1 00:00:05,160 --> 00:00:07,880 Speaker 1: This is what the flux. I'm Brett and I'm Justin 2 00:00:07,960 --> 00:00:10,719 Speaker 1: and it's Wednesday, the twenty fourth of December. Twenty twenty 3 00:00:10,720 --> 00:00:13,600 Speaker 1: five was another massive year for AI, but the story 4 00:00:13,640 --> 00:00:16,400 Speaker 1: got a little broader than just chatbots. We saw a 5 00:00:16,440 --> 00:00:19,400 Speaker 1: heap of capital pour into the full AI staff. We're 6 00:00:19,400 --> 00:00:22,680 Speaker 1: talking data centers, GPU chips, and of course the large 7 00:00:22,800 --> 00:00:25,560 Speaker 1: language models themselves. In fact, AI made up to close 8 00:00:25,600 --> 00:00:28,400 Speaker 1: of half of all global venture funding this year, and 9 00:00:28,440 --> 00:00:30,560 Speaker 1: we also saw open Ai finish the year as the 10 00:00:30,600 --> 00:00:33,760 Speaker 1: most valuable private company in the world, with Anthropic not 11 00:00:33,880 --> 00:00:37,640 Speaker 1: far behind, and Nvidia hit a five trillion US dollar 12 00:00:37,720 --> 00:00:39,880 Speaker 1: valuation during the year as well. So it just shows 13 00:00:39,920 --> 00:00:42,600 Speaker 1: how far the AI industry has come in twenty twenty 14 00:00:42,600 --> 00:00:44,760 Speaker 1: five and will continue to grow into the next year. 15 00:00:44,920 --> 00:00:48,000 Speaker 2: Three mesmerizing stories Today Juzzy Boy, let's do it for 16 00:00:48,159 --> 00:00:50,879 Speaker 2: our first. At Lassion has announced plans to take on 17 00:00:51,000 --> 00:00:54,920 Speaker 2: Google and Apple with an almost one billion dollar acquisition 18 00:00:55,080 --> 00:00:56,639 Speaker 2: of an AI powered brows at. 19 00:00:56,640 --> 00:00:58,720 Speaker 1: Lassie and throwing its hat into the big tech ring. 20 00:00:58,800 --> 00:01:00,720 Speaker 1: Hear b man with the big dog, tell me all So. 21 00:01:00,720 --> 00:01:03,440 Speaker 2: At Lassian was founded in Sydney twenty twenty two by 22 00:01:03,520 --> 00:01:05,399 Speaker 2: Mike Cannon Brooks and Scott Farquhi, and. 23 00:01:05,400 --> 00:01:08,759 Speaker 1: It's grown into a Nasdaq listed tech Behemit and juz Wolld. 24 00:01:08,760 --> 00:01:11,880 Speaker 1: It's probably best known for its project tracking software Jira, 25 00:01:12,040 --> 00:01:14,639 Speaker 1: as well as its acquisition of to do list tool Trello. 26 00:01:14,720 --> 00:01:17,920 Speaker 1: Don't forget Loom, the video communication tech company that acquired 27 00:01:17,920 --> 00:01:20,560 Speaker 1: for nine hundred and seventy five milk back in twenty twenty. 28 00:01:20,280 --> 00:01:22,920 Speaker 2: Three, and at Lassian share price has fallen more than 29 00:01:22,959 --> 00:01:25,880 Speaker 2: thirty percent this year juzzy boy after investors have been 30 00:01:25,920 --> 00:01:28,480 Speaker 2: asking the big questions, how are you going to continue 31 00:01:28,480 --> 00:01:31,040 Speaker 2: growing revenue, how are you going to win bigger contracts? 32 00:01:31,080 --> 00:01:32,960 Speaker 1: And when are you going to become profitable? 33 00:01:33,040 --> 00:01:35,840 Speaker 2: But now at Lassian has announced plans to acquire the 34 00:01:35,920 --> 00:01:39,000 Speaker 2: browser company for nine hundred and thirty six million bucks. 35 00:01:39,040 --> 00:01:41,720 Speaker 2: This is a company behind browsers called da and Ark 36 00:01:41,840 --> 00:01:45,080 Speaker 2: and at Lassian called the acquisition a quote trust play 37 00:01:45,160 --> 00:01:47,680 Speaker 2: and how so be man. Well, they're betting that companies 38 00:01:47,720 --> 00:01:52,240 Speaker 2: will pay for secure AI enabled browsers built for work purposes. 