Amazon Deal | Bloomberg Technology 09/25/2023
THIS ISN'T BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE IN AND LE ED LEDLOW. CAROLINE: I AM CAROLINE HYDE. ED: BACK IN SAN FRANCISCO, THIS IS BLOOMBERG TECHNOLOGY. AMAZON PUSHING TO THE WORLD OF GENERATIVE AI WITH A 4 MILLION ♪ BILLION DOLLAR DEAL. WE WILL BE SITTING DOWN WITH THE CEO TO DISCUSS. ED: A TENTATIVE DEAL WITH STUDIO TO END THE MONTHS LONG STRIKE.
EVERYTHING YOU NEED TO KNOW ABOUT THE AGREEMENT. CAROLINE: APPLES CHEAPEST IPHONE 15. THE WAIT TIME FOR THE DEVICE ALMOST DOUBLING. ED: AMAZON WILL INVEST UP TO FOUR BILLION DOLLARS IN THE AI START UP. IT IS A COMPLICATED DEAL WHERE ANTHROPIC WILL MOVE IT SOFTWARE TO AWS CLOUD, BUT ALSO THE TRAINING OF ITS FUTURE MODELS TO AMAZON'S PROPRIETARY SILICONE.
WE ARE TALKING ABOUT THE AI ACCELERATORS. THIS IS KIND OF AN INTERESTING MOVE FOR AMAZON THAT HAS BEEN SO MUCH WORK INTERNALLY ON GENERATIVE AI TOOLS. NOW IT LOOKS TO A THIRD PARTY. THE MODEL WITH BILLIONS OF PARAMETERS. IT WAS ONE THAT WAS ALWAYS AVAILABLE WITHIN BED WORK ON THE PLATFORM THAT AMAZON AWS OFFICES TO BUILD OR TAKE ADVANTAGE OF HER PREBUILT SKELETONS.
THERE ARE MANY QUESTIONS TO BE POSED ABOUT THE STRATEGIES FROM AMAZON AWS WITH REGARDS TO GENERATIVE AI AND WHAT IS GOING ON WITH THE PREPARATORY TECH. WE WANT TO WELCOME WORLDWIDE JOINING US NOW ADAM SAL . I WANT TO START WITH SOME OF THE MECHANICS OF THE DEAL. JUST ANTHROPIC STILL PAID AMAZON TO USE AWS CLOUD, OR IS THIS SUCH AS THE INVESTMENT YOU MAKE IN ANTHROPIC IS IN CASH AND CREDIT FOR U.S. CLOUD? ADAM:
WE ARE VERY EXCITED FOR THIS EXPANDED RELATIONSHIP WITH ANTHROPIC. THE INVESTMENT IS A FINANCIAL INVESTMENT AS YOU SAY. IN ADDITION, ANTHROPIC WILL BE TRAINING FUTURE MODELS AND RUNNING ITS MODELS ON AWS USING OUR CHIPS AND IN FORENSIC CHIPS. OF THOSE MODELS WILL BE GUARANTEED TO BE AVAILABLE FOR YEARS TO COME IN OUR AMAZON BED BED ROCK IN THE WHICH PROVIDES A CHOICE OF MODELS. AWS CUSTOMERS WILL RECEIVE
EARLY ACCES TO KEEP FEATURES. IN ADDITION, ANTHROPIC'S A VERY TACTICAL TEAM. WE WORK CLOSELY TO IMPROVE OF OUR CHIPS.
THERE ARE A LOT OF DIFFERENT BENEFITS FROM OUR JOINT IN CUSTOMERS. WE ARE VERY EXCITED. ED: THERE'S A LOT OF EMPHASIS. HOW QUICKLY WILL IN TROPICAL START RUNNING A WORKLOAD ON TRAINING -- APPEARED ADAM: WE HAVE BEEN WORKING WITH ANTHROPIC. THEY HAVE BEEN A CUSTOMER OF OURS. THERE IS A VARIETY OF DIFFERENT TECHNOLOGY FOR A VARIETY DIFFERENT WORKLOADS ON AWS WILL ALSO BE USING LARGE QUANTITIES. I THINK EVERYTHING IS GOING TO
MOVE VERY QUICKLY. TECHNOLOGIES DEPENDING ON THEIR NEEDS AT THE TIME. ED: THERE ARE LOTS OF TALENTED ENGINEERS THAT HAVE BEEN WORKING ON LARGE LANGUAGE MODELS INTERNALLY. NOW YOUR TURNING TO A THIRD-PARTY WHO IS HIGHLY REGARDED AS A LEADER IN BUILDING FOUNDATION MODELS. ADAM: THE MOOD IS GREAT. WE ARE A COMPANY OF INVENTORS. WE LEFT TO BUILD UP YOUR THERE HAS NEVER BEEN A BETTER TIME TO BUILD AND AWS THEN RIGHT NOW. AS I MENTIONED BEFORE, A BIG
PART OF OUR STRATEGY IN AI SPECIFICALLY IS ALL ABOUT CUSTOMER CHOICE. THERE'S NOT GOING TO BE ANYONE SOLUTION THAT WORKS FOR ALL CUSTOMERS FOR ALL USE CASES. ANTHROPIC HAS DONE AN AMAZING JOB. THEY ARE CLEARLY A LEADER IN THE SPACE. IT IS IMPORTANT FOR CUSTOMERS THAT WE CONTINUE TO GENERATE NEW CAPABILITIES TOGETHER. AT THE SAME TIME, ONE OF THE
HALLMARKS OF OUR AMAZON BEDROCK SERVERS FOR GENERATIVE AI IS CHOICE. AMAZON IS MEANT TO CONTINUE TO BUILD ITS OWN TIGHTENED MODELS, WHICH IS GOING TO BE AVAILABLE LATER THIS YEAR. ANTHROPIC MODELS ARE PROMINENT THAN BEDROCK. WE WILL HAVE MODELS FROM OTHER LEADING PROVIDERS AS WELL AS WE HAVE TODAY. IT IS STILL AN AMAZING TIME TO BUILD HERE AT AMAZON. WITHIN OUR MODELS ARE GOING TO BE GREAT AS WELL.
