Speaker 1: That's really what's so exciting about this launch for a
Speaker 1: lot of people who have been disillusioned with the updates
Speaker 1: at Twitter as of late. I mean, they have tried
Speaker 1: platforms like Masdon, like Blue Sky, like Post, you name it.
Speaker 1: There's so many Twitter competitors out there that haven't quite
Speaker 1: gotten the network that they need to truly be a
Speaker 1: threat to Twitter. And here is Meta, which has upwards
Speaker 1: of three billion users on its products around the world,
Speaker 1: and Instagram, which has a following structure similar to Twitter,
Speaker 1: where where unlike Facebook, where you're friends with the people
Speaker 1: who are friends with you, on Instagram you can follow
Speaker 1: people who are interesting. That is the same as a
Speaker 1: Twitter model. So it makes sense for them to say
Speaker 1: we're having a Twitter copycat app over here, and you
Speaker 1: can choose to follow the same people you follow on Instagram,
Speaker 1: connect with those same people, and keep your handle, keep
Speaker 1: your verification. That it's a very powerful head start for
Speaker 1: this app Threads if people choose to use it, and
Speaker 1: I do think it could be a major threat to Twitter.
Speaker 2: And that's ask you Asha Water.
Speaker 3: I mean, we know Twitter is had to sometimes elicit
Speaker 3: Eve's point, but since Linda Yakarinos come in and take
Speaker 3: over the CEOO role. They have been much more communicative.
Speaker 3: Are you finding that they're worried? People you speak to
Speaker 3: do they see it as a big threat?
Speaker 4: I mean, like Sarah said, I think it is a
Speaker 4: huge threat.
Speaker 5: Right.
Speaker 4: You have the alternatives, as she mentioned posts massed on
Speaker 4: Blue Sky that just did not take off in the
Speaker 4: way that people thought they would. People went to those platforms,
Speaker 4: but then we're not exactly enthused by maybe the user
Speaker 4: experience or not having enough people not being able to
Speaker 4: take over the same handle, and so Integram can come
Speaker 4: in with threads and do all of those things and
Speaker 4: sort of solve a lot of those problems.
Speaker 2: I could see people moving over.
Speaker 4: Twitter has had a lot of changes with the verification
Speaker 4: system and how you get blue check marks, having to
Speaker 4: pay for additional features over the past couple of days.
Speaker 3: Yeah, Asia, just dig into the limited usage because there's
Speaker 3: been more clarification over the holiday day yesterday and over
Speaker 3: the weekends. But what are you hearing about some of
Speaker 3: the pushback against the latest moves that Twitter itself says
Speaker 3: is to ensure authenticity.
Speaker 4: Yeah, I mean, people are not happy about the fact
Speaker 4: that you're gonna be limited in the amount of tweets
Speaker 4: that you can see. And it is supposed to be
Speaker 4: a temporary measure, but the reason people go to Twitter
Speaker 4: is to be able to see tweets and to be
Speaker 4: able to see activity going on, and so when you
Speaker 4: start limiting that, that's concerning. Some people have also said
Speaker 4: maybe advertisers could be concerned about that, right if if
Speaker 4: you there's less tweets, that means there's less ads that
Speaker 4: people are seeing.
Speaker 2: So it it's it's challenging. Now.
Speaker 4: It is temporary. We don't know how long it's gonna last.
Speaker 4: But there has been some pushback just on Twitter and
Speaker 4: just amongst users.
Speaker 3: Sarah talking of pushback, there's who is pushing back in
Speaker 3: the EU. We understand that threads isn't gonna be available
Speaker 3: there as soon as tomorrow. If you're in the EU,
Speaker 3: is this regulators saying no, you can't do this? Is
Speaker 3: a this meta saying we are not bringing our innovation
Speaker 3: to you because of.
Speaker 2: Your stricter regulations.
Speaker 1: I think that that there's a little bit of both
Speaker 1: going on. I think that you know, regulators are are
Speaker 1: certainly concerned and saying, you know, if you're going to
Speaker 1: add this new product in the EU. There are other
Speaker 1: considerations around competition, around the fact that Meta already has
Speaker 1: you know, all of the major social platforms. Do they
Speaker 1: really need another one? There are the concerns about the
Speaker 1: usual privacy details. I think there's just a little bit
Speaker 1: more to work out before they can launch their I
Speaker 1: think I think that, you know, given Meta's global focus,
Speaker 1: they're going to want to launch there eventually, but for now,
Speaker 1: they're going to want to establish this as a product
Speaker 1: that people want to use. And I think it's a
Speaker 1: really interesting time because on the across their other products,
Speaker 1: they're really moving away from tech spased communication in towards
Speaker 1: short form video, and they're trying to take on TikTok
Speaker 1: on Instagram and and Facebook right now, and so threads
Speaker 1: may be an option not just for people who use Twitter,
Speaker 1: but for people who want to just post about their
Speaker 1: lives in a tech based way and find that those
Speaker 1: kinds of content don't do as well on Instagram and
Speaker 1: Facebook the way that they used to. So it could
Speaker 1: be an interesting, more mainstream version of Twitter.
