Speaker 1: From Marhart where Innovation of Money and Power Collie in
Speaker 1: Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 3: I'm Caroline Hand of Bloomberg's World headquarters in New York,
Speaker 3: and I May Lovelow back in San Francisco.
Speaker 4: This is Bloomberg Technology coming up.
Speaker 3: Amazon pushing further into the world of generative AI with
Speaker 3: an up.
Speaker 5: To four billion dollar deal with Anthropic.
Speaker 3: We're going to be sitting down with Amazon Web Services
Speaker 3: CEO Adam Slipski to discuss.
Speaker 4: And Hollywood screenwriters strike a tentative deal with studios to
Speaker 4: end their month's long strike. Rereate down everything you need
Speaker 4: to know about the agreement.
Speaker 5: Plus Apple's cheapest iPhone fifteen.
Speaker 3: Well, it's winning over buyers, with wait times for the
Speaker 3: device almost doubling compared to this time last year.
Speaker 4: Yep, let's get straight to our top short story. Amazon
Speaker 4: will invest up to four billion dollars in the AI
Speaker 4: startup Andthropic. It is a complicated deal where Anthropic will
Speaker 4: move its software to AWS cloud, but also the training
Speaker 4: of its future models to Amazon's proprietary silicon. We are
Speaker 4: talking about the AI accelerators Trainium and Inferentia. This is
Speaker 4: kind of an interesting move for Amazon that's done so
Speaker 4: much work internally on generative AI tools, but now it
Speaker 4: looks to a third party. Of course, the clawed large
Speaker 4: language model is one with billions of parameters. It is
Speaker 4: one that was already available within Bedrock, the platform that
Speaker 4: Amazon through AWS offers to build your own llms or
Speaker 4: take advantage of pre built skeletons of llms. There are
Speaker 4: many questions to be posed about the strategy here from
Speaker 4: Amazon and AWS with regards to generative AI and what's
Speaker 4: going on with their propriety to take We want to
Speaker 4: welcome our Bloomberg television and radio audiences worldwide joining us
Speaker 4: now Amazon Web Services CEO Adam Selipski, and Adam welcome
Speaker 4: to Bloomberg Technology. I want to start with some of
Speaker 4: the mechanics of this deal. Does Anthropic still pay Amazon
Speaker 4: to use AWS Cloud or is it structured such that
Speaker 4: the investment that you make in Anthropic is in the
Speaker 4: form of cash and credits for AWS Cloud?
Speaker 1: No, good morning, Thanks for having me.
Speaker 6: We're very excited for this expanded relationship with Anthropic, and
Speaker 6: the investment is a financial investment, as you say, and
Speaker 6: In addition, Anthropic will be training future versions of its
Speaker 6: models and running its models on AWS using our training
Speaker 6: chips and inferential chips. Those models will be guaranteed to
Speaker 6: be available for years to come. In our amaz On
Speaker 6: Bedrock managed service for llms, which provides the very wide
Speaker 6: choice of models and AWS, customers will actually receive early
Speaker 6: access to key features in Anthropics models in the future,
Speaker 6: such as fine tuning and customization of models. In addition,
Speaker 6: Anthropics are very talented technical teams and we anticipate working
Speaker 6: closely with them to actually improve future versions of our
Speaker 6: training in Inferentia at chips. So there are a lot
Speaker 6: of different benefits for our joint end customers from this
Speaker 6: relationship and we're very excited to be leaders in this together.
Speaker 4: Adam, there's a lot of emphasis on moving a maker
Speaker 4: of foundation models at that scale once your proprietary silicon.
Speaker 4: How quickly will Anthropics start running AI workloads on Trainium
Speaker 4: and Inferentia.
Speaker 6: Well, we've been working with Anthropic, they've been a customers
Speaker 6: of ours since I think they're founding over a couple
Speaker 6: of years ago, and so they use a variety of
Speaker 6: different technologies for a variety of different workloads on AWS,
Speaker 6: that they'll be using GPUs on AWS and will also
Speaker 6: be using large quantities of TRAININGUM and inferentia.
Speaker 1: So I think everything's going to move very.
Speaker 6: Quickly and it'll all be a mix of technologies depending
Speaker 6: on their needs at the time.
Speaker 4: Adam, what's the mood like within Amazon and AWS this morning?
Speaker 4: There are lots of talented engineers that have been working
Speaker 4: on large language models generative AI tools internally, and now
Speaker 4: you're turning to a third party who's highly regarded as
Speaker 4: a leader in building foundation models.
Speaker 1: The mood here is great.
Speaker 6: We are a company of inventors who we love to build,
Speaker 6: and there's never been a better time to be a
Speaker 6: builder at AWS than right now. And as I mentioned before,
Speaker 6: a big part of our strategy in AI and generative
Speaker 6: AI specifically, it's all about customer choice and there's not
Speaker 6: going to be any one solution that works for all
Speaker 6: customers for all use cases. And Thropic has done an
Speaker 6: amazing job. They're clearly a leader in this space, and
Speaker 6: it's really important for customers that we continue to generate
Speaker 6: new capabilities together at the same time. Really one of
Speaker 6: the hallmarks of our Amazon Bedrock Managed service for generative
Speaker 6: AI is choice, and so Amazon is going to continue
Speaker 6: to build its own Titan models, which are going to
Speaker 6: be available later this year. Obviously Onthropics models are prominent
Speaker 6: in bedrock, and we will have models from other leading
Speaker 6: providers as well as we have today. So it's still
Speaker 6: an amazing time to build here at Amazon. We think
Speaker 6: our models are going to be great as well, and
Speaker 6: it's about customers choosing the right tool for the job.
Speaker 3: Talking about choice, and I just want to re welcome
Speaker 3: our TV and radio audiances with Adam Sleipski. What's so
Speaker 3: notable is that well Anthropic took a change one hundred
Speaker 3: million dollars worth from Google already, and I'm interested as
Speaker 3: to how you feel that is perhaps a concern for
Speaker 3: you or not the relationship that athropag already has with
Speaker 3: a previous cloud provider.