IT IS ABOUT CUSTOMERS CHOOSING THE RIGHT TOOL FOR THE JOB. CAROLINE: TALKING ABOUT CHOICE, I WANT TO WELCOME OUR TV AUDIENCES. WHILE ANTHROPIC TOOK CHANGE FROM GOOGLE ALREADY COME I'M INTERESTED AS TO HOW YOU FEEL THAT IS PERHAPS A CONCERN FOR YOU ARE NOT, THE RELATIONSHIP THAT ANTHROPIC ALREADY HAS WITH A PREVIOUS PROVIDER. ADAM: WE FELT GREAT WITH THE
RELATIONSHIP WITH ANTHROPIC. I THINK DAVE'S ANNOUNCEMENT JUST MAKES IT A DEEPER AND LONGER-TERM. ANTHROPIC WILL USE AWS AS PRIMARY CLOUD PROVIDER FOR MISSION-CRITICAL WORKLOADS, INCLUDING BUILDING FOUNDATION MODELS AND DOING AI SAFETY RESEARCH.
WE WILL RUN THE MAJORITY OF ITS WORKLOADS ON AWS. WITH FULL GREAT ABOUT BEING ABLE TO PROVIDE THE CAPACITY AND EXPERTISE. --WE FEEL GREAT ABOUT BEING ABLE TO PROVIDE THE CAPACITY AND EXPERTISE. WE FOR GREAT ABOUT WORKING WITH ANTHROPIC TO MAKE SURE OUR TRAINING AND TECHNOLOGY, OUR CHIPS ARE AS CUTTING EDGE AS POSSIBLE GOING FORWARD TWO YEARS TO COME. CAROLINE: I AM INTERESTED DRILLING DOWN WERE ED WAS GOING INTERNALLY RIGHT NOW. I PICKED UP SOME OF THE ANALYST REACTIONS TO THIS. THEY STATE THIS SIGNALS A
NEWFOUND URGENCY IN AMAZON TO GENERATE AI AND SERVICES. IT WAS THAT A LACK OF UNDERSTANDING OR A REALITY THAT AMAZON WAS BEHIND THE CURVE A LITTLE WHEN IT CAME TO THE INTEGRATION OF GENERATIVE AI. WE HAVE BEEN LOOKING AT OPENAI FOR A WHILE. ADAM: WE HAVE BEEN SAYING FOR MANY
MONTHS WE ARE FULLY URGENT WHEN WE HAVE A STRATEGY WE REALLY LOVE APPEARED IN HIS DIFFERENT THAN SOME OTHER STRATEGIES. WE HAVE A STRATEGY OF PROVIDING ABSOLUTELY UNCOMPROMISED SECURITY, WHICH I DO NOT THINK IS TRUE FOR OUR CLOUD PROVIDERS. WE HAVE A STRATEGY FOR PROVIDING CUSTOMERS CHOICES TO USE WHATEVER IS BEST FOR THE JOB AT HAND. ANTHROPIC IS GOING TO BE AN AMAZING SET OF MODELS FOR MANY OF THESE CASES. AMAZON IS FULLY INVESTED IN
BUILDING ITS OWN TIGHTENED MODELS, WHICH I THINK WILL BE USEFUL FOR OTHER CUSTOMERS IN OTHER CIRCUMSTANCES. OUR OTHER MODEL PROVIDER THROUGH BEDROCK. I THINK IT IS A ILL-FOUNDED PREMISE THAT THERE HAS BEEN SOME CHANGE IN URGENCY. OUR CUSTOMERS NEED US TO HAVE GREAT AI CAPABILITY.
