going to be the thing that you cut in order to save money. People think it gives you a good bang for your buck and that's why people think you're going to, you know, stay with it no matter what happens. So that's the reason why we're seeing the stock, you know, perform quite well this year.

Next week for you, for I, for the Bloomberg technology team is a big week because earnings start in earnest. Is there a common thread between the Teslas, Intels, Netflixes and then the Mag7 names the following week that the team is preparing for in its coverage from the stock perspective at least?

Well, I think everyone is focused so much on tariffs and outlooks and what these companies say about their expectations for the remainder of the year. There is so much uncertainty out there. We've already seen some very big companies pull their outlooks, talk about how difficult it is to make forecasts in this kind of environment. If we see that continue with the big tech, just given their size and influence and major indexes, it's likely that's going to have some broader ramifications.

Ryan Vlaselica, have a good long holiday weekend in the States. Get ready for next week. And Netflix is really what kicks it off right. For more on what we can expect from Netflix and the streaming landscape more broadly, Magalie Grossheim, science senior research analyst, joins us now. I find that so interesting. I actually did a double take when we showed the Netflix performance so far in the year. Because all the other companies that we cover in our world are going through such pain.

the streaming business broadly seems healthy. Is that what you see, Magalie? Yes, it is. I would say Netflix definitely has some different characteristics going on this quarter than some of their peers, and we definitely would...

see them as, you know, like Ryan was saying, a safe haven through the rest of this year if we are to face increasing consumer uncertainty. I think Netflix has also really shown over the last few quarters, especially in Q4 with the blockbuster numbers they put up, that they're really separating from the pack and the others aren't able to compete in the same way that Netflix is, largely due to, I think, its content slate and just...

Let's go there. I was going to ask, what is it that separates them from the pack? You know, at home, we just started watching the latest season of Black Mirror. There are no spoilers on this show, ever. No spoilers on Bloomberg Technology. But episode one was deeply upsetting, had a very sort of big-name cast. Is it just content? Is it pricing? Like, why do they stand out?

I think there's a few reasons. Content is a big one. You had, so if we go back a couple years, a lot of the other streamers, even pre-writer strike, they had started to cut content spend in efforts to, you know, try to aim toward profitability, given that's been such a challenge for these other streamers.

So that was, you know, kind of gave them an additional hit on top of the writer's strike. And you really only get from these other streamers a couple tentpole releases. There's some great stuff, you know, Max, Hulu, Paramount, but you don't get quite the volume. And all of these surprises that come out of Netflix continue to amaze people. Adolescence, I think, is a big one.

Not many people would have expected that to be, you know, top three of all time for Netflix series engagement. And that was, again, I think just a piece of evidence that they've got such an amazing global content engine. Magalie, how proactive does Netflix need to consider pricing when we think about the health of consumers around the world?

I think they have a decent amount of pricing power left to go for sure. They obviously right now are in the midst of doing a price hike that they announced a couple months ago. We just saw that flow through to existing subscriber bills in March. So at M Science, what we do is use all data in order to look at all of the subscriber trends, which we'll still be able to see even though the company is removing the reported subscriber numbers.

So what we see with pricing right now, we are seeing a hit to churn, which we think is both related to price hikes as well as some cycle in, cycle out activity from live events and Q4. But we ultimately think that's going to be temporary and usually after.

Netflix price hikes, you get this temporary couple months of elevated churn relative to seasonal norms, and then it kind of abates thereafter. So we would expect it likely to be temporary. Even with that elevated churn, they still are far better than all of their peers in terms of retention. When I travel, principally on tablet or my smartphone, I play a little bit with Netflix's mobile games. I don't really get...

the Netflix gaming story. I get that they're committed to it, but what do you see as the kind of long term from that business line and what do you expect them to tell us more near term about what they're doing? Yeah, I think the near term is probably going to be a continuation of what we have heard from them on games the last few quarters, which is that it's still a small piece of the overall puzzle.