Speaker 6: Now, we feel great about the relationship with Anthropic. It's
Speaker 6: been a good relationship and I think today's announcement just
Speaker 6: makes it a deeper and longer term. Anthropic will use
Speaker 6: AWS as its primary cloud provider for mission critical workloads,
Speaker 6: including building foundational foundation models and doing AI safety research,
Speaker 6: and will run the majority of its workloads on AWS.
Speaker 6: So we feel great about being able to provide the
Speaker 6: capacity and the expertise, and of course the security, the
Speaker 6: enterprise grade security that is so important to AWS customers.
Speaker 6: And we also feel great about working with Anthropic to
Speaker 6: make sure that our trainum and inferential technology, our chips
Speaker 6: are as as cutting edge as possible going forward for
Speaker 6: years to come.
Speaker 3: I'm interested in drilling down sort of why ED was
Speaker 3: going about the feeling internally right now, because I look
Speaker 3: at some of the analyst reaction to this. Adam and Webbush,
Speaker 3: for example, they say this signals a newfound urgency in
Speaker 3: Amazon's strategy to further integrate generative AI among your AW.
Speaker 5: Suite of services. That urgency was there a lack.
Speaker 3: Of understanding or indeed a reality that Amazon was behind
Speaker 3: the curve here a little bit when it came to
Speaker 3: the integration of generative AI. Because we've been looking at
Speaker 3: open Ai and Microsoft for a while now.
Speaker 6: We've been saying for many, many months, Carolyn, that we
Speaker 6: are fully urgent. We have a strategy that we really love.
Speaker 6: It is different than some other cloud provider strategies. It's
Speaker 6: true we have a strategy of providing absolutely uncompromising security,
Speaker 6: which I don't think is true for our cloud providers.
Speaker 6: We have a strategy of providing customers the choices to
Speaker 6: use whatever's best for their job at hand. So Andthropic
Speaker 6: is going to be an amazing set of models for many,
Speaker 6: many use cases. And Amazon is fully invested in building
Speaker 6: its own Titan models, which I think will be really
Speaker 6: useful for other customers and other circumstances, And of course
Speaker 6: are other model provider partners through Bedrock. So I really
Speaker 6: think it's an ill founded premise that there's been some
Speaker 6: change in urgency. We're fully urgent here on generative AI
Speaker 6: for one reason and one reason alone. It's because our
Speaker 6: customers need us to have great generative AI capabilities. So
Speaker 6: many of them have their data platforms on AWS, and
Speaker 6: if you got your data here, you really want to
Speaker 6: have your generative AI and all the powerful capabilities that
Speaker 6: you need from those capabilities in the same place. And
Speaker 6: so we have been, are and will continue to be
Speaker 6: very motivated to deliver for customers.
Speaker 4: Adam, what does this mean for the kind of rampop
Speaker 4: or path forward for TRAININGUM and inferentia. You've put a
Speaker 4: lot of emphasis that anthrop It brings you a maker
Speaker 4: of creator foundation models at scale. We now need to
Speaker 4: ramp up I guess your third party manufacturing relationships to say, okay,
Speaker 4: let's get more trainium on more inferential online to support
Speaker 4: the workloads.
Speaker 6: Well, it's absolutely true that there is a huge demand
Speaker 6: for all of the different ships with which people do
Speaker 6: a generative AI workloads, and so we absolutely have already
Speaker 6: been ramping up our training and inferential supply chain and
Speaker 6: ramping up the supply that we can create as quickly
Speaker 6: as possible. And yes, Anthropic will have access to very
Speaker 6: significant quantities of compute which we'll have trainum and inferentia
Speaker 6: in them. So yes, that's one of many reasons why
Speaker 6: we continue to ramp up and to provide a very
Speaker 6: robust AWS controlled supply chain for AI chips.
Speaker 3: And is that where the revenue boost comes, Adam, because
Speaker 3: we're looking at.
Speaker 5: The share price reaction is high on the day. When
Speaker 5: does this all start to really.
Speaker 3: Drive adoption money and the bottom line for Amazon?
Speaker 1: Well, I think that AI in general.
Speaker 6: Look, AWS has had machine learning services since at least
Speaker 6: twenty seventeen when we released our sage Maker machine learning service,
Speaker 6: which has over one hundred thousand AWS customers on it.
Speaker 6: So we've been doing machine learning for a long time
Speaker 6: inside of AWS, and obviously more recently have had a
Speaker 6: significant number of Generative AI customers, and we will certainly
Speaker 6: continue to ramp up anticipate quite steeply. We have many
Speaker 6: sources of growth inside of AWS where a scaled and
Speaker 6: relatively sizable business at this point, and customers are running
Speaker 6: their data platforms on AWS. They are building out more
Speaker 6: and more applications for things like supply chain and contact
Speaker 6: center management on AWS. I've still a whole lot of
Speaker 6: storage and compute and database workloads ramping on our ADA,
Speaker 6: So we have many sources of growth anticipate. But there's
Speaker 6: absolutely no doubt that generative AI looks like it's going
Speaker 6: to be an explosive additional source of growth in the
Speaker 6: years ahead.
Speaker 4: Adam, we put a lot of emphasis on the up
Speaker 4: to four billion dollars, and you know, I understand and
Speaker 4: thank you for explaining how the relationship will work in practice.
Speaker 4: If I put to you this is an example of
Speaker 4: Amazon or AWS basically paying a leader in the field
Speaker 4: of AI, handing over cash to allow to make them
Speaker 4: use trainingum and inferentia, how would you respond to that
Speaker 4: and explain to me how you bring new customers on
Speaker 4: board who are really interested in the AI accelerators that
Speaker 4: you have built without having to invest in them.
Speaker 7: Is a sort of backup.
Speaker 6: Sure well, the I think the really big news today
Speaker 6: is the new expanded relationship between and Propic and Amazon,
Speaker 6: in which they will have access to really large quantities
Speaker 6: of trainingmen and fr at chips. Customers will have access
Speaker 6: to those models, including early access to critical features through
Speaker 6: Amazon Bedrock and Amazon will get to aws, We'll get
Speaker 6: to work with Anthropic to ensure that we optimize our
Speaker 6: trainingment in Ferentia technology going forward.