Speaker 3: What about the advertisers, Aisha, How much are companies looking
Speaker 3: to go towards a Meta visa via Twitter?
Speaker 4: Well, I think advertising is a huge opportunity for Meta
Speaker 4: with this right, we advertisers moved off of Twitter. Advertising
Speaker 4: revenue went down significantly since Must took over, he said.
Speaker 4: Some advertisers have come back. A lot of people left
Speaker 4: for all the reasons that we just outlined right, some
Speaker 4: of Must behavior, some of the changes to the platform. Already,
Speaker 4: advertisers are going to some Twitter alternatives. So it's a
Speaker 4: huge risk I think for Twitter if Meta can build
Speaker 4: a competitor and take away some of the issues that
Speaker 4: Twitter had with content moderation and so on.
Speaker 6: And so forth.
Speaker 4: However, Twitter does have Linda Yakarino, and she has a
Speaker 4: lot of industry experience, she has relationships. Twitter has made
Speaker 4: some changes recently. They've been talking more about brand safety,
Speaker 4: so they might be able to keep advertisers.
Speaker 2: I don't know.
Speaker 4: We'll see how it plays out.
Speaker 3: We'll have to wait with that cage match occurs as well,
Speaker 3: But for now, the figurative cage match is about to
Speaker 3: ensue as soon as tomorrow. Sarah fryar ash accounts, thank
Speaker 3: you both so much for breaking that down.
Speaker 2: Meanwhile, coming up, Rivian.
Speaker 3: Started delivering the electric bands it makes for Amazon to
Speaker 3: Europe and there's first commercial shipments outside of the US.
Speaker 2: More on that next. This is a Bloomberg time now
Speaker 2: for talking tech.
Speaker 3: First up, Meta CEO Mark Zuckerberg is facing strudiny in China.
Speaker 2: Social state backed.
Speaker 3: Social media account published is scathing editorial on the Facebook
Speaker 3: co founder. Now first reported by Hong Kong newspaper that
Speaker 3: the editorial emerged after The Wall Street Journal reported that
Speaker 3: Meta was in talks with ten Cent Holdings about selling
Speaker 3: its quest for the Yar headset in China. Ssuckerberg has
Speaker 3: openly criticized Chinese censorship. Meta and ten Cent didn't respond
Speaker 3: to requests for comment. Meanwhile, Spotify's CEO has raised over
Speaker 3: sixty five million dollars in venture capital to expand his
Speaker 3: medical startup. It's called Nico Health, and Tomaco Lakestar General
Speaker 3: Catalyst joining the investment and some of the company's biggest backers.
Speaker 3: The startup provides full body scans for skin and heart conditions.
Speaker 3: Over there in Sweden plus Rivian and it started delivering
Speaker 3: the electric vans it makes the Amazon to Europe's first
Speaker 3: commercial shipments outside of the United States. Amazon will roll
Speaker 3: out more than three hundred delivery vans in the coming
Speaker 3: weeks to German cities including Munich, Berlin and Dusseldulff joining
Speaker 3: us to just talk through that a little bit more
Speaker 3: as Spoomberg News is Craig Trudell.
Speaker 2: So how big a deal is this for Revian because
Speaker 2: the shareholder is.
Speaker 7: Like it, Yeah, it's absolutely a big deal for Rivian.
Speaker 7: I think anytime can be a sort of reminder of
Speaker 7: the ties to Amazon and the role that Amazon plays
Speaker 7: as a big customer is a good thing for Rivian.
Speaker 7: Not that folks who know this company well and have
Speaker 7: been following it closely will forget that, but I do
Speaker 7: think this is a company that, you know, if we
Speaker 7: take a sort of step back and think about, you know,
Speaker 7: what's happened since they're Blockbuster IPO in late twenty twenty one,
Speaker 7: they've had a heck of a time getting production up
Speaker 7: and rolling, and so this is an indication that, you know,
Speaker 7: yet another indication that you know, production is is kind
Speaker 7: of being smoothed out. We saw that a little bit
Speaker 7: earlier this week with the production numbers that they reported
Speaker 7: for the second quarter and the fact that they're able
Speaker 7: to now you know, not only you know, boost deliveries locally,
Speaker 7: but start some exporting is a positive sign for production
Speaker 7: going forward.