They more so are viewing it as a franchise benefit. So can they create a game about Emily in Paris that also drives overall engagement of the show? And therefore, it's part of their whole flywheel. So I think probably near term, we'll see it continue to be a small piece of the overall puzzle for them. But long term could be great.

contributing a bit more. I don't think it's ever going to be necessarily a key driver for them outside of, you know, everything else that they have going on. Magalie, what's the biggest threat to Netflix and where does the competition come from? Biggest threat, I would say, I think, you know, content is something that they have to continue to stay ahead of the game on. Live events, I think, um,

in terms of what they have to spend on live events, that could become a trickier part as they've gotten more involved in sports, which we've seen that do pretty well for them. That has caused, like I mentioned earlier, some cycle in, cycle out activities. So I think that could potentially change the retention profile, but also going to be a great tool for them to get

um, different parts of the market that they weren't previously able to get. And then the ad tier, that's something that they've been, uh, you know, behind some of their peers on in terms of getting into that market. Um,

So that's something we definitely think that they should continue to ramp up. That had a little bit slower of a start than I think a lot of people expected initially, but has done well the last few quarters. Q4, they stated around 50% of signups that were choosing that ad tier. And then we're seeing that continue to grow about 10% year-over-year in terms of the selection rate for gross ads opting into that ad tier.

Magali Grossheim of M-Science, great to have you on the show. Thank you very much. Now, coming up, we speak with Archer Aviation CEO Adam Goldstein. This is Bloomberg Technology.

Archer Aviation hopes to reshape New York's air transportation, linking Manhattan to major airports using its midnight eVTOL aircraft. It's a vision that could take your journey from one to two hours in the car to as little as five minutes. Joining us now, Adam Goldstein, CEO and co-founder of Archer Aviation. Okay, let's go to the basics first. The map, the hubs, and the airports that you want to connect.

Well, thanks, Ed. We are building the future of aviation here. And so today we announced our Newark route network, where we will be really trying to execute on the home-to-airport trips, really focusing on nine core locations: the large international airports, JFK, LaGuardia, Newark; the big heliports located in Manhattan, West Side, East Side, and the downtown Skyport; and then also the big regionals, Teterboro, Westchester, and Long Island.

Adam, we need to reflect on the tragic events of last week, right, of a helicopter that crashed in New York City into the Hudson. I bring that back with the context... I've spent a lot of time with Archer Aviation, right, and one of the pitches that you have is that the technology relies in part on pre-certified components. In other words, the FAA knows these components because they are more commonplace in other aircraft,

Those watching want to know the safety confidence that you have. How does the midnight compare to a normal helicopter and what redundancies have you put in place to make it safe?

So these aircraft are powered by an electric powertrain. And that's really the key new technology that enables this new level of redundancy that we haven't seen before with vertical-lift aircraft. And so the Midnight aircraft has 12 electric engines. It has a big wing. And it has redundancy built into the entire system that enables a very, very safe flight. And that's the type of safety that cannot be offered today with helicopters. So this is something that we're aligned with not only the FAA, but really the

future of aviation to keep bringing and keep innovating in the aviation industry to make products safer and safer. Adam, you have an aggressive and ambitious timeline, not just in New York City, other parts of America, other parts of the world. Where does FAA certification stand? Because you cannot deploy until you get that.

So, actually, we've been working around the world to enable an ecosystem to allow us to launch. And in fact, one of our biggest supporters and big investors in Abu Dhabi has created a pathway to allow us to launch as early as this year.

And so we've been partnered with the country and we have found a pathway to now start early operations. Now of course it'll be very low scale to really prove out the concepts, prove out a lot of the safety case here, but then the global regulators can leverage that data to really de-risk the platforms. And so we will launch there as soon as this year with a goal to launch in the U.S. via the FAA shortly after that. Have you met with the new administration and key members like Transport Secretary Duffy?

I have. The new administration has been very forward-leaning and very supportive of the industry. They want to see products made in America. They want American innovation. They want America to lead in aviation. So, yes, I did spend time with Secretary Duffy. I have spent time down at Mar-a-Lago. And the new administration has been very supportive, and I'm confident will continue to be a good ally of the industry.

Adam Goldstein of Archer Aviation, it's great to have you here on Bloomberg Technology. Thank you very much. Meanwhile, EV maker Xpeng is looking to ramp up its global expansion despite geopolitical uncertainties. CEO He Zhupeng spoke exclusively with Bloomberg's Stephen Engle and began by addressing the tariff uncertainty. For a company, we expect stability.

In any case, stability will bring political, economic and cultural certainty. And only then we can formulate a clear corporate strategy. So we deeply believe that stability is above all.

In fact, Europe is the focus of Xpeng's globalization strategy, and we will strengthen our business in regions including Southeast Asia, the Middle East, Central America, and South America. However, we still hope that one day, more Chinese companies will be able to expand their businesses into other countries, including North America, under stable policy conditions.

