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Resilience isn't just about bouncing back, it's about being ready. And when the threat comes, you hold back the chaos. Learn more@cohesity.com Resilience these days it seems like AI agents are just about everywhere you turn every field and every function. But without identity, you can't trust they'll serve your business instead of jeopardizing it. Fortunately, Okta helps you get identity right by securing your AI agents identities, giving you a single layer of control, a single standard of trust. So whether an AI agent supports a single user or your entire enterprise, with Okta you'll turn risk into opportunity. Secure every agent, secure any agent. Okta secures AI with the B2B card payment landscape evolving, large corporations face pressure as buyers increasingly demand to pay invoices by virtual card. For merchant acquiring businesses like yours, this is a high growth opportunity waiting to be unlocked. With Mastercard's adaptive approach to B2B acceptance, you can enhance your infrastructure for high value payments and meet your customers unique needs. MasterCard offers solutions and support for every step of the supplier lifecycle, helping you deepen merchant relationships, start fast, grow strategically and scale at your pace With a modular toolkit you can flexibly deploy. Discover how@mastercard.com commercial acceptance so have you heard the story about the prescription plan? With savings automatically built in, it's where a family of any size can feel confident the cost of their medication won't hold them back. Go to CMK Co Stories to learn how CVS Caremark helps members save just by being members. That's CMK Co Stories. Bloomberg Audio Studios Podcasts Radio News. Bloomberg Tech is live from coast to coast with Caroline Hyde in New York and Ed Ludlow in San Francisco. This is Bloomberg Tech coming up. Well, tech as you can see, trades lower as anxiety kicks off the last full trading week of the year. Are investors doubling down or bracing for a pop? We discuss plus big deals in big tech with ServiceNow and Intel in advanced talks to spend billions on startups and a stablecoin giant wants a soccer team. Why? Tether is bidding more than a billion for Italy's Juventus. But first a check in on these markets. We want to talk soccer, but we're talking what the markets are up to over the pressure by a quarter of a percent on the NASDAQ 100. As you see, we're off of our lows of the day, but still in the last four trading week ahead of the end of the year. Are people taking some risk off the table? They're certainly taking risk off in the crypto space we're down sub 90,000 once again 86,924 by another couple of percentage points after a downdraft over the course of the weekend. So the Moon music again speaking to anxiety speaking to some nervousness around valuation is today's picture but take a look at some of the individual names. ServiceNow is up by more than 10% as maybe we still see companies spending in terms of M and A. There is service now potentially in talks to buy cybersecurity unicorn. Amis being reported over the course of the weekend could value at about $7 billion. That would be the biggest ever deal for ServiceNow if these reports come true from Bloomberg and indeed we could see it just delving ever more deeply into CyberSecurity. Intel off by 5, 10% as it too is in advanced talks we understand to buy an AI chip startup that Sam Manova systems for about $1.6 billion. And Tesla and in record high will we close this day at the first record for Tesla since December 2020 for the catalysts while Wedbush going more overweight on the stock once again. But other than that, no clear fundamental driver. That is what we're looking at on the day. Let's look at just the course of Chachi Beauty and since 2022 I want to show you the growth of the NASDAQ 100 phenomenal up more than 100 percentage points. It's more than doubled of course. But doubts about the trade they're starting to grow too. Now Bloomberg's market reporter Ryan was delica could set us up for what the end of this week anxiety is saying about the belief in this 100% rally. Since November 2022, since Chachi Beauty first burst onto the scene, Ryan, we are having yet more and more concerns about the valuations, the run up in certain companies. Hey, good morning. Thanks for having me. So yeah, a lot of these concerns have been just sort of percolating throughout the market. Every so often we'll see them sort of emerge, come go to the forefront. That is sort of what we're seeing right now. It does seem like there is a lot more skepticism, a lot more caution about valuations, about growth prospects, about when we are going to start seeing a more pronounced return on all of this AI spending. And maybe just because it's sort of like the end of the year, people are looking to close out their books. Maybe people are taking a reassessment right now of all the big gains that we've seen in a number of AI stocks And just sort of considering where, where they might be going in 2026. I mean there really is some of the most read stories throughout the course of the weekend and indeed on this day is the one that Wall street sees a bubble coming and is betting on when it pops, if indeed it does. The eye of the storm have been companies like Oracle, even in video, which has been the pin up for this year and still remains so in terms of a 12 month trading basis, but of late has taken a hit to market capitalization. Are there any particular areas that we're seeing the most pain? Right. Well, one interesting theme that we wrote about I think about a week ago is sort of the constellation of stocks that are more associated with OpenAI as opposed to the ones that are more associated with Alphabet. And for much of this year, any company connected with OpenAI saw pretty strong stock gains. A lot of companies rallied when they would announce deals with the company, with the startup and now we are