December 2, 2025 • 44 mins
Bloomberg's Caroline Hyde and Ed Ludlow break down Amazon's new AI products from its AWS Re:Invent conference. Plus Michael and Susan Dell make a $6.25 billion donation to the future of children in the US. And, Netflix makes a nearly all cash offer for Warner Brothers Discovery in its sweetened bid.
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive
from coast to coast with Caroline Hyde in New York
and Eva though in San Francisco.
Speaker 2 (00:21):
This is Bloomberg Tech coming up. We go to AWS
we Invent in Las Vegas to discuss the cloud companies,
new chips, new models, and new AI agents. Becaus Michael
Dell donates an unprecedented six billion dollars aimed at jump
starting the investment accounts for twenty five million children in America,
and Warner Brothers Discovery receives a new round of bids,
(00:42):
with Netflix flashing mostly cash for its offer. We'll have
the details, but first let's check in on these markets
which are flashing green. We actually have a bit of
a reprieve after yesterday's sell off. We're back into risk
on mode tentatively. So across the benchmarks, we're looking at
the NaSTA one hundred nineteen percent of course in video
leading then in terms of points, but all of some
of the mag seven really dominating.
Speaker 3 (01:02):
On the day.
Speaker 2 (01:03):
You're looking at bitcoin, even getting a bit yesterday it
was woeful. Today we find some sort of stability where
up more than five percent in fact, largely Crypto is
in the green. We also turn our attention to some
of the key mags seven that we want to look
at in terms of their own events, their own announcements.
And I'm looking at what's happening with Amazon. We're currently
training up one point three percent. We're getting a little
nudge higher on some new news coming out about its
(01:25):
own large language models, about updates of course to its
own AI agentic focus. And key has got to be
Trainium three all about its chips.
Speaker 3 (01:35):
Let's get straight over to Ed Ludlow.
Speaker 2 (01:36):
You're in Las Vegas at the reinvent event.
Speaker 4 (01:41):
Yeah, it's probably the Trainium three headlines that move the
needle right. This is a push forward acceleration of bringing
the latest generation accelerator to market called Trainium, but useful
in both the training and inference use case, and much
as Amazon has done in prygation generations of Trainium, it's
talking out the cost and performance metrics of it four
(02:03):
x the prior generation. On price performance, it was interesting
when the headline's hit, I mean, we're at one and
a half percent on Amazon, a small move lower or
pairing some of the gain on both Google and Nvidia.
And this is the story right. You know, Amazon wants
to expand the use of Trainium servers beyond one core customer,
which is anthropic, and they're giving evidence in this release.
(02:25):
We'll get to it later in the day when we
speak to Matt Garmon in particular of the savings that
those customers are made using it while also making sure
they have capacity that is based in video GPUs and
of course the open aideal, the AWS has thirty eight
billion dollars of it is predicated on availability of Nvidia.
Speaker 2 (02:43):
I mean the eye the focus must be so trained
on what's just been seemingly a positive thrust for Google
when it all comes down to its own chips right now.
Speaker 4 (02:56):
Yeah, in recent weeks and months when there have been
reports about Google TPU and the idea that Google Cloud
will have a big third party use it, it's moved
the needle on those shares. What universally right now, the
hyperscalers are experience the supply constraints right comply supply constraints
(03:16):
where they're basically saying, this is out there in the
real on Trainium three. It is out there in the
real world. By the way, general availability from today and
they've also talked about the pipeline through the Trainium four.
Speaker 2 (03:26):
But you're right, it's all about TPU, it's all about chips.
It's also about their own innovations when it comes to
large language models lest we forget. Yes, they've got an
integration of open AI and anthropic Claude, but they've also
been movieving the needle on over two.
Speaker 4 (03:42):
Yeah, an over two and updated year on version of
its first kind of in house foundation model, a variant
of which OMNI can take inputs MTI model inputs of text, video,
image responding kind. But that's going to be the question
the story today. You know, AWS is number one in
cloud and cloud computing through scale, through leveraging infrastructure, but
(04:03):
when does it become number one in AI? You know,
not just being a place that hosts others models, but
has evidence that its own foundation model is resulting in
something tangibly useful, particularly for enterprise customers. And I'm pretty
sure that that's what those that have joined the show
today want to talk about.
Speaker 2 (04:18):
Yeah, we've got so many conversations come up in this show,
but you've got to be sticking around because we thank you, ed.
We're coming back to you because Throughout the show we'll
have interviews, but at the end we'll have a sit
down interview with AWSCO Matt Garmon at three pm Eastern time. Meanwhile, look,
this is all a story of infrastructure, about big tech
companies such as Amazon, but also Alphabet, Meta and Microsoft
(04:39):
spending heavily on AI with expected capital expenditure forever three
round eighty billion dollars combined in their current fiscal years. Now,
that's going against big tech's mantra for the past two decades.
Speaker 3 (04:50):
Let's call it.
Speaker 2 (04:51):
We are just more about delivering growth while keeping really
tight little spending.
Speaker 3 (04:56):
It's a real flip reverse.
Speaker 2 (04:57):
Let's talk about Oblimbug's tech equity reporter Carmen ryani Key,
and you've all been assessing how investor is tight. The
sudden wild capital expenditure.
Speaker 5 (05:06):
Yeah, I mean, it has been the talking point and
the thing that we've been focusing on the most with
some of these big companies, and as you said, it
really represents a change from how they've operated over the
last two decades. They really had very capital light businesses
and were able to be very profitable, grow exponentially in
some ways because of that, and so now having this shift.
(05:27):
We're seeing investors rewarded on summons and then really punish
it on others. So, you know, Microsoft, we saw you
jump after its latest starting support, but Meta sort of
got hit because Zuckerberg, you know, didn't explain enough about
the return on investment of this spending. The other thing
that's interesting is that this capital expenditures is a portion
of revenue have jumped, which to a level that's not
(05:48):
normal for tech companies. So for Microsoft, it's capital expenditures
are now twenty percent of its revenue. And in addition,
you know, Alphabet and Amazon, these spending to sales ratios
are some of the high in the market.
Speaker 2 (06:01):
Okay, so we now have to perhaps digest a period
of higher capital expenditure. Were meanwhile worrying about some of
the financing that goes on within it, some of the
circular financing that's been the narrative. But today the market jumps.
Speaker 3 (06:14):
Why what are you hearing from the investors you're talking to?
Speaker 5 (06:16):
Yeah, I mean, I think that last week was very interesting.
I think we're seeing a little bit of buying, some
more optimism and enthusiasm coming back into the market. There's
a lot you know, in videos CFO was speaking this morning.
There's a there's just a lot of tech news sort
of coming back into the market that people are getting
excited about.
Speaker 3 (06:34):
Well, i'll see if it holds.
Speaker 2 (06:35):
Santa rally upon us potentially come and Ranicky, We so
appreciate your time. Let's talk about the crypto markets, because
they too are recovering today off that a heavy sell
of yesterday when bitcoin still as much as eight percent.
Let's take a look at strategy as well. The artist
formerly known as MicroStrategy, heavy investor in bitcoin gaining some
support after scrambling to calm its own investors, creating a
(06:57):
one point four billion dollar reserve to fund dividend and
interest payments rather than having to potentially sell bitcoin as
a last resort. And if I've seen a digital finance editor,
Anna Erera is joining us. What's more from London? Anna,
why today the did buying.
Speaker 6 (07:14):
It's hard to know with crypto, as I'm sure you're
aware of, and it's crazy to think that yesterday we
were down eight percent and thinking of all the macro
condition that might have been leading to that drop. So
you know, we were speaking to traders today and investors,
and it seemed that although the price is up, the
sentiment is still a bit cautious, and volumes aren't as
up as they were before. I think people are sort
(07:37):
of assessing that crypto in reality has been on a
downward spiral of bit since October twelfth, the eleventh, when
the price crashed, And so while today we're a bit up,
in reality, you know, we're still pretty lower than we
were around a month ago when bitcoin reached its record highs.
Speaker 2 (07:54):
I mean, negative bitcoin funding rate is still an anxiety,
extreme fear levels with coin market caps, fear and greed.
There's still a lot of comfort needed to an investor
base that's been beaten up, particularly the retail trade who
have tried to gain exposure not just by owning crypto,
but by owning crypto related assets such as what leveraged
bets on MicroStrategy now called Strategy and it talked to
(08:16):
us about how much retail of hurt here as well
as institutional.
Speaker 6 (08:20):
Yes, obviously we know that people were trying to retail
investor are trying to get exposure into bitcoin and crypto
through buying ETFs. Thatt, we're supposed to strategy or strategy
stock itself, and that's fallen dramatically over the past year,
and so you know they've been hurting. But at the
same time we've been trying to wait to see if
more institutional buyers will come in and offset that. But
it seems to be from what we're hearing, a sort
(08:41):
of weight and see mode, partly waiting until the FED
decision next week. So it's kind of in a way,
same old with crypto. One day it goes ninety percent,
the next thaying it's a five percent. The asset class
seems to be maturing and there's more ways to invest
in it, but maybe not much has changed.
Speaker 3 (08:56):
In Bergana or Era.
Speaker 2 (08:57):
Always great to have you, Thank you very much, and
stay Withloomberg because there's a conversation coming up you won't
want to miss if you're in crypto Fondly Strategy President
CEO coming up in the next hour on Bloomberg Crypto.
Elsewhere in that ecosystem, not all is gaining support. We're
watching shares of American Bitcoin Corp. Look at that forty
four percent at one point down fifty percent. A bitcoin
(09:19):
minor which counts Eric Trump as a co founder and
chief strategy officer, seeing multiple trading halts amid the volatility
now coming up, we'll be joined by Colleen Aubrey, Senior
and Vice President of Applied AI Solutions over at AWS.
We are live from the Companies we Invent conference in
Las Vegas.
Speaker 3 (09:37):
This is Bloomberg Tech.
Speaker 4 (09:53):
Good morning from Las Vegas. So let's talk about some
of the announcements out from AWS. Colleen Aubrey is Senior
vice president of AWS, Applied AI Solutions and clean You
basically work with the full spectrum of the smallest startups
to the biggest enterprise customers that AWS has and the
public sector, and it's distilling it as far down as
I can. You basically help them to take technology and
(10:14):
innovate make whatever they do better.
Speaker 7 (10:17):
Yeah, the mission I'm on is really to put AI
into the hands of the business on a day to
day basis and really make it work for their business
in production every day, helping them to deliver better experiences
to their customers.
