Paramount and Skydance Revive Deal, Apple and OpenAI's Relationship Deepens | Bloomberg Technology
>> IN SILICON VALLEY AND BEYOND THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I'M CAROLINE HYDE IN NEW YORK. ED LUDLOW IS OFF. PARAMOUNT AND SKY DANCE REACH A MERGER AGREEMENT AFTER LAST MONTH. COVERAGE AHEAD FOR APPLE AND OPENAI TO LIVE DEEPEN THE RELATIONSHIP AS THEY GET AN OBSERVER ON THE COMPANY'S BOARD. WE WILL TURN TO THE
INTERSECTION OF HEALTH AND TECHNOLOGY AS WE SIT DOWN WITH THE CEO. A QUICK CHECK ON THESE MARKETS BECAUSE EVEN WITHOUT THE PLAY OF NVIDIA THEY'RE MANAGING TO BREAK NEW RECORDS. UP THREE TENTS OF 1%. YOU'RE LOOKING AT THE 10 YEAR YIELDS REACHING DOWN NINE BASIS POINTS. THE ECONOMY SHOWING CUT -- SOME KINDS OF SLOWING.
WE FALL SOME NINE BASIS POINTS AS THE FED CAN INDEED CUT FOR THE REST OF THE YEAR. STOCKS IN EUROPE DOING WELL. THE DAY BEFORE THE U.K. HEADS TO THE POLLS. THE FTSE SEEING ANY SORT OF VOLUME ON THE DAY. LET'S LOOK AT WHAT'S HAPPENING ON THE INDIVIDUAL ASSETS OF CHOICE WOULD NEED CRYPTO UNDER PRESSURE.
THE LINE TO LOOK AT 59,735. 180 THREE DAILY MOVIE AVERAGE. THAT'S WHEN WE START TO SEE MORE BEARISH SIGNALS FOR THE REST OF THE YEAR IF WE BREAK BELOW THAT. THERE'S A LOT TO BE KEEPING AN EYE ON.
ERASING THIS YEAR'S LOSSES AS WE GET DELIVERIES THAT ARE THAN EXPECTED BUT STILL FALLING. BASAL SELLING SHARES AS WE REACH THAT RECORD HIGH YESTERDAY AND PARAMOUNT WE WILL DIG INTO THIS DEAL. IS THERE ONE, CAN IT LAST. WILL SKY DANCE MEANT TO BUY OUT SHERRY REDSTONE. WE'VE GOT SOME KEY POLITICAL NOTES FOR YOU BEFORE WE GET ALL THE MARKETS WE WANT TO UNDERSTAND WHAT'S HAPPENING OUT OF WASHINGTON. THE NEW YORK TIMES REPORTING
PRESIDENT BIDEN HAS TOLD AN ALLY HE IS WONDERING WHETHER TO CONTINUE RUNNING FOR PRESIDENT. JOINING US IS THE HOST OF DAVID -- HOST OF WALL STREET WEEK, DAVID WESTIN. THIS DOES SEEM TO BE THE FIRST TIME WE'VE HEARD FROM BIDEN'S TEAM OF THIS QUESTION. DAVID: A NEW YORK TIMES REPORT THAT A
CLOSE ALLY. WE NOW HAVE A SPOKESMAN FOR THE WHITE HOUSE SAYING THE PRESIDENT IS NOT CONSIDERING WITHDRAWING FROM THE RACE AT ALL BUT THE REPORT WAS A LITTLE MORE NUANCED WHICH IS HE KNOWS HE IS IN TROUBLE AND WILL HAVE TO DO SOMETHING TO TURN IT AROUND, AND THAT SHOULDN'T COME AS A BIG SURPRISE THAT THE PRESIDENT UNDERSTANDS THERE'S A PROBLEM. THERE WERE SOME DEMOCRAT AND DOES HE NOT GET IT. NOW THEY'RE SAYING I GET IT THERE'S A PROBLEM, THE QUESTION IS WHAT CAN YOU DO TO TURN HIS PERCEPTION AROUND AFTER THAT UNFORTUNATE FOR HIM DEBATE.
CAROLINE: SHE ARTICULATES THERE'S A LOT WE HEAR FROM THE PRESIDENT IN THE NEXT FEW DAYS. HE'S DECIDED TO GO BACK OUT ON THE TRAIL IN A SIGNIFICANT WAY AND DO KEY INTERVIEWS TO PROVE HE'S READY, WILLING AND ABLE. DAVID: IT'S ONE THING TO GOD AND GIVE A SCRIPTED SPEECH TO A RALLY. I'M NOT SURE THEY BELIEVE THAT WILL TURN THINGS AROUND. BUT HE HAS AGREED TO DO A SIT-DOWN INTERVIEW WITH MY OLD SHOP, ABC NEWS AND GEORGE STEPHANOPOULOS TO SIT DOWN AND I AM SPECULATING NOW, BUT I BELIEVE THEY SAID WE NEED TO GO OUT AND PROVE CREDIBLY THIS PERSON IS UP TO THE JOB AT THIS POINT AND THEY CHOSE GEORGE BECAUSE THEY BELIEVE IT WILL PUT HIM THROUGH HIS PACES AND THEY CAN ASSESS CAN THE PRESIDENT DIG HIMSELF OUT OF THIS HOLE BY A PERFORMANCE WITH SOMEONE LIKE GEORGE STEPHANOPOULOS IN A ONE-ON-ONE EXTENDED INTERVIEW. CAROLINE: CLEAR EYED THAT HE HAS AN UPHILL BATTLE.
WE THANK YOU FOR BRINGING US THE INSIGHT WHEN IT COMES TO ABC AND WHAT'S HAPPENING WHEN IT COMES TO DEBATES AND POLITICS. MARKETS ARE GOING TO BE AFFECTED BY THE PRESIDENTIAL ELECTION AND BY WORLDWIDE ELECTIONS. LET'S BRING IN MELISSA AUTO -- MELISSA OTOO. -- OTTO. JUST MORE MACRO PERSPECTIVE ARE YOU THINKING ABOUT THE PRESIDENTIAL ELECTION, HOW DOES IT AFFECT YOUR RESEARCH? MELISSA: I WOULD SAY MARKETS ARE TERRIBLE AT DISCOUNTING POLITICAL RISKS IN GENERAL. ULTIMATELY FUNDAMENTALS ARE WHAT DRIVE STOCKS AND THAT TENDS TO BE WHAT WE ARE FOCUSED ON. CAROLINE: IT'S NOTABLE MANY FEEL WHETHER IT'S BIDEN -- DEMOCRATIC OR REPUBLICAN PRESIDENT IN THE WHITE HOUSE THEY WILL FOCUS IN ON TECHNOLOGY AND INVEST AND IT'S ALL BEEN ABOUT SUPPLY CHAINS. TELL US ABOUT WHERE YOU'VE BEEN
LOOKING FROM YOUR PERSPECTIVE, HOW MUCH YOU BEEN FACTORING GEOPOLITICS. MELISSA: I WOULD SAY IT'S AN INTERESTING TIME RIGHT NOW. FOR THE BROAD AI LANDSCAPE. I THINK THE MILLION-DOLLAR QUESTION WE ARE FOCUSED ON AT THE MOMENT IS WHAT IS ULTIMATELY GOING TO DRIVE BROAD ADOPTION, WHAT'S GOING TO GET USERS AROUND THE WORLD REALLY FIRED UP ABOUT GENERATIVE AIA SPRING ITS ABILITY TO SUMMARIZE, TO SAVE TIME, TO MAKE PEOPLE MORE PRODUCTIVE SO THERE'S TWO ANGLES TO THIS. ONE IS THE CONSUMER ANGLE AND
ONE IS AN ENTERPRISE ANGLE. IT COULD BE A HYBRID OF BOTH AND I THINK THIS IS THE BROAD LANDSCAPE WE ARE LOOKING AT. CAROLINE: WHAT'S INTERESTING IS WHAT COULD INFUSE OUR OWN USE CASE IS OF COURSE APPLE AND THE PARTNERSHIP WITH OPENAI. WE ARE TO DEBATE THAT LATER IN
THE SHOW AS TO THE BOARD PRESENCE OR OBSERVATION IT HAS OPENAI BUT TO YOUR POINT WHERE IS THE INFRASTRUCTURE INVESTMENT STILL NEEDED. PEOPLE ARE AMAZED TODAY WE ARE STILL BREAKING NEW RECORDS EVEN THOUGH NVIDIA IS TRADING TO THE DOWNSIDE. HAVE WE SEEN ALL THE VALUE ALREADY INTO THESE PRICES RIGHT NOW WHEN IT COMES TO THE INFRASTRUCTURE OR MORE TO GO? MELISSA: IT IS HARD TO SAY. BASED ON THE ANALYSIS THAT WE'VE DONE THEIR EXPECTATIONS OF, UP SIGNIFICANTLY SINCE DECEMBER. WE HAVE SEEN IN OUR ESTIMATES REVISIONS IN THE BALLPARK OF $200 MILLION SINCE LAST YEAR. SO I THINK WE THOUGHT IT LOOKED A LITTLE BIT LONG IN THE TOOTH LAST DECEMBER BUT IT CONTINUED TO RALLY, ESTIMATES CONTINUE TO RISE ANOTHER 50 TO $75 BILLION INTO THIS YEAR SO IT'S REALLY HARD TO SAY.