Speaker 1: That's the benefit for customers. And yes, as part of this.
Speaker 6: We're pleased to be making an additional an initial investment
Speaker 6: of one point twenty five billion dollars into Anthropic. It's
Speaker 6: a financial investment and that could go up as high
Speaker 6: as four billions, as you said, over time. But it's
Speaker 6: really driven around customer value and what this is going
Speaker 6: to mean to customers who are very, very determined as
Speaker 6: they should be, to figure out generative AI strategies. We
Speaker 6: already are working in depth with customers, as is Anthropic
Speaker 6: on forming those.
Speaker 1: Strategies and actually moving to execution.
Speaker 6: We have a lot of great customers from Lonely Planet, Nexus, Lexis,
Speaker 6: and a number of others who are actually moving to
Speaker 6: production with Generative AI on AWS and Anthropic And in addition,
Speaker 6: as you alluded to, we'll be working with all of
Speaker 6: the partners that our customers want to do business with.
Speaker 6: If it's an important partner to our customers, it's going
Speaker 6: to be an important partner to us as well.
Speaker 4: Amazon Web Services CEO Adam Slipski, thank you, Thank you.
Speaker 3: Hollywood writers and studios are reaching at tentative deal with
Speaker 3: on a sund of the weekend to end strikes which
Speaker 3: began back in May A. Stick into this with someone
Speaker 3: who's been on it nonstoplum Merg's Luca Sure, and can
Speaker 3: you just go to the intricacies of what we think
Speaker 3: a deal has been.
Speaker 5: Struck on here.
Speaker 8: So the biggest issues are the ones that they hadn't
Speaker 8: already reached some kind of deal on are related to
Speaker 8: minimum staffing, so having a minimum number of writers who
Speaker 8: are hired to work on a TV program, and then
Speaker 8: data trans parency, slash payment and success, so studios and
Speaker 8: streaming services being more open about how many people are
Speaker 8: watching their shows and then paying writers' bonuses. Basically if
Speaker 8: they perform up to a certain level, and then some
Speaker 8: agreement around artificial intelligence and what studios can and can't
Speaker 8: do with the scripts they own. I have some sense
Speaker 8: of the particulars on each of those points, but they
Speaker 8: haven't released the full details of the proposal just yet.
Speaker 4: You know, Lucas, the state of production is still worth considering.
Speaker 4: Right The actors strike is ongoing and talks are ongoing there.
Speaker 4: But the net result appears to be that, you know,
Speaker 4: late night talk shows that don't require actors, they might
Speaker 4: start getting underway soon.
Speaker 8: Yeah, the broader guild still needs to ratify this agreement.
Speaker 8: If sort of the negotiating committees for both sides that
Speaker 8: have agreed to this, there may be a condition of
Speaker 8: this where daytime talk shows late night talk shows are
Speaker 8: able to go back sooner than it's ratified. I believe
Speaker 8: that happened with the two thousand and two thousand, two
Speaker 8: thousand and seven, two thousand and eight writers strike. But
Speaker 8: either way, people expect the guilt to ratify and in
Speaker 8: the next couple of weeks we should see those shows
Speaker 8: get up and running. You're right that production on a
Speaker 8: lot of film and television can't happen just yet, but
Speaker 8: they could begin pre production, They could start writers' rooms
Speaker 8: for some of those shows you know they had. There
Speaker 8: were shows that were supposed to be on New in
Speaker 8: the fall in September that hadn't even started writing scripts yet.
Speaker 8: So that's something that could begin now.
Speaker 3: For many This is a relief for the writers who've
Speaker 3: been unable to work, but also the entire ecosystem that's
Speaker 3: built around them.
Speaker 5: Lucas and I'm interested.
Speaker 3: As to who are the key players, the key figures
Speaker 3: that got in the room to try and.
Speaker 5: Push this forward.
Speaker 8: Well, for most of the negotiation you had or the
Speaker 8: negotiating committee on the writer's side, and then the top
Speaker 8: labor lawyers on the side of the studios as well
Speaker 8: as they're representative with this body called the AMPTP, this
Speaker 8: woman Carol Lombardini. But you also saw in recent weeks
Speaker 8: and especially over the last week, the CEOs of some
Speaker 8: of the biggest media companies get person involved. That included
Speaker 8: Walt Disney CEO bar Biger, Netflix co CEO Ted Sorrandos,
Speaker 8: Warner Brothers, Discovery CEO David Saslav, and Donald Langley, who's
Speaker 8: the chief content officer for NBCUniversal. They were personally involved
Speaker 8: in the negotiations for much of last week, and are
Speaker 8: you know they're not necessarily the heroes of this situation,
Speaker 8: but their involvement did signal the seriousness with which the
Speaker 8: studios were approaching the negotiation and put something of a
Speaker 8: timetable on it.
Speaker 4: All right, Bloomberg's Lucas Shaw reporting through the weekend and
Speaker 4: here on Bloomba's technology, Thank you and a programming alert.
Speaker 4: In about two weeks, Lucas will be hosting Bloomberg's screen
Speaker 4: Time in La to cover the collision of Hollywood and
Speaker 4: Silicon Valleys, bringing together moguls, celebrities, and entrepreneurs already defining
Speaker 4: the next phase of pop culture. And if you're lucky,
Speaker 4: your two favorite Bloomberg technology anchors as well.
Speaker 7: This is Bloomberg.
Speaker 3: We started on General to AI. Let's go there again
Speaker 3: because the company forethought it's trying to take on some
Speaker 3: key competitors like Salesforce, for example, in the customer service
Speaker 3: department by launching auto Flows. It's a customer support tool
Speaker 3: using simple.
Speaker 5: Natural language prompts rather than manual.
Speaker 3: Workflows ticket based systems. The whole system is powered by
Speaker 3: Support GPT. That's four thoughts generative AI model, which is
Speaker 3: in itself is powered by open AI models. Let's bring
Speaker 3: in four thoughts CEO Deon Nicholas now for more and
Speaker 3: there's still and it's really interesting that you're really trying
Speaker 3: to drive home customer service here in a more natural,
Speaker 3: easier manner. Can you just say how much at the
Speaker 3: moment this is held back by lack of AI, how
Speaker 3: much you actually think it will change the game and
Speaker 3: take an individual out of the equation?