SOME OF THEM HAVE AI CAPABILITY. WE HAVE BEEN, ARE AND CONTINUING TO BE MOTIVATED FOR DELIVERING WITH CUSTOMERS. ED: YOU PUT A LOT OF EMPHASIS THAT ANTHROPIC BRINGS YOU A CREATOR FOUNDATION MODELS AT SCALE. YOU NOW NEED TO RAMP UP THIRD-PARTY MANUFACTURING RELATIONSHIPS TO SAY LET'S GET MORE ON LINE SUPPORT THE WORKLOADS. ADAM:
IT IS TRUE THAT THERE IS HUGE DEMAND FOR ALL OF THE DIFFERENT CHIPS, WHICH PEOPLE DO GENERATIVE AI WORKLOADS. WE ABSOLUTELY HAVE BEEN RAMPING UP OUR TRAINING SUPPLY CHAIN AND RAMPING UP THE SUPPLY THAT WE CAN CREATE AS QUICKLY AS POSSIBLE. ANTHROPIC WILL HAVE ACCESS TO VERY SIGNIFICANT QUANTITIES OF COMPUTER WHICH WILL HAVE TRAINING IN THEM. THAT IS ONE OF MANY REASONS WHY WE CONTINUE TO RAMP UP AND PROVIDE A VERY ROBUST AWS SUPPLY CHAIN FOR AI CHIPS. CAROLINE:
IS THAT WHERE THE REVENUE BOOST COMES? ONE DOES THIS ALL START TO REALLY DRIVE ADOPTION, MONEY AND THE BORDERLINE? ADAM: AI IN GENERAL, AWS HAS HAD MACHINE LEARNING SERVICES SINCE 2017 WHEN WE RELEASED OUR SAGE MAKER MACHINE WHICH HAS OVER 4000 AWS CUSTOMERS. WE HAVE BEEN DOING MACHINE LEARNING FOR A LONG TIME. OBVIOUSLY MORE RECENTLY HAVE HAD A SIGNIFICANT AMOUNT OF AI CUSTOMERS. WE WILL CONTINUE TO RAMP UP AND ANTICIPATE QUITE STEEPLY. WE HAVE MANY SOURCES OF GROWTH INSIDE AWS AND RELATIVELY BUSINESS AT THIS POINT. CUSTOMERS ARE RUNNING DATA PLATFORMS THROUGH AWS. THEY ARE BUILDING UP MORE
APPLICATIONS FOR THINGS LIKE SUPPLY CHAIN AND CONTEXT CENTER MANAGEMENT ON AWS. A WHOLE OUT OF STORAGE AND DATABASE ON AWS. WITH MANY SOURCES OF GROWTH TO ANTICIPATE THERE'S ABSOLUTELY NO DOUBT THAT GENERATIVE AI LOOKS LIKE IT IS GOING TO BE AN EXPLOSIVE ADDITIONAL SOURCE OF GROWTH IN THE YEARS AHEAD. ED: WE PUT A LOT OF EMPHASIS ON $4 BILLION. I UNDERSTAND APPEARED THANK YOU FOR EXPLAINING HOW THE RELATIONSHIP WILL WORK AND PRACTICE. 5'2"
YOU THIS IS AN EXAMPLE OF AMAZON OR AWS PAYING A LEADER OF AI, HANDING OVER CASH TO MAKE THEM USE TRA TERNIUM, HOW WOULD YOU EXPLAIN TO BRING NEW CUSTOMERS ON BOARD WHO ARE REALLY INTERESTED WITHOUT HAVING TO INVEST IN THEM AS A SORT OF BACKUP? ADAM: THE BIG REALLY --THE REALLY BIG NEWS TODAY IS THE EXPANDED RELATIONSHIP BETWEEN ANTHROPIC AND AMAZON IN WHICH THEY WOULD HAVE ACCESS TO REALLY LARGE QUALITIES. EARLY ACCESS TO CRITICAL FEATURES THROUGH AMAZON READ WORK. AMAZON AWS IS GOING TO WORK WITH ANTHROPIC TO ENSURE WE OPTIMIZE OUR TRAINING. . IT IS A FINANCIAL INVESTMENT AND COULD GO UP AS HIGH AS 4 BILLION OVER TIME. IT IS REALLY DRIVEN AROUND
CUSTOMER VALUE AND WHAT THIS IS GOING TO MEAN TO CUSTOMERS WHO ARE VERY DETERMINED, AS THEY SHOULD BE TO FIGURE OUT GENERATIVE AI STRATEGIES. WE ARE ALREADY WORKING IN-DEPTH WITH CUSTOMERS AS IS ENTROPIC, AND FORMING THOSE STRATEGIES AND MOVING TO. A NUMBER OF OTHERS WHO ARE MOVING TO PRODUCTION WITH GENERATIVE AI ON AWS AND ANTHROPIC. WE WILL BE WORKING WITH ALL OF THE PARTNERS THAT OUR CUSTOMERS WANT TO DO BUSINESS WITH. IF IT IS AN IMPORTANT PARTNER TO OUR CUSTOMERS, IT IS NOT TO BE AN IMPORTANT PARTNER FOR US AS WELL. CAROLINE: THANK YOU. CAROLINE: LET'S HAVE A QUICK CHECK ON WHAT IS HAPPENING OUTSIDE THE WORLD OF AI.
THE STRIKES WERE UPON US WITH WRITERS AND ACTORS. MUCH MORE HAS TO DEAL WITH THE PAIN. CAROLINE: HOLLYWOOD WRITERS AND STUDIOS ARE REACHING A DEAL OVER THE WEEKEND TO END STRIKES, WHICH BEGAN BACK IN MAY. LET'S GET INTO THIS.
CAN YOU GO INTO THE INTRICACIES OF WHAT WE THINK A DEAL HAS BEEN STRUCK ON. >> THE BIGGEST ISSUES ARE THE ONES THAT THEY HAD NOT ALREADY REACHED SOME KIND OF DEAL ON ARE RELATED TO MINIMUM STAFFING, HAVING A MINIMUM NUMBER OF WRITERS WHO ARE HIRED TO WORK ON A TV PROGRAM AND DATA TRANSPARENCY/--STUDIO AND STREAMING SERVICES BEING MORE OPEN ABOUT HOW THE PEOPLE ARE WATCHING THEIR SHOWS IN PAYING WRITERS BONUSES IF THEY PERFORM UP TO A CERTAIN LEVEL. SOME AGREEMENT AROUND ARTIFICIAL INTELLIGENCE ON WHAT SOME STUDIOS CAN DO AND NOT DO WITH THE SCRIPTS THEY OWN. THEY HAVE NOT RELEASED SOME OF THE FULL PROPOSAL YET. ED: CONSIDER PRODUCTION IS STILL WORK CONSIDERING, THE ACTOR STRIKE IS ONGOING AND TALKS ARE ONGOING.
THE NET RESULT APPEARS TO BE LATE-NIGHT TALK SHOWS THAT DO NOT REQUIRE ACTORS. THEY MIGHT START GETTING UNDERWAY SOON. >> THE BROADER GUILD STILL NEEDS TO RATIFY THIS AGREEMENT. THE NEGOTIATING COMMITTEE FOR BOTH SIDES.