Speaker 4 (10:29):
We have a new generation of AWS Silicon and server design,
We have a new generation of Nova model, and we
have frontier agents. Right and I think you probably heard
me at the top of the show, but I think
the big question about AWS Reinvent is what is it
in this year's offering that takes aws beyond being the
(10:50):
sort of number one cloud computing platform for capacity to
giving something tangible, useful that can improve a company's own technology.
Speaker 7 (10:59):
Yeah, two areas that I'd like to talk about specifically
for me personally, one of my products is Amazon Connect
and this started as a contact center application, but today
you know, I see it really as an agentic product
that's actually looking at whole customer experience. And so for me,
this is where we're putting our infrastructure, our silicon, our models,
and now today like bringing that all together in a
(11:21):
product that can work for businesses. So we launched twenty
nine new features on Sunday we announced that, and I
would say there's four key gentic capabilities that come with that.
The first is actually AI Voice and allowing customers to
interact in a very natural way using Novasonic and having
agents actually resolve issues for them on the behalf in
the background. The second is actually putting AI to work
(11:44):
as a teammate next to customer service representatives, helping them
to actually get tasked on complete the paperwork the processes,
provide recommendations, and help them really have a better view
of the customer so that the conversation they have with
customers is much much richer. The third area is actually
combining what I call clickstream, which is the path that
customers will take through websites and profiles, to be able
(12:07):
to present a much more specific recommendation and what a
next step won't be for a customer. And finally, you know,
one of the big issues for companies is sort of
confidently putting AI to work in their business. And in
this case, we've added observability where you can expect, how
inspect how an AI is reasoning, how it's thinking, in
what tools it's using, so companies can really observe AI
(12:29):
in the same way they would think about the people
and their business working with customers.
Speaker 4 (12:33):
I want to go to point number two. You use
the word teammates, yes, but you've in the past talked
about a hybrid workforce, people and agents. A lot of
what's come out since Sunday Night seems to reflect that
you want to increase the number of useful agents. That also, internally,
we can talk a little bit about what you're encouraging
Amazon teams to do, but the idea is that that
(12:55):
workforces will type should get comfortable working alongside agentic AI.
Speaker 8 (13:00):
Yeah.
Speaker 7 (13:00):
I see a future where actually everyone is managing a
team of AI agents. And I think our frontier agents
with software developments, sec ops and so DevOps and security
is sort of one of our first moves in that direction.
Where you actually have a teammate with a developer who's
able to address complex problems, able to work over hours and.
Speaker 9 (13:21):
Days, be able to solve for whole.
Speaker 7 (13:23):
Objectives, and to scale with that person, that the role changes.
I think we all are managing AI teammates, a team
of people that are all of AI, people that are
out able to we can delegate to, we can inspect
what they're doing, we can iterate with them, provide feedback,
and for me, that's where I think we end up going.
I think we're clearly moving that way in the customer
(13:44):
service direction, and I think the developer experience is also
clearly moving that direction.
Speaker 4 (13:48):
You're in a leadership position at AWS, but you have
been with Amazon broadly entering your twenty first year. You're
part of the S team, the leadership team generally internally
within Amazon's many arms. Is this like, particularly in the
context of the technology you've released here Reinvent twenty twenty five,
Is this at a stage where Amazon teams are dog
fooding this or it's just inherent the use of technology.
(14:12):
You want your own teams to be. I think AI native.
Speaker 7 (14:14):
Yeah, that's true, and I think what I observe within
Amazon certainly we're all very keen to get our hands
on our new frontier agents, and that is something we've
had in beta internally, and I think teams are very
excited to use that in production. We use connect within
our own customer service teams, our seller support teams, our
AWS support teams, for example. So we continue like to
iterate and learn from that. And I would say broadly
(14:36):
across Amazon, we've really tried to sort of embrace the chaos,
to put AI in the hands of every person in
the company and to see what they can do, how
they can transform how they work, what they learn. And
so you have a lot of teams sort of grassroots,
sort of trying to solve for what is the new
way of working using AI, and some of those experiments
(14:59):
don't lead in newhere, and some lead and a place
that's really meaningful. And then you have sort of this
social contagion that happens that people learn from each other.
Speaker 4 (15:06):
Okay, aws number one in cloud computing and in the
sense of scale infrastructure deployments, is it number one in AI?
Speaker 7 (15:15):
I think we have all the pieces in place and
we're well on our way. We're very, very focused, and
what I really like about our strategy is that we're
working all the way, all the way, the full stack,
you know, from clean energy, chips, data centers around the world,
bedrock with real great selection, including our own models. And
I think Roehet's making really fast progress on that. And
(15:37):
I think for Swami and I really trying to put
those all of those pieces to work where out of
the box a business can get value.
Speaker 4 (15:45):
We've got a conversation with Swami coming up in a bit.
Colleen Aubrey, SVP of Applied AI Solutions to AWS, Thank
you so much, Carrot, what.
Speaker 2 (15:52):
A great conversation. Let's stick with Amazon as well, because
the company, which is vast it plans to offer deliveries
of hundreds of house items, including some fresh groceries or
over the counter medicines within just thirty minutes and test program.
But it's begun in Philadelphia, we stand will begin there
and its home city of Seattle now coming up the
Dells make an unprecedented six point twenty five billion dollar
(16:16):
donation to the Kids of America or on that.
Speaker 3 (16:18):
Next, this is Bloomberg Tech.
Speaker 2 (16:34):
Michael and Susan Dell are donating six point twenty five
billion dollars, gifting twenty five million children in America two
hundred and fifty dollars each in an effort to jumpstart
their investment accounts for the future. The proceeds build on
the Invest America Initiative or Trump accounts as they're known,
which we'll see one thousand dollars for every child born
from twenty twenty five to twenty twenty eight. Let's talk
(16:55):
about all of it with bost Tom Maloney and how
unprecedented is this? This SI is a philanthropic gift.
Speaker 10 (17:02):
It's pretty unprecedtentded I mean, there've been big philanthropic gifts before,
but something going to cover twenty five million children in
the cover really is pretty unheard of. And a gift
to go through the federal government. I mean, he's donating
the money to the US Department of Treasury. That's pretty
unusual too, So it's quite an unprecedented gift.
Speaker 2 (17:21):
Let's go back to what all of this is sort
of sitting alongside, which is invest in America. We sort
of saw that roundtable alongside other CEOs, a lot of
them tech who have been thinking about how to get
money into the hands of children to invest in the
longer term.
Speaker 4 (17:36):
Tom, that's right.
Speaker 10 (17:38):
Yeah, those were created as part of the One Big
Beautiful Bill, as you mentioned, one thousand dollars for kids
born between twenty twenty five and twenty twenty eight. And
what Della is doing is kind of covering the gap
for children ten under who aren't covered under that program
and giving them two hundred and fifty dollars to be
used for things like college or startup, starting up their
(17:59):
own business, or home deposit when they're eighteen or older.
Speaker 2 (18:03):
Now, Michael Dell and his family and he's the eleventh
wealthiest person in the world, but it's other tech moneyed
people who have been putting this initiative to work. And
I think about really Brad Gerstner, who has been the
driving force initially behind what is this sort of invest
America outreach. He set it up back in twenty twenty three.
Of course we know him from Ultimeter.
Speaker 10 (18:25):
Yeah, that's right. He's been working on this for a
couple of years. As you mentioned it predates Trump obviously,
you know, the name Trump Accounts certainly got his attention
and I think helped put it into the One Big
Beautiful Bill. But yeah, it's kind of an issue that
Democrats and Republicans have been interested in something like this,
(18:47):
a product like this that gets everyday Americans invested in
the stock market from a very young age. It's kind
of a bipartisan issue.
Speaker 2 (18:56):
Yeah, And Brad over at Altameter, he's been saying that
this is a platform for every company in America to
think about how they reward employee's own children.
Speaker 3 (19:04):
But it doesn't need to just be a company.
Speaker 2 (19:05):
It could be mums and dad's, churches, synagogue's. Many to
be putting it aside in a sort of tax efficient way.
Speaker 9 (19:10):
Tom.
Speaker 3 (19:11):
What's interesting is, of.
Speaker 2 (19:12):
Course Dell Stock has moved on all of this, and
this comes after a truth social post.
Speaker 3 (19:18):
Yeah, that's right.
Speaker 10 (19:19):
Dell stock was up about four percent last time I looked.
Trump obviously singling out Michael and Susan Dell for their
donation this morning, he was seemingly very happy about it.
And you know, when Trump tweets about something, it tends
to move stuff in the market. So we're kind of
saying that I don't know if it's going to last,
but there you go.
Speaker 2 (19:39):
And of course that contributes to the networth of the
Dell family. On the back of that, Bloomberg's Tom Maloney,
it's been fascinating talking to you, Thank you very much. Indeed,
let's turn now to Warner Brothers Discovery. The company has
received a new round of bids, with one from Netflix
consisting of a mostly cash offers, according to sources. For more,
Bloomberg's Michelle Davis, who covers M and A Immediate joins us.
Speaker 3 (19:59):
Now, so can we.
Speaker 2 (20:00):
Break down how these is starting to note because they're
going to be sweetened.
Speaker 11 (20:04):
They've been sweetened, yes, so the bidding is heating up.
Yesterday Warner Brothers had asked for sweetened offers from all
of the companies, so we know they received offers from
Netflix mostly cash. That was a big surprise because people
were expecting it to be stock. You know, Netflix's stock
has been doing pretty well. They have great currency, but
they're also an investment grade company, so they can afford
to raise a lot of money. We hear they're in
(20:26):
the market talking to banks about tens of billions of
dollars for a bridgeland. So there's Netflix, there's Comcast which
has also bid it only wants to streaming, and the
studios of Warner Brothers similar to Netflix. We're still trying
to glean the details of that offer, but we have
heard that it likely includes a little more stock than
the cash offered by Netflix. And finally, Paramount, the one
who kicked all of this off. They're the only bidders
(20:47):
who have actually made a play for the whole company.
We're hearing that their offers also is also completely cash.
They have backing from Larry Ellison, David Ellison, you know,
some of the rich, wealthiest people on Earth and Middle
East earn money as well as Apollo er putting in
some of the financing for their offer.
Speaker 2 (21:03):
And it feels as though that's been the narrative that
the Edison bid might be one that is more approved
of by the administration. But are there any blocks? Are
there any issues from a regulatory perspective for Paramounts guide
downs just getting any big O or any of these
players getting any BIGA.