really seeing that reverse. There's a lot more skepticism about is OpenAI going to be able to grow for fast enough in order to meet all of these sort of deals and obligations that it's announced. As skepticism around that has grown, you have seen companies connected to OpenAI start to really come under pretty pronounced weakness. You mentioned Oracle, but also in a sense Microsoft, Nvidia, core weave companies like this. Whereas companies that are more connected to Alphabet and Gemini, which is currently seen as sort of the stronger AI play those companies have been doing, you know, continuing to hold up in a lot better fashion. Ryan, for Stella, you're continuing to write upon all of these themes as we tie up 2025. Fantastic to have you kick off the show. We thank you. Let's keep this discussion going. Let's delve a little bit deeper into the signals in the economy, what that's doing in terms of trickling into business. Natalie Gallagher is with us, principal economist and director at Board. Now that's an AI powered enterprise planning platform. You provide macro analysis, you provide strategic guidance to global companies on business investment, on economic policy. And what's really interesting is you're sort of telling us and pointing towards your Expertise, showing that 2026 is really going to be a prove to me moment. Right. For 2025 it's been about picks and shovels and infrastructure. 2026, we need the economic upside, we need the productivity gains. Yeah, absolutely. I mean so far, right, we've had really broad based adoption of AI. About 55% of American workers, for example, say that they're utilizing AI. We haven't seen it translate into the productivity numbers. Right. And this isn't just with the government data, it's also with price private studies as well, and university studies as well. So as we get into 2026 to really validate the underlying fundamentals, we're not only going to have to see that breadth, we're going to have to see really meaningful depth of adoption as well. Natalie, when you're poring over the data, what is the data that we're going to need? Is it going to be the earnings of health care companies and financial institutions that actually start to see margin improvement because of AI adoption? How do you get that tell? Yeah, absolutely. I mean, the first place we'll probably see it is in earnings release. Right. The government data often lags behind. You know, we've seen a lot of earnings releases where CEOs have said, hey, we're utilizing AI. We're seeing these productivity gains. At the same time, we're not seeing them show up in as meaningfully as a way as we're going to need to really justify the valuations that are out there, really confirm, right. That we are seeing that productivity growth or that that return on the transformational promise of AI. What we have seen show up is the investment numbers driving GDP figures. Many would say that basically 2025 economic growth entirely hinges on a few big names in tech making some extraordinary big investment plans. How wide could the economic shakeout be if indeed we did see a pullback and a questioning of productivity? Yeah, I mean, it could be really significant. Right. 2025 AI spending, CapEx spending. It's really served as a macroecon stabilizer and macroeconomic anchor even as we've seen other parts of the economy really meaningfully stagnate. Right. It's really been this promise that's continued to lead growth to not only deliver, but really surpass expert expectations in 2025. And that's definitely true. Right. It continues to be an anchor in 2026. So if we see a meaningfully meaningful pullback, if we see AI not deliver and sort of that translate or cascade through the economy, I mean, the economic implications are really, really broad based. Well, outside of tech, how broad based do you think the economic implications have been of China and US and this technology war, really we're seeing at the heart of it, how much has that implicated US businesses? And in the longer term, do you think? It's been. It's been fascinating, right, Because US businesses, even with sort of this, this headwind of overall trade uncertainty back and Forth with China, they've really continued to deliver and so that's really positive to see. You know, on, on the other hand, right, if we do get more and more decoupling with China, the economic implications are also broad based there as well. We have a reduction in revenue translates to a reduction in R and D. And so of course the economic implications based on what direction we take can be, they can be quite extensive. Now at the same time, if it leads to sort of a benefit when we look at the competition dynamics, then maybe it's a little bit of a win win for the us. What's interesting is while we've got perhaps a questioning of valuations in the market, some still managed to rise on absolutely no fundamentals at all. And Tesla is currently maybe closing in yet a new record high. The first ones we've seen since December 2024. Now maybe that's a bit of mood music coming from an extraordinary valuation being given to the private company that is Space X elsewhere in Elon Musk's realm. Natalie, what do you think about some of the froth in the areas, particularly in the private area? It's been really interesting to see, right, Whenever, you know, as an economist, what I look like, what I look at is cash yields, right? And whenever we end a rate cut cycle or, you know, debatably end a rate cut cycle like we are right now, cash yields become less attractive. And what we need to really carefully watch is are we seeing meaningful investments, investment in actual infrastructure and that's what's really driving these, these extremely high, elevated, Elevated, excuse me, these elevated valuations or are we seeing investors go towards alternative investments because cash yields are quite, quite impacted. And so we're going to really need to see these valuations be meaningful, right? We're