HOWEVER WE TAKE A STEP BACK AND THINK ABOUT WHERE WE ARE IN A HARDWARE REPLACEMENT CYCLE AND WHAT ROLE AI MAY PLAY IN THIS. THIS COULD BE VERY INTERESTING PLACE TO LOOK AND WHERE EXPECTATIONS HAVE REMAINED FAIRLY MUTED FOR THE MOMENT AND IT WILL BE INTERESTING TO SEE IF THAT CHANGES OVER THE NEXT SIX TO 18 MONTHS. WE WILL BE WATCHING CAREFULLY. CAROLINE: WHAT ARE THE STUMBLING BLOCKS WITH THAT. ?
WHERE CAN ONE BE PUTTING MONEY TO WORK THAT'S PERHAPS BEEN OVERLOOKED AT LATE WITH THAT REPLACEMENT CYCLE AND THE NEED TO REFRESH AND INVEST. MELISSA: THE HARDWARE CYCLE WENT BONKERS IN THE COVID ERA AND I THINK CONSUMERS, ENTERPRISES JUST RUSHING TO GET THE LATEST LAPTOPS, SMARTPHONES, TO REALLY EQUIP PEOPLE TO BE MORE CONNECTED, MORE MOBILE AND TO BE ABLE TO WORK WITHOUT HAVING TO WORRY ABOUT GOING INTO THE OFFICE. THAT WAS AN ENORMOUS CATALYST FOR DRIVING THAT REPLACEMENT CYCLE.
THE NORMAL REPLACEMENT CYCLE IS NORMALLY AROUND THREE TO FIVE YEARS AND GIVEN COVID STARTED IN 2020, WE ARE SQUARELY IN THAT AREA SO I THINK YOU LOOK OUT OVER THE NEXT YEAR OR SO IT WILL BE INTERESTING TO SEE HOW COMPANIES START TO THINK ABOUT SPENDING AND WHERE THEY WANT TO UPGRADE. WE HAD A COUPLE OF COMPELLING ANNOUNCEMENTS BY MICROSOFT AND OTHER LAPTOP MANUFACTURERS SHOWCASING THEIR NEW AI LAPTOPS. ARE THESE NEW AI LAPTOPS POTENTIALLY GOING TO GET ENTERPRISES EXCITED ABOUT THE CAPABILITIES OF GENERATIVE AIA TO MAKE THEIR EMPLOYEES MORE EMPOWERED AND PRODUCTIVE IN A WAY THAT COULD REALLY HAD THEIR BOTTOM LINES.
AND ULTIMATELY DRIVE THAT REPLACEMENT CYCLE MORE THAN EXPECTATIONS. CURRENT EXPECTATIONS ARE AROUND 15 TO 20% BELOW WHERE THE PEAK COVID UNITS WERE. SO WHAT COULD POTENTIALLY DRIVE IT IS SOME UPSIDE. CAROLINE: HELPING TO SELL THOSE PCS. WE THANK YOU SO MUCH.
ALL THINGS MARKETS AND FOCUS THERE. COMING UP WE GET INTO THE DEAL. PARRAMATTA STILL A SKY DANCE. IT'S BEEN REVIVED. ALL THE DETAILS NEXT, THIS IS
BLOOMBERG TECHNOLOGY. CAROLINE: SHARES OF POWER AMOUNT POPPING TODAY ONCE AGAIN SPECULATION IS RIFE. HAVE WE GOT A DEAL BETWEEN THE COMPANY AND THE INDEPENDENT FILM AND TV PRODUCER SKY DANCE MEDIA.
THEY'VE BEEN REVIVED LOOKING TO BUY OUT SHERRY REDSTONE. HER CONTROLLING STAKE AND THE DEAL REPORTS CONTINUE TO DRIVE SHARES HIGHER AND INDEED ANALYSTS TRYING TO UNDERSTAND IF THIS IS IN ANYWAY WAY LONGER-TERM GOOD FUNDAMENTALS FOR PARAMOUNT. NATIONAL AMUSEMENTS, SKY DANCE RE-ENGAGING IN THOSE TALKS. THE SENIOR ANALYST HAS BEEN FOLLOWING THIS SAGA THAT WILL EVENTUALLY BE A MOVIE FOR THE LAST SEVEN MONTHS. WE GET HINTS FROM THE WALL STREET JOURNAL OF A PRICE POINT OF ONE POINT SEVEN $5 BILLION FOR THE NATIONAL AMUSEMENTS STAKE. IS THAT ENOUGH AND WHAT DOES THAT MEAN FOR NONVOTING SHAREHOLDERS? >> THE RUMORS OF THE NONVOTING SHAREHOLDERS OF THE -- WOULD GET HALF OF THE SHARES TAKEN OUT OF 5 A SHARE WHICH IS QUITE A BIT HIGHER THAN TODAY'S MOVE WHICH MEANS WALL STREET IS SKEPTICAL THIS DEAL WILL GO THROUGH OTHERWISE I THINK THAT GAP WOULD BE NARROWER. I THINK SKY DANCE.
