Jittery Tech Markets; OpenAI Gets BofA Credit Line

**SPEAKER_1** (0:02)
Bloomberg Audio Studios, podcasts, radio, news. Bloomberg Tech is live from the heart of Silicon Valley with Ed Ludlow in San Francisco.

**Ed Ludlow** (0:23)
This is Bloomberg Tech coming up. Tech markets are mixed as US Iran jitters revive risk off sentiment and send oil higher. Plus OpenAI gets a $520 million credit line from Bank of America while the ChatGPT maker prepares to roll out its most advanced model tomorrow. Eric Hippeau from Lerer Hippeau discusses the early stage investing landscape at a time of ballooning AI valuations, New York's tech scene and a whole lot more. Welcome to the show. Let's get a check in on these markets. And it is a mixed picture right now. It's difficult to say what the main driver is. Earlier in the morning, headlines from the president of the United States about the status of relations with Iran did have an impact on sentiment. Semiconductors are rebounding from a volatile period of selling, which all stems from Samsung's prelim earnings. But there is sort of a reassessment of the AI trade. I'd say it's what's happening with the war in Iran. As we await a press conference from the president in Ankara to start any moment now, by the way, I want to bring in Bloomberg's Washington correspondent, Tyler Kendall. We've heard from the president a few times this morning already.
How would we summarize the United States' position right now on Iran?

**Tyler Kendall** (1:39)
Well, Ed, there were a lot of fast moving developments, and we're about to get more when President Trump takes the stage there. But he is essentially threatening that we are going to see further US strikes on Iran tonight after a wave of attacks overnight in response to Iranian aggression in the Strait of Hormuz. Because over the last few days, we've seen at least three commercial tankers targeted by Iran for transiting through the Strait using that US-approved corridor that gets them closer to the coast of Oman and further away from the Iranian coast. And we're hearing from Iran within the last hour reporting on Iranian state TV threatening that the country will close down the Strait completely if the US does follow through with its threats for further strikes on the country. And it hasn't just been escalation when it comes to kinetic action, but we're also seeing just yesterday the US Treasury Department moving to revoke that critical waiver when it comes to allowing Iran to sell its crude to market. So the US is now taking that further stance when it comes to squeezing Iran on the economic front as it appears that these negotiations at this point have really been stalled. Now, even with all of this said, Ed, President Trump here is saying that he thinks the ceasefire is over, but he did leave open that pathway that negotiations could continue. He said that he wasn't going to stop his diplomatic team from trying, at least. But in his opinion and in his words, he thinks at this point, it's just not worth that effort.

**Ed Ludlow** (3:05)
Bloomberg's Tyler Kendall in Washington, thank you. We will hear from the president very soon. Again, to summarize, markets tech generally lower, semiconductors outperforming. Let's try and get to our top tech story. Bank of America is changing its tune on OpenAI. After initially passing on lending to the AI company, it's now extending a $520 million credit line. That's according to sources. Joining us with the exclusive, Bloomberg Sridhar Natarajan. Okay, so we're saying that this is a U-turn. Give us the back story.

**Sridhar Natarajan** (3:33)
Well, it is an interesting clash. The AI sector right now is represented by companies like OpenAI. High growth, massive cash burn companies that are dominating the sector. And on the other hand, you have the old guard of Wall Street, Bank of America, the second largest lender in the United States that is defined by its responsible growth mantra. So when a company like that comes out and asks for a credit line, you can see why that bank would be reticent. And they had said no previously when pretty much the entire list of Bank of America's rivals lined up to extend the credit line to OpenAI. They said no again in March 2026, as recently as March. But now in recent weeks, Bank of America finally is on board. And the best way to explain this is it showcases the internal struggle between maintaining this responsible growth philosophy, which unfortunately translates to a more conservative approach versus bankers wanting to chase the hottest deals out there. And there's always going to be some risk on them.

**Ed Ludlow** (4:33)
The hottest deal could be an OpenAI IPO, right? We and others reported last week, the week before, that an OpenAI IPO looking like 2027, right? Originally, maybe this the end of this year, now 2027 Bank of America wants to get in on that, right?