Speaker 3: I'm positive coming from the analyst as well, need amnalyst
Speaker 3: Chris Piers lifting the price target after those production numbers
Speaker 3: DA Davidson the analyst, they're really upgoading the Stockton neutral
Speaker 3: from an underperform and there in line is the fact
Speaker 3: that it has been underperforming, right, has been a lot
Speaker 3: of worries and concerns just remind us of what sort
Speaker 3: of being the choke hold on the production side of things.
Speaker 7: I mean, they were suffering from, you know, the issues
Speaker 7: that the broader industry had has for a couple of
Speaker 7: years now, right of just supply chain duress and the
Speaker 7: chip shortage, and just when we think that we're through that,
Speaker 7: now we have you know, these concerns about these metals
Speaker 7: in China and whether or not you know, that will
Speaker 7: be the latest, you know, thing to slow down supply
Speaker 7: of semiconductors. I think one of the things that this
Speaker 7: story speaks to, though, this idea of starting to ship
Speaker 7: vans to Europe, is just the need for electrification in
Speaker 7: this commercial vehicle space and this role that Rivian could
Speaker 7: play in that. When you think about sort of the
Speaker 7: biggest bang for your buck in electrifying things that are
Speaker 7: on the road, if you can electrify these vans that
Speaker 7: do a ton of miles a day that are doing
Speaker 7: increasingly these last mile deliveries because of the rise of
Speaker 7: online shopping and deliveries and city centers. We know for
Speaker 7: a fact that you know, cities want more of these
Speaker 7: on the roads. Incumbent manufacturers are having a hard time
Speaker 7: meeting demand. Startups are having a hard time meeting demand.
Speaker 7: So if Rivian can get cranking on these vans, we
Speaker 7: do know that there's a lot of interest in these
Speaker 7: if they can, you know, sort of follow through on
Speaker 7: this big order from Amazon for over the next half
Speaker 7: decade or.
Speaker 3: So, one hundred thousand big order for the vans, a
Speaker 3: lot of evans. There's a lot of vans most Craig Trudell,
Speaker 3: thank you so much for joining us. Welcome back to
Speaker 3: Bloomberg Technology. I'm Caroline Hide in New York, Ed Ludlow.
Speaker 3: He's currently on assignment. Let's check in on these markets
Speaker 3: today there, because we're pretty muted after the day of
Speaker 3: celebrations from July fourth, We're just off about a ten
Speaker 3: percent on the NASDAC and Ashley Tech is outperforming.
Speaker 2: The rest of the market.
Speaker 3: The rest of the market nervous about Chinese economy, the
Speaker 3: growth story lackluster there when you look at the services
Speaker 3: number also. Then then as that one hundred does managed to
Speaker 3: perform in terms of the big names, we'll get into
Speaker 3: the individual movers is to support there. But look at
Speaker 3: the tenure yield once again moving higher by six basis points.
Speaker 3: Remember we get those FOMC minutes from the previous rate
Speaker 3: decision where they stood pat They did nothing for the
Speaker 3: first time in ten rate hikes. So we're interesting to
Speaker 3: see if there's any steer, any color as to just
Speaker 3: how divided the FOMC is in terms of tackling inflation
Speaker 3: here in the United States. Let's move on and have
Speaker 3: a look at some of the individual movers, because we
Speaker 3: do have companies on the move metal platforms. As I say,
Speaker 3: really the Star performer today up more than three percent
Speaker 3: as we anticipate that unveiling of threads as soon as tomorrow.
Speaker 3: Of course, their Twitter take on Intel off by two percent,
Speaker 3: and in fact most of the chip stocks are down
Speaker 3: today as we worry about the geopolitical risk coming from China,
Speaker 3: the fact that they are limiting the materials the rarer
Speaker 3: in particular that go into semiconductors' evs, you name it.
Speaker 3: Those two key materials that are going to be even
Speaker 3: harder to get a hold of. Intel on the downside,
Speaker 3: and Pegger Systems just want to show off this particular
Speaker 3: software company and interestingly up fourteen percent. Of course, a
Speaker 3: small company that really getting a rating upgrade is some
Speaker 3: analysts out there and really feel that some of the
Speaker 3: legal headwinds are not something to be as agitated about
Speaker 3: as was previous at fourteen percent.
Speaker 2: Meanwhile, let's talk a little bit about.
Speaker 3: Software and hiring in particular here in New York City
Speaker 3: taking steps in fact, the city is to regulate artificial
Speaker 3: intelligence when it comes to hiring. Today, a new law
Speaker 3: comes into effect that requires companies using AI software in
Speaker 3: recruiting to notify candidates that an automated system is being used.