going to need to see that the proof is in the pudding that it is worth $800 billion. Natalie Gallagher with the Macro and the Micro for us, we so appreciate it. Principal Economist at board now coming up, Juventus shares. Have you been watching them? They are rallying after exorc rejected an unsolicited takeover bid from crypto giant Tether. We dig into that one. Plus Netflix makes its case for Warner Brothers after Paramount of course goes public with its own hostile offer. What did the CO CEOs manage to say? This is Bloomberg Tech. Resilience isn't just about bouncing back, it's about being ready. It's how you show up every single day. Because every name in your system is a person who trusts you and every password is a door you're responsible for locking. And when the threat comes, and it always comes, you hold back the chaos. Learn more@cohesity.com Resilience these days it seems like AI agents are just about everywhere. You turn every field and every function. But without identity, you can't trust they'll serve your business instead of jeopardizing it. Fortunately, Okta helps you get identity right by securing your AI agents identities, giving you a single layer of control, a single standard of trust. So whether an AI agent supports a single user or your entire enterprise, with Okta you'll turn risk into opportunity. Secure every agent, secure any agent. Okta secures AI support for the show comes from public on public you can build a multi asset portfolio of stocks, bonds, options, crypto and now generated assets which allow you to turn any idea into an investable index. With AI, it all starts with your prompt. From renewable energy companies with high free cash flow to semiconductor suppliers growing revenue over 20% year over year, you can literally type any prompt and put the AI to work. It screens thousands of stocks, builds a one of a kind index and lets you back test it against the S&P 500. Then you can invest in a few clicks. Generated assets are completely customizable and based on your thesis, not someone else's. Go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com market paid for by Public Investing Brokerage Services by Open to the Public Investing Inc. Member FINRA and SIPC Advisory Services by Public Advisors llc. SEC Registered Advisor Generated Assets is an interactive analysis tool. Output is for informational purposes only and is not an investment recommendation or advice. Complete disclosures available at public.com disclosures so have you heard the story about the prescription plan? With savings automatically built in, it's where a family of any size can feel confident the cost of their medication won't hold them back. Go to CMK Co Stories to learn how CVS Caremark helps members save just by being members. That's CMK Co Stories. Shares of Italian football club Juventus. You might call it a soccer club. I call it football. Well, they jumped after crypto company Tether made a takeover bid for 1.1 billion euros, about $1.3 billion now. The offer was swiftly rejected by the holding company of the Agnelli family, which owns a controlling stake in what is one of Italy's most distinguished football clubs. Let's get more on all of this. A Bloomberg editor in Milan, Tommaso Ebhart Fascinating. This family, the Agnelli family have held a controlling stake for years in this team and indeed own Ferrari and other big auto sectors. But Tommaso, what does Tether have in terms of its game plan? It's a very fascinating story here from Italy. You know, it's like new money versus old money. Interesting enough, Tether founders are originally from Turin, the city where Juventus was born and they support you went to so they started as a fan. And Arduino, the CEO of Tether told us in an interview a few months ago that he has been a fan of Juventus forever. And tether bought a 10% stake in Juventus a few months ago was the first football team or a keep crypto company bought a significant stake. They also have a board seat in Juventus. And now they arrive with the bid Friday night for the controlling stake to the Agnelli family, Italy most important industrial clan. But the Agnelli family said, no, no, no, no way. We're not going to sell to Teta. We are not going to sell to anyone. Juventus. They've had Juventus for over a century. So so far no news, but shares move. They didn't get up to the level of the price offered to the Agnelli, but they rose more than 14% today in the Italian market. In a very difficult moment on the pitch for Juventus. They're not doing that great this year yet. Is that the argument coming from these lifelong fans at Tether that they could in some way manage the business of football or soccer better? That's a good question. For sure. They have a lot of cash and in the bid they said, we are also, we're also ready to invest 1 billion euros in Juventus. But this is not enough for Dianelli's Saturday afternoon. John Elkin made the video. John Elkin is the leader of the Agnelli family nowadays, made a video online saying, you know, we have defended the Juventus value for over a century. We want to stay close to Juventus. We have been with Juventus in the bad and in the good times and we'll stick with that. Interesting enough is a very delicate and sensitive moment for the Agnelli family. Why? Because they are reshaping their portfolio. You know, they're the biggest investor in Stellantis. The automotive industry is facing a disruptive moment. Gennelli have sold some assets recently, including their truck company Iveco to Tata in India. They are now in talks to sell the media asset in Italy to a Greek company. So there's a lot of interest and also a lot of political debate on what the Agnelli families are doing with their Italian holdings. Yeah, some pushback against Greece's Antenna Group for wanting to have that Italian asset. Meanwhile, Ted has been investing in plenty of Italian assets. It looks like more across the board, whether it's genomics companies or even in