TWO THINGS CHANGED IN THIS DEAL COMPARED TO THE DALE -- DEAL SHE WALKED AWAY FROM YEARS AGO. JUST DAYS AGO. INSTEAD WHAT SHE GOT WAS A 45 DAY SHOPPING PERIOD, SHE'S GOING TO GET SUED OVER THIS BECAUSE SHE'S GETTING BETTER TERMS AND PUBLIC SHAREHOLDERS. BUT WHEN THEY GET TO COURT WHERE THE PUBLIC SHAREHOLDERS ARE SUING HER FOR TAKING A SWEETHEART DEAR FROM SKY DANCE SHE CAN SAY WE SHOPPED AT FOR 45 DAYS, NO ONE ELSE STEPPED IN AT THIS PRICE POINT OR MORE AND THEREFORE WE DID NOT SCREW YOU OVER PUBLIC SHAREHOLDERS PAID CAROLINE: THE WORRY AND ANXIETY SHE HAS SHE WILL BE TAKEN TO COURT, WHAT YOU THINK THAT 45 DAY SHOPPING EXPERIENCE WILL GARNER IN ANY WAY.
ARE YOU OF THE VIEWPOINT NO ONE WILL STEP FORWARD? LAURA: I THINK MOST COMPANIES WOULD BUY PARAMOUNT AND NOT WANT TO GIVE THE MONEY OF NATIONAL AMUSEMENTS TO HER. I DON'T EXPECT THEM TO GO AWAY. THIS SAGA IS LIKE THE BOY WHO CRIED WOLF. THIS DEAL HAS BEEN ON AND OFF AT LEAST FOUR TIMES THAT I CAN THINK OF. I WOULDN'T STOP TRYING TO DO DEALS AND YOU SAW THE HEADLINE TODAY WARNER IS THINKING OF TRYING TO PUT EXTREME BUSINESSES TOGETHER TO TRY AND CREATE A BUNDLE TO COMBAT THE DISNEY BUNDLE WITH HULU. AND SO THAT'S A SMART IDEA. OTHER BUSINESS WILL GET DONE HERE WHILE THE FIGHT FOR THE TOP OF WHO ACTUALLY OWNS AND CONTROLS THE ENTITY CONTINUES.
>> POTENTIALLY A SELLOFF OF BET. THERE ARE DIFFERENT PARTS OF THE ASSET PILE HERE. WE'RE TALKING WITH THE RUMOR BARRY DILLER WAS EYEING IT. WHEN YOU'RE LOOKING AT THE
SHARE PRICE AND YOU'RE SAYING AT THE MOMENT IT DOESN'T GO ALL THE WAY TO POTENTIALLY 5 A SHARE THAT THE VOTING -- NONVOTING THE CLASS WOULD GET. WHAT SHOULD THEY DO. IF I'M AN INVESTOR AND SNIFFING AND INVESTOR IN THE CLASS B SHARES, WHAT I DO AT THIS MOMENT? LAURA: I WOULD WAIT TO SEE WHO'S PRESIDENT OF THE UNITED STATES. THE BIDEN ADMINISTRATION HAS REALLY NEGATIVE, AND DAY PEOPLE AT THE HEAD OF ALL THESE AGENCIES BUT IF WE GET A PRESIDENTIAL SWITCH. THIS INDUSTRY WERE TALKING ABOUT ALL NEEDS TO CONSOLIDATE THE NEEDS TO BE THREE COMPETITORS WERE THE CAN WORRY ABOUT COSTS AND DISNEY GET NEEDS TO GET BOUGHT BY APPLE. NONE OF THAT CAN HAPPEN OUT OF
THE BIDEN ADMINISTRATION BUT IF YOU CAN FLIP A PRESIDENCY I WOULD WAIT FOR THAT. THE DAY THAT HAPPENS I THINK THERE WILL BE MASSIVE CONSOLIDATION BECAUSE ALL OF THOSE -- THE HEAD OF THE DOJ, HEAD OF THE FCC, WILL CHANGE TO A REPUBLICAN I THINK THEY WILL BE FAR MORE SYMPATHETIC TO ALLOWING THE CONSOLIDATION TO OCCUR TO CUT COSTS. CAROLINE: WE LOVE IT BECAUSE YOU BRING THE VIEWPOINTS SO WHO REMAINS ON TOP? IN FOUR YEARS TIME IF WE GET A CHANGE IN THE WHITE HOUSE, WHO WINS OUT, WHO SURVIVES? LAURA: YOUTUBE NUMBER ONE STREAMER, AMAZON PRIME NUMBER TWO STREAMER. I THINK THE DISNEY EMPIRE NUMBER THREE STREAMER. AND I THINK THESE OTHER ONES I THINK PEACOCK CAN BY CBS WHICH PARAMOUNT OWNED BUT WARNER BROS. CAN SO MAYBE PARAMOUNT ULTIMATELY DOESN'T GO TO SKY DANCE.
THEN IT SHOULD GO IN PIECES TO DIFFERENT PEOPLE. IF THEY WAITED TO SEE WHAT HAPPENED THEY MIGHT BE ABLE TO GET A BETTER PRICE BUT I UNDERSTAND THE SHAREHOLDERS WANT TO GET THIS -- THAT SHERRY REDSTONE WANTS TO GET THIS DONE. CAROLINE: WE ALL LOOK TO ITS HAPPENING IN SUN VALLEY. WILL ADIL BE ENOUGH THIS
WEEKEND AND ULTIMATELY TALK US THROUGH THE NEXT STEPS OF YOUR OWN RESEARCH AT THIS POINT? >> THERE'S NO HARVARD BUSINESS SCHOOL CASE EVER THIS IS A THREE-PERSON COMMITTEE IS A BETTER FORM OF LEADERSHIP THAN A SINGLE. AND THAT'S WHAT WE HAVE AT PARAMOUNT. THERE'S NO GOVERNMENT SO IT NEEDS TO GO AND THEY'VE DESTROYED LIKE 70% OF THE VALUE. AND THEN IF TRUMP GETS IN AND EVERYBODY IS CONSOLIDATING ITS OF THE WORST POSSIBLE PRICE. BUT THEN I THINK WE GET A LOT OF CONSOLIDATION OVER THE NEXT FOUR YEARS AND END UP IF THERE'S A TRUMP ADMINISTRATION WE WOULD END UP WITH THREE COMPETITORS, MAYBE FOUR. INCLUDING AMAZON AND PEACOCK AND DISNEY. CAROLINE: AT 1 DO WE BUY?
LAURA: NO I DON'T THINK YOU DO. I THINK OF GOING ON AND OFF WITH THIS DEAL TOO MANY TIMES SO I DON'T THINK YOU BUY IT. CAROLINE: WE LOVE HAVING YOU ON THE SHOW.
WISHING YOU A HAPPY HOLIDAY FOR TOMORROW. COMING UP WE ARE JOINED BY THE CEO OF KILLEEN. WE WILL DISCUSS THE AI PLATFORM, THEIR WORK IS HELPING -- THIS IS BLOOMBERG TECHNOLOGY. ♪ CAROLINE: FOLLOWING THE SUPREME COURT'S DECISION TO OVERTURN THAT CHEVRON DOCTRINE, LAWMAKERS WILL BE FORCED TO BECOME MORE SPECIFIC ON HOW THEY REGULATE AI. JUDGES HAVE DEFERRED TO ADMINISTRATIVE AGENCIES TO INTERPRET LAWS WRITTEN BY CONGRESS BUT NOW THE OVERTURNING OF THE DOCTRINE RAISES THE STAKES FOR CONGRESS TO WRITE LEGISLATION MORE EFFICIENTLY AND THE RAPID ELEMENT IN THE VOLATILITY OF THE TECHNOLOGY. TALKING WITH THE TECHNOLOGY AND HOW IT'S BEING ADOPTED IT'S TIME FOR OUR WEEKLY AI IN ACTION SEGMENT.