Speaker 9: Absolutely, Caroline, thanks for having me. And so when we
Speaker 9: think about the state of the art in AI right now,
Speaker 9: it's been hamstrung by manual workflows, decision trees, rules, keywords.
Speaker 9: And that's why every single chatbot we've ever interacted with
Speaker 9: we get that age old experience of hey, I need
Speaker 9: to talk to an agent.
Speaker 7: I don't really.
Speaker 9: Understand what's going on here, right, And so I think
Speaker 9: this is actually the future for customer.
Speaker 5: Support, not fully intererative.
Speaker 3: Yet you said within some of the discussion points it
Speaker 3: requires you still perhaps through the old additional task manually.
Speaker 5: But when do you think we might.
Speaker 3: Never have to have that age old I need to
Speaker 3: speak to an agent?
Speaker 6: Now?
Speaker 9: I think we're very close, right, with auto flows technology,
Speaker 9: you simply specify the goal or the prompt and you
Speaker 9: let AI do the rest. And this has become really
Speaker 9: really powerful where we've already seen this technology live in
Speaker 9: some of our private beta customers. We're launching or renouncing
Speaker 9: an open beata this past week, we've seen stats from
Speaker 9: some of our customers where the customer satisfaction scores have
Speaker 9: gone up by twenty seven percent. And we're already serving
Speaker 9: thousands of conversations on this, So we're already seeing the
Speaker 9: benefits of auto flows and I think the future is
Speaker 9: closer than we think.
Speaker 4: There are many audience members of limbot technology that will
Speaker 4: be used to the ticket based system. Some participants in
Speaker 4: the show also used to it give us one case study,
Speaker 4: a simple one that your technology will replace.
Speaker 9: Yeah, I think a lot of the ticketing system. So
Speaker 9: if you look at you know, Salesforce and folks like that,
Speaker 9: they've all been talking about this autonomous AI future. You've
Speaker 9: seen at the Dreamforce announcement, Einstein Copilot being announced that
Speaker 9: it's coming sometime in the future, sometime next year. We're
Speaker 9: already seeing use cases like Upwork, who've leveraged auto flows
Speaker 9: for a lot for a few of their workflows in
Speaker 9: their customer support center, and they've seen improvements in customer
Speaker 9: satisfaction and deflection rate by leveraging auto flows instead of
Speaker 9: traditional manual workflows.
Speaker 4: In some cases, support GBT is built on GPT three
Speaker 4: point five, GPT four, GPT four. So what's that been
Speaker 4: like in the few weeks and months into a last
Speaker 4: on the show building out the technology with that underpinning.
Speaker 9: Yeah, it's been it's been really fun. At forethought, it's
Speaker 9: kind of in the name. We've always been about bringing
Speaker 9: the future to now right, and so we've often leveraged
Speaker 9: our own technologies, our own models, and we also leverage
Speaker 9: the latest and greatest, and so it started with GPT
Speaker 9: three point five. I think that was it when I
Speaker 9: was last on this show, and we've focused on innovating.
Speaker 9: It's not just about large language models, which are in
Speaker 9: many ways new for people, but for us, we've seen
Speaker 9: large language models over the past few years, and we
Speaker 9: think the future is about autonomous AI or agentic AI,
Speaker 9: and so leveraging the latest and greatest technologies not just
Speaker 9: for language, but for action that can and AI that
Speaker 9: can go and take action on your behalf and solve
Speaker 9: customer problems has been huge.
Speaker 5: Thirty seconds, Deon, is this going to mean less jobs?
Speaker 9: I think long term, I'm extremely bullish that AI will
Speaker 9: actually create jobs for people. We saw the same in
Speaker 9: the Industrial Revolution, we saw the same in the move
Speaker 9: to the Internet. I think a lot of technologies are
Speaker 9: a lot of industries are going to be changed, and
Speaker 9: radically more jobs.
Speaker 7: Are going to be created over time.
Speaker 4: All right, four CEO d On Nicholas, a founder carrier
Speaker 4: that's building right here and was on the show earlier
Speaker 4: in the year. It's interesting to track the progress that
Speaker 4: he's made since then. Thank you very much.
Speaker 5: Welcome back to Rumog Technology. I'm Caroline Hide in New.
Speaker 4: York and I'm Ed Ludlow here in San Francisco. Okay,
Speaker 4: for today's going viral, we're focusing on football and Taylor
Speaker 4: Swift showing up to the Kansas City Chiefs game sitting
Speaker 4: in Travis Kelsey's box with his mother Donna.
Speaker 7: You see her there in Kara. I don't know if
Speaker 7: you saw this NFL on Fox.
Speaker 4: Handle on x posts this video of her celebrating that
Speaker 4: third quarter touchdown by Kelsey, and the numbers on that
Speaker 4: video astonishing.
Speaker 5: I mean, why does anyone know what the numbers were
Speaker 5: in the score.
Speaker 3: I feel like that none of that could actually focused
Speaker 3: on in the game. I think it was what ten
Speaker 3: forty one in the end, absolutely trounced the Bears. But ultimately,
Speaker 3: I mean, she said in what one of her songs
Speaker 3: arefore I think it's gold Rush that she liked the Eagles,
Speaker 3: which I think is where his brother plays. But all
Speaker 3: of this while what the NFL's trying to talk up
Speaker 3: who's going to be at their big super Bowl and
Speaker 3: was again as a nineties kid growing up, I'm all
Speaker 3: in on who they've decided to choose.
Speaker 5: But isn't it.
Speaker 3: Ultimately about just entertainment and football really intertwining at this moment.
Speaker 4: You know, as a team, we were discussing this about
Speaker 4: a week ago, was it? And we were saying, no way,
Speaker 4: Taylor Swift, Kelsey, no way. Look at the social media
Speaker 4: response and yes, you're right, ten to forty one. But
Speaker 4: when NFL and Fox tweeted the final score, they had
Speaker 4: ten to forty one and Taylor Swift in the middle
Speaker 4: of the image. What a world we live in.