media companies as well. Tommaso is so great catching up with the stacks. Staying a little bit late in Italy. Tommaso Ebhart there from Milan. Let's pivot into a different world of entertainment now. The co CEOs of Netflix, they've been making their case requiring Warner Brothers discovery to their own employees. Let's get the latest with Bloomberg's entertainment editor Lucas Shaw, who's been across this M and a story that is just fueling everyone's attention in Hollywood at the moment. So what is it that the CO CEOs could put across the employees to calm their own nerves? It was a Q and A of sorts. They, they first of all stated their rationale for doing the deal and then tried to address some of the five, six, seven biggest questions that there are out there. You know, is this going to kill Hollywood? What do they think of the Paramount hostile bid? Do they actually think, think they can get this deal approved? And the kind of the big one about movie theaters, it was as much for it, for the public I think as employees. You know, they put it in a, in a filing so that the world could see it. They've obviously been keeping their employees apprised to the best of their ability over the last couple of weeks. And the ones I've spoken with have said it's been pretty status quo at the company. Meanwhile, of course, what we all wait for in the entertainment world on a Sunday is your note to drop of screen time. And Lucas, you've been writing in particular about amid all of this fury about concern about consolidation in the sector is also AI which is looming large in many executives head and employees. What do you make of the AI threat right now? Well, Hollywood is, is very conflicted. You know, you see certain filmmakers come out and say, I've interviewed a couple of them and say it's the future, we might as well figure out how to use it and integrate it into our workflow. And then, and then there are others like Guillermo del Toro Borough and Rian Johnson who basically said they'd rather die than, than use AI or that they will do anything that they can to stop it. You saw a very strong negative reaction last week when Disney announced a deal with Open Air where a lot of the unions and a lot of workers wondered what the what the company was doing well reading it with interest. It's also featured in Business Weeks the year ahead for 2026. Go look at it. Grapple with the future of Hollywood. All things I from Lucas Shaw. Thank you very much for keeping us up to speed. Meanwhile, President Donald Trump's new $100,000 fee on H1B hires, well, it's set to deliver the biggest blow to IT outsourcing and staffing companies. According to analysis done by Bloomberg. Businesses like Tata Consultancy Services and Infosys. They're likely to be hit harder than, say, US Tech giants like Amazon and Google, but still all impacted. Let's dig into the broader impact with Hiba Anva. She is a partner at Ericsson Immigration Group. Working round the clock on issues such as this, I'm sure. And the context is companies that take the financial hit, but also states that try to push back on it. And the latest is that we understand a group of states are actually suing to block this. In particular. Do you think that that's going to gain any traction? I do think that it's going to gain traction because what the states are doing that's different than some of the lawsuits that have already been filed is they're making a legal argument based on their specific state economies, which I think is a really important argument because it goes directly against the claim that a lot of opponents to the H1B visa have that the H1B visa is actually harmful for the US economy. The lawsuit that was filed by California and the 19 additional states essentially argues that this $100,000 fee is going to worsen labor shortages within other important sectors that exist within the state economy by making it more difficult to fill spots for occupations that are already experiencing short shortages, such as physicians or researchers or teachers, nurses, for example. And so I think that this lawsuit puts states in a position where they can actually show harm in a way that's more effective than some of the lawsuits that have already been filed. Their argument is that no presidential administration can rewrite immigration law is what they're taking. And I think it's the third challenge, at least, that we've seen to this particular fee increase. But on the flip side side, the president and the administration would say we need this fee because H1B is being abused. What evidence is there for that from your perspective here? I think the more important evidence is when you take a Look at the H1B filing process in and of itself, it actually has several checks and balances that are already built in to, to ensure that the H1B visa is not being abused or misused in any way. And in particular, one of the core components of filing an H1B visa is to be able to demonstrate back to the government that the filing of this visa is not going to displace a qualified U.S. worker. So I think that what's more important to focus on are the checks and balances and the safeguards that are already in place for the H1B visa to prevent the fraud and misuse, because the highly restrictive policies for folks that are actually proponents of the H1B visa create a new category of risk or which is that this is actually going to hamper and diminish the American innovation and the US Companies leading the charge on global innovation. Now we take it to another extreme. And what's interesting is there's actually blowback not coming from Democrat states who are suing, but actually conservative lawmakers who are saying that in some ways Trump is supporting yet more legal migration, immigration and immigration into the country. They're criticizing President Trump for supporting more visas in particular to allow the entry of high skilled foreign workers. Is there any mounting fervor around this