FOR MORE ON HOW THE YOU -- FOR THE ENTERPRISE, YOU'RE TALKING ABOUT A NEW LAUNCH, NEW PLATFORM HELPING COMPANIES BUILD CUSTOM AI APPS AND MAYBE SOME AI AGENTS. WE'VE BEEN TALKING ABOUT THESE FOR MONTHS BUT THERE ARE STILL BLOCKERS AS TO MAKE THEM EFFECTIVE. HOW WE HOPE BUSINESSES ADOPTED? >> THEY ARE CONNECTED WITH ALL OF THE ENTERPRISE KNOWLEDGE. THINK OF THEM LIKE HUMANS THAT CAN USED ALL OF THAT KNOWLEDGE TO HELP YOU DO YOUR WORK. CAROLINE: HELP WHO DO THEIR WORK? WHO HAVE YOU BEEN WORKING WITH TO ENSURE WHEN THEY'RE LOOKING AT THEIR SLACK OR INTERCOMPANY COMMUNICATION THE AI BRINGS TO BEAR REALLY WORKS FOR THEM? ARVIND: GLEAN AI AGENTS ARE USED BY MOST ALL THE PEOPLE INSIDE ANY ENTERPRISE.
SUPPORT PEOPLE, SALESPEOPLE ALL OF THEM HAVE DIFFERENT NEEDS THAT NOW AI IS VERY CAPABLE OF HELPING THEM WITH AND SAVES A LOT OF TIME FOR THEM. ENGINEERS THERE ARE ARRAYS -- THEY ARE ALWAYS GETTING HELP WRITING CODE AND SO GLEAN AI AGENTS CAN HELP THEM WORK ON THAT MUCH FASTER THAN THEY COULD BEFORE. AGENTS DAY IN AND DAY OUT OR LOOKING FOR HOW TO RESOLVE QUESTIONS THE CUSTOMERS ASK AND THE AI SYSTEMS WILL HELP ANSWER THOSE. >> WE ARE TALKING DATA BRICKS, CANVAS.
BUT WHY WOULD A COMPANY CHOOSE GLEAN OVER CHATGPT ENTERPRISE OR MICROSOFT? ARVIND: WE HAVE SOME OF THE WORLD'S LEADING COMPANIES, MANY COMPANIES ADMINISTER GLEAN AND BRING IT TO CUSTOMERS. SOME OF THE KEY REASONS WHY IT WORKS BETTER THAN MICROSOFT COPILOT OR CHATGPT IS IT ACTUALLY COMES WITH INTEGRATIONS BUILT INTO ALL THE ENTERPRISE SYSTEMS LIKE SLACK OR GOOGLE DRIVE OR MICROSOFT SYSTEMS. THEY HAVE KNOWLEDGE SPREAD ACROSS MANY OF THESE DIFFERENT SYSTEMS AND TO MAKE AI WORK ALL THAT KNOWLEDGE INTO USEFUL THINGS FOR YOU YOU HAVE TO CONNECT WITH THOSE SYSTEMS AND PUT IN THAT'S WITH THAT GLEAN COMES IN. >> MAY THAT CAN BE REPLICATED BY OTHERS.
I'M INTERESTED IN WHAT THEY CAN REPLICATE OVER AT MICROSOFT IS USING OTHER LARGE LANGUAGE MODELS THERE FULLY BENEFITING FROM AI WHERE'S YOUR AGNOSTIC. WHY GO THAT ROUTE? >> ALL OF THESE MODELS THERE SO MUCH COMPETITION IN THE MARKET AND YOU'LL SEE EACH MODEL HAVING SOME UNIQUE STRENGTH. YOU WANT TO MAKE SURE YOU HAVE ACCESS TO ALL THE MODELS OUT THERE AND THIS HELPS YOU. WE WORK WITH THE DIFFERENT MODELS AND DEPENDING ON THE ENVIRONMENT IT WILL ACTUALLY USE THAT MODEL FOR YOU AND GIVE YOU THAT.
>> THANK YOU FOR COMING TO US LIVE FROM INDIA TODAY. STAY WELL. IT'S TIME NOW FOR TALKING TECH. KEYWORD STUDIOS AGREED TO A $2.5 BILLION INVESTMENT FIRM
INVESTORS WILL GET ABOUT IN A CASH DOWN FROM AN EARLIER OFFER. THAT'S BECAUSE KEYWORDS WORKED ON FORTNITE AND CALL OF DUTY AND ACCEPTED THE LOWER PRICE AFTER THE GAMING SERVICE INDUSTRY WAS HIT WITH DELAYS AND CUTS. JIM RATCLIFF'S GROUP IS DELAYING ITS ELECTRIC SUV. PRODUCTION OF THE VEHICLE IS EXPECTED TO BEGIN IN 2027 THE COMPANIES BUT THE CAR ON THE BACK BURNER WASTES -- AND UNCERTAINTY AROUND TARIFFS.
SHARES OF SOFTBANK RISING TO AN ALL-TIME HIGH. THE RALLY HAS BEEN INDICATING A CONFIDENCE THIS YEAR. SOFTBANK ALSO GETTING A LIFT, IT'S EXPECTED TO BOOST THE FIRM'S EARNINGS. COMING UP WE LOOK AT APPLE, A POSITION THAT WILL DEEPEN THE RELATIONSHIP BETWEEN THE MAKER AND THAT OF OPENAI. FROM NEW YORK, THIS IS BLOOMBERG TECHNOLOGY.
♪ >> WELCOME BACK TO "BLOOMBERG TECHNOLOGY." QUICK CHECK ON MARKETS, BECAUSE A LOT OF POLITICAL ANXIETY HERE IN THE UNITED STATES, BUT MORE BROADLY, WE’RE FOCUSED ON THE MACRO DATA. WE’VE GOT SLOWING SURFACES DATA, AND INDEED, A LITTLE BIT OF COOLING GOING ON IN THE LABOR MARKET. ALL EYES ON PAYROLL LATER THIS WEEK. NASDAQ 100 UP .5%. CAN THE FED CUT THIS SCENARIO?
THAT IS CURRENTLY THE BET ON WALL STREET. 10-YEAR YIELD CRASHING DOWN ON THE BACK OF SOME OF THAT DATA. INTERESTINGLY, WE’RE LOOKING AT WHAT’S HAPPENING IN EUROPE.
WE CLOSE OUT THE DAY ON THE HIGH SIDE, AND INDEED, ON THE FTSE 100, UP .6%. THAT’S AS THE U.K. POPULATION HEAD TO THE POLLS COME TOMORROW. WE’RE UP .6%. INTERNATIONAL COMPANIES DOING WELL. LET’S HAVE A LOOK AT SOME OF THE INDIVIDUAL MIGHT HAVERS I’M SEEING. .4% FOR TESLA. LET’S CALL IT 5%.
LET’S CALL IT MOST OF THE LOSSES OF 2024 ERASE ECONOMY FAR WITH TESLA. ALL EYES ON THE TAXI EVENT AUGUST 8. ALL EYES ON THE FACT THAT DELIVERIES CAME OUT BETTER THAN EXPECTED, EVEN IF WE DID SLOW QUARTER ONQUARTER, YEAR-ON-YEAR. NVIDIA UP 2.7%. NVIDIA WAS LOWER, AND THERE WAS MUCH BEING SAID ABOUT THE FACT THAT THE S&P 500 YESTERDAY REACHED A NEW RECORD HIGH, SO DID THE NASDAQ, EVEN WITH NVIDIA NOT PLAYING. TODAY, WE’RE UP 25 FOR THE CHIPMAKER.