Speaker 2: It's also requiring.
Speaker 3: Companies to have independent auditors check their technology annually for bias.
Speaker 3: Let's talk about all of that with George Wycount of
Speaker 3: Bloomberg Law and George, why is there potentially the threat
Speaker 3: of bias within these AI systems?
Speaker 8: So yeah, AI is used in all kinds of hiring
Speaker 8: mechanisms around the country, ranging from resume reviews, for evaluating
Speaker 8: video interviews.
Speaker 6: It's all over the place.
Speaker 8: A twenty twenty two survey from the Society of Human
Speaker 8: Resource Management show that nearly one in four organizations use
Speaker 8: AI in some HR capacity.
Speaker 6: So it's really all over there's a lot.
Speaker 8: Of concern and with that, there's a lot of concerns
Speaker 8: about lawmakers and advocates. A like, these technologies, which are
Speaker 8: relatively novel, they haven't been in effect for that long,
Speaker 8: rely on data that bakes and prejudice. Because a lot
Speaker 8: of these systems, like a lot of other things, are
Speaker 8: being trained on historical data. This data is imperfect and
Speaker 8: could have a discriminatory event.
Speaker 3: Okay, so talk us through the new requirements. First of
Speaker 3: their coming from New York, what would a company have
Speaker 3: to do?
Speaker 2: How would they go about disclosing?
Speaker 8: Yeah, so the law on its face requires all New
Speaker 8: York City employees to independently audit their systems. That means
Speaker 8: they have to get an independent firm to audit, it
Speaker 8: has to be done once a year, and they need
Speaker 8: to publicly disclose the results on their employment website. And
Speaker 8: the law also requires that these employers inform job candidates
Speaker 8: that they are using AI prior to their use in
Speaker 8: any kind of hiring mechanism. The law does not currently
Speaker 8: have any private right of action, meaning an individual you
Speaker 8: cannot file an individual suit.
Speaker 9: Against organization if they don't comply.
Speaker 8: But if an employer is to be found in violation
Speaker 8: of the law, they will encoura a five hundred dollars
Speaker 8: fine on the first and a fifteen hundred dollars fine
Speaker 8: on each subsequent offense.
Speaker 3: And some companies had actually fought back against it, or
Speaker 3: at least lobbied against this new law, and it had
Speaker 3: been tweaked around the edges, George, But I'm interested about now.
Speaker 2: It's officially enforceable.
Speaker 3: Does this become the regerring across the rest of the states?
Speaker 2: What do we see in other cities? What do you
Speaker 2: think comes next?
Speaker 8: Yeah, so this is the first of the nation law
Speaker 8: and it's likely to be followed. There's been growing pressure
Speaker 8: in recent years for jurisdictions to regulate AI. It's been
Speaker 8: a high priority for the Equal for the Equal Employment
Speaker 8: Opportunity Commission, which is the agency that's in charge of
Speaker 8: enforcing Title seven of the Civil It's Act of nineteen
Speaker 8: sixty four.
Speaker 6: Excuse me.
Speaker 8: Some other states have laws on the books Illinois and
Speaker 8: Maryland in particular, they have laws and the books that
Speaker 8: regulate AI in some extent for video interviews, but this
Speaker 8: is likely to be followed in while right now this
Speaker 8: just applies to employers within New York City. Is the
Speaker 8: thing all employers need to be thinking about right now
Speaker 8: as they use artificial intelligence in the hiring capacity.
Speaker 3: Great round up, George Wykamp, Thank you so much of
Speaker 3: Berg Law of a feeling we might be coming back
Speaker 3: to you at some stage soon. Meanwhile, let's take a
Speaker 3: deep dive into a so called artificial intelligence whisperers. Look,
Speaker 3: you can earn six figure salaries and you don't even
Speaker 3: need any programming experience. Bloomberg's Conrad Quelty Harper one of
Speaker 3: these prompt engineers, as are known to find just how
Speaker 3: to coax the best out of those large language models.
Speaker 10: Albert Phelps is a full time prompt engineer, or, as
Speaker 10: he describes it, an AI whisperer. I sat down with
Speaker 10: him to understand what's behind this increasingly coveted role that
Speaker 10: can pay up to six figures.
Speaker 11: So we're saying, you know, you're a highly creative and
Speaker 11: talented journalist working for Bloomberg News.
Speaker 10: Thank you and you create.
Speaker 11: An introduction to an article on prompt engineering in the
Speaker 11: House of Bloomberg style.