We know that the Chinese and the Europeans have restarted talks about this minimum price mechanism, potentially to replace the tariffs, which can go as high as 45% into the EU. How would that affect your plans for the European market? Potentially, would that mean scaling back on the immediate need to have your own production bases in Europe?

We have noticed this news, but I believe the talks are still in the early stages. For me, the certainty lies in the terror policies that China and Europe clearly implemented last year. As we expand, we firmly believe that only through localization in areas of localized R&D, service, manufacturing, and sales can we ultimately achieve comprehensive globalization.

So we are working on how to better implement our localization strategy in Europe and other regions. In the future, we will announce our localization strategy in certain countries and expect to have more localization strategy in more markets.

Let's talk about chips, because you need these chips across the board, whether it's your flying cars, your humanoid robots, your industrial robots, and of course, self-driving robotaxis and the like.

It's like Tesla, like Apple.

Actually, companies like Tesla and Apple are developing their own chips, and they are certainly collaborating with Nvidia and many other chip suppliers. According to our research, each XPeng vehicle contains 5,500 chips from global suppliers. Given the large number of chips, the reason that XPeng is working on the in-house chips is that we hope we can leverage our own capabilities.

For instance, if we aim to achieve autonomous driving and use global autonomous driving systems, we need chips that can help our autonomous driving perform better in conditions like night time and glare. We hope to maximize the performance of the chips, and at this point there is a huge value of customized chip.

So in the future, we believe we will collaborate with many chip suppliers, including NVIDIA, while continuing to focus on developing our own customized AI chips.

That was Xpeng CEO He Xiaoping speaking with her own Stephen Engel. Now coming up, OpenAI looks to a $3 billion acquisition that could supercharge its coding ambitions. That Bloomberg scoop next. Let's get a quick check back on that breaking story about Google.

A judge has found that Google was partially guilty of illegally monopolizing parts of the advertising technology market. And what we're seeing is Alphabet shares under pressure down 1.5%. Elsewhere, advertising and ad tech-related stocks really rallying on that news, a partial finding of monopolistic practice by Google. More next. This has been with Technology.

OpenAI is in talks to acquire AI-assisted coding tool Windsurf for about three billion dollars. That's according to sources. Bloomberg's Rachel Metz broke the story with the team and if I remember correctly until several days ago Windsurf was known as Codium but this is a significant acquisition for OpenAI if it happens. In fact the biggest by OpenAI.

Yeah, the biggest by quite a bit if it goes through. In our reporting, we found out that OpenAI and Windsurf are talking about OpenAI buying Windsurf for about $3 billion. And, you know, things could change, but it would make a lot of sense for OpenAI to buy this company given that it and other companies have increasingly expanded into the market for AI coding assistance.

Okay, what's the space for coding assistants? Like, Winsurf's not the only name, and why is it something that OpenAI just can't do themselves?

OpenAI actually does some of this stuff itself. Also, competitors like Anthropic, their AI models focus increasingly on coding. And in a lot of cases, these large language models have gotten better and better. They've been trained to be better and better at coding. But there's also an increasing space here. There are companies such as Windsurf. There's also GitHub's

Codec, or sorry, Copilot. There's also Cursor, which comes from AnySphere. And these companies are growing fast and they're getting users and their users that are paying. And that's a key here. You need people to pay for these AI products. Well, it wasn't long ago that I was introduced to Windsurf, at that time known as Kodium, like literally not long ago. It seems to have grown and commercialized very quickly.

Yeah, it's funny because a few months ago, people were constantly talking about Cursor. Everywhere you went, it was Cursor, Cursor, Cursor. Everywhere you went within this AI sphere, people are still talking about Cursor a lot and it's still extremely popular. But then I started to hear a little bit more recently, Windsurf, Windsurf, Windsurf. So there's definitely room for a few competitors here. And it seems like OpenAI thought that this would be a really good one to snap up.

Bloomberg's Rachel Metz with great reporting from the tech team. Appreciate it. But that does it for this edition of Bloomberg Technology. I want to go back to some of the names that we've been watching throughout the show, right? This is what they look like in the moment, specifically focused on Google, a judge finding that

partially they had monopolistic practices in the ad tech market that breaking news TSMC's US shares have given up gains after really strong earnings report and Netflix is just around the corner and it is standing out in the tech sector which is under pain so much more to come next week this is Bloomberg technology

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