that you're hearing here, but or something that companies are worried about that names like Republican Chip Roy would actually manage to prevent legal immigration at this time? I think, you know, I think that the concern in the industry is more so based on the data. I think that we're far out enough from the beginning of the year to be able to actually measure the data in an effective way. And I think that what we're starting to see is US Companies starting to grapple with the decision about whether they want to continue to invest in other countries where the talent, the high skilled workers in particular, are more inclined to go, as opposed to, you know, the talent that may be a little bit more concerned about staying here in the US So said another way, I think the concern in the industry is whether some of these larger companies are going to choose to offshore, for example. And another really important component of this is a lot of the folks in the industry are actually specifically watching how other countries are responding to some of these more restrictive immigration policies. You know, namely, you know, China and Canada being some top examples. You know, for example, you know, China recently released the K visa for global tech talent, which is specifically aimed at attracting international tech workers. And that was done in direct response to the US tightening its immigration policies and this new $100,000 fee. So what I think the concern is here is whether the talent is going to be incentivized to choose another country, whether other countries are going to be more inclined to have more open immigration policies in an effort to try to attract that high skilled talent and what that eventually means for the global success of US companies, cities. We've got 30 seconds. Is it big companies that hurt the most here but or is it smaller ones? So it's usually the larger tech companies in particular that garner the most attention. But you know, it's also important to point out that when it came to first time H1B visa petitions for employment in fiscal year 2025, over 28,000 companies filed at least one. And so what that data implies is that the companies that are benefiting from H1B visas are actually, you know, very diverse in terms of profile. Leave it there. But we thank you very much. Hiba Anva from Ericsson Immigration. But let's talk more broadly about the world of technology and how it's implicated by geopolitics. China in fact has just started to grant licenses with lengthier terms that would allow European companies to obtain critical rare earths. That's all according to EU top trade official Maros Sepkovic. Bloomberg's Oliver Crook sat down with him earlier today. Just take a listen. I think we are getting initial reports from our industry that they are getting these general licenses, but we need to have a little bit more granular information to evaluate the whole process. But the fact that this idea was favorably received, that it seems that we are getting first generation their licenses and also that the Chinese side was receptive to our arguments that the processes it was set up in April required too much of a would say very intrusive information, too many photographs, too much detail about the supply chains and, and I think that the general licensing could be, could be one of the solutions how to address this issue. What does this mean about global access to rare earths? We can talk about that with Bloomberg Senior Tech editor Mike shepherd because this is a fascinating read across to the U.S. brussels have been really worried about a choke point bottlenecks brewing that would implicate to such a degree vital industries the German carmakers. But similarly, those choke points and bottlenecks are here in the United States too. Well, that's right, Carol. There are so few points of common ground when it comes to trade for the EU and the US these days. But access to rare earths actually happens to be an area where they share this concern and that is because each side, they see their companies, their economies so dependent on China for access to these critical inputs to all sorts of technology. It is not just the advanced tech that we talk about so much on this program, semiconductors and other things. It also goes into defense equipment, into automobiles, into solar arrays, really into a little bit of everything. And China owns the lion's share of not only the deposits but also the refining and production of it. So for the EU to say that it is seeing some glimmers of hope in being able to access these rare earths on a wider basis signals perhaps some progress, Caro, in this year long, nearly year long fight with China over access to these critical minerals. Bring us up to speed on that fight and the access because I think it was just last month, in November that President Trump and Xi Jinping came to some agreement around access to rare earth metals and materials. But they're still dependent on this April licensing agreement, right? Well, absolutely. And what we're hearing from our secovich is that the Chinese may be more inclined to grant what are called general licenses, licenses. And this is a key word that he used in that interview. It's not just a license for a one time shipment of a critical mineral, let's say gallium or something else used in, in night vision goggles or something along those lines. It's a general license that would allow for a longer period of time for repeated shipments to pre approved buyers and that would really speed the plow for companies in the European Union and the U.S. and this is what both sides have been agitating for from China. And it's a key part of the trade truce that was reached between President Donald Trump and Xi Jinping at the end of October. It took effect in November. And it is really something that US Officials are watching closely from. And they will be hearing from US industries, especially the auto industry, which has expressed the