Speaker 11 (21:18):
Yes, So the Warner Brothers board is really I mean,
they are in a position where they have lots to assess,
but it's not apples to apples, because they're evaluating, you know,
a bid for the whole company in cash, a bid
that might include stock and cash but only for part
and then you know other structures that are unclear for
Paramount and comcasts. There's clearly lots of synergies that they
(21:38):
could achieve by combining the companies, but there's a view
that doing that, you know, to achieve those synergies, they
would cut a lot of jobs. I mean, maybe thousands
of jobs at the studios by combining these studios Netflix
Their argument might be, we're not going to do something
like that, and so it'll play better, you know, with
labor unions and regulators. But Netflix also already has a
lot of power. So it's a bit wildcard to see
(22:00):
how the regulators are going to view that.
Speaker 2 (22:02):
Yea, many are going to say, is YouTube count being
counted in the numbers? How we think about this from
a regulatory perspective, from a state and federal perspective, timeline, any.
Speaker 3 (22:11):
Sort of idea.
Speaker 11 (22:12):
We're hearing that they want to get this sorted before
the end of the year, and that makes some sense
because for the banks who are underwriting the loans, they
don't want the loans on their books at your end,
because it's going to cost them a lot more money,
which means the bidders won't be able to pay as
much for these assets. So we've heard that there's a
deadline of before the holidays. A decision could be made
as early as this week. You know, the binding offers
(22:32):
are in, so that means Warner Brothers could move quickly,
but they're also giving themselves room to ask for more bids.
You know, later on this month, CHERL.
Speaker 2 (22:40):
Davis will be across the story. We appreciate it.
Speaker 9 (22:42):
Now.
Speaker 3 (22:43):
Coming up, we're going to be going back to.
Speaker 2 (22:44):
AWS Reinvent the conferences on in Las Vegas. We're gonna
sit down with Swami sieve us of Romanian, vice president
of a Gentki for that company.
Speaker 3 (22:52):
This is pretty big tech. Welcome back to Bloomberg Tech.
Speaker 2 (23:02):
We check in on these markets that are losing a
bit of their earlier esteem. We're still holding on to
three ten percent higher, but remember we're up more than
a percentage point in earlier trading. Is in video perhaps
loses some of its edge in terms of points perspective.
Apple leading the charge right now, Intel as well. I'm
looking at Bitcoin though, still holding onto its games. Best
day since May. We're now at the highest level and
(23:23):
ninety nine since the end of November, so a few
days we're up four point percent as we see a
little bit of shifting in sentiment. Let's look at a
key name that has shifted in sentiment. It was beaten
up in November. Now we're still up two percent. Let's
call it. We're rolling over somewhat. But Pan Andeer, in
another AI names, have seen a bit of love today.
It seems as though Pan Andeer could be a trillion
(23:43):
dollar company. That's what Dan I've been saying on the day.
But really he's looking at big Tech and MAG seven
to add twenty to twenty five percent in terms of
share growth for twenty twenty six.
Speaker 3 (23:53):
But for now, we return to one of.
Speaker 2 (23:54):
The key MAG seven in that pile, and it is
Amazon and it's Aws. Even is upon us in Las
Vegas and take it away.
Speaker 9 (24:03):
Yeah, thank you very much.
Speaker 4 (24:04):
Karas talk more about Amazon's agentic plans with Swami Siva Supermanian.
He's vice president for a Genta ki at AWS and
you've basically brought out and released three from what you
call frontier agents.
Speaker 9 (24:17):
That's right, across.
Speaker 4 (24:19):
An autonomous agent security DevOps and considering where aw sits
in the market and everyone that attends reinvent, probably the
question most people would have is if I'm a large
enterprise and I have multiple teams, multiple deaths, doing multiple things,
how do I deploy three of these frontier agents?
Speaker 9 (24:38):
Yeah?
Speaker 8 (24:39):
Father MEAs out of it, saying here at daw As
we are of building the foundation for billions of agents,
and that's an understatement. So what do we launch with
these frontier agents? Is essentially a new category of agents,
because while so much our activity is happening in agents,
there are historically being more assistance to humans. And while
(25:02):
we deploy it, even with an Amazon Christen sew thousand
set developers to help with software development, we were actually
wanting to push the envelopement being able to actually do
a lot more where they are actually autonomous, where you
don't need humans to constantly steer them, and they are
massively scalable and they can run along.
Speaker 4 (25:22):
To be autonomous, they need to have an end goal,
that's right, How does that work? So it's a case
of saying, by the way you use the term AI assistant, Yeah,
what we're now really talking about is AI co worker.
Speaker 9 (25:34):
That's right, and that is the key thing here.
Speaker 8 (25:37):
It's just like what these frontier agents are doing is
completely transforming how software is getting done in these teams.
So much activity happens primarily in like software development, but
now these agentic teammates they show up as another teammate
for software development. They pull up actually jobs from like
(25:59):
guitar task and start coding and clearing backlog. And if
you're in the middle of the night actually getting page
to deal with an issue happening with your website, this
agent first takes the first page and says, oh, let
me look into what's happening and unpack and then find
out the root costs so that you can actually quickly
resolve it and go back to bed, like I've been
(26:20):
on call and I know I could use that help
and be proactive so that those issues don't happen. And
third is actually a security teammate, so it shows up again.
And most of security has always been about afterthought. One
of the things we are changing the game here is
actually meeting developers even before they write a single line
(26:40):
of code when they're designing software. We catch them right
there and say here are the things you should be
aware of. And when they write code, we say, oh,
don't do that, do this and actually do penetration testing.
Speaker 9 (26:52):
All before shipping.
Speaker 8 (26:53):
So now you can view it as like you have
the best in class developer, OPS and security engineers showing
up as virtual teammates for every.
Speaker 4 (27:02):
Software you say best in class? What evidence does AWS
have that in real world deployments? Running these three agents
in parallel autonomously has a clear benefit. Yeah, their efficiency, productivity.
What data can you share?
Speaker 9 (27:17):
Yeah, I'll give actually a couple of examples.
Speaker 8 (27:19):
One is in the DevOps agent that we launched, we
ran it across thousands of escalations that happened this year alone,
on incidents and so forth. These agents actually correctly identified
the root cost eighty six percent of time.
Speaker 9 (27:35):
That is like really impresses eighty six eighty six eighty
six percent.
Speaker 8 (27:40):
And the second one is Commonwealth Bank of Australia.
Speaker 9 (27:43):
They actually have a huge cloud.
Speaker 8 (27:46):
Infrastructure running across thousand, seven hundred accounts and they put
this DevOps agent test to test and for a very
complex networking stack to debug it. And what they said,
what did to take them? Like our Diba this was
able to do it in minutes and these are just
few simple examples, same thing. What's going on at security agent.
(28:08):
Smart Bug is a great photo company and there I'm
a big customer, and they are completely automating their security
operations altogether using like AWS Security Agent. And these are
all the beginning of how this is going to change
the game in.
Speaker 9 (28:26):
A big way.
Speaker 8 (28:26):
Because what do you want these agentic teammates to be
is always be there and you delegates on the boring
drudgery associated with like ops and security and backlog on
developments so that developers are empowered to be extremely creative
and you will start seeing fighter ten x improvement in
(28:47):
productivity in a big way.
Speaker 4 (28:48):
To reach out its three agents, Kero is software development.
You have the AWS Security Agent, the AWS DevOps agent.
They are designed to run for hours autonomously. To sum
that disconcerting, right, And I go back to my other question,
how much concern is there in the last segment Clean
talk to me about observability, understanding in real time what's doing.
(29:12):
But that sounds to me like it's human supervision.
Speaker 9 (29:15):
It's a great question.
Speaker 8 (29:16):
I mean, this is the nuance and the art of balance.
We had to do one. You want these agents to
be autonomous and massively scalable, but you also want them
to not go off the rails. So first we are
built it with the right guard rails. And second even
a spart a development workflow, these agents can go actually
take a goal from a developer to say, hey, go
(29:39):
work on upgrading.
Speaker 9 (29:40):
This piece of code to the latest systyk and then
start upgrading.
Speaker 8 (29:44):
But then as a final step, it might send it
for a code review to the human and say take
a look and make sure I'm okay. And once they
say I'm okay, I think it's fine, or they can
even configure it to say if it pass us all
these tests, you're good to ship it. So that you
have built in s either through human or automated tests.
And these are the kind of things now we are
(30:05):
able to actually innovate with the customers as well. And
even there we have done some pure innovation like introduced
automated mathematically provable property based testing, so that means now
developers can specify their goal and we can mathematically prove
with things like kiro that whatever it is generating can
(30:28):
be tested exactly that way and it's accurate. So that
is like another game changer.
Speaker 4 (30:33):
SWAM we see the supermanian vice president for a gens
Ki at aws three new Frontier agents carry We're talking
about here in Las Vegas, back.
Speaker 2 (30:41):
To you, loving it back here in New York. Ed's
time for talking tech. First up, Apple's head of AI
John Jian Andrea, Well, he's coming down with mans to
lead the company entirely in the spring. The move caps
are pretty tumultuous tenure that included a fumbled entry into
General's AI. Apple won't be directly replacing Jian Andrea, instead
opting to break up the AIT plus Samsung It's unveiled
(31:04):
its first trifle smartphone. It's called Galaxy Z Trifle and
the device contains two hinges allow it to transform into
a larger tablet like device. The phone is set to
be released first in South Korea on December the twelfth,
with a price of about four hundred and fifty dollars,
and the US Commerce Department has agreed to invest as
much as one hundred and fifty million dollars into x Light.
(31:27):
It's a chip startup where former Intel CEO Pat Gelsinger
serves as executive chairman. So the latest moved by the
Trump administration to bring chip making capabilities back to the
United States. Now coming up, guess while we go back
to AWS in Vegas. This time it's a conversation.
Speaker 3 (31:42):
With Sanjay Back to Cone.
Speaker 2 (31:44):
Nas chief Product and Technology Officer is a blueber tech.
Luma AI, known for its flagship creative product, dream Machine
(32:07):
video generator, taking a step forward in global expansion with
opening its first international office and it's in London. This
follows its recent nine hundred million dollar Series C investment,
which was led by Humane and Met Jane Is with
US co founder CEO of Luma AI and so.
Speaker 3 (32:23):
Pleased to join you.
Speaker 2 (32:23):
I can't wait to get into reasoning video models, into
the future of world models.
Speaker 3 (32:27):
But first am it? Why London?
Speaker 12 (32:31):
We have a huge pipeline. Actually, by the way, thanks
for having me. I'm very excited to be here. We
have a huge pipeline of researchers, engineers from Europe and
also deep Mind that want to join luma And also
London is the gateway for the business in Europe as
well as Middle East, so it seems to be the
(32:53):
right place to have our second office outside of Palo
Alto and Bay Area. So yeah, today is our launch
of the London office.