OF COURSE, WHAT’S HAPPENING WITH APPLE? WE HAVE ACTUALLY SEEN UP ABOUT .5%. MUCH BEING MADE ON WHAT’S HAPPENING WITH APPLE AND A.I. APPLE INTELLIGENCE AND, YOU KNOW, OPEN A.I., THE RELATIONSHIP THERE. WE UNDERSTAND IT SECURED AN OBSERVER ROLE ON OPEN A.I.’S
BOARD AS PART OF AN AGREEMENT ANNOUNCED LAST MONTH. SO IS THIS IMPACTFUL TO ALMOST BE NECK-AND-NECK WITH MICROSOFT HERE WITH AN OBSERVER POSITION ON THE BOARD? >> THANK YOU SO MUCH FOR HAVING ME. YEAH, HAVING AN OBSERVER POSITION ON THE OPEN A.I. BOARD MEANS THIS PARTNERSHIP IS A LITTLE BIT TIGHTER THAN WE HAD ANTICIPATED. THIS SEEMED LIKE A SIMPLE INTEGRATION OF CHATGPT INTO APPLE INTELLIGENCE. OBVIOUSLY THE FIRST PARTNER HERE. BUT BY HAVING A BOARD OBSERVER
ROLE, APPLE GETS MORE INSIGHT INTO THE DECISION MAKING AT THE COMPANY. THIS IS SOMETHING THAT PROBABLY CAME IN RESPONSE TO ALL THE CONTROVERSY THAT WAS FACING OPEN A.I. IN THE MONTHS PRIOR TO THE AGREEMENT BETWEEN APPLE AND THE COMPANY BEING ANNOUNCED. APPLE PROBABLY SAID, IF YOU WANT THIS TO GO THROUGH, WE NEED TO KNOW HOW YOUR COMPANY IS RUN AND WHAT’S GOING ON THERE. >> TELL US ABOUT PHIL SCHILLER, WHO THEY CHOSE TO BE THE OBSERVER. >> PHIL SCHILLER, HIS TITLE IS APPLE FELLOW.
HE’S IN CHARGE OF THE APP STORE AND APPLE’S PRODUCT PRESENTATIONS, INCLUDING THE ONE WHERE THE OPEN A.I. DEAL WAS ANNOUNCED IN JUNE AT ITS WORLDWIDE DEVELOPERS CONFERENCE. HE’S BEEN AT APPLE ABOUT THREE DECADES. VERY MUCH A TOP LIEUTENANT STILL TO TIM COOK AND WAS ONE OF THE CLOSEST LIEUTENANTS AND FRIENDS OF STEVE JOBS. HE RAN APPLE’S MARKETING ORGANIZATION FOR WELL OVER 20 YEARS. HE’S KNOWN AS ONE OF THE
BIGGEST DEFENDERS AT THE COMPANY OF APPLE’S PRIVACY STANCES, HIS PRODUCT DEVELOPMENT PROCESS, ITS OVER ALL BRAND IMAGE. GIVEN THE CONCERNS OVER DIFFERENT CONCERNS FROM OPEN A.I. AND THE SAFETY WITH A.I. TRAINING, CONCERNS ABOUT SAM ALTMAN, CONCERNS ABOUT THEIR TECHNOLOGY, CONCERNS ABOUT ETHICS AND ARTIFICIAL INTELLIGENCE, CONCERNS ABOUT HAD A HOUSE HAITIANS, IT DOES MAKE SENSE FOR SOMEONE LIKE SCHILLER WITH THAT MINDSET TO BE THE ONE IN THAT BOARD OBSERVER ROLE, ESPECIALLY IF THEY’RE LOOKING FOR SOMEONE WHO’S NOT FROM THE A.I. SIDE AT APPLE, WHO WOULD BE IN DIRECT COMPETITION WITH THE A.I. SIDE OF OPEN A.I. >> YEAH, AND SOME AWKWARD MOMENTS THERE MAYBE HAVING TO BE EXCUSED FROM CERTAIN BOARD MEETINGS WHEN THEY REALLY GET INTO THE NITTY-GRITTY OF A.I. I’M INTERESTED IN WHETHER OR
NOT IT IS ALL ABOUT OPEN A.I. FOR NOW, BECAUSE THEY WERE IN TALKS WITH OTHER PROVIDERS FOR OTHER MODELS. >> YEAH, OPEN A.I., CERTAINLY THEY’VE SAID FOR A WHILE OFFERS
THE BEST CHAT GOT WITH CHATGPT, AND THAT FEATURE THAT OPEN A.I. IS INTEGRATED INTO, IT’S ALL ABOUT THE CHAT GOT, ALL ABOUT TEXTING QUESTIONS OR VOICING QUESTIONS WHILE USING YOUR IPHONE, IPAD, OR MAC. AND AS I REPORT, THAT’S GOING TO COME TO THE APPLE VISION PRO AS WELL AS EARLY AS NEXT YEAR. BUT IT DOESN’T STOP AT OPEN A.I. APPLE’S GOAL IS TO HAVE A SYSTEM THAT USERS CAN CHOOSE FROM, NOT DISSIMILAR TO HOW YOU CAN CHOOSE BETWEEN YAHOO!, BING, GOOGLE, DUCK DUCKGO AS YOUR SEARCH ENGINE IN SAFARI OR ANY OTHER MOBILE PLATFORM. THEY’RE STILL ENGAGED IN CONVERSATIONS WITH GOOGLE GEMINI AS AN ALTERNATIVE TO OPEN A.I.
FOR PEOPLE WHO MAY WANT TO USE THAT PLATFORM. OBVIOUSLY THAT WOULD BE AN EXTENSION OF THE GOOGLE SEARCH DEAL, SO IT MAKES SENSE THAT GOOGLE WOULD GET IN THERE. THE OTHER COMPANY THEY’VE BEEN TALKING TO IS THROPIC. ONE COMPANY THEY’RE NOT TALKING TO, AND YOU SHOULD NOT EXPECT TO BE INTERSITUATED IS META WITH LLAMA.
THAT IS SOMETHING THAT IS NOT HAPPENING. THEY HAD A BRIEF CONVERSATION AROUND FEBRUARY, MARCH TIME FRAME WHEN WE REPORTED ON THE OPEN A.I. AND GEMINI DEAL INITIALLY, BUT NEITHER PARTY MOVED TO ANY SORT OF DISCUSSIONS OR NEGOTIATIONS. I WOULD IMAGINE THERE’S GOING TO BE MORE PROVIDERS DOWN THE ROAD. APPLE HINTED AT WANTING SOME SORT OF SPECIALIZED CHAP BOX IN THERE. FOR INSTANCE, MAYBE SOMEONE
COMES UP WITH A CHAT GOT THAT’S ALL ABOUT FOOD RECIPES. MAYBE SOMEONE COMES UP WITH ONE THAT’S ALL ABOUT MEDICAL TERMINOLOGY AND MEDICAL INFORMATION, PERHAPS A DOCTOR WOULD WANT TO USE THAT DURING A DOCTOR’S VISIT. SO THERE ARE MANY, MANY OPPORTUNITIES FOR MORE CHAT GOTS TO BE INTEGRATED INTO THE IOS.
