WEBVTT - Microsoft and Activision Deadline Extended, Netflix Earnings Preview 0:00:01.480 --> 0:00:04.640 From Mahart where Innovation, Money and power. 0:00:04.400 --> 0:00:06.720 Collie in Silicon Valley, Nbon. 0:00:07.120 --> 0:00:11.160 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:24.880 --> 0:00:27.000 I'm Parolin Hine on Blooberg's world headquarters in New York 0:00:27.000 --> 0:00:29.760 and Ludlow he's off today. This is Bloomberg Technology. Coming 0:00:29.800 --> 0:00:33.120 up Microsoft and Activision. They extend their deadline for closing 0:00:33.120 --> 0:00:35.760 that sixty nine billion dollar deal as they seek approval 0:00:35.760 --> 0:00:38.720 in the United Kingdom. I've got the latest plus streaming 0:00:38.720 --> 0:00:41.840 giant Netflix reporting earnings later today. How has the password 0:00:41.920 --> 0:00:45.040 crackdown impacted the business? And what does strikes in Hollywood 0:00:45.040 --> 0:00:47.479 mean for the company. And we'll sit down with the 0:00:47.560 --> 0:00:51.000 CEO of Weight Watchers. We're going to discuss the company 0:00:51.000 --> 0:00:54.760 embracing technological advances in medicine to support its business. 0:00:54.880 --> 0:00:56.280 All that's so much more to come. 0:00:56.600 --> 0:00:59.080 The first sets check in on those markets and Zada 0:00:59.120 --> 0:00:59.720 Green Abigail. 0:01:00.760 --> 0:01:02.960 It certainly is a day of Green Caroline. This year's 0:01:03.000 --> 0:01:04.880 melt up continues. We have the S and P five 0:01:04.959 --> 0:01:06.960 hundred up for a third day. The NASAK one hundred 0:01:07.040 --> 0:01:10.479 is higher. We also have the nicy Fang Index. Some 0:01:10.560 --> 0:01:14.479 of those big megacap tech stocks, including China Tech, which 0:01:14.520 --> 0:01:16.480 is outperforming not on our board, but up more than 0:01:16.480 --> 0:01:19.880 two percent. So the stock bulls remain in control as 0:01:19.920 --> 0:01:22.600 we start to move through earning season, and of course, 0:01:22.600 --> 0:01:26.520 the financials overall have reported well. Carvana, their results came 0:01:26.520 --> 0:01:29.039 out that stock is absolutely soaring right now, it's up 0:01:29.080 --> 0:01:32.760 about forty three percent. They beat estimates both for adjusted 0:01:32.800 --> 0:01:36.280 earnings in terms of a narrower loss and expected revenues. 0:01:36.319 --> 0:01:40.520 So this online car platform, which earlier this year had 0:01:40.520 --> 0:01:43.400 been a sub five dollars stock, now up more than 0:01:43.440 --> 0:01:46.280 one thousand percent. Some of this positive attitude also has 0:01:46.319 --> 0:01:48.320 to do with restructuring their debt. 0:01:48.520 --> 0:01:50.680 The question is, as the other big. 0:01:50.440 --> 0:01:52.440 Tech companies roll in, and this is not a big 0:01:52.480 --> 0:01:55.280 tech company, but as the big tech company earnings roll in, 0:01:55.320 --> 0:01:58.200 you're mentioning Netflix, this stock up about sixty one percent, 0:01:58.480 --> 0:02:03.320 will investors deem those earnings to be big enough, robust 0:02:03.400 --> 0:02:05.680 enough to support the moves? Because Netflix on the year 0:02:05.760 --> 0:02:09.720 up sixty one percent, we have meta Amazon up about 0:02:09.760 --> 0:02:11.880 an equal amount, Microsoft and Apple as well. 0:02:12.160 --> 0:02:13.480 Yet if I take a look at. 0:02:13.400 --> 0:02:16.360 How much revenue is growing for Netflix, it's expected to 0:02:16.400 --> 0:02:21.280 grow mid single digits. Same deal for Amazon and Microsoft, Apple, Caroline. 0:02:21.320 --> 0:02:25.919 It's actually expected for its June quarter revenue to decline 0:02:25.960 --> 0:02:27.959 by more than one percent. So it's going to be 0:02:28.040 --> 0:02:30.520 interesting to see whether these quarters come in where they're expected, 0:02:30.520 --> 0:02:33.280 what the outlooks are. Will we see this stock rally 0:02:33.320 --> 0:02:35.240 continue based on the results that come through. 