DAYTIME TALK SHOWS, LATE-NIGHT TALK SHOWS ARE ABLE TO GO BACK SOONER THAN IT IS RATIFIED. EITHER WAY, PEOPLE EXPECT THE GUILDS TO RATIFY IN THE NEXT COUPLE OF WEEKS YOU SHOULD SUE THE SHOWS GET UP AND RUNNING. THEY COULD BEGIN PREPRODUCTION. THEY COULD START RIGHT TO ROOMS FOR SOME OF THOSE SHOWS. THAT WHERE SHOWS THAT WERE SUPPOSED TO BE ON IN THE FALL IN SEPTEMBER THAT THEY HAVE NOT EVEN STARTED WRITING SCRIPTS YET.
CAROLINE: THIS IS A RELIEF FOR THE WRITERS WHO HAVE NOT BEEN ABLE TO WORK BUT ENTIRE THE -- ENTIRE ECOSYSTEM. WHO ARE THE KEY FIGURES THEY GOT IN THE ROOM TO TRY TO PUSH THIS FORWARD? >> FOR MOST OF THE NEGOTIATION COMMITTEE HAVE THE NEGOTIATION COMMITTEE ON THE WRITERS SID ANDE TOP LABOR LAWYERS. WE ALSO SAW IN RECENT WEEKS ESPECIALLY OVER THE LAST WEEK THE CEOS OF SOME OF THE BIGGEST MEDIA COMPANIES GET PERSONALLY INVOLVED, THAT INCLUDED WALT DISNEY'S CEO, BOB IGER, WARNER BROS. DISCOVERS CEO. THEY WERE PERSONALLY INVOLVED IN THE NEGOTIATION FOR MUCH OF LAST WEEK. THEY ARE NOT JUST GOING TO BE HEROES OF THE SITUATION, BUT THEIR INVOLVEMENT DID SIGNAL THE SERIOUSNESS WITH WHICH THE STUDIOS WERE APPROACHING AND PUT SOMETHING OF A TIMETABLE ON IT. ED:
REPORTING TO THE WEEKEND. THANK YOU. A PROGRAM ALERT. LUCAS WILL BE HOSTING BLOOMBERG SCREEN TIME AND LET COME OF THE COLLISION OF HOLLYWOOD AND SILICON VALLEY. HE IS BRINGING TOGETHER CELEBRITIES AND ENTREPRENEURS DEFINING THE NEXT PHASE OF POP CULTURE. IF YOU ARE LUCKY, IT IS TO TECHNOLOGY ANCHORS AS WELL.
THIS IS BLOOMBERG. CAROLINE: WAS STARTED ON GENERATIVE AI. THE COMPANY FOR THOUGHT. THE WHOLE SYSTEM IS POWERED BY SUPPORT GPT, WHICH IN ITSELF IS POWERED BY AI MODELS. LET'S BRING IN THE CEO. DION, IT IS INTERESTING THAT YOU ARE TRYING TO DRIVE HOME CUSTOMERS SERVICED IN A MORE NATURAL EASIER MANNER.
CAN YOU SAY HOW MUCH AT THE MOMENT THIS IS HELD BACK BY A LACK OF AI? HOW MUCH YOU THINK IT WOULD CHANGE THE GAME? DION: WHEN WE THINK ABOUT THE STATE OF THE ART IN AI RIGHT NOW, IT HAS BEEN HAMSTRUNG BY MENTAL WORKFLOWS, DECISION TREES, KEYWORDS AND THAT IS WHY EVERY SINGLE -- WE A INTERACTED WITH WE GET THE EXPERIENCE OF I NEED TO UNDERSTAND. THIS IS THE FUTURE FOR CUSTOMER SUPPORT. CAROLINE: NOT FULLY WITH THEM SOME OF THE DISCUSSION POINTS. WHEN DO YOU THINK WE MIGHT NEVER HAVE TO HAVE THAT AGE-OLD I NEED TO SPEAK TO AN AGENT NOW? DEON: WE ARE VERY CLOSE. WITH TECHNOLOGY SPECIFYING THE GOAL IN THE PROMPT INTO YOU LET THE AI DO THE REST. AND THIS HAS BECOME REALLY POWERFUL WHERE WE HAVE ALREADY SEEN THIS TECHNOLOGY LIVE IN SOME OF OUR PRIVATE DATA CUSTOMERS. WE ARE ANNOUNCING OPEN DATA
THIS PAST WEEK. WE HAVE SEEN STATS FROM SOME OF OUR CUSTOMERS WERE THE CUSTOMER SATISFACTION SCORES HAVE COME UP 27%. WE ARE ALREADY SEEING THE BENEFITS OF AUTO FLOWS. I THINK THE FUTURE IS CLOSER
THAN WE THINK. ED: THERE ARE MANY AUDIENCE MEMBERS THAT WILL BE USING THE TICKET BASE SYSTEM. GIVE US ONE CASE STUDY, A SIMPLE ONE THAT YOUR TECHNOLOGY WILL REPLACE? DEON: A LOT OF THE TICKETING SYSTEM. IF YOU LOOK AT SALESFORCE, THEY HAVE ALL BEEN TALKING ABOUT THIS AUTONOMOUS AI FUTURE. YOU HAVE SEEN AT THE
ANNOUNCEMENT, EINSTEIN, COPILOT ANNOUNCING THAT IT IS COMING SOMETIME NEXT YEAR. WE ARE READY SEEING CASES LIKE UP AT WORK WHO LEVERAGED AUTO FLOWS FOR A FEW OF THEIR WORKFLOWS IN THEIR CUSTOMER SUPPORT CENTER. THEY HAVE SEEN IMPROVEMENTS BY LEVERAGING AUTO FLOWS INSTEAD OF TRADITIONAL MANUAL WORKFLOWS IN SOME CASES. DEON: WE HAVE ALWAYS BEEN ABOUT BRINGING THE FUTURE INTO NOW. WE OFTEN LEVERAGE OUR OWN TECHNOLOGIES, MODELS.