most concern over Beijing's concern, control over this and the bottleneck that they really began to see in April when authorities in China began to tighten the export controls there. So we'll be watching to see what the signaling is from US Trade officials and whether they're seeing similar signs of progress. Ringbank's Mike shepherd, we always appreciate you. Thank you very much indeed. Now talking of bottlenecks, surging electricity demand, driven in many ways by data centers competitors, is highlighting the need for more power in the United States and indeed globally. There's some good news on the tap. In 2026, the nuclear industry is poised to turn on 15 reactors worldwide. But that's actually after a drop in capacity this year. Let's break it down. Bloomberg's Will Wade covering energy, climate and all Things nuclear. Well, I'm surprised the talk, the hype has been there in 2025, but not the reality. There's actually been less nuclear capacity. Capacity. Yeah, we're going to lose about a gigawatt of nuclear capacity worldwide this year. We're going to have two reactors that came online and seven older ones got shut down in different parts of the world. I think the quote that I've heard this year from one of my sources that sums it up the best is like everything's happening and nothing's happening. Because the thing about nuclear and my editors, you know, it drives them crazy. It happens really, really, really slowly. So there are 60, 62 reactors under construction worldwide around the world. They're going to start coming on in big waves next year. We're going to get like 10 gigawatts of capacity next year. 10 more the year after that. Close to 10 the year after that. So there's a lot coming, but there's not a lot coming on right now. Just how important is the actual sourcing of power? The idea of nuclear being that energy and climate friendly version of so doing, particularly plugging into data centers or at the same time, is electricity and the needs of it being hampered by just resiliency in the grid. There's a great story out by your colleagues today, another fifth story on bottlenecks. Really looking at a series of obstacles slowing down the traffic transition to a cleaner, more electrified future. And they're really signaling out the issues that we face in terms of just the electric grid and inexperience and congestion there. Yeah, the grid is another huge issue all to itself. The ability to deliver the electricity is, you know, what happens with the grid. And connecting to the grid takes years. You have to go through all kinds of permitting so you can plan your nuclear power plant. And it still takes years to get a connection to it. We're going to have Three Mile island come back into service in 2027. That's actually a year ahead of schedule. And it was supposed to be 2028, but they managed to get a grid connection sooner. The work to get it ready was always going to take until 2027, but they managed to get the, the local grid to hook that up earlier. So that's going to come faster disaster. But grid connections are a big bottleneck, not just for nuclear, for any new electricity. I'll put Will Wade, great analysis. Thanks for talking us through it on all things nuclear and more broadly, energy adoption. Now coming up, we're going to be discussing the future of drug discovery powered by AI. We are discussing it with Chai Discoveries, Josh Meyer and Elena Villa of General Catalyst. There's a new funding round. It's making a Unicorn. This is Bloomberg Tech. These days it seems like AI agents are just about everywhere you turn every field and every function. But without identity, you can't trust they'll serve your business instead of jeopardizing it. Fortunately, Okta helps you get identity right by securing your AI agents identities, giving you a single layer of control, a single standard of trust. So whether an AI agent supports a single user or your entire enterprise, with Okta you'll turn risk into opportunity. Secure every agent, secure any agent. Okta secures AI support for the show comes from public on public you can build a multi asset portfolio of stocks, bonds, options, crypto and now generated assets which allow you to turn any idea into an investable index. With AI it all starts with your prompt. From renewable energy companies with high free cash flow to semiconductor suppliers growing revenue over 20% year over year, you can literally type any prompt and put the AI to work. It screens thousands of stocks, builds a one of a kind index and lets you back test it against the S&P 500. Then you can invest in a few clicks. Generated Assets are completely customizable and based on your thesis, not someone else's. Go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com market paid for by Public Investing Brokerage Services by Open to the Public Investing Inc. Member FINRA and SIPC Advisory Services by Public Advisors llc. SEC Registered Advisor Generated Assets is an interactive analysis tool. Output is for informational purposes only and is not an investment recommendation or advice. Complete disclosures available at public.com disclosures so have you heard the story about the prescription plan? With savings automatically built in, it's where a family of any size can feel confident the cost of their medication won't hold them back. Go to CMK Co Stories to learn how CVS Caremark helps members save just by being members. That's CMK Co Stories. The Chase Inc. Business Premier card is made for business owners who make things happen. Designed for high spend and limitless cash back ink, Business Premier is a painful card with built in flexibility. Get the buying power you need to make large purchases, cover unexpected expenses and help your business grow. 