0:02:36.040 --> 0:02:39.000 All baited breath for those big names later off to 0:02:39.040 --> 0:02:41.079 the bow, Abigail, thank you so much. Let's get more 0:02:41.160 --> 0:02:45.120 updates so on well, the ever grinding story that is 0:02:45.160 --> 0:02:48.840 Microsoft and Activision the deal. We understand the extension in 0:02:48.880 --> 0:02:51.840 the deadline has been given for three months to get 0:02:51.840 --> 0:02:55.080 this deal done. There's also updates to the changes in 0:02:55.120 --> 0:02:58.320 which termination could be three and a half billion dollars 0:02:58.320 --> 0:03:00.959 if indeed they do walk away. There's three months time. 0:03:01.240 --> 0:03:03.480 Let's get over to Catherine Gammel. I'm praised to say, 0:03:03.480 --> 0:03:07.680 who has been really thinking about why this ultimate deadline 0:03:07.680 --> 0:03:09.480 that was meant to be July the eighteenth has been 0:03:09.520 --> 0:03:13.360 extended and it's because of UK regulators correct, Yeah. 0:03:13.240 --> 0:03:14.919 Exactly, Thanks so much for having me on. 0:03:15.520 --> 0:03:17.960 Yes, so today we've seen that this deadline has officially 0:03:18.000 --> 0:03:19.560 been extended by the companies. 0:03:19.960 --> 0:03:21.440 I mean this was expected and. 0:03:21.360 --> 0:03:23.320 Bloomberg reported earlier in the week that this will be 0:03:23.320 --> 0:03:25.440 the case, and this is really just so that the 0:03:25.480 --> 0:03:28.560 companies can get over the UK hurdles. So the UK's 0:03:28.560 --> 0:03:31.400 Competition of Markets Authority is the only agency that's standing 0:03:31.639 --> 0:03:33.240 in the way of this stale closing at the moment. 0:03:33.480 --> 0:03:35.200 And last week we saw them. 0:03:35.400 --> 0:03:37.040 Put out a statement that would say that they're going 0:03:37.040 --> 0:03:40.200 to reconsider some structural remedies for the companies after the 0:03:40.280 --> 0:03:43.760 FTC's defeat in court. So you know, since then we've 0:03:43.760 --> 0:03:45.480 had quite a lot of update it's a big floody. 0:03:45.760 --> 0:03:48.000 We've seen them extend their deal probe to the end 0:03:48.040 --> 0:03:50.440 of August to twenty ninth, and then to also clarify 0:03:50.760 --> 0:03:53.520 that if they are being offered a restructured deal that 0:03:54.120 --> 0:03:56.000 you know that this will go to a fresh probe 0:03:56.840 --> 0:03:59.400 so that it can give both sides times to you know, 0:03:59.480 --> 0:04:02.480 veni bosh and really thresh out the details on this one. 0:04:02.640 --> 0:04:04.720 Shareholders might be a bit pleased, of course, two companies 0:04:04.760 --> 0:04:06.560 are going in the activision can issue at one time 0:04:06.600 --> 0:04:08.800 dividend of up to ninety nine cents to which shareholders 0:04:08.840 --> 0:04:12.040 before that deal closes. Of course, regular dividends had been 0:04:12.400 --> 0:04:15.600 put on ice prior to this, but it's so notable 0:04:15.680 --> 0:04:18.560 how the moon music has shifted, not only after the 0:04:18.640 --> 0:04:21.760 FTC failed to get it the deal put on ice 0:04:21.760 --> 0:04:24.280 here in the United States, but what on about turn 0:04:24.480 --> 0:04:28.839 to occur in the United Kingdom. We are expecting more 0:04:29.360 --> 0:04:32.560 changes to the business model, but ultimately anything that could 0:04:32.600 --> 0:04:34.279 still stand in the way, it can still Spencer of 0:04:34.279 --> 0:04:36.440 Microsoft standing pretty upbeat. 0:04:37.440 --> 0:04:39.919 Yeah, it seems like the companies are both feeling pretty 0:04:39.920 --> 0:04:42.559 confident about this one. I mean, I would just caution 0:04:42.720 --> 0:04:45.839 that the CME still needs to consider these remedies and see, 0:04:45.880 --> 0:04:49.040 you know, whether it all address the competition concerns at 0:04:49.040 --> 0:04:52.080 the heart of the reason behind the cmeme's first fetle. 0:04:52.560 --> 0:04:55.680 I mean, you know, we've wienberg Used last week reported 0:04:55.800 --> 0:05:01.760 that there's considerations of offering up some Microsoft's UK clothed business. 