Speaker 3: And I'm pretty sure the numbers on the videos got
Speaker 3: a little bit more for her face being on it
Speaker 3: across the world of technology, it was trending. Meanwhile, though,
Speaker 3: let's stay in the world of entertainment for a moment,
Speaker 3: because we also got a key story to talk about
Speaker 3: Hollywood writers.
Speaker 5: Of course, the studio is.
Speaker 3: Reaching that tentative deal over the weekend to end strikes
Speaker 3: which wegan back in May, and here to discuss it,
Speaker 3: Stephen will Ferrera, these three pers studios chief business Officer,
Speaker 3: And what's been so good about you, Stephen, as you
Speaker 3: come in time and time again since May when they
Speaker 3: first went on strike, to when you talk about the
Speaker 3: impact this is having on your industry and ultimately you
Speaker 3: are you positive, you hopeful that this really might be
Speaker 3: some coming together now, thanks.
Speaker 10: Again for having me, and I am somewhat cautiously optimistic.
Speaker 10: I mean, the reality is this has had a huge
Speaker 10: toll on the entertainment industry at large. You know, since May,
Speaker 10: you've seen, you know, billions of dollars being taken out
Speaker 10: of the entertainment industry and the reality is they need
Speaker 10: to get back to work.
Speaker 2: So we're glad that we have a ten bent agreement.
Speaker 10: It needs now to go to the guild members and
Speaker 10: hopefully on Tuesday they will vote and ratify this, but
Speaker 10: it's still going to be some time before folks get
Speaker 10: back to.
Speaker 3: Work precisely, well, certainly from the drama side of things. Dramatic,
Speaker 3: you still need the actors to work. Yes, you might
Speaker 3: be able to have some talk shows going back, even
Speaker 3: you're hopeful and that that's the next shoe to drop it.
Speaker 10: Yes, I mean, you know, there's something called pattern matching
Speaker 10: when you start to negotiate. You know, remember the director's guild,
Speaker 10: they went back to work a couple of months ago,
Speaker 10: and so it took a while before we actually saw
Speaker 10: the writers kind of really come back to the table.
Speaker 10: You know, they weren't negotiating for for weeks, if not months,
Speaker 10: and so now all eyes are on sag Aftra. We
Speaker 10: really need to see, you know, kind of this come
Speaker 10: to an end.
Speaker 2: The good news is the writers will no longer be picketing.
Speaker 10: You know, you now have the permission for some of
Speaker 10: the writers to support their actors and their guild. But
Speaker 10: but we're hopeful that you know, production can start. You know,
Speaker 10: once you actually have the negotiations agreed upon, and you
Speaker 10: know the I is dotted the t's you now are
Speaker 10: going to have to revamp productions, and so it's going
Speaker 10: to take a little bit, you know, maybe two or
Speaker 10: three months for all productions to come back fully.
Speaker 4: That's what we're talking about, Stephen, the latency of the
Speaker 4: impact of these strikes, right, we're talking about the supply
Speaker 4: chain behind making content. Do you get any sense from
Speaker 4: your industry in your world, you know, how delayed, how
Speaker 4: far into the future these strikes will be felt because
Speaker 4: it takes time to make shows.
Speaker 2: That's right.
Speaker 10: I mean, you know the first thing that will come
Speaker 10: back will be talk shows, right, so like late night
Speaker 10: we'll come back first. You know, some of the daytime
Speaker 10: talk shows, you know, those are things where it won't
Speaker 10: be as impacted. But when you think about all the
Speaker 10: key things that were being negotiated around data about you know,
Speaker 10: kind of residuals that it comes to streaming, you know
Speaker 10: in certa with the use of AI, which everyone is
Speaker 10: really still very nervous about. You know, those things are
Speaker 10: still going to kind of take time to really play out,
Speaker 10: and so we really need you know, Saga after to
Speaker 10: kind of come back to the table along with the
Speaker 10: studios and hopefully that could be resolved because if this
Speaker 10: continues past October, you know, now you're really going to
Speaker 10: get into all the production schedules, and remember actors cannot
Speaker 10: promote their films, and so that has a huge impact.
Speaker 10: I mean you've seen you know, major you know, big
Speaker 10: budget films like Doom Too get pushed from you know,
Speaker 10: twenty twenty three into twenty four.
Speaker 2: And so whether it's streaming.
Speaker 10: Residuals data AI, those issues are going to hopefully get
Speaker 10: resolved in some way. It'll be a short term fix,
Speaker 10: to be sure, but we need the industry to come
Speaker 10: back because it's impacting everyone. I mean, just look at
Speaker 10: all the big media companies.
Speaker 2: You know.
Speaker 10: Certainly Netflix is probably up about twenty percent since May second,
Speaker 10: when the shrike started, but all the other traditional media
Speaker 10: companies Disney down twenty percent, Paramount down almost fifty percent.
Speaker 10: So it really is taking a toll on the industry.
Speaker 4: The big media company is big, Caroline. I get the
Speaker 4: sense also the big names that lead them, right when
Speaker 4: we speak to Lucas Shaw, Caroline, it's important to know
Speaker 4: the people around the table that are trying to fix this.
Speaker 3: Yeah, and I do think I'm sure to stop a mind.
Speaker 3: I mean, Ted's around us can perhaps see his share
Speaker 3: price still going on the higher side. But he was
Speaker 3: at the table, the CEO of Netflix. We do know
Speaker 3: that Bob Weigel was there to probably with his shareholders
Speaker 3: front and center for him as well.
Speaker 5: And I'm interested, Stephen, how.
Speaker 3: Important you think it is that the leading executives are
Speaker 3: there in part of the conversation driving it forward.
Speaker 2: Look, this has gotten resolved, to be very clear.
Speaker 10: We got Bob Eiger from Disney, Ted surrenders from Netflix,
Speaker 10: Donna Langley from NBC Universal, and David Zaslav from Warner
Speaker 10: Brothers Discovery. They have been meeting with the Writer's Good
Speaker 10: of America and that is how this kind of blockage
Speaker 10: got unblocked. And so why didn't this happen months ago?