39 00:01:52,560 --> 00:01:55,320 Speaker 1: And at Lassian he's entering the browser space before Google 40 00:01:55,480 --> 00:01:58,760 Speaker 1: eges its way into the project tracking world. Interesting, So 41 00:01:58,800 --> 00:02:01,160 Speaker 1: what's the key learning here? The battleground in tech isn't 42 00:02:01,160 --> 00:02:03,360 Speaker 1: just who builds the best out, It's about who owns 43 00:02:03,400 --> 00:02:05,080 Speaker 1: the entry point to your workday. 44 00:02:05,160 --> 00:02:07,720 Speaker 2: Many tech companies see the browser as that front door. 45 00:02:07,880 --> 00:02:10,280 Speaker 2: Jse Wait, we know that Google dominates in the browser 46 00:02:10,280 --> 00:02:13,480 Speaker 2: space with nearly sixty eight percent of market share according 47 00:02:13,520 --> 00:02:16,280 Speaker 2: to cloud Flare, and then Safari with a prox twenty percent. 48 00:02:16,360 --> 00:02:18,320 Speaker 2: Microsoft's edge with a humble six percent. 49 00:02:18,440 --> 00:02:20,080 Speaker 1: Think about it, be man, If you just start their 50 00:02:20,120 --> 00:02:22,600 Speaker 1: day in Google Chrome or Safari, then Google and Apple 51 00:02:22,639 --> 00:02:25,880 Speaker 1: can push their own productivity tools and AI features first. 52 00:02:26,000 --> 00:02:28,880 Speaker 2: But if Atlasian controls the browser, it can control the 53 00:02:28,880 --> 00:02:31,639 Speaker 2: flow of attention and tasks and data they man. 54 00:02:31,720 --> 00:02:33,680 Speaker 1: The challenge for it last year will be getting its 55 00:02:33,720 --> 00:02:36,440 Speaker 1: customers to actually switch to their browser. 56 00:02:36,160 --> 00:02:39,360 Speaker 2: And clearly investors aren't sure if they have the ability either, 57 00:02:39,440 --> 00:02:42,600 Speaker 2: because at Lassin share price fell two percent following this news. 58 00:02:42,639 --> 00:02:46,560 Speaker 2: For our second story, in Vidia is investing five billion 59 00:02:46,680 --> 00:02:49,880 Speaker 2: US dollars into its longtime rival Intel and will now 60 00:02:49,919 --> 00:02:52,880 Speaker 2: flip a decades long rivalry into a collaboration. 61 00:02:53,120 --> 00:02:55,639 Speaker 1: Tables have officially been termed b man, So tell me. 62 00:02:55,639 --> 00:02:57,960 Speaker 2: More, well, Josie boy, We've spoken a lot about the 63 00:02:58,040 --> 00:03:00,800 Speaker 2: rapid growth of Invidia. Yeah, it's gone from designing GPU 64 00:03:00,880 --> 00:03:04,000 Speaker 2: chips for gaming devices to the world's most valuable chip maker, 65 00:03:04,160 --> 00:03:05,000 Speaker 2: and not. 66 00:03:04,919 --> 00:03:06,800 Speaker 1: Just most valuable AI chip maker. 67 00:03:06,840 --> 00:03:09,760 Speaker 2: We'd be talking the world's most valuable company, worth over 68 00:03:09,840 --> 00:03:11,160 Speaker 2: four trillion US dollars. 69 00:03:11,200 --> 00:03:13,480 Speaker 1: I get this, be man. As recently as twenty twenty two, 70 00:03:13,560 --> 00:03:16,840 Speaker 1: Intel's revenue was double in videos. But now in Video 71 00:03:16,880 --> 00:03:19,880 Speaker 1: makes more per quarter than Intel does in a whole year. 72 00:03:20,040 --> 00:03:22,840 Speaker 2: And now in Video will invest five billion US dollars 73 00:03:22,880 --> 00:03:25,400 Speaker 2: into Intel by buying common stock. 