0:05:02.520 --> 0:05:04.159 We don't know yet if that's actually going to be 0:05:04.200 --> 0:05:08.200 officially offered right now. The negotiations are still at an 0:05:08.200 --> 0:05:11.880 early stage, and on Monday they will just kicked off. 0:05:11.920 --> 0:05:15.760 After that because we got a pause of the ukcmmes 0:05:15.760 --> 0:05:18.400 and the Microsoft's appused proceedings at. 0:05:18.320 --> 0:05:20.840 The competition and peep tribe, you know, we want to 0:05:20.880 --> 0:05:24.320 thank you, Catherine, thank you so much. Kathinkamut on all 0:05:24.360 --> 0:05:27.680 things Microsoft and Activision. Let's get on to Netflix as well, 0:05:27.720 --> 0:05:29.480 of course, which once one a time was talking about 0:05:29.520 --> 0:05:32.320 how gaming was its key competitor. Of course, it's going 0:05:32.360 --> 0:05:34.320 to be reporting earnings today after the ball and please 0:05:34.360 --> 0:05:36.719 to say that we mentioned you're an entertainment correspondent. Chris 0:05:36.720 --> 0:05:39.600 pal Mary is standing by in LA and first, well, 0:05:40.000 --> 0:05:42.400 we are expecting subscriptions to pick up. It's all about 0:05:42.400 --> 0:05:43.400 that password crackdown. 0:05:44.720 --> 0:05:46.720 Yeah, I think this tree is looking at about a 0:05:46.720 --> 0:05:51.359 two million subscriber edition of this quarter. That's about the 0:05:51.400 --> 0:05:52.960 same as the last quarter. Not as big as the 0:05:53.000 --> 0:05:56.800 blowout one we saw in the last quarter of twenty 0:05:56.880 --> 0:05:59.440 twenty two, but much better than the losses they had 0:05:59.480 --> 0:06:02.000 at the start last year. So there is a general 0:06:02.040 --> 0:06:05.239 feeling that Netflix has figured this out with a new ad, 0:06:05.560 --> 0:06:08.599 cheaper ad tier, with the crackdown on passwords, that they're 0:06:08.600 --> 0:06:09.640 resuming growth again. 0:06:10.520 --> 0:06:15.279 And within this context, I'm still trying to understand whether 0:06:15.720 --> 0:06:19.320 a strike among actors among writers is going to be 0:06:19.400 --> 0:06:22.200 difficult for Netflix doesn't have live sport. But is it 0:06:22.240 --> 0:06:24.400 a boon because we know how much Netflix has gone 0:06:24.440 --> 0:06:26.680 in terms of content in the back office. 0:06:27.040 --> 0:06:29.640 I would say the stream, given that you noted a 0:06:29.680 --> 0:06:32.039 sixty one percent increase in the price this year, thinks 0:06:32.120 --> 0:06:34.400 that they're gonna weather this strike. 0:06:35.480 --> 0:06:35.680 Well. 0:06:35.880 --> 0:06:37.960 You know, the company's line has been that they have 0:06:38.040 --> 0:06:41.880 this content pipeline, it's all set and they'll be able 0:06:41.920 --> 0:06:42.680 to go through the. 0:06:42.720 --> 0:06:43.680 End of the year at least. 0:06:45.120 --> 0:06:47.400 We'll be looking for any updates on the call today 0:06:47.480 --> 0:06:50.640 to see if their position on that has changed. You 0:06:50.640 --> 0:06:52.799 could certainly make the case that people will be spending 0:06:52.800 --> 0:06:55.800 a lot more time just streaming older shows and spending 0:06:55.839 --> 0:06:59.800 more time watching Netflix if you know, new programs are 0:06:59.920 --> 0:07:02.320 not on the air in the fall, So there is 0:07:02.320 --> 0:07:03.000 that dynamic. 0:07:03.800 --> 0:07:05.560 Chris pa Mary is going to be glued to the 0:07:05.600 --> 0:07:08.240 screens when those numbers drop. As always, we thank you 0:07:08.320 --> 0:07:10.840 the Big bell Weather for the start of earnings in tech. 0:07:11.080 --> 0:07:13.040 Let's get to the other key, Big bell Weather. It's 0:07:13.040 --> 0:07:16.320 the biggest traded company here in the US. Apple, of 0:07:16.360 --> 0:07:19.200 course coming out with well breaking news that we understand 0:07:19.240 --> 0:07:22.320 that Apple is indeed racing to develop its own generative 0:07:22.480 --> 0:07:25.880 AI tools to catch up with Open ai now. According 0:07:26.280 --> 0:07:28.680 to Bloomberg, the sources are saying it's building a large 0:07:28.720 --> 0:07:34.000 language model AI framework dubbed ajax. It's created internal chatchebt 0:07:34.160 --> 0:07:36.280 style blot for employees already. 