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Buck who is General Catalyst Managing Director. You co led the round with Oak hcft. So I go to you first, Josh, congratulations. This is just three months after you did a Series A. Why are you doubling down and what is the money being used for? Well, first of all, thanks so much for for having us here. It's a really exciting time for the company. We're coming out of this year with a series of research breakthroughs where we've now shown that we can use AI to design molecules that we never even thought was going to be possible. So really using this money to double down on that research agenda, the model show no signs of double of slowing down and then also really growing the team and starting to take these models and start deploying them really at scale and starting to create new molecules that again we never thought would have been possible to create. Elena, it feels like this is a relatively pivotal moment in AIs push forward on drug discovery and on health more broadly. You're someone who invests in life sciences. What is it that made Chai stand out that you thought it needed follow on money just three months after a Series A? Absolutely. So Chai stood out because 2025 was the year of AI discovery. And what Chai allows you to do is understand and predict the interaction between molecules to design and develop new medicines. And the reason we invested now is because we believe 2026 will be the year of deployment. And pharmaceutical companies that adopt this technology will absolutely leapfrog those who do not. And it's a moment where medicines that could not be discovered any other way will now be discoverable. And the aha moment in many ways was following the release of Chai to Josh, just tell us why that was so important. The latest antibody generation model that you released and I'm sure suddenly had a load of inbound calls on the backup. Yeah. So of course this is our Series B, but if you look back at our Series A, we told our investors that over the next two years or so we would try to reach a 1% success rate on this antibody design task, meaning that 1% of the molecules coming out of remodels would function in the lab. We thought that'd be a breakthrough moment in the field. But a couple of months ago with Shy2, we actually announced, announced that we could do this with about a 15 to 20% success rate. So I think really leapfrogging again what even we thought was achievable in the past year or so. So that's really been, I think, a big moment for the field and now moving us away from just research curiosities into models that are really useful for actually discovering drugs. Elena, that's sort of mind blowing for many who aren't in the weeds on life science sciences as much as you are that there is only a 1%, that a 1% hit rate was going to be really tangible for the field and let alone 15 to 20%. Talk to us about what have been the limitations thus far in drug discovery in labs for pharmaceuticals and what this changes in terms of AI. Absolutely. So when researchers try to make a new model, a new molecule, it's essentially searching for a needle in the haystack. It happens in a lab. There's a lot of variability and it's really challenging. That's why even though we've seen breakthrough medicines and many people benefit from them, there are still lots of areas where people get sick and have no options. What Chai has done is show that they can design computationally medicines that have over an 85% success rate in achieving basic basic drug like properties. There's additional research to do, work to be done that takes a drug from the computer into the lab, into people, into clinical trials. But there's been a long standing hype around AI for drug discovery. And now when we meet pharmaceutical executives and they meet Chai, everyone says this is the year of deployment. Now these models work in a way that they will actually contribute to new medicines that make it to patients. And of course, Josh, you've previously been backed by Thrive Capital, Menlo Ventures, OpenAI has been a strategic investor and a place you used to work. But with General Catalyst and with Oak on site, I'm sure those meetings with pharmaceuticals come more thick and fast. But what more is the money being put towards when you talk about scaling this project. How much compute do you need and how much you need to invest in GPUs as well as the engineers in the fierce talent wars to get the right people in the door to build the models, too. Yeah, well, I'm thrilled to be working with General Catalyst and Oak here. You know, this round is actually about a lot more than the money. You know, you bring together some of the top investors in this space in health care. If you look at the folks joining our board, Annie Lamont and him on Azure, these are investors who have been modest, less health care investors really plugged in into the pharma space. We're here with Elena as well, who's just such an incredible thought partner on really building out the business. So the capital is going to work among all the things that you mentioned. We're really putting an astronomical amount of these costs into compute. We're trying to turn compute into better, into better molecules. We run a ton of lab experiments to really test whether the models work in the real world. And we're doing a lot as well in order to start deploying these models, building the right kind of software tooling in order to build this computer aided design suite for molecules. There's the talent wars as well. I'm very, very grateful to be working with, with some of the top folks in the industry here. When we started the company, we actually brought together a number of heads of AI from top AI drug discovery companies. And we've only continued to build out an exceptional team here. We're a small but mighty team, but we're really putting this to work in order to turn science from a science, biology, from a scientific, scientific discipline into one that looks a little bit more akin to engineering. Yeah. Elena, for the. You said a great line that basically there's been a lot of hype around AI and how it will be applied to health care. But what do