Speaker 2 (33:00):
I have a feeling demos hasibus over at deep Mind
and the AI labs at Google we'll be having is
is pricked by that, amit? So why would people currently
working or having been trained at deep Mind and the
like want a jump ship to help build Ray three
your reasoning video model.
Speaker 12 (33:15):
Yeah, I think that's a great question. So Luma already
has actually a deep bench of researchers from from n
video from from deep Mind, from you know, schools like MIT,
Stanford and Berkeley. And the reason that these incredibly exceptional
people actually join Luma is because, one, while it is
(33:36):
a very very well resourced AGI lab, we are only
about one hundred and fifty people, so we get to
do and get to have resources per person that, like,
you know, it's unheard of in the rest of the
industry actually. And second, Luma is so ultra aligned on
this one goal, which is to build multi model AGI.
There's actually no second There is no second project happening
(33:58):
at Luma.
Speaker 9 (33:59):
This is what we do.
Speaker 12 (34:00):
So people researchers, engineers and product people who believe strongly
in this mission, Luma is the best place in the
world for them to be.
Speaker 2 (34:11):
Looking at some of the amazing video that you create
I can see how it goes into the creative sphere,
into advertising and the like, but it feels as though
this model, these world models, has moved to perhaps more
physical AI applications must open up different industries.
Speaker 12 (34:28):
Yeah so, I mean video and video is actually the
path to AGI. And let me tell you just very
briefly why that is the case. Language gives us reasoning,
and language gives us the human abstraction that is necessary.
Video shows us the entire universe. Right, you know how
things behave, how water behaves, how the laws of physics work.
Then you combine them together. Then video, audio and language
(34:51):
together is basically a chance to build a universal simulator.
So one application of that, as you point out, is
obviously for entertainment and to generate video to automate or
or to to make digital the act of creating video.
But in addition to that, it is the gateway to
be able to build actually general purpose robotics. That is
(35:12):
the second area that we are very deeply focused on
and now starting to build out a team and the
research area of that, and we have if we want
to have any shot at building general purpose robots, then
the only way that happens is by giving them this
level of general understanding of the universe so that they can,
you know, reason in their head. They can actually simulate
(35:32):
every scenario right in their head, like, Okay, what would
happen if I do this? What would happen if I
do something else? This level of learning and reasoning is essential,
so video as it advances and as we scale these models,
they will not only get better and better, they will
get more accurate in simulating physics. And this is the
path to building physical intelligence. And that's why Luma's model
mission is to build multimodel agi that can generate, understand,
(35:56):
and operate in the physical world. And that is the
end goal.
Speaker 2 (36:00):
What is the biggest blocker to that or the thing
that keeps you up Because at the moment, you've got
the money, Boy, do you have the money nine hundred
million raised, But we've also got promise of compute coming
from Saudi Arabia.
Speaker 3 (36:09):
Is it about compute?
Speaker 2 (36:09):
Is it more about the talent that is what you
need to push through to get to your mission.
Speaker 12 (36:15):
Yeah, So there are two really important things for LUMA.
Over the last couple of years, we worked tirelessly to
solve the research problem for like you know, really really
great video. Now the next frontier for us are these
omni models that are able to like you know, reason
an audio, video, language text together. So the research is
like you know, the first one that we pay mental
(36:36):
amount of attention to now to solve the research of course,
you know, people and really really brilliant people is one
of those bottlencks. So we hire from some of the
best places. See, we don't need thousands of people. We
need like, you know, maybe two hundred or three hundred
really really brilliant people to work on these problems. So yeah,
that's that's the first one. The talent and great aligned people,
(36:57):
that is the first one. Second is obviously compute. So
alongside with the SERIOC announcement, we announced that we will
build with Humane and collaboration with Humane, a two gigawat
compute cluster that is the largest compute build out in
our space of world models and video models and like
you know, this kind of physical AI. And it is
also one of the largest compute built out in AI period, right,
(37:20):
So compute is one of the other things that is
a big limitation. Ultimately, multi model AI will be a
superset of llms, will be a superset of the AI
we have today, it will require more compute than llms
do right now. So compute is the second very important
input to our business that, like you know, we are
working to not only shore up but solve in a
(37:41):
way we can serve these models economically to a lot
of people.
Speaker 2 (37:45):
I mean, Jane, come back and tell us how you'll
continuing on that mission.
Speaker 3 (37:48):
Go found a CEO of Luma AI.
Speaker 9 (37:51):
Thank you.
Speaker 2 (37:52):
Coming up, we're talking more about AI and infrastructure. We're
going to aws's event in Vegas. Were a conversation with
Sanjay Blackta Conde, NAS chief product and technology officer is
a blue big.
Speaker 4 (38:02):
Tech Sanday back to Conde, NAS chief Product and Technology
officer joins us from AWS reinvent in Las Vegas. You're
(38:25):
kind of bucking a trend that we've been talking about
throughout the year in the context of AI. Actually on
prem has kind of been back when AI is being
run at the edge. You're going the other way from
on prem, relying heavily on AWS.
Speaker 9 (38:39):
The rationale, well.
Speaker 13 (38:41):
We are actually users of AI. We are not like
some of these LLLM companies that are creating and training
their own models. Although we have trained models in the past,
but at a much smaller scale. So for us, investing
in infrastructure and building out data centers for the size
of our operation doesn't make sense.
Speaker 4 (38:57):
The work with AWS is focused on deli ring personalized content, right,
And is that at the foundation model level you know
AWS out with Nova to today, or it's just simply
that you're leveraging their scale the multitude of data platforms
they have.
Speaker 13 (39:11):
Yeah, for that particular use case, we're actually just leveraging
their infrastructure and scale. We've built all the personalization models
ourselves and we've trained them in house, and we've been
doing that for the last probably three four years, long
before LLMS became a thing. We've had our own data
science team and we've been training models. So we use
our own homegrown models for most of the personalization and
(39:33):
recommendation workload.
Speaker 4 (39:34):
So here in lies the question of AWS reinvent AWS
number one in cloud computing, but they want to do more,
They want to be number one in AI. You know,
their own foundation models, the agentic tools that they release today.
What would it take from Amazon in terms of the
utility of that technology for you to rely on them
more heavily.
Speaker 13 (39:55):
Well, actually, for some of the generative use cases you
know that are LLLM based. We are using Amazon Bedrock.
You know, we have a contracts management, rights clearance system
that we just launched. We are using Amazon's Bedrock capability
for some of our moderation AI based moderation of user
generated content. So we're looking more and more now to
(40:17):
towards using out of the box capabilities that Amazon provides
rather than build and train our own models, which we.
Speaker 9 (40:23):
Used to do in the past.
Speaker 13 (40:24):
I think the need for that is becoming less and less.
Speaker 4 (40:28):
Conde has a relationship with open AI. Condy was one
of the first to make a deal with open Ai
early days, it seems. But how is that progressing?
Speaker 9 (40:36):
That's going well.
Speaker 13 (40:37):
Actually, we're starting to use chat GPT quite widely within
the enterprise internally, yes, and for external use case. We've
actually launched an AI based recipe search on bond Appetite
on our on our website, and also it's going to
come out in our app which allows customers to go
in and do natural language search and also be able
(40:58):
to modify the it has peace according to their taste.
So that's the first use case we are looking at
others with opening I as well.
Speaker 4 (41:06):
The broad theme of the program today here at AWS
has been about companies of all sizes moving from using
AI assistance internally to what awso call the AI co worker,
you know, a hybrid workforce of people and energentic AI.
Conde has done layoffs in the past two years, financial years.
How much has that been about AI tools changing productivity,
(41:30):
eliminating certain roles, changing certain roles.
Speaker 13 (41:33):
Well, I don't think it's most of it has been
about AI. Actually, some of it, you know, especially in tech.
You know, we've had we use extensively, We use AI
for our work work on a day to day basis,
which eliminates the need for some roles. We can do
more things with fewer people. But other than that, across
the organization, we've not really had any AI based impacts.
Speaker 4 (41:54):
Got to ask in a different part of the Amazon universe.
I've been experimenting at home with Alexa and Alexa plus.
Do we get some kind of Conde nas Alexa integration.
Speaker 9 (42:06):
Well, that's work going on there.
Speaker 13 (42:07):
We have actually already integrated with Amazon Alexa.
Speaker 9 (42:10):
So how does that work available?
Speaker 13 (42:12):
So you know, you can query and you can get content,
you know, read out to you from some of our
publications not all so, but I think it's pretty cool.
We should try it out.
Speaker 4 (42:21):
At the heart of that question is something a bit
more existential. Conday sees itself more as maybe entertainment, and
if you look at the revenue streams very different from
saying you're a news organization. Just explain how you see
this company transitioning right now?
Speaker 13 (42:35):
Yeah, I think they're definitely in the entertainment space because
if you look at our brands, you know we mostly
cover leisure, fashion, lifestyle. We're not a daily news outlet,
so people don't come to us on an everyday basis.
So we are competing with other entertainment outlets, whether it
is you know, streaming media like Netflix or Hulu or
Amazon Prime, or social media you know TikTok and Instagram
(42:58):
and others. So people have limited spare time, so we
are competing for a slice of that. So we definitely
have to do way better in terms of our personalization
and user experience and also our great journalism that we have,
I think is what is going to take.
Speaker 4 (43:10):
Us forward, Sunjay, in the year ahead, what's the one
big change you want to make on the technology side,
the one thing you're still yet to do be AI
or something else?
Speaker 13 (43:18):
Yes, I think it's mostly definitely around AI. We have
a pretty solid data infrastructure that we've built on Amazon
with data bricks, and our next task is really to
figure out how do we vectorize all of our content
and make it readily available in real time to lllams.
I think that is probably our number one challenge.
Speaker 4 (43:37):
Sanjay Bakta Conde Nas, thank you so much for joining
us here in Las Vegas.
Speaker 9 (43:40):
Carry back to you.
Speaker 2 (43:41):
Fascinating set of conversations across the gamut of all things
AI and entertainment edge.
Speaker 3 (43:46):
We thank you.
Speaker 2 (43:47):
You got so much more coming up that does it
this edition of Bloomberg Tech, But do stick around. It
is going to sit down interview with AWS CEO Matt
Garman's three pm Eastern twelve pm Pacific first right here
on Boomog Television.
Speaker 3 (44:00):
And who all, don't forget to check out a podcast you're.