0:07:36.480 --> 0:07:38.840 What's notable is this is helping in Video's share price. 0:07:38.840 --> 0:07:42.000 It's quickly turned positive, up more than zero point four percent, because, 0:07:42.000 --> 0:07:45.200 of course, what do they need compute power. On the downside, interestingly, 0:07:45.280 --> 0:07:48.440 Microsoft is falling to session lows down by about as 0:07:48.440 --> 0:07:50.240 you'll see, currently off by three tens percent. They were 0:07:50.280 --> 0:07:53.120 off at well eight tens percent a little bit earlier. 0:07:53.120 --> 0:07:55.960 Because this is competition, folks, if they're seeking to. 0:07:55.920 --> 0:07:58.120 Take on open AI and indeed being it'll be a 0:07:58.120 --> 0:08:01.080 great conversation to have with a Microsoft executive. We've got 0:08:01.080 --> 0:08:12.040 coming up later in the show. Apple shares and a 0:08:12.120 --> 0:08:15.720 new record high. Why while reporting coming from our own 0:08:15.760 --> 0:08:18.160 Mark Gum and that Apple is quietly working on an 0:08:18.280 --> 0:08:22.040 artificial intelligence tools that could challenge those of open AI 0:08:22.160 --> 0:08:24.520 of Google's barred. Of course, this is all to do 0:08:24.560 --> 0:08:26.800 with generative AI. The only thing we can really talk 0:08:26.800 --> 0:08:30.400 about here on Bloomberg Technology. It's releasing, we understand, but 0:08:30.440 --> 0:08:33.320 there's no real clear strategy for the technology getting into 0:08:33.320 --> 0:08:35.800 the hands of consumers. What we do understand is the 0:08:35.800 --> 0:08:38.200 IFOM maker has built its own framework to create large 0:08:38.280 --> 0:08:40.800 language models an AI based system at the heart of 0:08:40.840 --> 0:08:41.360 the offering. 0:08:41.720 --> 0:08:43.840 We understand, of course it's called ajax. 0:08:44.120 --> 0:08:45.760 This is going to take on Bard, going to take 0:08:45.800 --> 0:08:48.880 on chat GPT, And in fact they've already created a 0:08:48.920 --> 0:08:52.480 chatbot service that some engineers called Apple GPT for their 0:08:52.480 --> 0:08:56.400 own internal employees. But in recent months this AI push 0:08:56.440 --> 0:08:58.320 has become a major effort for Apple. 0:08:58.440 --> 0:09:00.480 Notable that, of course Tim Cook hasn't discussed it. 0:09:00.520 --> 0:09:02.000 We were all waiting to see whether we did it 0:09:02.679 --> 0:09:05.480 the Worldwide Developers Conference a month ago. We'll see as 0:09:05.480 --> 0:09:07.240 to whether, of course it starts to factor in their 0:09:07.280 --> 0:09:09.840 earnings calls. As we know all anyone can talk about 0:09:10.000 --> 0:09:13.560 in those earnings things like AI. But we know that 0:09:13.600 --> 0:09:16.480 Apple has woven AI features into products for years, and 0:09:16.559 --> 0:09:18.120 now it's trying to play a little bit of catch 0:09:18.200 --> 0:09:21.480 up in what is ever more buzzy market for generative 0:09:21.559 --> 0:09:26.040 tools overall. But we'll see whether people can be creating essays, images, video. 0:09:26.080 --> 0:09:27.560 I wanted to shine a light on what's happening in 0:09:27.559 --> 0:09:31.600 competitors Microsoft, of course, which has evolved the open AI 0:09:32.559 --> 0:09:35.960 relationship to become one that's really integrated within being. Within 0:09:36.280 --> 0:09:39.760 Microsoft co pilot three sixty five, we disc discussing that 0:09:39.880 --> 0:09:41.880 in a moment with an executive. But it's down some 0:09:41.960 --> 0:09:45.160 seven tens percent. As we talk about this new potential competition, 0:09:45.440 --> 0:09:47.520 Apple up more than two percent and a new record, 0:09:47.760 --> 0:09:50.440 and even in video, of course, the big compute power 0:09:50.840 --> 0:09:52.760 is on the higher side because of this. Let's get 0:09:52.760 --> 0:09:54.400 to the man that broke the story, Mark Goom, and 0:09:54.440 --> 0:09:56.360 I'm pleased to say is on the phone, and I 0:09:56.360 --> 0:09:59.400 mean some real digging here. We were all waiting for 0:09:59.440 --> 0:10:01.199 Apple to wear in on AI. 0:10:02.000 --> 0:10:05.120 And here we are. I'm told that Apple is quietly 0:10:05.200 --> 0:10:08.640 working on a set of new generative AI tools with 0:10:08.720 --> 0:10:13.840 the idea of catching up to open API, Google, Microsoft, Amazon, 0:10:14.040 --> 0:10:17.920 everyone you've seen entering this buzzy new AI space recently. 