IT’S JUST TO BE SEEN HOW IT’S DONE AND WHEN IT HAPPENS. I EXPECT GOOGLE TO BE DONE BEFORE THE END OF THE YEAR. >> MARK GURMAN, THANK YOU SO MUCH, ON ALL THINGS OPEN A.I. AND APPLE. MEANWHILE, A.I. IS EVERYWHERE, WE KNOW, AND IT’S PARTICULARLY IN THE WORLD OF VENTURE CAPITAL. IT WOULD SEEM THAT VENTURE DEAL MAKING COMING BACK, AND IT’S THANKS TO ARTIFICIAL INTELLIGENCE.
LET’S BRING IN BLOOMBERG’S KATIE, WHO’S WITHIN THE V.C. TEAM NOWADAYS. LOOK, WE’RE BACK WHEN IT COMES TO V.C. DEAL MAKING, BUT IT’S VERY SPECIFIC.
>> RIGHT, IT’S GOT TO BE A.I. OR ONE OF THE OTHER HOT CATEGORIES, LIKE DEFENSE TECH RIGHT ANYWAY. OTHERWISE IT’S REALLY HARD TO RAISE MONEY RIGHT NOW. IF YOU LOOK AT THE DATA, YES, WE’RE UP FROM WHERE WE WERE TWO YEARS AGO, BUT TWO YEARS AGO WAS PRACTICALLY DOT-COM BUST 2.0. SO WE’RE BACK FROM DEAD, BUT WE’RE NOT BACK TOO NORMAL OR THE IDEAL THAT MANY V.C.’S ARE HOPING FOR.
>> $55.6 BILLION WAS INVESTED BY U.S. V.C.’S, UP ABOUT HALF FROM A YEAR EARLIER, WE UNDERSTAND. SO THIS IS ALL COMING FROM BOOK. IS THIS A GLOBAL THEME?
ARE WE REALLY THINKING THAT WE JUST HAD SOMEONE ON BASED IN INDIA. ARE WE SEEING U.S. V.C. MONEY BACK IN INTERNATIONAL A.I. STORIES? >> YEAH, IT’S MORE OR LESS THE SAME THEME THROUGHOUT THE WORLD.
THE V.C. ECOSYSTEM IS PRETTY INTERCONNECTED. BUT YES, A.I. IS EXCITING INVESTORS THROUGHOUT THE WORLD, PARTICULARLY THE LEADING A.I. COMPANIES ARE GETTING LOTS OF MONEY, AND THAT’S PARTLY WHAT’S SKEWING THE DATA. AND ALSO YOU HAVE COMPANIES LIKE ELON MUSK EX A.I. THAT RAISED $6 BILLION, WHICH ACCOUNTS FOR A SIZABLE PERCENTAGE OF THAT. SO IT’S REALLY THAT IT’S NOT THAT THERE ARE A LARGE NUMBER OF COMPANIES THAT ARE RAISING MONEY. I THINK THAT THAT ACTUALLY
SHOWED IT WAS THE LOWEST NUMBER SINCE THE SECOND QUARTER OF 2020, BUT IT’S CONCENTRATED IN THE HOT COMPANIES. THAT’S WHAT THEY’RE EXCITED ABOUT. >> KATIE, GREAT TO HAVE YOU ON. THANK YOU VERY MUCH.
MEANWHILE, LET’S STICK WITH VENTURE. NIK STORONSKY IS LOOKING TO BUILD A QUANTITATIVE VENTURE FIRM CALLED QUANTUM LIGHT. IT RELIES ON ALGORITHMS, A.I. OVER HUMAN INPUT. AND IT’S INVESTED IN ALMOST A
DOZEN STARTUPS IN THE PAST YEAR AFTER RAISING ABOUT $200 MILLION. COMING UP, WE’RE GOING TO BE TALKING BIG BUSINESS AND THE ADOPTION OF A.I. PAUL HUDSON, C.E.O. OF SANOFI, GOING TO BE
DISCUSSING HOW HE’S USING GENERATIVE A.I. ON APPLE, SPOTIFY AND IHEART. >> WEAVE GOT TO TALK ABOUT THE IMPACT OF GENERATIVE A.I. IN REAL LIFE, ACROSS INDUSTRIES, BIOPHARMA BEING ONE OF THEM. I’M PLEASED TO WELCOME THE
C.E.O. OF SANOFI TO DISCUSS HOW EURY NORM FRENCH BIOPHARMA COMPANY HAS BEEN LEVERAGING THE NEW TECHNOLOGY IN ITS OPERATION. YES, THERE’S DRUG DISCOVERY, BUT WHAT’S SO INTERESTING IS YOU’RE INTEGRATING IT WITHIN THE FUNCTIONALITY OF YOUR BUSINESS ON A DAY-TO-DAY BUSINESS.
>> YEAH, THANK YOU, AND IT’S A PLEASURE TO BE HERE. WE’RE TRYING TO DO INCREDIBLE THING FOR PATIENTS AND DISCOVER NEW MEDICINES. WITH A.I. BEING THE GREAT DISRUPTOR, ALL THE EXCITEMENT LAST YEAR THAT, WOW, THIS YEAR FOR US IT’S ALL ABOUT THE HOW AND HOW WE CAN GET THE LARGE AMOUNTS OF ORGANIZATION FOCUSED, WHETHER YOU’RE IN A LAB DOING EXPERT A.I., WHETHER YOU’RE USING GENERATIVE A.I., REGULATORY OR
TEXT-DRIVEN PARTS OF OUR BUSINESS, AND IMPORTANTLY, SNACKABLE A.I., WHEN WE’RE LOOKING AT TRYING TO GET BETTER INTELLIGENCE FOR ALMOST EVERYBODY IN THE ORGANIZATION, WITH THE SOLE INTENT OF BECOMING MUCH MORE EFFICIENT, EFFECTIVE AT DELIVERING NEW MEDICINES, IT’S AMAZING, REALLY. >> I LOVE IT, SNACKABLE A.I. YOU’RE USING THE APP, BUT I’VE GOT TO ASK, HAVE YOU THOUGHT ABOUT WHICH UNDERLYING LARGE LANGUAGE MODEL YOU SHOULD LOOK TO, HOW YOU INTEGRATE THIS? HOW GO TO OUTSOURCE? >> WE’RE TRYING TO MAKE SURE THAT WE CAN BE CUSTOMIZING LARGE LANGUAGE MODELS TO LOOK AT DRUG DISCOVERY, TO TRY TO UNDRUGGABLE DISEASES TO THIS POINT.
WE’RE DOING THINGS THAT HAVE NEVER BEEN DONE BEFORE. IT’S EARLY DAYS, BUT EXTREMELY PROMISING. REMEMBER, THERE’S SUCH A LARGE AMOUNT OF DISEASE THAT HAS DON’T HAVE MEDICINES BECAUSE WE’VE NOT HAD THE OPPORTUNITY TO DEPLOY OURSELVES. AND NOW WE’RE AT THE NEXT GREAT REVOLUTION IN SCIENCE. WE PARTNERED WITH GERMANY, THEY’VE BEEN WORKING WITH US, THEY’VE GROWN WITH US, AND THAT’S OPEN FOR EVERYBODY. WE WANT ALL BOATS TO RISE, SO THE MORE USERS, THE MORE FUN, THE MORE ACCURACY, MORE CHANCE.