Speaker 10: It's not got the kind of clean pros of Bloomberg,
Speaker 10: but it's a bit fowery, I'd say. With the rise
Speaker 10: of large language models like GPT three and GPT four,
Speaker 10: demand for a new kind of AI job is also growing.
Speaker 10: Prompt engineers spend their day coaxing the AI to produce
Speaker 10: better results and help companies train their workforce to harness
Speaker 10: the tools. The role can pay as much as three
Speaker 10: hundred and thirty five thousand dollars a year, and for
Speaker 10: many it doesn't even require a degree in computer engineering
Speaker 10: or advanced coding skills. I'd love to see how you
Speaker 10: spend your day. Could you maybe build me a demo
Speaker 10: of a Bloomberg editor. Let's say absolutely, Let's go and
Speaker 10: do that.
Speaker 6: Okay.
Speaker 10: Open AI's consumer facing tool chat GPT is pre prompted.
Speaker 10: It's set up to be a helpful assistant. To be
Speaker 10: a professional prompt engineer, you have to get into the
Speaker 10: guts of the large language model. That means changing the
Speaker 10: default prompt. This is the chat the open a AI playground.
Speaker 10: So this is a more advanced, more neutral more powerful,
Speaker 10: customizable version of what you see when you load uptrat GBT.
Speaker 11: Yeah, exactly what we're going to look to do is
Speaker 11: help you write some interesting content around different prompt engineering techniques.
Speaker 10: So this is you're making a sort of helpful assistant
Speaker 10: for me to write a story about prompt engineering as
Speaker 10: a Boomberg journalist.
Speaker 6: Yes, exactly.
Speaker 10: Yeah, a seemingly semi mystifying technique. Prompt engineering is an
Speaker 10: action packed interface between human creativity and AI's data crunching power. Yeah,
Speaker 10: it's making me a bit sick.
Speaker 6: Yeah, I think so, I think so. I think there's
Speaker 6: more work that we need to do.
Speaker 10: There are a few tips and tricks that Albert uses
Speaker 10: to improve as results change the temperature or the randomness
Speaker 10: of the output. Tell it to take things step by
Speaker 10: step and feed it a previously written article as an example.
Speaker 10: After thirty minutes of work, we didn't quite manage to
Speaker 10: replace my editor with AI, but the responses did get
Speaker 10: more useful as Albert added more context and instructions.
Speaker 11: The one thing that probably haven't done a lot of
Speaker 11: here is actually treating this as a dialogue is actually
Speaker 11: a really useful way often of getting better rest.
Speaker 10: Okay, we're getting somewhere. Now there's a germ of an
Speaker 10: idea that's interesting. Albert says PROMPT engineering has turned the
Speaker 10: English language into a programming language. He's had no technical
Speaker 10: education or programming experience. In fact, he studied history a
Speaker 10: university before starting his career as a consultant. He says
Speaker 10: his non scientific background mix him more not less qualified
Speaker 10: to wrangle AI tools. When it comes to fearing this
Speaker 10: technology replacing our jobs, he's not as concerned. And when
Speaker 10: will my editor just be a Tracy BT type model
Speaker 10: that we've developed together.
Speaker 11: I would probably think of it the other way around.
Speaker 11: I think we as humans actually might become more like
Speaker 11: than editor. Will outline what we want the model to do,
Speaker 11: we'll give it some test cases, we'll give it some examples,
Speaker 11: and then we'll be the ones essentially doing that that.
Speaker 2: Editing liberal arts.
Speaker 3: Back on the RST, Prompt Engineer Albert Feltz. They're speaking
Speaker 3: with Bloomberg's Conrad Cuilty Harper coming up runway securing an
Speaker 3: addition one hundred and forty million dollars in funding from
Speaker 3: some big names in the world of tech. You're going
Speaker 3: to sit down for an exclusive conversation with the CEO next,
Speaker 3: there's a Bloomberg.
Speaker 2: AI startup, Runway, whose.
Speaker 3: Software can create a short video from just a few
Speaker 3: type words, has raised one hundred and forty one million
Speaker 3: dollars in funding from the likes of Google and Video
Speaker 3: Salesforce and other investors joining us. Now, I'm pleased to
Speaker 3: say it's the CEO of Runway, Chris Valenzuela.
Speaker 2: Chris, congratulations. One hundred and forty.
Speaker 3: One million is actually an extension of your series C
Speaker 3: was this inbound interest coming from these big players?
Speaker 6: Yeah, thank you for having me.
Speaker 12: We've been working on Runway for now five years or
Speaker 12: so and so very thrill and excited to be partnering
Speaker 12: with with the likes of Google and Nvidia Saltfares on
Speaker 12: this new round that extends our kind of like bandwidth
Speaker 12: and capacity to go continue innovating on core research that
Speaker 12: we're working on since the release of Gen one and
Speaker 12: Gen two, which are video generation models. There's still a
Speaker 12: long break to go, but we're excited about taking this
Speaker 12: new funding to improve and scale our research efforts.