0:10:18.880 --> 0:10:22.880 Two pieces of information here. One, they've created an underlying 0:10:22.960 --> 0:10:27.080 framework to create large language models or LMS. That's the 0:10:27.160 --> 0:10:30.480 tech at the heart of Chat, GPT and Google Bard 0:10:30.559 --> 0:10:35.319 being AI, these other services. Apple's internal framework, it's called AJAX. 0:10:36.040 --> 0:10:38.600 Now on top of that framework or with that framework, 0:10:38.640 --> 0:10:42.520 they've also created an internal chat GPT like system that 0:10:42.600 --> 0:10:46.439 some people on Apple call Apple GPT that works similarly 0:10:46.720 --> 0:10:49.880 at GPT that we know today. So clearly Apple is 0:10:49.920 --> 0:10:53.280 all in on LMS. They have multiple teams working on this. 0:10:54.120 --> 0:10:56.720 The big caveat at this point though, is they do 0:10:56.840 --> 0:11:00.480 not have a clear strategy for consumers yet, But the 0:11:00.559 --> 0:11:02.480 work is happening and they'll get there eventually. 0:11:03.080 --> 0:11:07.120 Many have perhaps grinded their teeth with frustration at Siri. 0:11:07.520 --> 0:11:10.320 That seems an obvious area that generative AI could improve. 0:11:10.440 --> 0:11:14.080 Where else though, could consumers interact with anything that Apple 0:11:14.120 --> 0:11:14.560 would offer? 0:11:15.480 --> 0:11:17.600 Yeah, in terms of generative AI, you can see this 0:11:17.760 --> 0:11:21.520 across all platforms. You can see this across many applications. 0:11:22.160 --> 0:11:24.679 There are places where this could be used in productivity apps, 0:11:24.760 --> 0:11:28.760 let's say in Apple spreadsheet or work processing or slide 0:11:28.760 --> 0:11:32.120 presentation apps, you can have a generative AI system theoretically 0:11:32.400 --> 0:11:34.760 to help you build those presentations and get work done 0:11:34.840 --> 0:11:37.080 for you. Like you said, you can see it happen 0:11:37.160 --> 0:11:40.960 in Siri, a more chatbot like interface with improved data 0:11:41.200 --> 0:11:44.520 based on what it's trained with and improved back and forth, 0:11:44.559 --> 0:11:47.280 so to speak, or more information able to come in 0:11:47.320 --> 0:11:50.720 a more clear form into sery. You can see it 0:11:50.760 --> 0:11:53.560 in terms of app development right even on a place 0:11:53.640 --> 0:11:56.520 like the Vision pro headset, where you don't necessarily have 0:11:56.559 --> 0:11:58.840 a keyboard and mouse at all times, and you're going 0:11:58.920 --> 0:12:01.920 to want official intelligence system to give you a leg 0:12:02.000 --> 0:12:05.680 up on development when you don't have those standard input methods. 0:12:05.720 --> 0:12:08.920 So there's all sorts of places where generative AI can 0:12:08.960 --> 0:12:13.560 be placed. Apples hiring for people in the inlich model space. 0:12:14.240 --> 0:12:17.960 They're looking for people who can apply generative AI to 0:12:18.040 --> 0:12:22.600 help people communicate, create, connect and consume media, the company says, 0:12:22.600 --> 0:12:25.839 and some job listings, so they're all in on this. Well, 0:12:25.880 --> 0:12:28.560 Apple doesn't have a definitive plan yet. People involved in 0:12:28.600 --> 0:12:31.680 these projects believe that Apple's preparing to make some sort 0:12:31.720 --> 0:12:35.440 of major AI announcement sometime as early as next year. 0:12:36.040 --> 0:12:40.440 Wow, Marc German, always with the latest and breaking when 0:12:40.440 --> 0:12:42.320 it comes to Apple, Thanks so much for us quickly 0:12:42.400 --> 0:12:44.719 jumping on the phone with us. Meanwhile, well, let's turn 0:12:44.760 --> 0:12:48.520 to a company that's become ever more technologically native. In fact, 0:12:48.520 --> 0:12:52.320 they've hired a previous Silicon Valley style weight watchers of course, 0:12:52.400 --> 0:12:55.720 known as WW International. In this week's Bloomberg Business Week 0:12:55.760 --> 0:12:58.440 is part of Well, the cover story, it's all about 0:12:58.480 --> 0:13:01.600 the sixty year old company bet On Pharmaceuticals is the 0:13:01.640 --> 0:13:04.320 next frontier for innovation in the weight loss space. 