Speaker 2 (44:02):
Finding on the terminal as well as online on Apples, Spotify,
and iHeart from New York from Las Vegas.
Speaker 3 (44:07):
This is a blue Bag Tech
Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive
from coast to coast with Caroline Hyde in New York
and Eva though in San Francisco.
Speaker 2 (00:21):
This is Bloomberg Tech coming up. We go to AWS
we Invent in Las Vegas to discuss the cloud companies,
new chips, new models, and new AI agents. Becaus Michael
Dell donates an unprecedented six billion dollars aimed at jump
starting the investment accounts for twenty five million children in America,
and Warner Brothers Discovery receives a new round of bids,
(00:42):
with Netflix flashing mostly cash for its offer. We'll have
the details, but first let's check in on these markets
which are flashing green. We actually have a bit of
a reprieve after yesterday's sell off. We're back into risk
on mode tentatively. So across the benchmarks, we're looking at
the NaSTA one hundred nineteen percent of course in video
leading then in terms of points, but all of some
of the mag seven really dominating.
Speaker 3 (01:02):
On the day.
Speaker 2 (01:03):
You're looking at bitcoin, even getting a bit yesterday it
was woeful. Today we find some sort of stability where
up more than five percent in fact, largely Crypto is
in the green. We also turn our attention to some
of the key mags seven that we want to look
at in terms of their own events, their own announcements.
And I'm looking at what's happening with Amazon. We're currently
training up one point three percent. We're getting a little
nudge higher on some new news coming out about its
(01:25):
own large language models, about updates of course to its
own AI agentic focus. And key has got to be
Trainium three all about its chips.
Speaker 3 (01:35):
Let's get straight over to Ed Ludlow.
Speaker 2 (01:36):
You're in Las Vegas at the reinvent event.
Speaker 4 (01:41):
Yeah, it's probably the Trainium three headlines that move the
needle right. This is a push forward acceleration of bringing
the latest generation accelerator to market called Trainium, but useful
in both the training and inference use case, and much
as Amazon has done in prygation generations of Trainium, it's
talking out the cost and performance metrics of it four
(02:03):
x the prior generation. On price performance, it was interesting
when the headline's hit, I mean, we're at one and
a half percent on Amazon, a small move lower or
pairing some of the gain on both Google and Nvidia.
And this is the story right. You know, Amazon wants
to expand the use of Trainium servers beyond one core customer,
which is anthropic, and they're giving evidence in this release.
(02:25):
We'll get to it later in the day when we
speak to Matt Garmon in particular of the savings that
those customers are made using it while also making sure
they have capacity that is based in video GPUs and
of course the open aideal, the AWS has thirty eight
billion dollars of it is predicated on availability of Nvidia.
Speaker 2 (02:43):
I mean the eye the focus must be so trained
on what's just been seemingly a positive thrust for Google
when it all comes down to its own chips right now.
Speaker 4 (02:56):
Yeah, in recent weeks and months when there have been
reports about Google TPU and the idea that Google Cloud
will have a big third party use it, it's moved
the needle on those shares. What universally right now, the
hyperscalers are experience the supply constraints right comply supply constraints
(03:16):
where they're basically saying, this is out there in the
real on Trainium three. It is out there in the
real world. By the way, general availability from today and
they've also talked about the pipeline through the Trainium four.
Speaker 2 (03:26):
But you're right, it's all about TPU, it's all about chips.
It's also about their own innovations when it comes to
large language models lest we forget. Yes, they've got an
integration of open AI and anthropic Claude, but they've also
been movieving the needle on over two.
Speaker 4 (03:42):
Yeah, an over two and updated year on version of
its first kind of in house foundation model, a variant
of which OMNI can take inputs MTI model inputs of text, video,
image responding kind. But that's going to be the question
the story today. You know, AWS is number one in
cloud and cloud computing through scale, through leveraging infrastructure, but
(04:03):
when does it become number one in AI? You know,
not just being a place that hosts others models, but
has evidence that its own foundation model is resulting in
something tangibly useful, particularly for enterprise customers. And I'm pretty
sure that that's what those that have joined the show
today want to talk about.
Speaker 2 (04:18):
Yeah, we've got so many conversations come up in this show,
but you've got to be sticking around because we thank you, ed.
We're coming back to you because Throughout the show we'll
have interviews, but at the end we'll have a sit
down interview with AWSCO Matt Garmon at three pm Eastern time. Meanwhile, look,
this is all a story of infrastructure, about big tech
companies such as Amazon, but also Alphabet, Meta and Microsoft
(04:39):
spending heavily on AI with expected capital expenditure forever three
round eighty billion dollars combined in their current fiscal years. Now,
that's going against big tech's mantra for the past two decades.
Speaker 3 (04:50):
Let's call it.
Speaker 2 (04:51):
We are just more about delivering growth while keeping really
tight little spending.
Speaker 3 (04:56):
It's a real flip reverse.
Speaker 2 (04:57):
Let's talk about Oblimbug's tech equity reporter Carmen ryani Key,
and you've all been assessing how investor is tight. The
sudden wild capital expenditure.
Speaker 5 (05:06):
Yeah, I mean, it has been the talking point and
the thing that we've been focusing on the most with
some of these big companies, and as you said, it
really represents a change from how they've operated over the
last two decades. They really had very capital light businesses
and were able to be very profitable, grow exponentially in
some ways because of that, and so now having this shift.
(05:27):
We're seeing investors rewarded on summons and then really punish
it on others. So, you know, Microsoft, we saw you
jump after its latest starting support, but Meta sort of
got hit because Zuckerberg, you know, didn't explain enough about
the return on investment of this spending. The other thing
that's interesting is that this capital expenditures is a portion
of revenue have jumped, which to a level that's not
(05:48):
normal for tech companies. So for Microsoft, it's capital expenditures
are now twenty percent of its revenue. And in addition,
you know, Alphabet and Amazon, these spending to sales ratios
are some of the high in the market.
Speaker 2 (06:01):
Okay, so we now have to perhaps digest a period
of higher capital expenditure. Were meanwhile worrying about some of
the financing that goes on within it, some of the
circular financing that's been the narrative. But today the market jumps.
Speaker 3 (06:14):
Why what are you hearing from the investors you're talking to?
Speaker 5 (06:16):
Yeah, I mean, I think that last week was very interesting.
I think we're seeing a little bit of buying, some
more optimism and enthusiasm coming back into the market. There's
a lot you know, in videos CFO was speaking this morning.
There's a there's just a lot of tech news sort
of coming back into the market that people are getting
excited about.
Speaker 3 (06:34):
Well, i'll see if it holds.
Speaker 2 (06:35):
Santa rally upon us potentially come and Ranicky, We so
appreciate your time. Let's talk about the crypto markets, because
they too are recovering today off that a heavy sell
of yesterday when bitcoin still as much as eight percent.
Let's take a look at strategy as well. The artist
formerly known as MicroStrategy, heavy investor in bitcoin gaining some
support after scrambling to calm its own investors, creating a
(06:57):
one point four billion dollar reserve to fund dividend and
interest payments rather than having to potentially sell bitcoin as
a last resort. And if I've seen a digital finance editor,
Anna Erera is joining us. What's more from London? Anna,
why today the did buying.
Speaker 6 (07:14):
It's hard to know with crypto, as I'm sure you're
aware of, and it's crazy to think that yesterday we
were down eight percent and thinking of all the macro
condition that might have been leading to that drop. So
you know, we were speaking to traders today and investors,
and it seemed that although the price is up, the
sentiment is still a bit cautious, and volumes aren't as
up as they were before. I think people are sort
(07:37):
of assessing that crypto in reality has been on a
downward spiral of bit since October twelfth, the eleventh, when
the price crashed, And so while today we're a bit up,
in reality, you know, we're still pretty lower than we
were around a month ago when bitcoin reached its record highs.
Speaker 2 (07:54):
I mean, negative bitcoin funding rate is still an anxiety,
extreme fear levels with coin market caps, fear and greed.
There's still a lot of comfort needed to an investor
base that's been beaten up, particularly the retail trade who
have tried to gain exposure not just by owning crypto,
but by owning crypto related assets such as what leveraged
bets on MicroStrategy now called Strategy and it talked to
(08:16):
us about how much retail of hurt here as well
as institutional.
Speaker 6 (08:20):
Yes, obviously we know that people were trying to retail
investor are trying to get exposure into bitcoin and crypto
through buying ETFs. Thatt, we're supposed to strategy or strategy
stock itself, and that's fallen dramatically over the past year,
and so you know they've been hurting. But at the
same time we've been trying to wait to see if
more institutional buyers will come in and offset that. But
it seems to be from what we're hearing, a sort
(08:41):
of weight and see mode, partly waiting until the FED
decision next week. So it's kind of in a way,
same old with crypto. One day it goes ninety percent,
the next thaying it's a five percent. The asset class
seems to be maturing and there's more ways to invest
in it, but maybe not much has changed.
Speaker 3 (08:56):
In Bergana or Era.
Speaker 2 (08:57):
Always great to have you, Thank you very much, and
stay Withloomberg because there's a conversation coming up you won't
want to miss if you're in crypto Fondly Strategy President
CEO coming up in the next hour on Bloomberg Crypto.
Elsewhere in that ecosystem, not all is gaining support. We're
watching shares of American Bitcoin Corp. Look at that forty
four percent at one point down fifty percent. A bitcoin
(09:19):
minor which counts Eric Trump as a co founder and
chief strategy officer, seeing multiple trading halts amid the volatility
now coming up, we'll be joined by Colleen Aubrey, Senior
and Vice President of Applied AI Solutions over at AWS.
We are live from the Companies we Invent conference in
Las Vegas.
Speaker 3 (09:37):
This is Bloomberg Tech.
Speaker 4 (09:53):
Good morning from Las Vegas. So let's talk about some
of the announcements out from AWS. Colleen Aubrey is Senior
vice president of AWS, Applied AI Solutions and clean You
basically work with the full spectrum of the smallest startups
to the biggest enterprise customers that AWS has and the
public sector, and it's distilling it as far down as
I can. You basically help them to take technology and
(10:14):
innovate make whatever they do better.
Speaker 7 (10:17):
Yeah, the mission I'm on is really to put AI
into the hands of the business on a day to
day basis and really make it work for their business
in production every day, helping them to deliver better experiences
to their customers.
Speaker 4 (10:29):
We have a new generation of AWS Silicon and server design,
We have a new generation of Nova model, and we
have frontier agents. Right and I think you probably heard
me at the top of the show, but I think
the big question about AWS Reinvent is what is it
in this year's offering that takes aws beyond being the
(10:50):
sort of number one cloud computing platform for capacity to
giving something tangible, useful that can improve a company's own technology.