74 00:03:25,480 --> 00:03:27,480 Speaker 1: And this will give in Video just below a five 75 00:03:27,480 --> 00:03:30,000 Speaker 1: percent steak in its new frenemy. Yep. 76 00:03:30,000 --> 00:03:32,560 Speaker 2: The two companies will co develop chips for PCs and 77 00:03:32,680 --> 00:03:33,240 Speaker 2: data centers. 78 00:03:33,280 --> 00:03:35,840 Speaker 1: A little bit of scratch my back end, I'll scratch yours. Yep. 79 00:03:35,880 --> 00:03:38,640 Speaker 2: A few minutes later, Intel shares jumped as much as 80 00:03:38,640 --> 00:03:40,720 Speaker 2: twenty six percent when this news broke, and the. 81 00:03:40,800 --> 00:03:43,040 Speaker 1: Man it is a rare wind for Intel, who's been 82 00:03:43,080 --> 00:03:46,640 Speaker 1: losing ground to AMD and in Video and TSMC as well. 83 00:03:46,680 --> 00:03:49,160 Speaker 1: So what is the key learning here? Sometimes enemies become 84 00:03:49,160 --> 00:03:51,240 Speaker 1: teammates when survival is on the line. 85 00:03:51,280 --> 00:03:53,680 Speaker 2: For decades, Intel looked down on in Video as a 86 00:03:53,760 --> 00:03:56,960 Speaker 2: niche player for those gaming nerves, but in Video's dominance 87 00:03:57,000 --> 00:03:59,960 Speaker 2: in AI has flipped the power balance a big time. 88 00:04:00,320 --> 00:04:03,000 Speaker 1: And now Intel is swallowing its pride and teaming up 89 00:04:03,000 --> 00:04:05,960 Speaker 1: with its former rival to regain relevance. 90 00:04:05,560 --> 00:04:08,920 Speaker 2: Because between them they dominate in GPUs and CPUs, which. 91 00:04:08,800 --> 00:04:10,320 Speaker 1: Are both critical computing engines. 92 00:04:10,400 --> 00:04:12,840 Speaker 2: In VideA dominates in GPUs, and this is the stuff 93 00:04:12,880 --> 00:04:13,800 Speaker 2: mainly used for AI. 94 00:04:13,880 --> 00:04:16,040 Speaker 1: In fact, the men in Video had a ninety two 95 00:04:16,040 --> 00:04:18,679 Speaker 1: percent share of the GPU market in the first quarter 96 00:04:18,720 --> 00:04:19,799 Speaker 1: of twenty thirty five. 97 00:04:19,640 --> 00:04:22,760 Speaker 2: With AMD second and then Intel. But Intel still has 98 00:04:22,800 --> 00:04:26,680 Speaker 2: dominance and scale in CPUs and manufacturing two. So while 99 00:04:26,680 --> 00:04:29,480 Speaker 2: the tables have officially turned, it seems like this partnership 100 00:04:29,560 --> 00:04:32,279 Speaker 2: gives Intel a last chance to become the big dog 101 00:04:32,400 --> 00:04:33,960 Speaker 2: chip player that it wants to be. 102 00:04:34,000 --> 00:04:37,080 Speaker 1: For our third and final story, Open Ai, the owner 103 00:04:37,120 --> 00:04:40,599 Speaker 1: of chat GPT, wants a slice of Google's Chrome. If 104 00:04:40,720 --> 00:04:43,960 Speaker 1: Google's forced to sell Chrome by the courts. Shots have 105 00:04:44,200 --> 00:04:46,600 Speaker 1: been fire, Tell me more, juzzy boy. Okay, so be man. 106 00:04:46,680 --> 00:04:48,880 Speaker 1: We spoke last week about how US courts have ruled 107 00:04:48,920 --> 00:04:51,559 Speaker 1: Google has illegal monopolies. 108 00:04:51,040 --> 00:04:54,120 Speaker 2: Both in online search as well as advertising technology and be. 109 00:04:54,200 --> 00:04:56,159 Speaker 1: Man, Well, it's not clear what the outcome will be 110 00:04:56,200 --> 00:04:59,320 Speaker 1: from the judges. It could result in the breakup of Google. 