0:13:04.440 --> 0:13:05.800 In a bit to keep up with the times. Now 0:13:05.880 --> 0:13:06.840 let's discuss all of this. 0:13:07.320 --> 0:13:10.439 Hope, please to welcome the CEO, Sema Sistani, who joins 0:13:10.480 --> 0:13:13.719 us now. And you were building house party, you were 0:13:13.800 --> 0:13:19.000 deeply within the tech space, building companies, selling them, innovating. 0:13:19.360 --> 0:13:22.080 Your job now is to innovate at weight watches and 0:13:22.120 --> 0:13:24.600 part of that is making acquisitions in the telehealth space. 0:13:24.679 --> 0:13:27.400 Just talk to us about how this key acquisition is 0:13:27.440 --> 0:13:29.200 helping you drive forward with pharmaceuticals. 0:13:31.040 --> 0:13:34.160 Yes, thank you for having me so coming in as CEO. 0:13:34.520 --> 0:13:37.480 What is just a year and change now? I knew 0:13:37.640 --> 0:13:40.440 part of the vision was about rethinking the business from 0:13:40.440 --> 0:13:45.480 a digital first perspective, one based on community, which is 0:13:45.640 --> 0:13:47.800 as you mentioned, where I've spent most of my career 0:13:48.480 --> 0:13:52.120 in growth tech doing. I had first experience first as 0:13:52.160 --> 0:13:55.280 a member on the program, and so I was really 0:13:55.320 --> 0:13:58.400 excited about bringing something new and fresh to the product 0:13:58.480 --> 0:14:01.640 on a global scale and something that would allow me 0:14:01.720 --> 0:14:05.559 to take all my growth technoledge to growth tech experience 0:14:05.600 --> 0:14:09.520 excuse me and knowledge and then have meaningful outcomes. 0:14:09.640 --> 0:14:12.120 For global health. Well. 0:14:12.440 --> 0:14:15.400 So, anyways, I had been looking at this research on 0:14:15.520 --> 0:14:17.760 blue zones and how to create a digital blue zone, 0:14:17.760 --> 0:14:21.560 and we investigated new modalities both across functional and clinical, 0:14:21.840 --> 0:14:24.040 and what stood out most is that obesity is a 0:14:24.120 --> 0:14:28.400 chronic condition. It still hasn't been addressed truly in that manner, 0:14:29.160 --> 0:14:31.680 when in fact, for over ten years it's been scientifically 0:14:31.720 --> 0:14:34.560 recognized as a chronic condition. And so we wanted to 0:14:34.720 --> 0:14:39.320 enter the space and be able to extend our toolkit 0:14:39.440 --> 0:14:43.800 to not only behavior change and functional but also clinical interventions. 0:14:44.000 --> 0:14:48.360 What's so interesting is yesterday we learned that another tech executive, 0:14:48.400 --> 0:14:52.400 social media tech executive, Jeff Cook, is joining Noon, which 0:14:52.440 --> 0:14:54.880 is a kind of competitor which is also in the 0:14:54.880 --> 0:14:59.520 weightless startup transition prescribing obesity drugs. How do you compete, 0:14:59.560 --> 0:15:01.520 how do you stand out? How do you make sure 0:15:01.520 --> 0:15:05.200 that you're loyal following doesn't become disenchanted by the shift? 0:15:06.800 --> 0:15:09.640 Well, well, I mean I think that there are two 0:15:09.680 --> 0:15:11.880 There are two questions in there, and the first one 0:15:11.880 --> 0:15:14.240 that I want to address is the prevalence. And you know, 0:15:14.720 --> 0:15:18.920 of obesity in the US, take for instance, since nineteen 0:15:19.000 --> 0:15:22.560 ninety three, the prevalence was about thirteen percent and now 0:15:22.560 --> 0:15:26.640 we're talking forty two percent prevalence, and you know, the 0:15:26.720 --> 0:15:29.280 trajectory is going to get us to fifty percent prevalence 0:15:29.320 --> 0:15:32.280 of people living with obesity by twenty thirty. So this 0:15:32.320 --> 0:15:34.000 is a matter of rising tides. 