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Adobe makes its AI video debut, announcing new tools allowing for video generation now. The company calls it Firefly, and it's set to be implemented in its video editing software Premiere Pro, taking on, of course, the likes of OpenAI, Meta Google a place to say. Adobe CEO Shantanu Orian joins us now on the back of the announcement in Miami. Shantanu, what's interesting is you're getting into the hands of users faster than rivals. Is it based on what it's trained upon?
How are you able to give it to us so quick?
Caroline, first, thanks for having me on the show.
Max.
As you know, is our biggest creativity event, and it's the time that our engineers really take it upon themselves to show their magic to the entire creative community. As you point out, we have been hard at work ensuring that our Firefly set of models works on things like images and vector and design. But today's a big day
because we have been releasing our Firefly video models. You know, our strategy has always been that it's not just about the models that people develop, but it's the integration with the apps where the real magic is, and so we've had thirteen billion generations where people have used either Photoshop or illustrator to do it, and today that magic comes to video in Premiere Pro, will be in after effects as well as on firefly dot com Chantanu.
The most interesting part is the accessibility. There are no usage limits one, but beyond the basic subscription fees, you're not charging for the AI tools. Will that change.
Well, Our focus really first is on ensuring that we developed these great models. We're very differentiated, and these models were designed to be commercially safe, so they've only been trained on licensed and public domain content, and you know, we want people to experiment with it. So I think clearly on the imaging, vector and design front, we have said as part of the subscription, we don't want you to think about credits. We just want you to experience
the magic that exists. A video might be a little bit different ed. What we've announced today is that it's available in a beta form. The cost of producing video is clearly a little bit more expensive, but first steps is to just get it in the hands of people, have them try it, give us feedback, make sure it's specific, and then as I think the amount of video that's being generated is expanding. We will probably have different pricing models for that.
One of the features is to take an existing piece of video and use generative AI to extend it, extend beyond actual. As someone that trained in their early career on premiere, I'm excited to use that. How technically difficult was it for Adobe to achieve that versus the work you've done in photo?
Well, every time you show something in photo and people say, oh my god, that's magic. To your point, the ability to extend that into video across every frame is so much more computationally intensive as well as challenging in order to do. But the use cases are so dramatic. You've had a video for some reason, unfortunately it got clipped off and you just want to extend it. You have video that you want to align with audio, the song is not long enough. How do you do it? So?
I think this generative extent concept, which is really something that's very pervasive in video editing, is something that the customers will really like. The Other thing that we've done is because we can now analyze every frame. When you want to remove something that inadvertently came into the image, you don't have to go through the entire process again,
you can just through post production change it. So some pretty incredible stuff and we're really excited to see what our customers do with this.
You talked about the computational feat the intensity, What about GPUs, what about your own access to compute?
You know, well, we've partnered with you know, Nvideo for years in making sure all of this stuff is available. You know, it was great to hear from Jensen this
morning when he heard about our new announcements. But you know, we're partnering with all of the chip manufacturers as well as all of the hyper scalers because our intent is not just to make this magic available through you know, those chips, but also increasingly people are talking about how you can make this available on a mobile device or
in a hybrid environment. So you know, as long as they keep performing in terms of what they are doing innovation on the chips, we'll take advantage of every single available GPU and CPU for our customers.
That's expensive and also, look, investors have been so excited around just generative AI full stop, but they want to see the revenue. They want to see the profitability chantanute. You feel that you're able to give more light, more clarity to the market as to when this really becomes very revenue generating.
You're absolutely right, Carolin, that all of the focus thus far has been on training, and people have been creating all the models, and so all of the investment that's actually happening is on the training side of the equation. However, I think Adobe has delivered more generative AI software than virtually any other large company that had a traditional business.
So if you think about what we've done with Acrobat AI Assistant or Photoshop, and clearly the emphasis has to go on inference because that's where people are seeing value, that's where it's getting embedded in the workflows. You know, we will have three or four different ways in which we monetize it, and we have a financial analyst Q and A where we will talk about this as well. But as a you know, insight into that. Certainly our subscription tier pricing will have the ability to lose some
of this AI. We will have add on services. Firefly services is being used by every large enterprise. They want to understand how they create a custom model where they can have, for example, Bloomberg assets in a custom model where only Bloomberg is allowed to generate with that content. So I think we have multiple ways in which we
monetize it today. Already, performance marketers will have a new product today which is called gen Studio, so you can increase the agility by which you place ads on every advertising system. So you know, we're both excited about the technology and the value, but we're also confident that customers will see the value and enable us to monetize it.
Chantonnay intense interest in your m and A strategy. Karen and I were with the Runway CEO last week. Will you look at companies like Runway.
We're partnering with Runway. You know, I think as it relates to models, we believe that Adobe for its core domains such as video and imaging and design, and we will certainly have our own models, but people will want us to support third party models in our applications because that is the interface that everybody uses. We've demonstrated that for video at IBC with Runway, and certainly we will
support these custom models. As I said, so if you're Coke or Nike or Bank of America and you're using it within your context, you have access to that, So you know this is going to be such an exciting area. Each model, I believe ED will have its own personality. So rather than you know, try to create one model that's the super set, We're going to support all these models because they will do some things differently and better.
Adobe CEO Shansanuin Ryan is great to finally have you here on Bloomberg Technology. Thank you for your time