WE ALSO LEVERAGE THE LATEST AND GREATEST. IT STARTED WITH GTP FIVE. WE FOCUSED ON INTEGRATING THE IS NOT JUST ABOUT LARGE MODELS, WHICH ARE NEW.
WE THINK THE FUTURE IS ABOUT AUTONOMOUS AI. LEVERAGING THE LATEST AND GREATEST TECHNOLOGIES --HAS BEEN HUGE. CAROLINE: IS THIS GOING TO BE LESS JOBS? DEON: LONG-TERM I AM BULLISH THAT AI WILL ACTUALLY CREATE JOBS FOR PEOPLE. WE SAW THE SAME IN THE INDUSTRIAL REVOLUTION. I THINK A LOT OF TECHNOLOGIES ARE A LOT OF INDUSTRIES ARE GOING TO BE CHANGED AND MORE JOBS WILL BE CREATED OVER TIME.
CAROLINE: WELCOME BACK. ED: TODAY IS GOING VIRAL, WE ARE FOCUSING ON FOOTBALL. TAYLOR WITH SHOWING UP TO THE KANSAS CITY CHIEFS GAME SITTING IN TRAVIS KELCE'S BOX IS MOTHER. IF YOU SAW THIS ON NFL FOX HOSTS THIS VIDEO OF HER CELEBRATING THAT THIRD QUARTER TOUCHDOWN BY KELSEY. THE NUMBERS ON THE VIDEO ARE
ASTONISHING. CAROLINE: DO ANY OF US KNOW THE NUMBERS OF THE SCORE? ULTIMATELY, SHE SENT IN ONE OF HER SONGS. SHE LIKES OF THE EAGLES. I THINK THAT IS WHERE HIS BROTHER PLAYS. THE NFL IS TRYING TO TALK UP WHO IS GOING TO BE THERE BIG SUPER BOWL. A 90'S KID. I AM ALL IN YOUR ISN'T IT ULTIMATELY ABOUT ENTERTAINMENT AND FOOTBALL INTERTWINING AT THIS MOMENT? ED: WE WERE DISCUSSING THIS A WEEK AGO. WE WERE SAYING, NO WAY. LOOK AT THE SOCIAL MEDIA RESPONSE.
YOU ARE RIGHT WHEN NFL AND FOX TO TO FINAL SCORE, TAYLOR SWIFT IN THE MIDDLE OF THE IMAGE. WHAT A WORLD WE LIVE IN. CAROLINE: I AM SURE THE NUMBERS ON THE DEAL GOT A LITTLE MORE OF HER FACE BEING ON IT. ACROSS THE WORLD OF TECHNOLOGY IT WAS TRENDING. WE ALSO GOT A KEY STORY TO TALK ABOUT THE HOLLYWOOD WRITERS, THE STUDIOS REACHING THE TENTATIVE DEAL OVER THE WEEKEND TO END STRIKES WHICH BEGAN IN MAY.
HERE TO DISCUSS IT IS STEPHEN. YOU TALK ABOUT THE IMPACT THIS IS HAVING ON YOUR INDUSTRY. ARE YOU POSITIVE? ARE YOU HOPEFUL THAT THERE MIGHT BE SOME COMING TOGETHER NOW SH? >> I AM CAUTIOUSLY OPTIMISTIC. THIS HAS HAD A HUGE TOLL ON THE ENTERTAINMENT INDUSTRY AT LARGE. SINCE MAY YOU HAVE SEEN
BILLIONS OF DOLLARS BEING TAKEN OUT OF THE ENTERTAINMENT INDUSTRY. REALITY IS, THEY NEED TO GET BACK TO WORK. WE ARE GLAD WE HAVE A TENTATIVE AGREEMENT. IT NEEDS TO GO TO THE GUILD MEMBERS. HOPEFULLY TUESDAY THEY WILL RATIFY THIS. IT IS STILL GOING TO BE SOME TIME BEFORE FOLKS GET BACK TO WORK. CAROLINE:
YOU STILL NEED THE ACTORS TO WORK. YOU MIGHT BE ABLE TO HAVE SOME TALKSHOWS GOING BACK. YOU'RE HOPEFUL THAT THAT IS THE NEXT SHOE TO DROP IT? STEVE: THERE IS SOMETHING CALLED PATTERN MATCHING WHEN YOU START TO NEGOTIATE. THE DIRECTORS GUILD WENT BACK
TO WORK A COUPLE OF MONTHS AGO. IT TOOK A WHILE BEFORE WE ACTUALLY SAW THE WRITERS REALLY COMING BACK TO THE TABLE. THEY WERE NOT NEGOTIATING FOR WEEKS. ALL EYES ARE ON --. WE REALLY NEED TO SEE THIS COME TO AN END.