Speaker 3: And it's interesting, isn't it that previously been raising money
Speaker 3: from the big VC names, but now it seems like
Speaker 3: it's strategic investors coming in, How do you think their
Speaker 3: interest was peaked and wanting to come in and do
Speaker 3: this extension?
Speaker 12: Sure, I mean there are different parts of if I
Speaker 12: would say, the development of these models, and you can
Speaker 12: think about it as two phases. The first phase is
Speaker 12: building the baseline foundational models, and that takes a lot
Speaker 12: of time and kind of like work and engineering counter efforts.
Speaker 12: The second part is kind of I would say, the
Speaker 12: phase that we're in right now, which is getting these
Speaker 12: models out to more people, to more customers, to most enterprises,
Speaker 12: and that being able to work with companies like Google
Speaker 12: and Biding selfware so really like speeds up that and
Speaker 12: allows us to innovate at the speed that we need
Speaker 12: to innovate. We're entering that phase of development that requires
Speaker 12: a different set of like attitudes and I would stay
Speaker 12: research kind of like mentalities and so STUDI early, but
Speaker 12: excited to be working with some of the best companies
Speaker 12: in the world.
Speaker 3: And of course, Chris, I mean, you haven't disclosed your valuation,
Speaker 3: but we understand that's there about one and a half
Speaker 3: billion dollars. Just talk to us about the costs from
Speaker 3: your side, you're going to be using this to of
Speaker 3: course beef up team to keep on creating innovating, but
Speaker 3: the compute power must be massive. Is that something where
Speaker 3: Google comes in.
Speaker 12: I think there are two parts again of the stage
Speaker 12: to where we are with these generaling models and video
Speaker 12: models and image models tend to work very different with
Speaker 12: the language models that perhaps are the ones that are
Speaker 12: more discussed and discuss nowadays. For video models and for
Speaker 12: image models, there's a scale component on the infrastructure side
Speaker 12: of things, and making sure that models are fast and
Speaker 12: reliable and you can train large video models is a
Speaker 12: complex ask. So we're putting a lot of resources on
Speaker 12: making that happen with state of the art technology and
Speaker 12: research and compute. But on the other side, there's so
Speaker 12: much on the infrastructure that needs to get built that
Speaker 12: hasn't yet been built. That also requires a lot of
Speaker 12: effort and time and great people to build. We are
Speaker 12: an incredible small team that's been really pushing the boundaries of.
Speaker 6: The field for the last four or five.
Speaker 12: Years since we since we started on building these models
Speaker 12: and these technologies, and so really making sure that you
Speaker 12: can work with the best on both the research aspects
Speaker 12: and the engineering aspects. It's really important and the resources
Speaker 12: will go pretty much to both ends on the research
Speaker 12: and engineering side as well.
Speaker 3: And you have been working on the infrastructure side a
Speaker 3: lot already Chris Layman's terms, can you tell us like
Speaker 3: some of the issues there, what actually what architecture you
Speaker 3: need to build to scale at the rate.
Speaker 2: You want to?
Speaker 6: For sure, that's a great question.
Speaker 12: So if you think about it really on Jenney one
Speaker 12: and Gene two, which are two of the video generation
Speaker 12: models we just release, and they say just because it's
Speaker 12: only been like four or five weeks since we did it,
Speaker 12: there's so much work that goes into making these models
Speaker 12: do what they're able to do, which is generate video.
Speaker 12: Right you're generating video. You stop for a minute and
Speaker 12: think about it. You're generating video with words, which five
Speaker 12: years ago, ten years ago we have thought to be
Speaker 12: like impossible or very hard, Allen most feels like magic
Speaker 12: these days, and so making sure that you can do that,
Speaker 12: it's in itself a very technical, difficult fit. And so
Speaker 12: research have gotten into a phone we're able to kind
Speaker 12: of like generate the videos you're seeing right now, and
Speaker 12: those are just being generated with words. But then on
Speaker 12: the other side of things, this is a very complex
Speaker 12: infrastructure that allows anyone really with a mobile phone or
Speaker 12: a desktop application or an Internet connection to be able
Speaker 12: to do this. And in order to do that, you
Speaker 12: need to have an inference and a streaming service that's
Speaker 12: able to generate those frames almost on a real time basis.
