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.
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, 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.
On the day.
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 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.
Let's get straight over to Ed Ludlow.
You're in Las Vegas at the reinvent event.
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
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.
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.
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.
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 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.
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.
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
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.
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 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.
Let's call it.
We are just more about delivering growth while keeping really tight little spending.
It's a real flip reverse.
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.
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. 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 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.
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.
Why what are you hearing from the investors you're talking to?
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.
Well, i'll see if it holds.
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 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.
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 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.
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 us about how much retail of hurt here as well as institutional.
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 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.
In Bergana or Era.
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 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.
This is Bloomberg Tech.
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 innovate make whatever they do better.
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.
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 sort of number one cloud computing platform for capacity to giving something tangible, useful that can improve a company's own technology.
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
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 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 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 in the same way they would think about the people and their business working with customers.
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 workforces will type should get comfortable working alongside agentic AI.
Yeah.
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.
Days, be able to solve for whole.
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 service direction, and I think the developer experience is also clearly moving that direction.
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. You want your own teams to be. I think AI native.
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 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 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.
Okay, aws number one in cloud computing and in the sense of scale infrastructure deployments, is it number one in AI?
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 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.
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.
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 donation to the Kids of America or on that.
Next, this is Bloomberg Tech.
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 about all of it with bost Tom Maloney and how
unprecedented is this? This SI is a philanthropic gift.
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.
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.
Tom, that's right.
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 own business, or home deposit when they're eighteen or older.
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.
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, 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.
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.
But it doesn't need to just be a company.
It could be mums and dad's, churches, synagogue's. Many to be putting it aside in a sort of tax efficient way.
Tom.
What's interesting is, of.
Course Dell Stock has moved on all of this, and this comes after a truth social post.
Yeah, that's right.
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.
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.
Now, so can we.
Break down how these is starting to note because they're going to be sweetened.
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 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 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.
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.
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 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 how the regulators are going to view that.
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.
Sort of idea.
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 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.
Davis will be across the story. We appreciate it.
Now.
Coming up, we're going to be going back to.
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.
This is pretty big tech. Welcome back to Bloomberg Tech.
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 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
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.
But for now, we return to one of.
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.
Yeah, thank you very much.
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.
That's right, across.
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?
Yeah?
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 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.
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.
That's right, and that is the key thing here.
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
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 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 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.
All before shipping.
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.
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?
Yeah, I'll give actually a couple of examples.
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.
That is like really impresses eighty six eighty six eighty six percent.
And the second one is Commonwealth Bank of Australia.
They actually have a huge cloud.
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. 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.
A big way.
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 productivity in a big way.
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. But that sounds to me like it's human supervision.
It's a great question.
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 work on upgrading.
This piece of code to the latest systyk and then start upgrading.
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
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 be tested exactly that way and it's accurate. So that is like another game changer.
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.
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
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. 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.
With Sanjay Back to Cone.
Nas chief Product and Technology Officer is a blueber tech. Luma AI, known for its flagship creative product, dream Machine 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.
Pleased to join you.
I can't wait to get into reasoning video models, into the future of world models.
But first am it? Why London?
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 right place to have our second office outside of Palo Alto and Bay Area. So yeah, today is our launch of the London office.
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.
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 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 at Luma.
This is what we do.
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.
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.
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 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 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 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, and operate in the physical world. And that is the end goal.
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.
Is it about compute?
Is it more about the talent that is what you need to push through to get to your mission.
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 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, 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, 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 way we can serve these models economically to a lot of people.
I mean, Jane, come back and tell us how you'll continuing on that mission.
Go found a CEO of Luma AI.
Thank you.
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.
Tech Sanday back to Conde, NAS chief Product and Technology officer joins us from AWS reinvent in Las Vegas. You're 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.
The rationale, well.
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.
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.
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 recommendation workload.
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.
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 towards using out of the box capabilities that Amazon provides rather than build and train our own models, which we.
Used to do in the past.
I think the need for that is becoming less and less.
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?
That's going well.
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 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.
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, eliminating certain roles, changing certain roles.
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.
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.
Well, that's work going on there.
We have actually already integrated with Amazon Alexa.
So how does that work available?
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.
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?
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 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.
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?
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.
Sanjay Bakta Conde Nas, thank you so much for joining us here in Las Vegas.
Carry back to you.
Fascinating set of conversations across the gamut of all things AI and entertainment edge.
We thank you.
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.
And who all, don't forget to check out a podcast you're.
Finding on the terminal as well as online on Apples, Spotify, and iHeart from New York from Las Vegas.
This is a blue Bag Tech