you think helps cut through to those who are layman to a lot of the real details and data being shown in this, that we will see productivity gains, we will see real deployment in 2026. What's your hope as to what this looks like next year? Well, I think for next year, the hope, and I think pretty strongly the reality is that pharmaceutical companies will be able to discover medicines more efficiently. So Josh mentioned there's a lot of compute going in that's really on the research side. What's incredible is this technology is efficient. It is helping people discover medicines. And to me, the most, most important thing that laypeople will see is when we use these tools we can discover medicines that take advantage of known biology and impossible chemistry. You could not make the molecule, you could not make the medicine without using this technology. And what people will see are medicines that are curative that would not have been discovered any other way. And that's where lay people will really see the benefit is in medicines that have impact on their lives. Chai Discovery investor Elena V. Buck there from General Catalyst and Chai Discovery co founder Josh Meyer. It's been great speaking with you both. Thank you very much indeed for joining today. Now coming up, take a look at the shares of ServiceNow and Intel both under pressure, both in talks to buy startups. We'll talk about those potential deals next. This is Bloomberg Tech. It's time now for talking tech and first up, Roomba maker Irobot of course is filed for bankruptcy and proposed handing over control its main Chinese supplier Shenzhen Robotics. Under the proposed Chapter 11 plan, the company's common stock will be wiped out. Plus leadership. And McKinsey is discussing potential job cuts reducing roughly 10% of its headcount across non client facing departments. This coming as its revenue growth has flatlined over the past five years. Now McKinsey spokesman said that we are operating in a moment shaped by rapid advances in AI that are transforming business and society and ServiceNow. But it's closing in on a deal to buy service security startup Amis for as much as $7 billion according to people familiar with the talks. Now the stock is under pressure as you can see, after analysts at KeyBanc cut their rating to underweight this morning citing mounting threats also from artificial intelligence. Let's just dig in on that particular deal on the talks on ServiceNow but also other deals being eyed in tech including Intel's potential plans to buy AI startup Sambanova Systems. Joining us to discuss all of this is Bloomberg's Ryan Gould covering M and A and as ever, a busy weekend for you covering M and A. Ryan, talk about ServiceNow first and foremost, why does it want this Israeli based cyber company Armistice? What would it help it do? Thanks Caroline. I think it's an interesting time to be serviced. Now you will note that they just acquired, they announced earlier this month an acquisition for a company called Veza or Vetsa depending on how it's pronounced. I think that was worth about $1 billion for the security and risk portfolio. I think this really drives home the idea that you need to be ready for us for an enterprise the size of service. Now for potential threats, potential attacks, you know, in the age of AI. This is a massive growth area across the street. You've seen quite a few other sizable cyber deals this year, including cyber being bought by Palo Alto Networks, big enterprises, Microsoft, Google. I mean, look at Google whiz paying $32 billion for what is ostensibly a threat detection and enterprise management business as one of the biggest M and a deals of 2025. So I think this is really driving home the point that AI and security go hand in hand. They go hand in hand. And also AI is fueling M and A in other parts of the industry. I mean, Intel, Lipp Bhutan, the CEO of intel, is also on the board of a startup that you report might be being eyed as well by the company. That's correct. I think you know, this what this acquisition would be seen as Lip Bhutan's sort of, you know, doing a full circle ride almost. The Bhutan, the CEO of intel, was at one point the executive chair of Samba Nova, his VC fund. Walden International was one of the founding investors of Sambanova. Sambanova makes custom chips, the type which if, if all were to go well, could potentially rival Nvidia and AMD in that market space. For intel to get a hold of this, I think this would be seen as Lip Bhutan, you know, really putting intel in the mix in AI having an AI platform to go and talk about in front of other enterprise customers like Dell and so forth. This would be a big deal for them. It would be and is pressuring both stocks today, particularly ServiceNow. Some billion would be the biggest they've ever spent. Bloomberg's Ryan Gold with all the reporting across quite the wave of M and A. It's going to be a big blockbuster 2025 if you're looking at the numbers. But it's also a blockbuster day, it seems for Tesla. Quick check on the markets here and Tesla is your lead performer in terms of up 4.3% in many ways driving it to potentially a new record high at the moment is the biggest move since December 2024. At one point. If we hit 481 spot 76, we could be the highest since June. Well on record for the company. So keep an eye on Tesla as it continues to outperform in the magnificent seven names names. But that does it for this edition of Bloomberg Tech. Do not forget to check out our podcast. You can find it on the terminal as well as online on Apple, Spotify and Iheart. We are here throughout the build up of the last trading week, full trading week, where we still question some of the valuations. Tune in throughout. I'm Live from London today, back in New York tomorrow. This is bring back tech. These days it seems like AI agents are just about everywhere. You turn every field in every function. 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