Speaker 10: I mean we're in day one hundred and forty seven
Speaker 10: of the strike, right, you know, when it comes to Tuesday,
Speaker 10: you're going to have almost one hundred and fifty days.
Speaker 10: I wish people could have come to the table because
Speaker 10: this has had such an impact. I mean, I don't
Speaker 10: think people realize that the average you know, kind of wage,
Speaker 10: you know, the average salary for a writer is about
Speaker 10: fifty three thousand dollars. You know, it's not kind of
Speaker 10: all the you know, big you know, kind of top
Speaker 10: one percent of writers or directors or actors that.
Speaker 2: Are getting you know, kind of millions of dollars.
Speaker 10: The average person that's being impacted, this is really truly impacted.
Speaker 2: And so I'm glad that they came to the table.
Speaker 2: But that is how this got.
Speaker 4: Unblocked, Stephen, when these strikes started, conversation that the three
Speaker 4: of us were having was about AI and the long
Speaker 4: term impacts of AI. To your mind, has it just
Speaker 4: become more clear that pay is the central issue here?
Speaker 2: I mean, pay is not just a central issue.
Speaker 10: I mean they're all like we are so at the
Speaker 10: dawn of the AI era, We truly are not going
Speaker 10: to be able to imagine that once you move past
Speaker 10: the ability to ask questions to things like Generator AI
Speaker 10: and chat GPT, when you start moving from questions to
Speaker 10: actual actions, I mean the ability to do a modern
Speaker 10: day turing test where you actually tell, you know, an
Speaker 10: AI chatbot, hey, here's one hundred thousand dollars, go out
Speaker 10: and make a million dollars on Amazon, and it'll set
Speaker 10: up its own store, It'll figure out what are the
Speaker 10: trending products. They'll do all the marketing, the creative and
Speaker 10: it will generate a million dollars in sales. That is
Speaker 10: going to happen. And so every single brand, every single industry,
Speaker 10: every single person is going to be impacted by AI.
Speaker 10: And so we haven't even scratched the service on where
Speaker 10: this is going to go, but I feel like they
Speaker 10: have with what we know about AI right now. In
Speaker 10: twenty twenty three, this agreement for the next three years
Speaker 10: hopefully kind of puts in place. But this is going
Speaker 10: to come back in three years time and they're going
Speaker 10: to have to renegotiate and just imagine the exponential advances
Speaker 10: that you see in AI. It's going to be here
Speaker 10: to stay and it's going to rec cadoc on the industry.
Speaker 4: Stephen Wolf Prairie, it's been great to get your industry
Speaker 4: perspective as these strikes have gone on. We will check
Speaker 4: in soon.
Speaker 7: I'm sure.
Speaker 4: Let's get a quit check in on the markets, Caroline
Speaker 4: and now A's that one hundred is kind of turned
Speaker 4: the corner. We're modestly hire up three tenths of one
Speaker 4: percent up for a second straight day. We've opened the
Speaker 4: session loader. But the narrative is about the Fed Central
Speaker 4: banks around the world holding rates higher for longer to
Speaker 4: impact the ongoing inflation that we see around the world
Speaker 4: that has been the narrative of since that FED meeting
Speaker 4: of last week. There's an area of the market that
Speaker 4: I want to check in in on, and.
Speaker 7: That is biotech.
Speaker 4: What's got to be thinking is we've had all these
Speaker 4: conversations recently about Boston, and Boston is kind of the
Speaker 4: heart of this biotech industry. It is an underperformer, down
Speaker 4: two tens one. It had been down. Even more significantly,
Speaker 4: this is an index down for a four straight day.
Speaker 4: It's training at its lowest level since March. We have
Speaker 4: seen biotech headlines at the terminal terminal for evaluations really
Speaker 4: under pressure. And I know that it's gonna be a
Speaker 4: big theme later on the show.
Speaker 3: Yeah, Look, we're going to be deep diving into it,
Speaker 3: ed and I love the fact that you're shining a
Speaker 3: light on bi Farmer because we're going to look at
Speaker 3: the state of it, the industry in general, how it's
Speaker 3: incorporating you guessed it AI more broadly technology. Please to say,
Speaker 3: we're going to be joined by the CEO of benchling
Speaker 3: in a moment from New York from San Francisco as
Speaker 3: a Bloomberg technology.
Speaker 7: All right, Time for talking tech and first up.
Speaker 4: Apple's Basic iPhone fifteen model is taking almost twice as
Speaker 4: long for deliveries this year than its predecessor last year.
Speaker 4: Among high demand for the company's latest handsets. Buyers in
Speaker 4: the US need to wait for ten days to receive
Speaker 4: the Basic model, up from six days for the previous
Speaker 4: generation of device. And Huawei largely emitted ment of its
Speaker 4: controversial Mate sixty smartphone series at a grand showcase for
Speaker 4: its new consumer products earlier today, the company said it
Speaker 4: will increase smartphone production in response to demand, without naming
Speaker 4: the handset that's triggered the surge, which has an advanced
Speaker 4: made in China processor, causing concern in Washington. Plus, Booking's
Speaker 4: one point six billion euro takeover of Sweden's E Travelly
Speaker 4: Group was blocked by the European Union after merger regulators
Speaker 4: concluded that the proposed acquisition would harm the market for
Speaker 4: online travel agencies.
Speaker 7: Caroline, let's just.
Speaker 5: Take a move to global biofarmer.
Speaker 3: Right now, the industry is racing to produce better drugs faster,
Speaker 3: and look, it's going to need two key things technology
Speaker 3: and AI in fact, to improve the scale and the innovation.
Speaker 3: At least that's what the take from bentioning cloud based
Speaker 3: platform four Scientific Research and Development was just released a
Speaker 3: report on the state of the buiofarmer industry and its
Speaker 3: adoption of technology on pleace to Welcomeventioned CEO co founder
Speaker 3: as well Sajig with Gramstaktra and for us, who's joining
Speaker 3: us now and Saji, how are you seeing the adoption
Speaker 3: of technology or lack thereof in your biotech industry right now?