111 00:04:59,440 --> 00:05:02,920 Speaker 1: And now OpenAI has entered the chat. Yeah. Open AI's 112 00:05:02,920 --> 00:05:04,800 Speaker 1: head of product is said they'd be keen to buy 113 00:05:04,880 --> 00:05:08,080 Speaker 1: Google's Chrome if the court forced Google to sell it. Now. 114 00:05:08,080 --> 00:05:11,080 Speaker 2: Open Ai says it previously offered to integrate Google Search 115 00:05:11,160 --> 00:05:13,960 Speaker 2: into Chat GBT, but Google said nowe jose. 116 00:05:13,920 --> 00:05:16,760 Speaker 1: Yep, We've got Gemini and Beamen. In the hypothetical case 117 00:05:16,760 --> 00:05:19,160 Speaker 1: that open ai did buy Chrome, it could be a 118 00:05:19,360 --> 00:05:20,120 Speaker 1: game changer. 119 00:05:20,240 --> 00:05:22,359 Speaker 2: Well, it would allow them to skip the middle man 120 00:05:22,560 --> 00:05:24,480 Speaker 2: like Google when it comes to getting customers. 121 00:05:24,960 --> 00:05:26,360 Speaker 1: So what is the key learning here? 122 00:05:26,520 --> 00:05:30,799 Speaker 2: Vertical integration happens when a company controls multiple stages of 123 00:05:30,880 --> 00:05:33,000 Speaker 2: its supply chain or product delivery. 124 00:05:33,040 --> 00:05:34,920 Speaker 1: Think of the example of a coffee company. If they're 125 00:05:34,960 --> 00:05:38,039 Speaker 1: vertically integrated, they might own the farm, the roastery, and 126 00:05:38,160 --> 00:05:39,119 Speaker 1: the cafe as well. 127 00:05:39,160 --> 00:05:41,440 Speaker 2: And for technology, it's when the company owns the back 128 00:05:41,560 --> 00:05:44,920 Speaker 2: end software, the customer facing platform, and the underlying data 129 00:05:44,960 --> 00:05:45,800 Speaker 2: as well, and they man. 130 00:05:45,880 --> 00:05:48,520 Speaker 1: Google is the poster child for vertical integration. 131 00:05:48,680 --> 00:05:51,520 Speaker 2: It owns the Chrome browser, it owns the Android operating system, 132 00:05:51,560 --> 00:05:53,919 Speaker 2: it owns Google Search Engine and baman. 133 00:05:53,800 --> 00:05:56,640 Speaker 1: That kind of integration is super powerful, but it's also 134 00:05:56,720 --> 00:05:58,880 Speaker 1: what regulators argue is anti competitive. 135 00:05:58,880 --> 00:06:01,240 Speaker 2: On the other hand, open ai right now relies on 136 00:06:01,320 --> 00:06:03,040 Speaker 2: partnerships to reach those users. 137 00:06:02,760 --> 00:06:07,160 Speaker 1: Through Microsoft's Edge browser or their iOS integrations. 138 00:06:06,720 --> 00:06:09,640 Speaker 2: So if OpenAI did acquire Chrome, it would gain a 139 00:06:09,720 --> 00:06:10,960 Speaker 2: direct user base. 140 00:06:11,040 --> 00:06:13,200 Speaker 1: But b man, it kind of feels like open ai 141 00:06:13,279 --> 00:06:16,160 Speaker 1: would start building its vertically integrated empire of its own. 142 00:06:16,240 --> 00:06:18,760 Speaker 1: So while this may sound good in theory, you can 143 00:06:18,800 --> 00:06:21,200 Speaker 1: bet that the regulators will be having none of this. 144 00:06:21,880 --> 00:06:24,640 Speaker 1: Flux am We hope you enjoyed the biggest Ai stories 145 00:06:24,680 --> 00:06:26,920 Speaker 1: of twenty twenty five. It was a very tough one 146 00:06:26,960 --> 00:06:29,159 Speaker 1: to narrow down. From the Flux team, where wish you 147 00:06:29,200 --> 00:06:32,200 Speaker 1: a very happy Festive season and a great Christmas. We'll 148 00:06:32,200 --> 00:06:34,839 Speaker 1: be back on Friday for a very final episode of 149 00:06:34,880 --> 00:06:37,040 Speaker 1: twenty twenty six, where we'll do a recap on the 150 00:06:37,080 --> 00:06:40,200 Speaker 1: biggest telco and media stories of twenty twenty five. Thanks 151 00:06:40,200 --> 00:06:42,320 Speaker 1: for listening and we'll see you on Friday.