THE WRITERS --YOU NOW HAVE PERMISSIONS FOR SOME OF THE WRITERS TO SUPPORT THEIR ACTORS. WE ARE HOPEFUL THAT PRODUCTION CAN START ONCE WE ACTUALLY HAVE THE NEGOTIATIONS AGREED UPON, YOU NOW ARE GOING TO HAVE TO REVAMP PRODUCTIONS. IT IS GOING TO TAKE MAYBE TWO OR THREE MONTHS FOR ALL PRODUCTIONS TO COME BACK FULLY. ED: THAT IS WHAT WE ARE TALKING ABOUT. THE LATENCY OF THE IMPACTS OF THESE STRIPES. OF SUPPLY CHAIN BEHIND MAKING
CONTENT. HOW DELAYED HOW FAR INTO THE FUTURE THE STRIKES WILL BE FELT? IT TAKES TIMES TO MAKE SHOWS. STEVE: THE FIRST THING THAT WILL COME BACK WILL BE TALKSHOWS. A LATE NIGHT WILL COME BACK FIRST. WHEN YOU THINK ABOUT ALL OF THE KEY THINGS THAT WERE
BEING NEGOTIATED AROUND DATA, CREDIT RESIDUALS THAT COMES TO STREAMING IN TERMS OF USE OF AI WHICH EVERYONE IS STILL VERY NERVOUS ABOUT, YOU KNOW, THOSE THINGS ARE STILL GOING TO TAKE TIME TO REALLY PLAY OUT. WE REALLY NEED -- TO COME BACK TO THE TABLE ALONG WITH THE STUDIOS. HOPEFULLY THAT WILL BE RESOLVED BECAUSE OF THIS CONTINUES PAST SEPTEMBER -- OCTOBER.
THAT IS HAVING A HUGE IMPACT. WHEN YOU ARE SEEING BIG FAILINGS GETTING PUSHED INTO 20 23 ENTER 2024. DATA, AI, THOSE ISSUES ARE GOING TO HOPEFULLY GET RESOLVED IN SOME WAY. IT IS GOING TO BE A SHORT-TERM FIX. IT IS IMPACTING EVERYONE. LOOK AT THE MEDIA COMPANIES. NETFLIX IS UP 20 PERCENT SINCE THE STRIKE STARTED. ALL OF THE SOCIAL MEDIA COMPANIES, DISNEY DOWN.
IT REALLY IS TAKING A TOLL ON THE INDUSTRY. ED: THE BIG MEDIA COMPANIES AND THE BIG NAMES THAT LEAD THEM. IT IS IMPORTANT TO NOTE THAT PEOPLE AROUND THE TABLE THAT ARE TRYING TO FIX THIS. CAROLINE: I AM SURE IT IS TOP OF MIND. YOU CAN STILL SEE THE SHARE PRICE GOING ON. WE DO KNOW THAT BOB IGER WAS THERE WITH THE SHAREHOLDERS FRONT AND CENTER FOR HIM AS WELL. I AM INTERESTED HOW IMPORTANT
YOU THINK THE LEADING EXECUTIVES ARE IN PART OF THE CONVERSATION DRIVING IT FORWARD? STEVE: WE HAVE A BOB IGER FROM DISNEY. VALLAS, WARNER BROS. DISCOVERY. THEY HAVE BEEN MEETING WITH THE WRITERS GUILD OF AMERICA. THAT IS HOW THIS BLOCKAGE GOT UNBLOCKED.
WHY DIDN'T THIS HAPPEN MONTHS AGO? WHEN IT COMES TO TUESDAY YOU ARE GOING TO HAVE ALMOST 100 AND 50 DAYS. I WISH PEOPLE WOULD HAVE COME TO THE TABLE BECAUSE THIS IS GOING TO HAVE SUCH AN IMPACT. THE AVERAGE SALARY FOR A WRITER IS ABOUT $53,000.
IT IS NOT COMING AT A TOP ONE PERCENT OF WRITERS WHO ARE GETTING DOLLARS. THE AVERAGE PERSON WHO IS BEING IMPACTED IN THIS IS REALLY TRULY IMPACTED. I AM GLAD THAT THEY CAME TO THE TABLE. ED: ONE IN THE STRIKES STARTED TO CONVERSATION WAS ABOUT AI AND THE LONG-TERM IMPACTS OF AI. IT HASN'T BECOME MORE CLEAR THAT PAY IS THE ESSENTIAL ISSUE? STEVE: HEY IS NOT JUST A CENTRAL ISSUE. WE ARE SO AT THE DAWN OF THE AI.
WE ARE TRULY NOT GOING TO IMAGINE THAT ONCE YOU MOVE PAST THE ABILITY TO ASK QUESTIONS TO THINGS LIKE GENERATIVE AI, ONCE YOU START MOVING FROM QUESTIONS TO ACTUAL ACTIONS. THE ABILITY TO DO A MODERN-DAY TEST, WE ACTUALLY TELL AAI CHATBOT, HERE'S ONE HUNDRED THOUSAND DOLLARS, GO OUT AND MAKE $1 MILLION ON AMAZON. IT WILL SET UP ITS OWN STORE AND MARKETING. IT WILL GENERATE $1 MILLION IN SALES. THAT IS GOING TO HAPPEN. EVERY SINGLE INDUSTRY, EVERY SINGLE PERSON IS GOING TO BE IMPACTED BY AI. WE HAVE NOW SCRATCHED THE SERVICE ON WHERE THIS IS GOING TO GO. WHAT WE KNOW ABOUT AI RIGHT
NOW, THIS AGREEMENT FOR THE NEXT YEARS HOPEFULLY PUTS IN PLACE THAT THIS IS GOING TO COME BACK IN THREE YEARS TIME THEY ARE GOING TO HAVE TO NEGOTIATE. IT IS GOING TO BE HERE TO STAY AND WREAK HAVOC ON THE INDUSTRY. ED: UP FOR A SECOND STRAIGHT DAY WE HAVE OPENED WITH A SESSION LOW. RATES HIGHER FOR LONGER TO IMPACT ONGOING INFLATION.
BIOTECH. IT IS A UNDERPERFORMER DOWN TO HYUNDAI HAVE --2/10 OF 1% --IT IS A UNDERPERFORMER DOWN TO AND A HALF PERCENT. WE HAVE SEEN BIOTECH HEADLINES AT THE TERMINALS. ED: APPLES BASIC AP IPHONE 15 MODEL IS TAKING LONGER.