Speaker 11: Good morning and thanks for having me as quick context,
Speaker 11: We started Benchling a decade ago to bring modern software
Speaker 11: to cutting edge science. Today, R and D cloud is
Speaker 11: used by more than twelve hundred companies globally small and large,
Speaker 11: so think household names like Gilead and Sonofi to capture
Speaker 11: and structure their scientific data, often for machine learning, but
Speaker 11: broadly in service of bringing cutting edge, life changing products
Speaker 11: to people faster. I actually just got back from bench Talk,
Speaker 11: our annual customer conference in Boston, where I spoke with
Speaker 11: hundreds of scientists who are working on everything from gene
Speaker 11: editing cures to heart disease, to personalized cancer vaccines to
Speaker 11: treatments to slow the progression of Alzheimer's. So needless to say,
Speaker 11: it's a very exciting time to be in science.
Speaker 7: Now.
Speaker 3: How much is in the nation sharing been a blocker sergy?
Speaker 3: How much is what you're offering going to change the
Speaker 3: game or not, because for many you would feel that
Speaker 3: that collaboration, that sharing of information is already occurring within
Speaker 3: that labs.
Speaker 11: Yeah, to state the obvious, science is incredibly complex and difficult,
Speaker 11: and anecdotally at Benchlin we've always we've known some of
Speaker 11: the challenges posed by technology for progress in the sciences.
Speaker 11: You know, you have paper notebooks and spreadsheets and really old,
Speaker 11: homegrown and legacy technology that makes it hard to collaborate.
Speaker 11: But my inner scientists always wanted more, more primary data
Speaker 11: to really quantify the progress the industry has made and
Speaker 11: to understand how much work there is in front of
Speaker 11: us to do so. This summer we spoke with hundreds
Speaker 11: of scientists, R and D leaders, and IT executives and
Speaker 11: produce the first State of Tech.
Speaker 7: In Biopharma report.
Speaker 11: The headline, Carolyn, is that this is an industry that
Speaker 11: hasn't really seen the benefits of digital transformation yet, but
Speaker 11: it's one of the strees that needs it the most.
Speaker 11: If I dive into the data. The first thing scientists
Speaker 11: told us is that there's actually too much software, and
Speaker 11: I hope you see the irony of the ZEO of
Speaker 11: a software company saying that there's too much technology. But
Speaker 11: scientists on average have to use more than five highly
Speaker 11: specialized scientific applications per day to do their job, and
Speaker 11: these applications aren't the same throughout the entire organization. Some
Speaker 11: of the IT executives we spoke to have to manage
Speaker 11: an environment with hundreds of different tools that actually don't
Speaker 11: talk to one another. Only twenty eight percent of organizations
Speaker 11: feel like that data generated is actually interoperable, and that's
Speaker 11: a big problem when eighty four percent of organizations project
Speaker 11: that their data is actually going to double in the
Speaker 11: next twelve months.
Speaker 7: So zooming out.
Speaker 11: This is an industry that's funding tens of billions of
Speaker 11: dollars in R and D outside of clinical trials, and
Speaker 11: most of that knowledge ends up trapped in silos.
Speaker 4: So you told us about technology for progress, I would
Speaker 4: say the vast majorities of conversation that Caroline and I
Speaker 4: have about AI in the healthcare more specifically biotech biopharma
Speaker 4: use case is how it expedites drug development or gene
Speaker 4: therapy development. How does your research reflect that that that's
Speaker 4: the area of most focus right now.
Speaker 11: Yeah, we found that about sixty percent of organizations are
Speaker 11: testing the waters with machine learning and AI, and I
Speaker 11: think that's very much a bright spot, but there is
Speaker 11: skepticism as to the near term impact that it's going
Speaker 11: to have. We really see two major challenges that are
Speaker 11: holding the industry back from realizing the full potential of.
Speaker 2: AI and mL.
Speaker 11: The first is a talent gap, you know, being best
Speaker 11: in class that requires some of the brightest mines in science,
Speaker 11: but also some of the brightest minds from technology, data
Speaker 11: science and machine learning, and historically these are two industries
Speaker 11: that actually haven't mixed that much and have very different cultures.
Speaker 11: The other major challenge we see is in having purpose
Speaker 11: built tools that actually advance the science, and that's where
Speaker 11: we're spending our time investing.
Speaker 4: I've met so many highly qualified people PhDs working in
Speaker 4: this field who complain that a lot of their time
Speaker 4: in the lab is spent pipetting, holding from one stage
Speaker 4: to the next. But it raises questions about automation, and
Speaker 4: that seems to be an area more near term where
Speaker 4: machine learning in conjunction with hardware can be really helpful.
Speaker 11: Yeah, we actually just launched a new product in support
Speaker 11: of that at bench tark our customer conference. A majority
Speaker 11: of scientific experimentation involves instruments, and that's where vast majority
Speaker 11: of the data generation is happening, and so we've been
Speaker 11: focusing some of our investments on automating the flow of
Speaker 11: data out of instruments and into systems like bentioning for
Speaker 11: automated data analysis and capture in supportive machine learning.
Speaker 5: SERGI. It's great to have some time with you.
Speaker 3: Stay well, come back, Sargethwick Grama Sakuri is it for
Speaker 3: the CEO of mentioning me?
Speaker 2: Thank you?
Speaker 3: What a deep dive on a fintech pin up At
Speaker 3: the moment, while it's expanding further into the last in
Speaker 3: American market promise of expanding financial inclusion in the region
Speaker 3: through access to pretty much comprehensive ecosystem of financial services,
Speaker 3: it's currently over five million news is in Argentina, Columbia
Speaker 3: and now Mexico after getting approval for a banking license
Speaker 3: in Latin America's second biggest economy. That happened earlier this year.
Speaker 3: For now, let's talk about the story WOD Wallas expansion.
Speaker 3: The founder CEO, Pierre Barlo Barbieri, it's great to have you.
Speaker 5: In the studio.
Speaker 7: Thank you.
Speaker 3: And what's so interesting at the moment is the way
Speaker 3: in which you expand outside of Argentina. Already pretty dominant there, intermix.
