1
00:00:05,240 --> 00:00:07,880
Speaker 1: This is what the Flux I'm Brett and I'm Justin

2
00:00:08,039 --> 00:00:09,760
Speaker 1: and it's Wednesday, the fourth of March.

3
00:00:09,840 --> 00:00:13,040
Speaker 2: Flux Family I comet bearing some new odds that may

4
00:00:13,320 --> 00:00:15,920
Speaker 2: not sit in your favor. If you have a mortgage,

5
00:00:16,120 --> 00:00:18,760
Speaker 2: markets have raised the chance of a March rate increase

6
00:00:18,760 --> 00:00:21,280
Speaker 2: from twenty one percent to twenty eight percent. Oh that

7
00:00:21,440 --> 00:00:23,639
Speaker 2: is because the RBA governor spoke at a business some

8
00:00:23,840 --> 00:00:27,000
Speaker 2: yesterday and warned that every meeting is a chance for movement,

9
00:00:27,040 --> 00:00:29,520
Speaker 2: and it got investors and analysts a little bit worried

10
00:00:29,640 --> 00:00:32,920
Speaker 2: that she is serious about this inflation thing.

11
00:00:33,760 --> 00:00:36,640
Speaker 1: Everybody knows the rule diverse by your portfolio, don't put

12
00:00:36,640 --> 00:00:39,000
Speaker 1: all your eggs in one basket. All those phrases that

13
00:00:39,000 --> 00:00:41,120
Speaker 1: everyone loves to roll out, But how do you actually

14
00:00:41,159 --> 00:00:43,479
Speaker 1: diverse fy your portfolio and what does that look like? Well,

15
00:00:43,479 --> 00:00:45,440
Speaker 1: in the Flux app, we're breaking down how to diverse

16
00:00:45,479 --> 00:00:48,320
Speaker 1: fire your portfolio from fixed income turn deposits and what

17
00:00:48,360 --> 00:00:50,080
Speaker 1: the difference actually look like. So if you want to

18
00:00:50,120 --> 00:00:51,839
Speaker 1: learn a little bit more about how to put all

19
00:00:51,840 --> 00:00:54,240
Speaker 1: your eggs in multiple baskets, make sure it's download the

20
00:00:54,240 --> 00:00:55,920
Speaker 1: Flux app and check out our latest.

21
00:00:55,680 --> 00:00:58,840
Speaker 2: Article Three Brilliant Stories Today dosie boy, let's do it

22
00:00:58,880 --> 00:01:01,440
Speaker 2: for our first. News Corp has declared itself an AI

23
00:01:01,520 --> 00:01:04,840
Speaker 2: input powerhouse as it expects to hit record profits in

24
00:01:04,880 --> 00:01:07,400
Speaker 2: twenty twenty six thanks to a big, fat open aideal.

25
00:01:07,520 --> 00:01:09,840
Speaker 1: Never thought I'd hear News Corp and AI powerhouse in

26
00:01:09,840 --> 00:01:12,880
Speaker 1: the same sentence. BAMN must be manifesting this into reality,

27
00:01:12,959 --> 00:01:13,840
Speaker 1: so tell me more so.

28
00:01:13,959 --> 00:01:16,560
Speaker 2: News Corp is the global media and publishing giant whose

29
00:01:16,560 --> 00:01:20,920
Speaker 2: origins started back in nineteen fifty two in humble old Australia.

30
00:01:20,680 --> 00:01:23,080
Speaker 1: And b Man. It has some major media assets globally

31
00:01:23,160 --> 00:01:26,679
Speaker 1: like the Wall Street Journal and book publisher HarperCollins.

32
00:01:26,160 --> 00:01:29,520
Speaker 2: While in Australia it owns the Australian newspaper Sky News,

33
00:01:29,680 --> 00:01:32,319
Speaker 2: tens of regional papers, and a sixty one percent stake

34
00:01:32,319 --> 00:01:34,480
Speaker 2: in Aria Group and be Man. It's been pretty slim

35
00:01:34,520 --> 00:01:37,160
Speaker 2: pickens for media companies over the past decade, but News

36
00:01:37,160 --> 00:01:40,440
Speaker 2: Corp CEO claims they are back. Yeah. It's CEO Robert

37
00:01:40,480 --> 00:01:43,520
Speaker 2: Thompson reckons the company is on track for record profits

38
00:01:43,520 --> 00:01:44,360
Speaker 2: this financial year.