THE COMPANY SAID IT WILL INCREASE SMARTPHONE PRODUCTION IN RESPONSE TO DEMAND. WITHOUT NAMING THE HANDSET THAT TRIGGERED THE SURGE. BOOKINGS, 1.6 EURO TAKEOVER WAS BLOCKED BY THE EUROPEAN UNION. THE PROPOSED ACQUISITION WOULD HARM THE MARKET FOR ONLINE TRAVEL AGENCIES. CAROLINE: LET'S TAKE A MOVE. THE INDUSTRY IS RACING. IT IS GOING TO NEED TWO THINGS, TECHNOLOGY AND AI TO IMPROVE THE SCALE OF INNOVATION.
JUST RELEASED A REPORT ON THE ADOPTION OF TECHNOLOGY. HOW ARE YOU SEEING THE ADOPTION OF TECHNOLOGY OR LACK THEREOF IN EUROPE BIOTECH INDUSTRY RIGHT NOW? SAJITH: WE STARTED A DECADE AGO TO BRING MODERN SOFTWARE TO CUTTING EDGE SILENCE. TODAY USED BY 1200 COMPANIES GLOBALLY TO CAPTURE AND STRUCTURE THEIR SCIENTIFIC DATA OFTEN FROM MACHINE LEARNING BUT PROBABLY IN SERVICE OF BRINGING CUTTING EDGE LIFE-CHANGING PROGRESS TO PEOPLE FASTER. I GOT BACK FROM BENCH TALK WHERE I SPOKE WITH HUNDREDS OF SCIENTISTS WHO WORK ON EVERYTHING FROM JEAN EDITING TO HEART DISEASE, PERSONALIZED CANCER VACCINE. NEEDLESS TO SAY IT IS A VERY
EXCITING TO TIME --TIME TO BE IN SCIENCE. CAROLINE: HOW MUCH HAS INFORMATION SHARING BEEN A BLOCKER? FROM ANY YOU WOULD FEEL THAT COLLABORATION IS ALREADY OCCURRING. IT SAJITH: SCIENCE IS A COMPLEX AND DIFFICULT.
WE HAVE KNOWN SOME OF THE CHALLENGES POSED BY TECHNOLOGIES FOR PROGRESS IN THE SCIENCES. HAVE PAPER NOTEBOOKS, SPREADSHEETS, LEGACY TECHNOLOGY THAT MAKES IT HARDER TO COLLABORATE. MY INNER SCIENTIST REALLY WANTS MORE PRIMARY DATA AND UNDERSTAND HOW MUCH WORK THERE IS IN FRONT OF US TO DO. THIS SUMMER WE SPOKE WITH HUNDREDS OF SCIENTISTS, LEADERS AND EXECUTIVES AND PRODUCED THE FIRST STATE OF TECH IN REPORT. THIS ESSAY INDUSTRY -- THIS IS
A INDUSTRY THAT HAS NOT SEEN THE TRANSFORMATION OF DIGITAL INDUSTRIES YET. IF I DIVE INTO THE DATA, THE FIRST THING SCIENTIST TOLD US THERE IS TOO MUCH SOFTWARE. THE IRONY OF A CEO SAYING THERE'S TOO MUCH TECHNOLOGY. SCIENTISTS AFTER USE FIVE SPECIALIZED APPLICATIONS PER DAY TO DO THEIR JOB. THESE APPLICATIONS AREN'T THE
SAME. SOME OF THE I.T. EXECUTIVES HAVE TWO MANAGE AN ENVIRONMENT WITH DIFFERENT TOOLS THAT ACTUALLY DO NOT TALK TO ONE ANOTHER. 20% IS INTEROPERABLE. THAT IS A BIG PROBLEM WHEN 80 4% OF ORGANIZATIONS REJECT THAT THEIR DATA IS GOING TO DOUBLE IN THE NEXT 12 MONTHS. THIS IS AN INDUSTRY THAT IS FUNDING TENS AND BILLIONS OF DOLLARS OUTSIDE OF CLINICAL TRIALS. MOST OF THAT KNOWLEDGE ENDS UP TRAPPED IN SILOS. ED:
THE VAST MAJORITY OF CONVERSATIONS THAT CAROLINE AND I HAVE ABOUT AI AND THE HEALTH CARE SPECIFICALLY IS HOW IT EXPEDITES DRUG DEVELOPMENT. DOES YOUR RESEARCH REFLECT THAT IS THE AREA YOU ARE MUCH MORE FOCUSED ON RIGHT NOW? SAJITH: 60% OF ORGANIZATIONS ARE TESTING THE WATER WITH MACHINE LEARNING AND AI. THERE IS SKEPTICISM AS TO THE NEAR-TERM IMPACT IT IS GOING TO HAVE. WE REALLY SEE TWO MAJOR CHALLENGES THAT ARE HOLDING THE
INDUSTRY BACK FROM REALIZING THE POTENTIAL. THE FIRST IS A TALENT GAP. SOME OF THE BRIGHTEST MINDS FROM TECHNOLOGY, DATA SCIENTISTS. THESE ARE TWO INDUSTRIES THAT ACTUALLY HAVE NOT --FOR YOUR PURPOSE BUILT TOOLS THAT ADVANCE THE SCIENCE. THAT IS WHERE WE ARE SPENDING OUR TIME INVESTING. ED:
I MET SO MANY HIGHLY QUALIFIED PEOPLE WORKING IN THE FIELD THAT --P ARE IT RAISES QUESTIONS. THAT SEEMS TO BE AN AREA OF MORE NEAR-TERM WERE MACHINE LEARNING IN CONJUNCTION WITH HARDWARE CAN BE REALLY HELPFUL. SAJITH: WE JUST LAUNCHED A NEW PRODUCT.