Speaker 3: Why is Mexico so attractive? What is it that really
Speaker 3: boosts the business left?
Speaker 12: Mexico is an amazing market where you only have forty
Speaker 12: nine banks, and yet ninety percent of all transactions are
Speaker 12: still conducted in cash, right on the border with the
Speaker 12: United States, and so the opportunity for financial inclusion and
Speaker 12: for technology in financial services in Mexico is ginormous. You
Speaker 12: have seventy million people who've never had a debit card,
Speaker 12: who've never been able to save, who've never been able
Speaker 12: to take payments, and so as this digitizes in the
Speaker 12: next decade, we want to be there and we want
Speaker 12: to bet on it big. That's why we just acquired
Speaker 12: a bank in Mexico and we can now offer everything
Speaker 12: from payments to savings accounts, how you'll savings accounts in
Speaker 12: Mexico and also charging services, investments and a variety of
Speaker 12: things making up an ecosystem of all financial services.
Speaker 5: Vcs have been betting on you big.
Speaker 3: I'm sure because of that intersection of well, your experience
Speaker 3: a Bridgewater with SROs.
Speaker 5: With Goldman, you were there.
Speaker 3: You're bringing this financial focus to your home. What are
Speaker 3: some of the issues in particular when you're thinking of inflation,
Speaker 3: when you're thinking of political instability.
Speaker 5: I mean, we think at the moment of one of
Speaker 5: the front runners for Argentina.
Speaker 3: In particular talking of dollarization and enter the central Bank,
Speaker 3: how does that affect you as a business leader.
Speaker 12: I think the digitization of payment is a global trend
Speaker 12: that is going to happen everywhere and in emerging markets.
Speaker 12: It has the opportunity to leap frog developed markets, as
Speaker 12: we saw China didd faster than many other developed markets
Speaker 12: like the Europeans or even Japan, and we then saw
Speaker 12: it in India, then we saw it in Brazil, and
Speaker 12: now in the rest of Latin America we see an
Speaker 12: amazing opportunity.
Speaker 7: We launched WALLA five and a half years ago. In Argentina.
Speaker 12: We have seventeen percent of the adults in the country and.
Speaker 7: We give them tools to save with.
Speaker 12: While they can buy dollars already, they can invest in
Speaker 12: US equities. They can have the best Hiel Saying's account
Speaker 12: in the country and protect themselves against inflation. But we
Speaker 12: also see that in Colombia. We also see that in Mexico.
Speaker 12: So we see an opportunity that is very wide ranging
Speaker 12: in a region of the world that is lagging because
Speaker 12: only twenty percent of payments are digital. One of the
Speaker 12: very few things I know is that in the future
Speaker 12: that number is going to go to forty to sixty
Speaker 12: to eighty, as it did in Brazil in India. So
Speaker 12: it's a one way street. And the political noise has
Speaker 12: always been there and we need to learn to live
Speaker 12: with it. But I do think that in the case
Speaker 12: of Argentina, it is moving toward a more pro market
Speaker 12: stance with the elections that are coming up in October.
Speaker 4: Per Polo, If Heavier Milae is successful and he does
Speaker 4: dollarize the economy and he does close the central bank,
Speaker 4: how do you prepare Walla for that? How do you
Speaker 4: change your business model to take that into account?
Speaker 12: Well, of course, the first thing is that is that
Speaker 12: in Argentina only banks are allowed to have dollar accounts. Already,
Speaker 12: we already offer dollar trading in Walla, whereas FinTechs and
Speaker 12: wallets kind of do it, and there we have the
Speaker 12: strength of having.
Speaker 7: Fully regulated entities that allow us to do.
Speaker 12: Everything from investments to lending, and in this case dollar accounts,
Speaker 12: we've seen this. I mean, what I think will happen
Speaker 12: in Argentina is that we're going to move toward a
Speaker 12: more open capital account and that's how we already operate
Speaker 12: in Mexico, That's how we already operate in Colombia.
Speaker 7: And once again, the speed.
Speaker 12: Of the digitization of services with a dollar would only accelerate,
Speaker 12: So in that sense, it would be actually very positive
Speaker 12: for the business. And I think banks would be able
Speaker 12: to do longer term lending. Today, our longest loan the
Speaker 12: in the context of one hundred percent inflation is two years,
Speaker 12: just two years.
Speaker 7: Imagine that in a country.
Speaker 12: Where you offer thirty year fixed mortgages. So the opportunity
Speaker 12: for lending in places like Argentina is huge because only
Speaker 12: seven to eight percent of people have access to formal
Speaker 12: credit today, and in a dollar rice economy, I think
Speaker 12: that number would go up a lot.
Speaker 4: Piapello quickly. You know, Mexico is a parallel example. Cash
Speaker 4: is king transactions to cash, So what's the technology opportunity
Speaker 4: for there AI or otherwise.
Speaker 12: Well, what we have in Mexico is first of all,
Speaker 12: a full ecosystem of services. Pay your bills, top up
Speaker 12: your cell phone, have a debit card, pay for Netflix
Speaker 12: or Spotify, or be able to sign up even for Bloomberg,
Speaker 12: all those things Mexicans couldn't do in the past because
Speaker 12: they were condemned to cash. They even charged you a
Speaker 12: fee to pay your water bill or your electricity bill.
Speaker 7: Willa does away with all that, and it lets you.
Speaker 12: Create a credit history like we have an Argentina where
Speaker 12: we already done more than five million loans, and that
Speaker 12: gives us the opportunity to create a new credit history
Speaker 12: and also offer a highal savings account, which in Mexico
Speaker 12: is a huge differential in a market where most people
Speaker 12: got zero for their money and no longer.
Speaker 3: Yeah, you come to New York a bit come back,
Speaker 3: Pierre Bavieri. It's called the foundery CEO of Will we
Speaker 3: thank you for it? Meanwhile, that does it for this
Speaker 3: edition of Bloembag Technology.
Speaker 4: Yet, Yeah, recap the show on a podcast, Apple, Spotify,
Speaker 4: iHeart and the Bloomberg platforms here in the SF in
Speaker 4: New York City.
Speaker 7: This is Bloomberg