Speaker 7 (10:59):
Yeah, two areas that I'd like to talk about specifically
for me personally, one of my products is Amazon Connect
and this started as a contact center application, but today
you know, I see it really as an agentic product
that's actually looking at whole customer experience. And so for me,
this is where we're putting our infrastructure, our silicon, our models,
and now today like bringing that all together in a
(11:21):
product that can work for businesses. So we launched twenty
nine new features on Sunday we announced that, and I
would say there's four key gentic capabilities that come with that.
The first is actually AI Voice and allowing customers to
interact in a very natural way using Novasonic and having
agents actually resolve issues for them on the behalf in
the background. The second is actually putting AI to work
(11:44):
as a teammate next to customer service representatives, helping them
to actually get tasked on complete the paperwork the processes,
provide recommendations, and help them really have a better view
of the customer so that the conversation they have with
customers is much much richer. The third area is actually
combining what I call clickstream, which is the path that
customers will take through websites and profiles, to be able
(12:07):
to present a much more specific recommendation and what a
next step won't be for a customer. And finally, you know,
one of the big issues for companies is sort of
confidently putting AI to work in their business. And in
this case, we've added observability where you can expect, how
inspect how an AI is reasoning, how it's thinking, in
what tools it's using, so companies can really observe AI
(12:29):
in the same way they would think about the people
and their business working with customers.
Speaker 4 (12:33):
I want to go to point number two. You use
the word teammates, yes, but you've in the past talked
about a hybrid workforce, people and agents. A lot of
what's come out since Sunday Night seems to reflect that
you want to increase the number of useful agents. That also, internally,
we can talk a little bit about what you're encouraging
Amazon teams to do, but the idea is that that
(12:55):
workforces will type should get comfortable working alongside agentic AI.
Speaker 8 (13:00):
Yeah.
Speaker 7 (13:00):
I see a future where actually everyone is managing a
team of AI agents. And I think our frontier agents
with software developments, sec ops and so DevOps and security
is sort of one of our first moves in that direction.
Where you actually have a teammate with a developer who's
able to address complex problems, able to work over hours and.
Speaker 9 (13:21):
Days, be able to solve for whole.
Speaker 7 (13:23):
Objectives, and to scale with that person, that the role changes.
I think we all are managing AI teammates, a team
of people that are all of AI, people that are
out able to we can delegate to, we can inspect
what they're doing, we can iterate with them, provide feedback,
and for me, that's where I think we end up going.
I think we're clearly moving that way in the customer
(13:44):
service direction, and I think the developer experience is also
clearly moving that direction.
Speaker 4 (13:48):
You're in a leadership position at AWS, but you have
been with Amazon broadly entering your twenty first year. You're
part of the S team, the leadership team generally internally
within Amazon's many arms. Is this like, particularly in the
context of the technology you've released here Reinvent twenty twenty five,
Is this at a stage where Amazon teams are dog
fooding this or it's just inherent the use of technology.
(14:12):
You want your own teams to be. I think AI native.
Speaker 7 (14:14):
Yeah, that's true, and I think what I observe within
Amazon certainly we're all very keen to get our hands
on our new frontier agents, and that is something we've
had in beta internally, and I think teams are very
excited to use that in production. We use connect within
our own customer service teams, our seller support teams, our
AWS support teams, for example. So we continue like to
iterate and learn from that. And I would say broadly
(14:36):
across Amazon, we've really tried to sort of embrace the chaos,
to put AI in the hands of every person in
the company and to see what they can do, how
they can transform how they work, what they learn. And
so you have a lot of teams sort of grassroots,
sort of trying to solve for what is the new
way of working using AI, and some of those experiments
(14:59):
don't lead in newhere, and some lead and a place
that's really meaningful. And then you have sort of this
social contagion that happens that people learn from each other.
Speaker 4 (15:06):
Okay, aws number one in cloud computing and in the
sense of scale infrastructure deployments, is it number one in AI?
Speaker 7 (15:15):
I think we have all the pieces in place and
we're well on our way. We're very, very focused, and
what I really like about our strategy is that we're
working all the way, all the way, the full stack,
you know, from clean energy, chips, data centers around the world,
bedrock with real great selection, including our own models. And
I think Roehet's making really fast progress on that. And
(15:37):
I think for Swami and I really trying to put
those all of those pieces to work where out of
the box a business can get value.
Speaker 4 (15:45):
We've got a conversation with Swami coming up in a bit.
Colleen Aubrey, SVP of Applied AI Solutions to AWS, Thank
you so much, Carrot, what.
Speaker 2 (15:52):
A great conversation. Let's stick with Amazon as well, because
the company, which is vast it plans to offer deliveries
of hundreds of house items, including some fresh groceries or
over the counter medicines within just thirty minutes and test program.
But it's begun in Philadelphia, we stand will begin there
and its home city of Seattle now coming up the
Dells make an unprecedented six point twenty five billion dollar
(16:16):
donation to the Kids of America or on that.
Speaker 3 (16:18):
Next, this is Bloomberg Tech.
Speaker 2 (16:34):
Michael and Susan Dell are donating six point twenty five
billion dollars, gifting twenty five million children in America two
hundred and fifty dollars each in an effort to jumpstart
their investment accounts for the future. The proceeds build on
the Invest America Initiative or Trump accounts as they're known,
which we'll see one thousand dollars for every child born
from twenty twenty five to twenty twenty eight. Let's talk
(16:55):
about all of it with bost Tom Maloney and how
unprecedented is this? This SI is a philanthropic gift.
Speaker 10 (17:02):
It's pretty unprecedtentded I mean, there've been big philanthropic gifts before,
but something going to cover twenty five million children in
the cover really is pretty unheard of. And a gift
to go through the federal government. I mean, he's donating
the money to the US Department of Treasury. That's pretty
unusual too, So it's quite an unprecedented gift.
Speaker 2 (17:21):
Let's go back to what all of this is sort
of sitting alongside, which is invest in America. We sort
of saw that roundtable alongside other CEOs, a lot of
them tech who have been thinking about how to get
money into the hands of children to invest in the
longer term.
Speaker 4 (17:36):
Tom, that's right.
Speaker 10 (17:38):
Yeah, those were created as part of the One Big
Beautiful Bill, as you mentioned, one thousand dollars for kids
born between twenty twenty five and twenty twenty eight. And
what Della is doing is kind of covering the gap
for children ten under who aren't covered under that program
and giving them two hundred and fifty dollars to be
used for things like college or startup, starting up their
(17:59):
own business, or home deposit when they're eighteen or older.
Speaker 2 (18:03):
Now, Michael Dell and his family and he's the eleventh
wealthiest person in the world, but it's other tech moneyed
people who have been putting this initiative to work. And
I think about really Brad Gerstner, who has been the
driving force initially behind what is this sort of invest
America outreach. He set it up back in twenty twenty three.
Of course we know him from Ultimeter.
Speaker 10 (18:25):
Yeah, that's right. He's been working on this for a
couple of years. As you mentioned it predates Trump obviously,
you know, the name Trump Accounts certainly got his attention
and I think helped put it into the One Big
Beautiful Bill. But yeah, it's kind of an issue that
Democrats and Republicans have been interested in something like this,
(18:47):
a product like this that gets everyday Americans invested in
the stock market from a very young age. It's kind
of a bipartisan issue.
Speaker 2 (18:56):
Yeah, And Brad over at Altameter, he's been saying that
this is a platform for every company in America to
think about how they reward employee's own children.
Speaker 3 (19:04):
But it doesn't need to just be a company.
Speaker 2 (19:05):
It could be mums and dad's, churches, synagogue's. Many to
be putting it aside in a sort of tax efficient way.
Speaker 9 (19:10):
Tom.
Speaker 3 (19:11):
What's interesting is, of.
Speaker 2 (19:12):
Course Dell Stock has moved on all of this, and
this comes after a truth social post.
Speaker 3 (19:18):
Yeah, that's right.
Speaker 10 (19:19):
Dell stock was up about four percent last time I looked.
Trump obviously singling out Michael and Susan Dell for their
donation this morning, he was seemingly very happy about it.
And you know, when Trump tweets about something, it tends
to move stuff in the market. So we're kind of
saying that I don't know if it's going to last,
but there you go.
Speaker 2 (19:39):
And of course that contributes to the networth of the
Dell family. On the back of that, Bloomberg's Tom Maloney,
it's been fascinating talking to you, Thank you very much. Indeed,
let's turn now to Warner Brothers Discovery. The company has
received a new round of bids, with one from Netflix
consisting of a mostly cash offers, according to sources. For more,
Bloomberg's Michelle Davis, who covers M and A Immediate joins us.
Speaker 3 (19:59):
Now, so can we.
Speaker 2 (20:00):
Break down how these is starting to note because they're
going to be sweetened.
Speaker 11 (20:04):
They've been sweetened, yes, so the bidding is heating up.
Yesterday Warner Brothers had asked for sweetened offers from all
of the companies, so we know they received offers from
Netflix mostly cash. That was a big surprise because people
were expecting it to be stock. You know, Netflix's stock
has been doing pretty well. They have great currency, but
they're also an investment grade company, so they can afford
to raise a lot of money. We hear they're in
(20:26):
the market talking to banks about tens of billions of
dollars for a bridgeland. So there's Netflix, there's Comcast which
has also bid it only wants to streaming, and the
studios of Warner Brothers similar to Netflix. We're still trying
to glean the details of that offer, but we have
heard that it likely includes a little more stock than
the cash offered by Netflix. And finally, Paramount, the one
who kicked all of this off. They're the only bidders
(20:47):
who have actually made a play for the whole company.
We're hearing that their offers also is also completely cash.
They have backing from Larry Ellison, David Ellison, you know,
some of the rich, wealthiest people on Earth and Middle
East earn money as well as Apollo er putting in
some of the financing for their offer.
Speaker 2 (21:03):
And it feels as though that's been the narrative that
the Edison bid might be one that is more approved
of by the administration. But are there any blocks? Are
there any issues from a regulatory perspective for Paramounts guide
downs just getting any big O or any of these
players getting any BIGA.