39
00:01:44,440 --> 00:01:46,440
Speaker 1: News Corps cut more than one hundred and sixty million

40
00:01:46,560 --> 00:01:48,800
Speaker 1: US dollars in costs over recent years.

41
00:01:48,600 --> 00:01:50,680
Speaker 2: And of course, a little deal with open Ai.

42
00:01:50,560 --> 00:01:53,520
Speaker 1: And b Man, NewsCorp now sees itself as an input

43
00:01:53,640 --> 00:01:55,280
Speaker 1: company in the AI economy.

44
00:01:55,720 --> 00:01:56,960
Speaker 2: So what's the key learning here?

45
00:01:57,000 --> 00:01:59,560
Speaker 1: In this context, an input company is one that provides

46
00:01:59,600 --> 00:02:02,440
Speaker 1: a cent ingredients that other businesses rely on.

47
00:02:02,560 --> 00:02:06,160
Speaker 2: Think semiconductors for chip makers, or energy for data centers,

48
00:02:06,240 --> 00:02:08,040
Speaker 2: or raw materials for manufacturers.

49
00:02:08,040 --> 00:02:10,560
Speaker 1: In the AI world, high quality data is one of

50
00:02:10,600 --> 00:02:13,920
Speaker 1: those input ingredients, and news Corp produces a lot of

51
00:02:14,040 --> 00:02:14,840
Speaker 1: articles of data.

52
00:02:14,840 --> 00:02:17,760
Speaker 2: So Jazi boy. By positioning itself as an input company,

53
00:02:17,840 --> 00:02:20,600
Speaker 2: it's arguing that it's journalism, its books, and its real

54
00:02:20,680 --> 00:02:25,400
Speaker 2: estate data are raw materials that AI models need to function. Well,

55
00:02:25,560 --> 00:02:27,920
Speaker 2: here's where it gets interesting for investors. We know that

56
00:02:27,960 --> 00:02:30,920
Speaker 2: AI companies often command premium valuations.

57
00:02:30,960 --> 00:02:33,920
Speaker 1: True, so if NewsCorp can embed its content into AI

58
00:02:34,000 --> 00:02:37,200
Speaker 1: systems through long term licensing deals, it moves closer to

59
00:02:37,240 --> 00:02:40,000
Speaker 1: that AI value chain. It's US two hundred and fifty

60
00:02:40,080 --> 00:02:42,680
Speaker 1: million dollar deal with open Ai is an example of

61
00:02:42,720 --> 00:02:45,359
Speaker 1: this shift, and the Man then, instead of being valued

62
00:02:45,400 --> 00:02:47,959
Speaker 1: purely as a traditional media company, it starts to look

63
00:02:48,000 --> 00:02:52,560
Speaker 1: more like data infrastructure with some tasty recurring AI linked revenue.

64
00:02:52,600 --> 00:02:56,480
Speaker 2: For our second story, like the Australian premium pet food

65
00:02:56,520 --> 00:02:59,720
Speaker 2: company has raised sixty seven million bucks as its grand

66
00:02:59,720 --> 00:03:01,399
Speaker 2: plans for global expansion.

67
00:03:01,480 --> 00:03:03,840
Speaker 1: She dog is your soul mate. This one is for you,

68
00:03:03,919 --> 00:03:05,040
Speaker 1: so b man, tell me more so.

69
00:03:05,160 --> 00:03:07,920
Speaker 2: Laika was founded by a former bank consultant in twenty

70
00:03:07,960 --> 00:03:10,320
Speaker 2: eighteen after she was a little unsure what was in

71
00:03:10,360 --> 00:03:12,880
Speaker 2: the commercial pet kibble she was offering for her dog.

72
00:03:13,040 --> 00:03:15,320
Speaker 1: Bit of cheap corn here, bit of preservatives there.

73
00:03:15,480 --> 00:03:17,639
Speaker 2: So she started cooking fresh meals for her own dog

74
00:03:17,760 --> 00:03:21,040
Speaker 2: named Laika, who's still kicking on at seventeen years of age.

75
00:03:21,040 --> 00:03:23,280
Speaker 1: If you do not mind next minute. The fresh pet

76
00:03:23,320 --> 00:03:25,720
Speaker 1: food brand Alaika was born and Jaziboy.

77
00:03:25,720 --> 00:03:29,280
Speaker 2: Since twenty eighteen, Laika has one hundred thousand active dogs

78
00:03:29,280 --> 00:03:33,040
Speaker 2: in Australia as opposed to inactive dogs and Jazi Boy.