Speaker 12: Our videos take like forty seconds to generate, which is fast,
Speaker 12: and we're making sure we can reduce that to hopefully
Speaker 12: at some point or at some time do it in
Speaker 12: a real time basis. So everything that we need to
Speaker 12: build make that happen hasn't been built because these models
Speaker 12: and these technology didn't exist literally a couple of months ago.
Speaker 12: And so really from the growna with think ourselves as
Speaker 12: a full start company, which which we ask or we
Speaker 12: ask ourselves to be able to build everything that allows
Speaker 12: you to deploy these models to our filmmakers and studios
Speaker 12: and creative companies around the world that are already using
Speaker 12: and leveraging the technology.
Speaker 3: I've been using and not really leveraging, but interested in
Speaker 3: it and playing around with Gen two today. And it's
Speaker 3: beautiful some creations that you make. But it's interesting that
Speaker 3: sort of faces are the area that perhaps aren't that
Speaker 3: easy to provide, and also the way in which you
Speaker 3: have to have an abundance of caution. How are you
Speaker 3: thinking about some of the well still evolving regulation and
Speaker 3: the way in which that you can ensure content remains
Speaker 3: well moderated in some way.
Speaker 12: Really first, and we take safety extremely seriously in Run.
Speaker 12: We have a team dedicated just to make sure we
Speaker 12: have the right filters and safety policies in place, and
Speaker 12: so we're taking an our really.
Speaker 6: Costious approach here.
Speaker 12: The analogy I've been trying to I guess, really think
Speaker 12: about and best communicate the stages of development that we're
Speaker 12: in with these models is to think about this as
Speaker 12: a new kind of camera, Right, so we're putting a
Speaker 12: new kind of camera in the hands of filmmakers and artists,
Speaker 12: and there's new norms and new policies and new kind
Speaker 12: of like ways of using descinality that will have to
Speaker 12: be evolved and created as we start improving their quality
Speaker 12: of these models. Again, these are very new models, and
Speaker 12: so there's there's a long way to go by taking
Speaker 12: a very i would say opinionated matter or making the
Speaker 12: similarity safe and really important aspecture is controllable, like these
Speaker 12: tools are tools for artists that are meant to augment
Speaker 12: a creative process, and so by making sure that you
Speaker 12: can use them in a safely environment in our creative environment.
Speaker 6: For us, it's always been and would always be our priority.
Speaker 3: Our actors right to be worried in the way that
Speaker 3: we're currently saying.
Speaker 5: No.
Speaker 12: I think you know, most of the of the usage
Speaker 12: of the overall thoughts around video and AI video generation
Speaker 12: comes from the sea that you're going to be able
Speaker 12: to like just type in a few words and generate
Speaker 12: a Hollywood movie.
Speaker 6: The truth is that steps far from being actually the case.
Speaker 12: These are tools that would allow you to itterate faster
Speaker 12: on your processes and your ideas and your projects, but
Speaker 12: in no mean they're trying to replace anything, They're just
Speaker 12: augmenting those things. And so perhaps a question is like
Speaker 12: how fast and how easier are we're going to be
Speaker 12: able to shoot and do what was seen with an actor
Speaker 12: in the way that perhaps you couldn't today because it's
Speaker 12: either too expensive or too time consuming these day to
Speaker 12: do it.
Speaker 3: Chris, great talking to you. Thank you on the planning round.
Speaker 3: Chris Valezuela, he's a Runway CEO. Let's talk streaming wars
Speaker 3: and the costs involved. Amazon CEO Any Jesse is taking
Speaker 3: a hard look at how the company's Hollywood studio spends
Speaker 3: on original TV programming. I'm kind of wondering why it
Speaker 3: shows seem to cost more than netflixesus.
Speaker 2: Chris Palmry is here to break it all down. And
Speaker 2: we know they're on a cost cutting focus. We know
Speaker 2: the jobs that are being shedded. It's an obvious place
Speaker 2: to look at the content. Why is it ending up
Speaker 2: more expensive?
Speaker 5: Well, they did this massive pivot. If you remember when
Speaker 5: Amazon started in video, they were going to use their
Speaker 5: sort of experience in books and find out these sort
Speaker 5: of arty shows that people they thought their book customers
Speaker 5: might want to watch.
Speaker 9: If remember programming.
Speaker 5: Like Transparent, and then they Jeff Bezos said I want
Speaker 5: a Game of Thrones and they started this massive spending push.
Speaker 5: We saw the Ring of Power of the Lord of
Speaker 5: the Rings spin off and massive shows like Citadel, which
Speaker 5: has kind of been a disappointment from the.
Speaker 9: Russo brothers this year.
Speaker 5: And so now, as you mentioned, Andy Jase, the CEO,
Speaker 5: is taking a hard look, calling the entertainment executives to headquarters.