Speaker 11 (21:18):
Yes, So the Warner Brothers board is really I mean,
they are in a position where they have lots to assess,
but it's not apples to apples, because they're evaluating, you know,
a bid for the whole company in cash, a bid
that might include stock and cash but only for part
and then you know other structures that are unclear for
Paramount and comcasts. There's clearly lots of synergies that they
(21:38):
could achieve by combining the companies, but there's a view
that doing that, you know, to achieve those synergies, they
would cut a lot of jobs. I mean, maybe thousands
of jobs at the studios by combining these studios Netflix
Their argument might be, we're not going to do something
like that, and so it'll play better, you know, with
labor unions and regulators. But Netflix also already has a
lot of power. So it's a bit wildcard to see
(22:00):
how the regulators are going to view that.
Speaker 2 (22:02):
Yea, many are going to say, is YouTube count being
counted in the numbers? How we think about this from
a regulatory perspective, from a state and federal perspective, timeline, any.
Speaker 3 (22:11):
Sort of idea.
Speaker 11 (22:12):
We're hearing that they want to get this sorted before
the end of the year, and that makes some sense
because for the banks who are underwriting the loans, they
don't want the loans on their books at your end,
because it's going to cost them a lot more money,
which means the bidders won't be able to pay as
much for these assets. So we've heard that there's a
deadline of before the holidays. A decision could be made
as early as this week. You know, the binding offers
(22:32):
are in, so that means Warner Brothers could move quickly,
but they're also giving themselves room to ask for more bids.
You know, later on this month, CHERL.
Speaker 2 (22:40):
Davis will be across the story. We appreciate it.
Speaker 9 (22:42):
Now.
Speaker 3 (22:43):
Coming up, we're going to be going back to.
Speaker 2 (22:44):
AWS Reinvent the conferences on in Las Vegas. We're gonna
sit down with Swami sieve us of Romanian, vice president
of a Gentki for that company.
Speaker 3 (22:52):
This is pretty big tech. Welcome back to Bloomberg Tech.
Speaker 2 (23:02):
We check in on these markets that are losing a
bit of their earlier esteem. We're still holding on to
three ten percent higher, but remember we're up more than
a percentage point in earlier trading. Is in video perhaps
loses some of its edge in terms of points perspective.
Apple leading the charge right now, Intel as well. I'm
looking at Bitcoin though, still holding onto its games. Best
day since May. We're now at the highest level and
(23:23):
ninety nine since the end of November, so a few
days we're up four point percent as we see a
little bit of shifting in sentiment. Let's look at a
key name that has shifted in sentiment. It was beaten
up in November. Now we're still up two percent. Let's
call it. We're rolling over somewhat. But Pan Andeer, in
another AI names, have seen a bit of love today.
It seems as though Pan Andeer could be a trillion
(23:43):
dollar company. That's what Dan I've been saying on the day.
But really he's looking at big Tech and MAG seven
to add twenty to twenty five percent in terms of
share growth for twenty twenty six.
Speaker 3 (23:53):
But for now, we return to one of.
Speaker 2 (23:54):
The key MAG seven in that pile, and it is
Amazon and it's Aws. Even is upon us in Las
Vegas and take it away.
Speaker 9 (24:03):
Yeah, thank you very much.
Speaker 4 (24:04):
Karas talk more about Amazon's agentic plans with Swami Siva Supermanian.
He's vice president for a Genta ki at AWS and
you've basically brought out and released three from what you
call frontier agents.
Speaker 9 (24:17):
That's right, across.
Speaker 4 (24:19):
An autonomous agent security DevOps and considering where aw sits
in the market and everyone that attends reinvent, probably the
question most people would have is if I'm a large
enterprise and I have multiple teams, multiple deaths, doing multiple things,
how do I deploy three of these frontier agents?
Speaker 9 (24:38):
Yeah?
Speaker 8 (24:39):
Father MEAs out of it, saying here at daw As
we are of building the foundation for billions of agents,
and that's an understatement. So what do we launch with
these frontier agents? Is essentially a new category of agents,
because while so much our activity is happening in agents,
there are historically being more assistance to humans. And while
(25:02):
we deploy it, even with an Amazon Christen sew thousand
set developers to help with software development, we were actually
wanting to push the envelopement being able to actually do
a lot more where they are actually autonomous, where you
don't need humans to constantly steer them, and they are
massively scalable and they can run along.
Speaker 4 (25:22):
To be autonomous, they need to have an end goal,
that's right, How does that work? So it's a case
of saying, by the way you use the term AI assistant, Yeah,
what we're now really talking about is AI co worker.
Speaker 9 (25:34):
That's right, and that is the key thing here.
Speaker 8 (25:37):
It's just like what these frontier agents are doing is
completely transforming how software is getting done in these teams.
So much activity happens primarily in like software development, but
now these agentic teammates they show up as another teammate
for software development. They pull up actually jobs from like
(25:59):
guitar task and start coding and clearing backlog. And if
you're in the middle of the night actually getting page
to deal with an issue happening with your website, this
agent first takes the first page and says, oh, let
me look into what's happening and unpack and then find
out the root costs so that you can actually quickly
resolve it and go back to bed, like I've been
(26:20):
on call and I know I could use that help
and be proactive so that those issues don't happen. And
third is actually a security teammate, so it shows up again.
And most of security has always been about afterthought. One
of the things we are changing the game here is
actually meeting developers even before they write a single line
(26:40):
of code when they're designing software. We catch them right
there and say here are the things you should be
aware of. And when they write code, we say, oh,
don't do that, do this and actually do penetration testing.
Speaker 9 (26:52):
All before shipping.
Speaker 8 (26:53):
So now you can view it as like you have
the best in class developer, OPS and security engineers showing
up as virtual teammates for every.
Speaker 4 (27:02):
Software you say best in class? What evidence does AWS
have that in real world deployments? Running these three agents
in parallel autonomously has a clear benefit. Yeah, their efficiency, productivity.
What data can you share?
Speaker 9 (27:17):
Yeah, I'll give actually a couple of examples.
Speaker 8 (27:19):
One is in the DevOps agent that we launched, we
ran it across thousands of escalations that happened this year alone,
on incidents and so forth. These agents actually correctly identified
the root cost eighty six percent of time.
Speaker 9 (27:35):
That is like really impresses eighty six eighty six eighty
six percent.
Speaker 8 (27:40):
And the second one is Commonwealth Bank of Australia.
Speaker 9 (27:43):
They actually have a huge cloud.
Speaker 8 (27:46):
Infrastructure running across thousand, seven hundred accounts and they put
this DevOps agent test to test and for a very
complex networking stack to debug it. And what they said,
what did to take them? Like our Diba this was
able to do it in minutes and these are just
few simple examples, same thing. What's going on at security agent.
(28:08):
Smart Bug is a great photo company and there I'm
a big customer, and they are completely automating their security
operations altogether using like AWS Security Agent. And these are
all the beginning of how this is going to change
the game in.
Speaker 9 (28:26):
A big way.
Speaker 8 (28:26):
Because what do you want these agentic teammates to be
is always be there and you delegates on the boring
drudgery associated with like ops and security and backlog on
developments so that developers are empowered to be extremely creative
and you will start seeing fighter ten x improvement in
(28:47):
productivity in a big way.
Speaker 4 (28:48):
To reach out its three agents, Kero is software development.
You have the AWS Security Agent, the AWS DevOps agent.
They are designed to run for hours autonomously. To sum
that disconcerting, right, And I go back to my other question,
how much concern is there in the last segment Clean
talk to me about observability, understanding in real time what's doing.
(29:12):
But that sounds to me like it's human supervision.
Speaker 9 (29:15):
It's a great question.
Speaker 8 (29:16):
I mean, this is the nuance and the art of balance.
We had to do one. You want these agents to
be autonomous and massively scalable, but you also want them
to not go off the rails. So first we are
built it with the right guard rails. And second even
a spart a development workflow, these agents can go actually
take a goal from a developer to say, hey, go
(29:39):
work on upgrading.
Speaker 9 (29:40):
This piece of code to the latest systyk and then
start upgrading.
Speaker 8 (29:44):
But then as a final step, it might send it
for a code review to the human and say take
a look and make sure I'm okay. And once they
say I'm okay, I think it's fine, or they can
even configure it to say if it pass us all
these tests, you're good to ship it. So that you
have built in s either through human or automated tests.
And these are the kind of things now we are
(30:05):
able to actually innovate with the customers as well. And
even there we have done some pure innovation like introduced
automated mathematically provable property based testing, so that means now
developers can specify their goal and we can mathematically prove
with things like kiro that whatever it is generating can
(30:28):
be tested exactly that way and it's accurate. So that
is like another game changer.
Speaker 4 (30:33):
SWAM we see the supermanian vice president for a gens
Ki at aws three new Frontier agents carry We're talking
about here in Las Vegas, back.
Speaker 2 (30:41):
To you, loving it back here in New York. Ed's
time for talking tech. First up, Apple's head of AI
John Jian Andrea, Well, he's coming down with mans to
lead the company entirely in the spring. The move caps
are pretty tumultuous tenure that included a fumbled entry into
General's AI. Apple won't be directly replacing Jian Andrea, instead
opting to break up the AIT plus Samsung It's unveiled
(31:04):
its first trifle smartphone. It's called Galaxy Z Trifle and
the device contains two hinges allow it to transform into
a larger tablet like device. The phone is set to
be released first in South Korea on December the twelfth,
with a price of about four hundred and fifty dollars,
and the US Commerce Department has agreed to invest as
much as one hundred and fifty million dollars into x Light.
(31:27):
It's a chip startup where former Intel CEO Pat Gelsinger
serves as executive chairman. So the latest moved by the
Trump administration to bring chip making capabilities back to the
United States. Now coming up, guess while we go back
to AWS in Vegas. This time it's a conversation.
Speaker 3 (31:42):
With Sanjay Back to Cone.
Speaker 2 (31:44):
Nas chief Product and Technology Officer is a blueber tech.
Luma AI, known for its flagship creative product, dream Machine
(32:07):
video generator, taking a step forward in global expansion with
opening its first international office and it's in London. This
follows its recent nine hundred million dollar Series C investment,
which was led by Humane and Met Jane Is with
US co founder CEO of Luma AI and so.
Speaker 3 (32:23):
Pleased to join you.
Speaker 2 (32:23):
I can't wait to get into reasoning video models, into
the future of world models.
Speaker 3 (32:27):
But first am it? Why London?
Speaker 12 (32:31):
We have a huge pipeline. Actually, by the way, thanks
for having me. I'm very excited to be here. We
have a huge pipeline of researchers, engineers from Europe and
also deep Mind that want to join luma And also
London is the gateway for the business in Europe as
well as Middle East, so it seems to be the
(32:53):
right place to have our second office outside of Palo
Alto and Bay Area. So yeah, today is our launch
of the London office.