79
00:03:33,080 --> 00:03:36,040
Speaker 2: After hitting two hundred million dollars in annual recurring revenue,

80
00:03:36,120 --> 00:03:38,840
Speaker 2: Laika has raised sixty seven million bucks in a Series

81
00:03:39,000 --> 00:03:41,200
Speaker 2: C round and as part of this round, the goal

82
00:03:41,280 --> 00:03:44,240
Speaker 2: is to expand into new products and overseas markets. And

83
00:03:44,280 --> 00:03:47,120
Speaker 2: despite the premium pricing of its fresh food products, clearly

84
00:03:47,200 --> 00:03:49,840
Speaker 2: there's a big market in Australia and abroad. M hm.

85
00:03:50,040 --> 00:03:52,040
Speaker 1: You can't put a price tag on that for emotional

86
00:03:52,080 --> 00:03:55,080
Speaker 1: pet owners who have really leaned into pet humanization.

87
00:03:55,200 --> 00:03:56,720
Speaker 2: Mm hm, So what is the key learning here?

88
00:03:56,800 --> 00:03:59,880
Speaker 1: Pet humanization is the growing trend of treating pets as

89
00:04:00,080 --> 00:04:02,680
Speaker 1: integral family members rather than just an animal.

90
00:04:02,800 --> 00:04:07,480
Speaker 2: And as pet humanization increases, spending naturally shifts towards premium,

91
00:04:07,520 --> 00:04:10,080
Speaker 2: personalized and health focused products for the doggos yep.

92
00:04:10,080 --> 00:04:12,920
Speaker 1: And then according to like, seventy five percent of Australians

93
00:04:12,960 --> 00:04:15,320
Speaker 1: are letting their dogs sleep on their beds.

94
00:04:15,440 --> 00:04:17,320
Speaker 2: It tells you everything you need to know about how

95
00:04:17,360 --> 00:04:18,920
Speaker 2: emotionally invested we are.

96
00:04:19,080 --> 00:04:21,200
Speaker 1: Yeah, so b man Like. It isn't just selling dog

97
00:04:21,200 --> 00:04:25,280
Speaker 1: food anymore. It's tapping into something much deeper, our emotional psyche.

98
00:04:25,320 --> 00:04:28,159
Speaker 2: Now, Jaziboy layer that onto a twenty one point three

99
00:04:28,240 --> 00:04:31,880
Speaker 2: billion dollar Australian pet industry, with food accounting for almost

100
00:04:31,880 --> 00:04:33,040
Speaker 2: half of total spend.

101
00:04:33,160 --> 00:04:36,159
Speaker 1: That is massive and it's an expanding pool of dollars.

102
00:04:36,240 --> 00:04:38,520
Speaker 2: So Laika is positioned right at the intersection of two

103
00:04:38,560 --> 00:04:41,680
Speaker 2: powerful forces. Number one, a growing addressable market what.

104
00:04:41,680 --> 00:04:44,360
Speaker 1: Else, and number two a customer willingness to pay more

105
00:04:44,440 --> 00:04:48,200
Speaker 1: for quality and supposedly longevity for the doggos. For our

106
00:04:48,320 --> 00:04:52,000
Speaker 1: third and final story, open ai, the creator of chat jbt,

107
00:04:52,240 --> 00:04:55,479
Speaker 1: has landed a record breaking funding round of one hundred

108
00:04:55,480 --> 00:04:58,520
Speaker 1: and ten billion dollars, which includes a cheeky fifty bill

109
00:04:58,640 --> 00:05:01,880
Speaker 1: from the Zon What man, these investment arounds are getting

110
00:05:01,880 --> 00:05:04,000
Speaker 1: a little too incestuous for my liking, So can you

111
00:05:04,000 --> 00:05:04,680
Speaker 1: tell me a bit more?

112
00:05:04,760 --> 00:05:08,680
Speaker 2: Yeap? So open ai is obviously the company behind chat jbt, one.

113
00:05:08,640 --> 00:05:11,479
Speaker 1: Of the key players that have driven the generative AI

114
00:05:11,520 --> 00:05:14,240
Speaker 1: boom since twenty twenty two. And we know that continuing

115
00:05:14,279 --> 00:05:17,640
Speaker 1: to build these models and run these models is very expensive,

116
00:05:17,680 --> 00:05:19,440
Speaker 1: so it requires a lot of capital.