Speaker 5: We're asking for detailed accounts of their spending and cleaning
Speaker 5: the big shows.
Speaker 9: It's part of an overall.
Speaker 5: Sweep of what Hollywood's doing, looking at spending in the
Speaker 5: streaming wars, but you know, exacerbated by Amazon situation, and.
Speaker 3: Is there any way that they can reduce the costs
Speaker 3: without crumping on some of the wins here or indeed
Speaker 3: the fact that they're investing because they want to keep
Speaker 3: us addicted to the broader Amazon offering, not just of
Speaker 3: course Amazon Prime.
Speaker 5: Well that's always been the argument and why sort of
Speaker 5: Amazon's video business has been so much under the radar
Speaker 5: because they have this ulterior motive. We just get people
Speaker 5: subscribing to the Prime service and lock them in for
Speaker 5: shipping and all kinds of purchases. But you know, they
Speaker 5: can't do that forever and not you know, face the reality,
Speaker 5: which is everybody's just been spending too much money on
Speaker 5: TV shows. It look like the era PEAKTV has finally arrived.
Speaker 3: That's for sure, just as the economy takes a turn.
Speaker 3: Of course, Chris palmery, thank you so much for joining us.
Speaker 3: You feel a little better. Meanwhile, let's have a look
Speaker 3: at what's happening in terms of Rivian's first commercial shipment
Speaker 3: outside the US. Of course, Rivian based upon Amazon in
Speaker 3: many ways, providing they're vans electric vans?
Speaker 2: Who are them?
Speaker 6: Then?
Speaker 2: And Lulo is the expert for.
Speaker 3: This, and he's getting ready for a pretty key interview
Speaker 3: on the back of it, ed where exactly are you?
Speaker 13: Surprise just touched down in southern California and we are
Speaker 13: heading over to Ribban's HQ in Irvine through a conversation
Speaker 13: with R. J. Scanner and he's the CEO. You're absolutely right.
Speaker 13: It's been a strange week. I think Ribban's up for
Speaker 13: a six consecutive session trading at February high. It's been
Speaker 13: a real turning point for the company and they posted
Speaker 13: production cousy, production and delivery figures above Wall Street expectations
Speaker 13: this Monday.
Speaker 9: The stop has a lot of momentum.
Speaker 13: But remember that this is a company that went from
Speaker 13: the euphoria of the biggest IPO since Facebook's now known
Speaker 13: as Meta to a horrible twenty twenty two where it
Speaker 13: was the second worst performer on the NATS that one
Speaker 13: hundred and then got taken off then as that one hundred.
Speaker 9: So there's two key pieces of news on what we're
Speaker 9: really talking about.
Speaker 3: Characters and we've started to see analysts change their tune,
Speaker 3: haven't we had.
Speaker 2: We've started to see Da Davison.
Speaker 3: Some of the other analysts really deciding that now might
Speaker 3: be an opportunity time to buy. The headlines are looking
Speaker 3: more positive. What's the headline you want to create today?
Speaker 3: What do you really want to understand from RJ?
Speaker 13: Yeah, I want to understand why they're not doing more.
Speaker 13: You know that the factory in Normal, Illinois is capable
Speaker 13: of building many more than the fifty thousand evs that
Speaker 13: they've guided investors on for this year.
Speaker 9: Also just really interested in RJ Scarring. She's forty years old.
Speaker 13: He founded this company in twenty eleven, had the big
Speaker 13: IPO in twenty twenty one.
Speaker 9: I just want to ask him is he having fun?
Speaker 13: You know, being a founder CEO is a rare thing
Speaker 13: in this day and age. But he is really at
Speaker 13: the cutting edge of their engineering. Running the business has
Speaker 13: brought people in. The question is why is Rivian not
Speaker 13: ahead at this point They're still kind of lunked in
Speaker 13: with that large pack of ELI startups to the suffering,
Speaker 13: but Rivian's actually producing the skin.
Speaker 3: Well so and Ludlow battling some of the tannoys over
Speaker 3: there in the airport. Thank you so much for bringing
Speaker 3: us what we're really excited about. A live interview a
Speaker 3: little bit later with Ed Ludlow and of course a
Speaker 3: Rivian CEO RJ. Scaring, and a little bit of what
Speaker 3: he wants to get out of that particular conversation.
Speaker 2: We can't wait for it. Meanwhile. That does it for
Speaker 2: this edition of Bloomberg Technology.
Speaker 3: Do not forget to check out the podcast find out
Speaker 3: on the terminal as well as online on Apples, Spotify,
Speaker 3: and iHeart from New York from Southern California, This is
Speaker 3: Bloomberg