0:15:33.720 --> 0:15:34.760 Lifts all ships. 0:15:35.600 --> 0:15:38.280 We are we are as the leaders in the space, 0:15:38.840 --> 0:15:40.920 wanting to make sure that this is something that we 0:15:40.960 --> 0:15:44.560 can address globally and that we're doing it responsibly. And yes, 0:15:44.760 --> 0:15:48.920 you know, certainly there have been members who who we 0:15:49.000 --> 0:15:52.480 have to bring along in the journey, and it's on 0:15:52.640 --> 0:15:57.280 us to really destigmatize this category and people understand that 0:15:57.360 --> 0:16:01.360 it's not just about willpower. For many, it's not a 0:16:01.440 --> 0:16:05.720 moral failing that this is a chronic relapsing condition and 0:16:05.760 --> 0:16:09.240 in some cases requires a clinical intervention for people to 0:16:09.280 --> 0:16:11.560 see long term success and longevity. 0:16:12.200 --> 0:16:14.880 Talk to us about any program you might launch, whether 0:16:14.960 --> 0:16:18.520 or not it's through sequence that people managed to access 0:16:18.560 --> 0:16:21.160 these obesity drugs, whether it's somewhere else. You're sort of 0:16:21.160 --> 0:16:23.160 trying to build a program, as I understand it, to 0:16:23.200 --> 0:16:26.640 do with this acquisition that helps people build a lifestyle. 0:16:26.800 --> 0:16:28.920 How many people do you think would ultimately sign on, 0:16:29.080 --> 0:16:32.440 When might we see such a launch and how sure? 0:16:32.840 --> 0:16:36.120 Well, yeah, I think it's important to remind people that 0:16:36.400 --> 0:16:42.720 the medications and particularly the clinical trial was called step 0:16:42.800 --> 0:16:48.920 that really led to the media being excited and really 0:16:49.000 --> 0:16:53.560 the zeitguy shifting to thinking about these medications. This was 0:16:53.600 --> 0:16:58.440 a trial that was run alongside lifestyle treatment, meaning that 0:16:58.480 --> 0:17:02.720 these patients were receiving guys on diet and activity. They 0:17:03.200 --> 0:17:05.560 were done in conjunction with a calorie deficit. And so 0:17:06.440 --> 0:17:09.159 it's a misconception that these are a magic pill that 0:17:09.200 --> 0:17:11.480 you just take and lose weight. You must do them 0:17:11.600 --> 0:17:15.879 alongside lifestyle intervention. And that's what the medications help you 0:17:15.960 --> 0:17:19.639 do is have greater adherence to the healthy habits that 0:17:19.680 --> 0:17:23.440 come naturally to something. And so what we are developing 0:17:23.560 --> 0:17:27.840 alongside of our tried and true number one doctor recommended 0:17:28.280 --> 0:17:33.040 program for behavior change is one that is very specific 0:17:33.200 --> 0:17:35.960 to people who are on the g LP one journey 0:17:36.240 --> 0:17:40.800 because they need help with maintenance of lean muscle mass, 0:17:40.920 --> 0:17:46.119 nutrient density, and and doing so alongside of the titration 0:17:46.200 --> 0:17:50.760 the dosage tried excuse me, titration is going to be 0:17:50.880 --> 0:17:54.440 really important to achieving the best outcomes. And so we 0:17:54.640 --> 0:17:57.280 plan to introduce this program in the fall, and that 0:17:57.320 --> 0:18:00.000 would be for people who get the medications through our 0:18:00.040 --> 0:18:04.119 virtual clinics sequence or not. So if you are somebody 0:18:04.119 --> 0:18:07.600 who who's gotten the medication through your healthcare provider. You know, 0:18:08.359 --> 0:18:11.440 these providers in a lot of cases are not trained 0:18:11.480 --> 0:18:14.359 in OBCIA medication. Less than one percent of doctors are, 0:18:14.440 --> 0:18:16.080 and so this will be a program that will be 0:18:16.119 --> 0:18:18.359 able to have a higher touch support for those people. 0:18:18.840 --> 0:18:21.280 Fascinating innovations. We'd love you to come back and talk 0:18:21.280 --> 0:18:23.080 about it a little bit longer next time. We thank 0:18:23.119 --> 0:18:26.080 you for your time. Wait watch your CEO Semasustani as 0:18:26.119 --> 0:18:28.159 it's known as WW International, but. 0:18:28.280 --> 0:18:38.720 It's Ticka from New York. This is Blue Veg Technology. 