117
00:05:19,520 --> 00:05:21,680
Speaker 2: And now open ai has raised one hundred and ten

118
00:05:21,800 --> 00:05:25,520
Speaker 2: billion US dollars, which takes its evaluation to seven hundred

119
00:05:25,520 --> 00:05:27,520
Speaker 2: and thirty billion US dollars, which is.

120
00:05:27,480 --> 00:05:29,960
Speaker 1: Up from just five hundred bill just a few months ago.

121
00:05:30,080 --> 00:05:33,520
Speaker 2: And jasbo this raises more than double its previous record

122
00:05:33,600 --> 00:05:34,920
Speaker 2: round last year, which.

123
00:05:34,720 --> 00:05:37,599
Speaker 1: By the bye was already the largest private tech funding

124
00:05:37,680 --> 00:05:38,560
Speaker 1: round in history.

125
00:05:38,800 --> 00:05:41,159
Speaker 2: Huh. And this time Amazon is tipping in fifty bill.

126
00:05:41,040 --> 00:05:43,600
Speaker 1: In Video and soft Bank each investing thirty.

127
00:05:43,240 --> 00:05:45,359
Speaker 2: Bill, and many of these investors in this round are

128
00:05:45,400 --> 00:05:48,960
Speaker 2: also open AI's customers. The old Ai Merry Go round

129
00:05:49,080 --> 00:05:51,720
Speaker 2: continues to go round and round it does. So what

130
00:05:51,839 --> 00:05:52,640
Speaker 2: is the key learning here?

131
00:05:52,760 --> 00:05:55,760
Speaker 1: The AI investing merry go round is the circular cycle

132
00:05:55,839 --> 00:05:59,240
Speaker 1: where top tier tech companies and AI startups fund each other.

133
00:05:59,320 --> 00:06:01,440
Speaker 2: Yeph because a little like this, the tech giant invests

134
00:06:01,440 --> 00:06:04,799
Speaker 2: billions into AI labs like open ai or Anthropic.

135
00:06:04,360 --> 00:06:07,239
Speaker 1: Then those AI labs spend on chips from in Video.

136
00:06:07,360 --> 00:06:09,719
Speaker 2: Then they also spend money on cloud services from the

137
00:06:09,720 --> 00:06:11,800
Speaker 2: tech giants that they received investment from.

138
00:06:11,839 --> 00:06:14,039
Speaker 1: So essentially, a portion of the money they received in

139
00:06:14,040 --> 00:06:17,080
Speaker 1: capital goes back to the investors as revenue.

140
00:06:16,680 --> 00:06:20,560
Speaker 2: And this circular cycle can inflate revenue and valuation.

141
00:06:20,320 --> 00:06:23,000
Speaker 1: Even if external demand isn't growing at the same pace.

142
00:06:23,120 --> 00:06:25,680
Speaker 1: Get this, Microsoft invested one bill in open Ai in

143
00:06:25,720 --> 00:06:28,440
Speaker 1: twenty nineteen and other ten bill in early twenty twenty three.

144
00:06:28,480 --> 00:06:31,680
Speaker 2: Amazon has invested eight bill into Anthropic and now fifty

145
00:06:31,720 --> 00:06:32,760
Speaker 2: bill into open ai.

146
00:06:33,040 --> 00:06:35,960
Speaker 1: In VideA, the chip designers also invested thirty bill into

147
00:06:36,000 --> 00:06:37,360
Speaker 1: open Ai in this round.

148
00:06:37,200 --> 00:06:39,040
Speaker 2: And juzuboy, that's really just the beginning.

149
00:06:39,080 --> 00:06:41,440
Speaker 1: Plux am. We all know to diversify your portfolio, but

150
00:06:41,480 --> 00:06:44,120
Speaker 1: what does that actually mean and which assets should fit

151
00:06:44,160 --> 00:06:46,280
Speaker 1: within it? Well? In the flux app. We've broken down

152
00:06:46,360 --> 00:06:49,440
Speaker 1: fixed incomest term deposits and what is really the difference.

153
00:06:49,600 --> 00:06:51,080
Speaker 1: You want to learn more, make sure you download at a

154
00:06:51,120 --> 00:06:53,039
Speaker 1: Flux app and check out our latest article.

155
00:06:53,120 --> 00:06:55,600
Speaker 2: Thanks for listening and we'll see you on for Friday