>> HOW HAVE YOU REACTED? THERE’S SO MUCH DOOM-MONGERING THAT A.I. IS GOING TO TAKE ALL OUR JOBS. >> WELL, I THINK OUR APPROACH HAS BEEN HOW TO WEAPONIZE OUR PEOPLE TO DO BETTER. I DON’T KNOW IF YOU’RE FAMILIAR WITH WAZE, THE DRIVING APP, BUT I GOT TO SEE IT LIKE THAT. I’VE GOT TO DRIVE TO THE END OF THE STREET, AND IF WAZE SAYS I’M STATISTICALLY MORE LIKELY TO HAVE AN EASIER JOURNEY TURNING LEFT RATHER THAN TURNING RIGHT, I WANT THAT ADVICE. THAT’S CROWD-SOURCE DATA REAL
TIME. I WANT OUR PEOPLE TO FEEL THEY ARE AMPLIFIED OR MULTIPLIED IN THAT EVENT TOO. THE GOAL IS TO GETTING OUR PEOPLE TO BE MORE EFFECTIVE AND GIVES US A GREAT OPPORTUNITY TO DO SOMETHING INCREDIBLE. WE’VE ONLY SEEN HUGE APPETITE. THAT’S WHY ON ANY GIVEN DAY WE
HAVE 18,000 PEOPLE IN OUR ORGANIZATION USING A.I. AND I THINK THAT’S PRETTY FANTASTIC. >> LET’S TALK ABOUT DOING THE AMAZING, THE INCREDIBLE, BECAUSE WE HAVE JUST SEEN A PUSHUP IN YOUR SHARE PRICE ON THE DAY. YOU’VE BEEN REORIENTING THIS
BUSINESS OF SANOFI AND THINKING ABOUT MORE R&D, DRUG DISCOVERY. AND LOOK, SOME COSTLY CASES IN THE WAY THAT YOU HAVE TO EXPERIMENT IN CLINICAL TRIALS, BUT THEY PAID OFF TODAY. WE THINK ABOUT THE DRUG DISCOVERY WHEN IT COMES TO A KEY LUNG, CHRONIC LUNG DISORDER. CAN YOU TELL US ABOUT WHAT THAT MEANS FOR THE BUSINESS? >> IN EUROPE JUST YESTERDAY, TODAY, WE GOT APPROVAL FOR COPD, THIRD BIGGEST KILLER. WE’RE READY TO GO NOW IN EUROPE
TO BE ABLE TO PROVIDE AN ADVANCED THERAPY THAT WILL REDUCE THE CHANCE OF GOING TO HOSPITAL BY A THIRD. THAT’S A BREAKTHROUGH IN THIS INNOVATION. WE ASPIRE TO BE THE WORLD’S LEADING IMMUNOLOGY COMPANY, AND THAT’S PARTLY DRIVEN BY MOMENTS LIKE THAT THAT WE LIVE FOR IN OUR INDUSTRY, TO DO THINGS THAT WILL TRANSFORM OR PROTECT PEOPLE’S LIVES TO PREVENT DISEASE. THE REALITY IS WE’RE A VERY PROUD, HUGE, BIG COMPANY, BUT WE WANTED TO BE AT THE FOREFRONT OF SCIENCE AGAIN.
WE’VE MADE SOME BIG BETS, BUT APPROPRIATELY SO, TO TRY TO MAKE SURE OUR SCIENCE IS SOME OF THE MOST EXCITING AND IT’S FIRST IN CLASS OR BEST IN CLASS. TO COUPLE IT WITH OUR CONVERSATION OF EARLIER, THE MORE WE ADDAI, THE MORE WE -- WE ADD A.I., THE MORE WE OPPORTUNITY WE HAVE TO DO MORE IN THAT SPACE. AND I THINK THAT’S WHAT’S
CATCHING THE EXCITEMENT IN OUR ORGANIZATION. WE BELIEVE WE’RE QUITE FAR AHEAD. OF COURSE WE’RE VERY RESPONSIBLE ABOUT HOW WE USE A.I., BUT OTHERS ARE STILL HESITATING. WE’RE TAKING OUR MOMENT. >> SOMETIMES YOU NEED GOOD DATA TO FEED IN TO THESE LARGE LANGUAGE MODELS. WHAT ABOUT THE DATA ON VIRUSES SUCH AS BIRD FLU AT THE MOMENT HERE IN THE U.K. AND THE U.S.
INDEED? THERE IS A WORRY THAT THE DATA ISN’T GOOD ENOUGH IN THE UNITED STATES. IS THAT SOMETHING THAT WORRIES YOU WHEN YOU NEED TO BE DEVELOPING A NEW VACCINE FOR THAT? >> LOOK, WE’VE BEEN THROUGH ONE PANDEMIC, I THINK WE’VE LEARNED A GREAT DEAL ABOUT TRYING TO HAVE THE BEST DATA, AND I THINK WE POSITION OURSELVES TO TAKE ADVANTAGE OF THOSE OPPORTUNITIES ON BEHALF OF SOCIETY, FRANKLY. WE PLAYED A SMALL PART IN COVID, BUT WE STAND READY SHOULD WE BE ASKED. THE DATA AND ITS LEGITIMACY,
OFTEN IT COMES THROUGH GOVERNMENT CHANNELS, THROUGH HEALTH SYSTEMS, AND WE LOOK AT REAL-TIME SPEED TO MAKE SURE THAT WE HAVE THE VERY BEST DATA AVAILABLE. IN TERMS OF LARGE LANGUAGE MODELS AND THE REST OF THE DATA SETS, FAR AND WIDE, WE REALLY ARE TRYING TO MAKE SURE THAT WE HAVE AT OUR FINGERTIPS TO MEET OUR ACCURACY AND OUR PREDICTIVE CAPABILITY. THE DATA INTEGRITY OF THE FUNDAMENTAL STARTING PLACE, OUR RELATIONSHIP WITH OPEN A.I., WE’RE PUTTING OUR OWN DATA AT PLAY TO MAKE SURE IS THAT THEY CAN LEARN FROM IT TOO. ALL BOATS SHOULD RISE. >> YOU’RE ALSO SELLING OFF BITS OF HEALTHCARE, BECAUSE YOU’RE FOCUSING ON THE R&D, THE DRUG SIDE, AND MAYBE THE CONSUMER BUSINESS GOES FOR A HEFTY PRICE TAG. YOU’VE BEEN THINKING ABOUT
I.P.O. HOW IS THAT PROCESS GOING? >> WELL, WE ANNOUNCED THIS PAST OCTOBER THAT WE WERE GOING TO BECOME A PURE PLAY BIOPHARMA. WE HAVE AN INCREDIBLY SUCCESSFUL, ENERGIZED CONSUMER BUSINESS. WE FEEL AND THEY FEEL, IN FACT, THAT THEY CAN STAND BETTER ON THEIR OWN TWO FEET AND BE INDEPENDENT, RAISE THEIR OWN CAPITAL, TAKE ON THEIR OWN PROJECTS. IT’S THE RIGHT THING TO DO. OUR CAPITAL SHOULD BE ALLOCATED TOWARD DISCOVERING NEW MEDICINES, AND THEY’RE DOING SUCCESSFULLY. WE DECLARED THAT 2024 WE’LL BE
READY TO GO TO SEPARATE THAT BUSINESS. WE HAVEN’T SHARED HOW WE WILL DO IT, BUT I THINK IT’S QUITE WELL KNOWN THAT WE’RE TALKING TO INTERESTING PARTIES, AND WE HAVE THE CAPITAL MARKETS, VEHICLES AVAILABLE TO US, TOO. SO, NO, WE’RE EXCITED FOR THEM. THERE’S A HUGE AMOUNT OF INTEREST. IT’S A GREAT BUSINESS. WE HOPE TO USE IT FOR PATIENTS, STAKEHOLDERS AND PEOPLE IN THE BUSINESS.