0:18:43.520 --> 0:18:45.480 It's time now for work shifting when we look at 0:18:45.520 --> 0:18:48.520 the changing landscape of the labor market amid advances in technology, 0:18:48.560 --> 0:18:50.199 and you know, we've got to talk about AI. We've 0:18:50.200 --> 0:18:53.240 got to talk about Microsoft's new artificial intelligence tools for 0:18:53.280 --> 0:18:56.600 its office software Microsoft three sixty five Copilot. It's going 0:18:56.640 --> 0:18:58.159 to cost you thirty dollars a month you want to 0:18:58.240 --> 0:19:00.480 use it on top of what most business customers will pay. 0:19:00.960 --> 0:19:02.480 What are you getting in terms of that value? 0:19:02.480 --> 0:19:05.720 Microsoft Vice President and Modern Life Devices Group usef Mehdi 0:19:05.920 --> 0:19:07.680 is with us. I'm so pleased to welcome you about 0:19:07.720 --> 0:19:11.000 YUSUF to the show and being Chat enterprise, whether it's 0:19:11.119 --> 0:19:13.640 being more specific with your data and ensuring that it's 0:19:13.640 --> 0:19:15.240 safe and also co pilot. 0:19:15.720 --> 0:19:19.000 What are you offering here that's distinct Hi. 0:19:18.960 --> 0:19:21.119 Carolin, First off, great to see again, Great to continue 0:19:21.119 --> 0:19:24.760 the conversation from our launch back in February. The big 0:19:24.760 --> 0:19:28.280 thing that we're announcing really yesterday is I think probably 0:19:28.440 --> 0:19:30.400 arguably the biggest thing that's going to happen in AI 0:19:30.440 --> 0:19:32.120 in the next twelve months, and that is that we're 0:19:32.240 --> 0:19:34.920 unlocking the ability for people at work to be able 0:19:34.920 --> 0:19:37.360 to use generative AI to help them in their jobs. 0:19:37.760 --> 0:19:39.760 Up to this point, people have not used it because 0:19:39.800 --> 0:19:42.600 of concerns of their data leaking out of the organization. 0:19:42.960 --> 0:19:45.080 All that changes now with the launch of bing Chat 0:19:45.200 --> 0:19:47.600 Enterprise and Microsoft threugh certenty five copilot. 0:19:48.600 --> 0:19:51.479 Ultimately, what has the demand been like? 0:19:51.560 --> 0:19:53.520 I mean, we heard from executives that they were sort 0:19:53.520 --> 0:19:56.240 of inundated with CEOs asking them to get using this 0:19:56.320 --> 0:20:00.000 sort of product. What industries are being most impacted for you? 0:20:00.200 --> 0:20:03.000 Well, the nice thing about this technology is really horizontally 0:20:03.760 --> 0:20:08.359 very valuable for people who are writing documents, writing software code, 0:20:08.440 --> 0:20:11.959 doing analysis, doing strategy. So whether you're in healthcare or 0:20:12.080 --> 0:20:15.679 architecture or automotive, there are many companies that want to 0:20:15.840 --> 0:20:19.320 use this powerful technology to help their employees be more productive. 0:20:19.359 --> 0:20:22.080 And we've seen that with much software certenty five copilot, 0:20:22.280 --> 0:20:25.080 where we've had companies like Chevron and others using it 0:20:25.119 --> 0:20:28.640 already and seeing great capabilities. And then with being Chat 0:20:28.680 --> 0:20:31.879 and being Chat enterprise, where really every major company I 0:20:31.960 --> 0:20:34.919 talk to wants to be able to unlock the creativity 0:20:34.920 --> 0:20:36.000 power for their employees. 0:20:36.440 --> 0:20:38.680 So if they once said no, you can't use chat, 0:20:38.720 --> 0:20:41.119 youbt at works something, they can say yes, but it's. 0:20:40.960 --> 0:20:42.320 Got to be the big chat enterprise. 0:20:42.680 --> 0:20:46.320 What's the interesting there's some really specific lms and general 0:20:46.320 --> 0:20:48.800 to AI being focused at different industries. I think of 0:20:48.840 --> 0:20:51.280 Harvey within the law world. Is that something that you're 0:20:51.280 --> 0:20:52.560 going to work alongside? 0:20:53.960 --> 0:20:56.320 Yeah, it's a great question. The way I think about 0:20:56.320 --> 0:20:58.879