Speaker 2 (33:00):
I have a feeling demos hasibus over at deep Mind
and the AI labs at Google we'll be having is
is pricked by that, amit? So why would people currently
working or having been trained at deep Mind and the
like want a jump ship to help build Ray three
your reasoning video model.
Speaker 12 (33:15):
Yeah, I think that's a great question. So Luma already
has actually a deep bench of researchers from from n
video from from deep Mind, from you know, schools like MIT,
Stanford and Berkeley. And the reason that these incredibly exceptional
people actually join Luma is because, one, while it is
(33:36):
a very very well resourced AGI lab, we are only
about one hundred and fifty people, so we get to
do and get to have resources per person that, like,
you know, it's unheard of in the rest of the
industry actually. And second, Luma is so ultra aligned on
this one goal, which is to build multi model AGI.
There's actually no second There is no second project happening
(33:58):
at Luma.
Speaker 9 (33:59):
This is what we do.
Speaker 12 (34:00):
So people researchers, engineers and product people who believe strongly
in this mission, Luma is the best place in the
world for them to be.
Speaker 2 (34:11):
Looking at some of the amazing video that you create
I can see how it goes into the creative sphere,
into advertising and the like, but it feels as though
this model, these world models, has moved to perhaps more
physical AI applications must open up different industries.
Speaker 12 (34:28):
Yeah so, I mean video and video is actually the
path to AGI. And let me tell you just very
briefly why that is the case. Language gives us reasoning,
and language gives us the human abstraction that is necessary.
Video shows us the entire universe. Right, you know how
things behave, how water behaves, how the laws of physics work.
Then you combine them together. Then video, audio and language
(34:51):
together is basically a chance to build a universal simulator.
So one application of that, as you point out, is
obviously for entertainment and to generate video to automate or
or to to make digital the act of creating video.
But in addition to that, it is the gateway to
be able to build actually general purpose robotics. That is
(35:12):
the second area that we are very deeply focused on
and now starting to build out a team and the
research area of that, and we have if we want
to have any shot at building general purpose robots, then
the only way that happens is by giving them this
level of general understanding of the universe so that they can,
you know, reason in their head. They can actually simulate
(35:32):
every scenario right in their head, like, Okay, what would
happen if I do this? What would happen if I
do something else? This level of learning and reasoning is essential,
so video as it advances and as we scale these models,
they will not only get better and better, they will
get more accurate in simulating physics. And this is the
path to building physical intelligence. And that's why Luma's model
mission is to build multimodel agi that can generate, understand,
(35:56):
and operate in the physical world. And that is the
end goal.
Speaker 2 (36:00):
What is the biggest blocker to that or the thing
that keeps you up Because at the moment, you've got
the money, Boy, do you have the money nine hundred
million raised, But we've also got promise of compute coming
from Saudi Arabia.
Speaker 3 (36:09):
Is it about compute?
Speaker 2 (36:09):
Is it more about the talent that is what you
need to push through to get to your mission.
Speaker 12 (36:15):
Yeah, So there are two really important things for LUMA.
Over the last couple of years, we worked tirelessly to
solve the research problem for like you know, really really
great video. Now the next frontier for us are these
omni models that are able to like you know, reason
an audio, video, language text together. So the research is
like you know, the first one that we pay mental
(36:36):
amount of attention to now to solve the research of course,
you know, people and really really brilliant people is one
of those bottlencks. So we hire from some of the
best places. See, we don't need thousands of people. We
need like, you know, maybe two hundred or three hundred
really really brilliant people to work on these problems. So yeah,
that's that's the first one. The talent and great aligned people,
(36:57):
that is the first one. Second is obviously compute. So
alongside with the SERIOC announcement, we announced that we will
build with Humane and collaboration with Humane, a two gigawat
compute cluster that is the largest compute build out in
our space of world models and video models and like
you know, this kind of physical AI. And it is
also one of the largest compute built out in AI period, right,
(37:20):
So compute is one of the other things that is
a big limitation. Ultimately, multi model AI will be a
superset of llms, will be a superset of the AI
we have today, it will require more compute than llms
do right now. So compute is the second very important
input to our business that, like you know, we are
working to not only shore up but solve in a
(37:41):
way we can serve these models economically to a lot
of people.
Speaker 2 (37:45):
I mean, Jane, come back and tell us how you'll
continuing on that mission.
Speaker 3 (37:48):
Go found a CEO of Luma AI.
Speaker 9 (37:51):
Thank you.
Speaker 2 (37:52):
Coming up, we're talking more about AI and infrastructure. We're
going to aws's event in Vegas. Were a conversation with
Sanjay Blackta Conde, NAS chief product and technology officer is
a blue big.
Speaker 4 (38:02):
Tech Sanday back to Conde, NAS chief Product and Technology
officer joins us from AWS reinvent in Las Vegas. You're
(38:25):
kind of bucking a trend that we've been talking about
throughout the year in the context of AI. Actually on
prem has kind of been back when AI is being
run at the edge. You're going the other way from
on prem, relying heavily on AWS.
Speaker 9 (38:39):
The rationale, well.
Speaker 13 (38:41):
We are actually users of AI. We are not like
some of these LLLM companies that are creating and training
their own models. Although we have trained models in the past,
but at a much smaller scale. So for us, investing
in infrastructure and building out data centers for the size
of our operation doesn't make sense.
Speaker 4 (38:57):
The work with AWS is focused on deli ring personalized content, right,
And is that at the foundation model level you know
AWS out with Nova to today, or it's just simply
that you're leveraging their scale the multitude of data platforms
they have.
Speaker 13 (39:11):
Yeah, for that particular use case, we're actually just leveraging
their infrastructure and scale. We've built all the personalization models
ourselves and we've trained them in house, and we've been
doing that for the last probably three four years, long
before LLMS became a thing. We've had our own data
science team and we've been training models. So we use
our own homegrown models for most of the personalization and
(39:33):
recommendation workload.
Speaker 4 (39:34):
So here in lies the question of AWS reinvent AWS
number one in cloud computing, but they want to do more,
They want to be number one in AI. You know,
their own foundation models, the agentic tools that they release today.
What would it take from Amazon in terms of the
utility of that technology for you to rely on them
more heavily.
Speaker 13 (39:55):
Well, actually, for some of the generative use cases you
know that are LLLM based. We are using Amazon Bedrock.
You know, we have a contracts management, rights clearance system
that we just launched. We are using Amazon's Bedrock capability
for some of our moderation AI based moderation of user
generated content. So we're looking more and more now to
(40:17):
towards using out of the box capabilities that Amazon provides
rather than build and train our own models, which we.
Speaker 9 (40:23):
Used to do in the past.
Speaker 13 (40:24):
I think the need for that is becoming less and less.
Speaker 4 (40:28):
Conde has a relationship with open AI. Condy was one
of the first to make a deal with open Ai
early days, it seems. But how is that progressing?
Speaker 9 (40:36):
That's going well.
Speaker 13 (40:37):
Actually, we're starting to use chat GPT quite widely within
the enterprise internally, yes, and for external use case. We've
actually launched an AI based recipe search on bond Appetite
on our on our website, and also it's going to
come out in our app which allows customers to go
in and do natural language search and also be able
(40:58):
to modify the it has peace according to their taste.
So that's the first use case we are looking at
others with opening I as well.
Speaker 4 (41:06):
The broad theme of the program today here at AWS
has been about companies of all sizes moving from using
AI assistance internally to what awso call the AI co worker,
you know, a hybrid workforce of people and energentic AI.
Conde has done layoffs in the past two years, financial years.
How much has that been about AI tools changing productivity,
(41:30):
eliminating certain roles, changing certain roles.
Speaker 13 (41:33):
Well, I don't think it's most of it has been
about AI. Actually, some of it, you know, especially in tech.
You know, we've had we use extensively, We use AI
for our work work on a day to day basis,
which eliminates the need for some roles. We can do
more things with fewer people. But other than that, across
the organization, we've not really had any AI based impacts.
Speaker 4 (41:54):
Got to ask in a different part of the Amazon universe.
I've been experimenting at home with Alexa and Alexa plus.
Do we get some kind of Conde nas Alexa integration.
Speaker 9 (42:06):
Well, that's work going on there.
Speaker 13 (42:07):
We have actually already integrated with Amazon Alexa.
Speaker 9 (42:10):
So how does that work available?
Speaker 13 (42:12):
So you know, you can query and you can get content,
you know, read out to you from some of our
publications not all so, but I think it's pretty cool.
We should try it out.
Speaker 4 (42:21):
At the heart of that question is something a bit
more existential. Conday sees itself more as maybe entertainment, and
if you look at the revenue streams very different from
saying you're a news organization. Just explain how you see
this company transitioning right now?
Speaker 13 (42:35):
Yeah, I think they're definitely in the entertainment space because
if you look at our brands, you know we mostly
cover leisure, fashion, lifestyle. We're not a daily news outlet,
so people don't come to us on an everyday basis.
So we are competing with other entertainment outlets, whether it
is you know, streaming media like Netflix or Hulu or
Amazon Prime, or social media you know TikTok and Instagram
(42:58):
and others. So people have limited spare time, so we
are competing for a slice of that. So we definitely
have to do way better in terms of our personalization
and user experience and also our great journalism that we have,
I think is what is going to take.
Speaker 4 (43:10):
Us forward, Sunjay, in the year ahead, what's the one
big change you want to make on the technology side,
the one thing you're still yet to do be AI
or something else?
Speaker 13 (43:18):
Yes, I think it's mostly definitely around AI. We have
a pretty solid data infrastructure that we've built on Amazon
with data bricks, and our next task is really to
figure out how do we vectorize all of our content
and make it readily available in real time to lllams.
I think that is probably our number one challenge.
Speaker 4 (43:37):
Sanjay Bakta Conde Nas, thank you so much for joining
us here in Las Vegas.
Speaker 9 (43:40):
Carry back to you.
Speaker 2 (43:41):
Fascinating set of conversations across the gamut of all things
AI and entertainment edge.
Speaker 3 (43:46):
We thank you.
Speaker 2 (43:47):
You got so much more coming up that does it
this edition of Bloomberg Tech, But do stick around. It
is going to sit down interview with AWS CEO Matt
Garman's three pm Eastern twelve pm Pacific first right here
on Boomog Television.
Speaker 3 (44:00):
And who all, don't forget to check out a podcast you're.
Speaker 2 (44:02):
Finding on the terminal as well as online on Apples, Spotify,
and iHeart from New York from Las Vegas.
Speaker 3 (44:07):
This is a blue Bag Tech
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