>> Q4 2024 IS PRETTY NOTABLE, GIVEN THAT WE’RE IN QUITE A POLITICALLY UNCERTAIN TIME. LOOK, WE BRITS ARE LOOKING AT AN ELECTION AND PEOPLE VOTING IN THE U.K. TOMORROW, AND THIS WEEKEND IS ALL-IMPORTANT FOR FRANCE. HOW IS THE LEADER OF SUCH A FRENCH GIANT ARE YOU FEELING ABOUT THE POLITICAL RISK OF DOING A DEAL IN THIS MARKET? >> WELL, LOOK, IN TERMS OF HEALTHCARE AND BEING A LEADER OF AN INCREDIBLY IMPORTANT FRENCH COMPANY, FIRST PRIORITY IS TO ENSURE THAT WHOEVER GOVERNS THEY PROVIDE A PREDICTABLE, STABLE ENVIRONMENT. RESEARCHERS ATTEND A 15-YEAR PROCESS. WE NEED TO THINK LONG-TERM.
WE HOPE WHOEVER LEADS THE COMPANY WILL THINK LONG TERM. WE KNOW THE CURRENT GOVERNMENT HAS BEEN INCREDIBLY SUPPORTIVE OF INNOVATION. WE HOPE THAT THAT WOULD CONTINUE. OF COURSE, THERE ARE PEOPLE
TRYING TO UNDERSTAND WHAT IT MEANS FOR THE ECONOMY, MUCH LIKE FOR THE CHANGE IN GOVERNMENT, IF IT’S TO COME ABOUT IN THE U.K. AND PEOPLE WANT THAT PREDICTABILITY IN THE MARKETS, TOO. YOU KNOW, WE’RE A LONG-TERM PLAYER TRYING TO DO THE RIGHT THINGS FOR PATIENTS, TRYING TO DRUG THE UNDRUGGABLE, AND WE HOPE TO PARTNER WITH WHOEVER IS IN POWER. BECAUSE WE HAVE TO BE READY TO
DO OUR PART FOR SOCIETY. YOU KNOW, SO FAR, WE BELIEVE THAT CAN CONTINUE. >> PAUL, IT’S BEEN GREAT TALKING TO YOU. THE INTERSECTION OF DRUG DISCOVERY, OF ARTIFICIAL INTELLIGENCE, SNACKABLE A.I. AS YOU CALL IT. PAUL HUDSON, C.E.O. OF SANOFI. STAY WELL.
COMING UP, IT’S BEEN ONE YEAR SINCE THE LAUNCH OF META’S THREADS APP. A YEAR WILL? WE’LL DISCUSS THAT NEXT. THIS IS "BLOOMBERG TECHNOLOGY." >> CAN YOU BELIEVE IT? TODAY MARKS ONE YEAR OF THE EXISTENCE OF META’S THREADS APP. IT WAS A BID TO CAPITALIZE ON THE STRUGGLES OF X. WITH THE CAGE FIGHTS AND TALK
OF THAT? ONE YEAR IN, THREADS MAY SOON COMPETE WITH X FOR ADVERTISING DOLLARS AS WELL. LET’S DISCUSS ALL OF THIS WITH BLOOMBERG’S PAT WAGNER. WHAT WAS NOTEDDABLE ABOUT THREADS IS THERE WASN’T ADVERTISING, AND THERE STINT ISN’T. THERE THAT BE TURNED ON SOON? >> YEAH, THAT’S THE PLAN. I HAD A CONVERSATION WITH THE PERSON WHO RUNS INSTAGRAM. INSTAGRAM OVERSEES THREADS. HE SAID THEY WANTED TO DO ADS SOONER RATHER THAN LATER.
THAT’S A BIG DEAL IF YOU ARE X. META’S AD SYSTEM IS SO MUCH MORE ADVANCED, ADVERTISERS ARE ALREADY USED TO SPENDING ON FACEBOOK AND REELS AND INSTAGRAM. AND IF YOU ADD THREADS INTO THE MIX, I REALLY DO THINK THAT COULD BE THE KIND OF THING THAT TAKES MONEY AWAY FROM X, WHICH IS ALREADY STRUGGLING, AS YOU KNOW. >> WHAT HAS THE TEAM ADMITTED TO TO LEARNED? IT WAS A FASCINATING LAUNCH. THREADS WAS ALMOST HER IT RATED
ON AND BUILT WHILE WE ALL PLAYED WITH IT. THERE WAS TALK OF DECENTRALIZATION. WHAT HAS OCCURRED WITH THE PRODUCT? >> YEAH, IT HAPPENED QUICKLY. THERE WERE GOOD THINGS IN THE FIRST YEAR. THEY CAME OUT WITH THIS DECK FEATURE, SO YOU COULD HAVE MULTIPLE COLUMNS OF FEEDS AT ONE TIME. BUT WHERE I THINK THEY REALLY STRUGGLED IS TO FIGURE OUT WHAT IS THE POINT OF THREADS? WHAT’S THE PURPOSE? I THINK TWITTER, BEFORE ELON GOT THERE, WE KNEW WHERE IT WAS. IT WAS THE PLACE YOU WENT FOR
BREAKING NEWS, AND THAT WAS THE SPECIALTY. I DON’T THINK THREADS HAS A SPECIALTY RIGHT NOW, AND IT’S KIND OF BEEN RELUCTANT TO LEAN INTO BREAKING NEWS IN THE WAY TWITTER DID. SO I WORRY FOR THEM, IF THEY’RE NOT GREAT AT ONE THING, WHAT DO THEY BECOME? >> TO THAT POINT, WILL THAT PUT OFF ADVERTISING, OR WAS THERE A THRESHOLD THAT ADAM FELT HAD BEEN HIT THAT THEN MEANT, OK, WE’RE GOOD TO GO, WE CAN LEAN TO TURNING ON MONEY NOW? >> I THINK THE BENEFIT THEY HAVE ON THE ADVERTISING FRONT IS PEOPLE ARE FAMILIAR WITH THEIR AD SYSTEMS, RIGHT? YOU COULD GO AND PUT MONEY IN, AND YOU COULD JUST TAKE A LITTLE SLIVER THAT MONEY AND SAY, HEY, SEND THIS OVER TO THREADS, RIGHT? YOU DON’T HAVE TO IF YOU’RE AN ADVERTISER LEARN SOMETHING BRAND NEW, WHICH IS A HUGE ADVANTAGE FOR THEM. IT WILL DETERMINE, IT WILL BE INTERESTING TO SEE IF ADVERTISERS THINK THREADS IS RELEVANT ENOUGH FOR THEIR AD DOLLARS, BUT FOR NOW, I THINK IT’S A VERY INTERESTING THING THAT PEOPLE WILL EVENTUALLY WANT TO TEST OUT WHEN THEY DO CHOOSE TO TURN THE ADS ON. >> NICER PLACE TO PLAY, AND I KNOW YOU’RE OUT THERE ON THREADS, PUTTING OUT SOME POST, SO GO CHECK HIM OUT THERE.
MEANWHILE, THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." CHECK OUT OUR PODCAST, FIND IT ON THE TERMINOLOGY, ONLINE. MEANWHILE, WE WE ARE YOU A VERY HAPPY JULY FOURTH TOMORROW. TUNE IN IF YOU WANT TO CATCH ME, I’M STILL ON. THIS IS "BLOOMBERG TECHNOLOGY."
2024-07-04 21:04