MAJORITY OF SCIENTIFIC EXPERIMENTATION INVOLVES INSTRUMENTS. WE HAVE BEEN FOCUSING SOME OF OUR INVESTMENTS ON AUTOMATING THE FLOW OF DATA ENTRY SYSTEMS IN SUPPORT OF MACHINE LEARNING. -- MISSION LEARNING. CAROLINE: WHAT A DEEP DIVE IN FINTECH. CURRENTLY OVER FIVE MILLION USERS IN ARGENTINA AND NOW MEXICO.
LET'S TALK ABOUT THE STORY. IT IS GREAT TO HAVE YOU IN THE STUDIO. WHAT IS SO INTERESTING IN THE MOMENT IS THE WAY YOU EXPAND OUTSIDE OF ARGENTINO ALREADY PRETTY DOMINANT INTO MEXICO. WHY WAS MEXICO SO ATTRACTIVE? >> MEXICO IS AN AMAZING A MARKET WHERE 49 BANKS. 90 PERCENT OF ALL TRANSACTIONS ARE CONDUCTED IN CASH. YOU HAVE 70 MILLION PEOPLE WHO HAVE NEVER HAD A DEBIT CARD, WHO HAVE NEVER BEEN ABLE TO SAVE, TAKE PAYMENTS.
AS THIS DIGITIZES IN THE NEXT DECADE, WE WANT TO BE THERE IN BET ON IT. THAT IS WHY WE JUST ACQUIRED A BANK IN MEXICO AND WE CAN NOW OFFER EVERYTHING FROM PAYMENTS TO HIGH-YIELD SAVINGS ACCOUNT IN MEXICO AND ALSO CHARGING INVESTMENTS MAKING UPDATE ECOSYSTEM OF ALL FINANCIAL SERVICES. CAROLINE: THE EC HAS BEEN --ON YOU. WE ARE BRINGING THIS FINANCIAL
FOCUS TO YOUR HOME. OH WHAT ARE SOME OF THE ISSUES WHEN YOU'RE THINKING OF INFLATION? WHEN YOU ARE THINKING OF POLITICAL INSTABILITY. WE THINK OF THE MOMENT ONE OF THE FRONT RUNNERS FOR ARGENTINA TALKING DOLLARIZATION AND INTO THE CENTRAL BANK. HOW DOES THAT AFFECT YOU? PIERPAOLA: WE SAW CHINA DID IT FASTER THAN MANY OTHER DEVELOPING MARKETS. WE SAW IT IN INDIA AND BRAZIL. THE REST OF THE LATIN AMERICA WE SAW AN AMAZING OPPORTUNITY. WE HAVE 17% OF THE ADULTS IN THE COUNTRY.
WE GIVE THEM TOOLS WHILE THEY CAN BUY DOLLARS THEY CAN INVEST IN U.S. EQUITIES, THEY CAN HAVE THE BEST HIGH-YIELD SAVINGS ACCOUNT IN THE COUNTRY AND PROTECT THEMSELVES AGAINST INFLATION. WE SEE AN OPPORTUNITY THAT IS VERY WIDE-RANGING IN A REGION OF A WORLD THAT IS LAGGING. ONE OF THE VERY FEW THINGS I
KNOW THE NUMBER IS GOING TO GO 40 TO 80. WE NEED TO LEARN TO LIVE WITH IT. IN THE CASE OF ARGENTINA IT IS MOVING TOWARD A MORE PREMARKET STANCE WITH THE ELECTIONS THAT ARE COMING UP IN OCTOBER. ED:
IF HE DOES WELL ARISE THE ECONOMY AND THE CENTRAL BANK, HOW DO YOU PREPARE FOR THAT? HOW DO YOU CHANGE YOUR BUSINESS MODEL TO TAKE THAT INTO ACCOUNT? PIERPAOLA: IN ARGENTINA ONLY BANKS ARE ALLOWED TO HAVE DOLLAR ACCOUNTS ALREADY. WE ALREADY OFFERED DOLLAR TRADING. WHILE FINTECH AND WALLETS DO IT. WE HAVE THE STRENGTH OF HAVING FULLY REGULATED ENTITIES THAT ALLOW US TO THE INVESTMENTS AND LENDING. WE HAVE SEEN THIS. WHAT I THINK WILL HAPPEN IN ARGENTINA IS WE WILL MOVE TO A MORE OPEN CAPITAL ACCOUNT. THAT IS HOW WE ALREADY OPERATE
IN MEXICO AND COLOMBIA. THE SPEED OF THE DIGITIZATION OF SERVICES WILL ONLY ACCELERATE. . I THINK BANKS WILL BE ABLE TO DO LONGER-TERM LENDING. OUR LONGEST LOAN IN THE CONTEXT IS JUST TWO YEARS. IMAGINE THAT WITH 30 YEAR FIXED MORTGAGES.
THE OPPORTUNITY IS HUGE BECAUSE ONLY A PERCENT OF PEOPLE HAVE ACCESS TO THE CREDIT TODAY. ED: MEXICO IS A PARALLEL EXAMPLE OF CASH IS KING. WHAT IS THE OPPORTUNITY THAT AI OR OTHERWISE? PIERPAOLA: WHAT WE HAVE IN MEXICO IS PAY YOUR BILLS, HAVE A DEBIT CARD, BE ABLE TO SIGN-UP EVEN FOR BLOOMBERG. ALL OF THOSE THINGS MEXICANS
COULDN'T DO BECAUSE THEY WERE CONDEMNED TO CASH YOUR THAT EVEN CHARGED YOU A FEE TO PAY YOUR WATER BILL OR ELECTRICITY BILL. IT LETS YOU CREATE CREDIT HISTORY LIKE WE HAVE ALREADY
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