From Mahart where Innovation of Money and Power Collie in Silicon Valley NBN. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
And Caroline Heide a Bloomberg's weld headquarters in New York. Ed Ludlow He's off. This is bloomg Technology coming up.
Paramount and Skydance reach a merger agreement after collapsing last month. For coverage ahead, plus Apple and open Ai deep in their relationship as the iPhone maker gets.
An observer on the company's board.
And we'll turn to the intersection of health and technology as we sit down with the CEO SENOFIE. But first quick check on these markets, because even without the play of Nvidia, we're managing to break new records. We're currently up three tenths of percent on the nastag up fifty nine points. You're looking at the tenure yield screeching down some nine points. Why will the bad news is good news?
The economy is showing some signs of slow and when it comes to services, and indeed on those jobless claims we fall some nine basis points. As maybe the Fed can indeed start to cut for the rest of the year, the stock six hundred actually in Europe doing well seven tens percent higher. Of course, the day before the UK heads to the polls, the foot seat one of the only benchmarks seeing any sort of volume on the day. Let's move on and have a look at what's happening
on the individual assets of choice. I'm looking at crypto Bitcoin under pressure by two point eight percent, six one hundred and fifty six.
The line to look at fifty hundred and thirty five. What is that? You say, one hundred and eighty three daily moving average?
Basically that is when we start to see more bearer signals from the rest of the year if we break below that. Move on to the individual stocks a choice and look, there's a lot to be keeping an eye on Tesla once again on the higher side, up more than five percent and raising this year's losses as we get deliveries that were better than expected but still falling. Amazon off by one and a half percent. Bezos, he's
selling shares as we reached that record high yesterday. In paramount We're going to dig into this deal.
Is there one? Can it last?
Will Skidans finally manage to buy out show Redstone?
We're up seven percent.
But we've got some key political news for you, and before we get to all of the markets, who want
to really understand what's haidling out of Washington. The New York Times, of course, has been reporting that President Biden has indeed told an ally that well, he's wondering whether to continue running for president, joining us some more as a host of Bloomberg's Wall Street Week, David Weston intimately understanding of the functioning of the White House and politics, and this does seem to be the first time we've heard from Biden's team at least that there's questions.
Well, there's a New York Times report that a close ally said that, as you say, Carolyn, at the same time, we now have the White House itself as spokespun prison coming out and saying the President is not considering what's drawing from the race at all. But the report was actually a little more nuanced, I believe, which is, he knows that he's in trouble and he's going to have to do something to turn it around. Was more than gist of the report. Again, a true to this close ally,
and that shouldn't come as a big surprise. I mean that the President understands as a problem. In fact, there were some Democrats who were trying to say, does he not get it, there's a problem. So now they're coming and saying, yes, I get it, there's a problem. The question is what can he do to turn this perception around? After that really unfortunate for him.
Debate Katie Rogers doing the reporting over at the New York Times, and she articulates that there's a lot that we can hear from the president in the next few days. He has decided to go back out on the trail in a significant way and do other key interviews to try and prove that he's ready, willing and enable.
Exactly right, Colin, I think that's the key thing, is the interviews. It's one thing to go out and give a scripted speech to a rally. I'm not sure that they believe that will really turn things around. But he has agreed to do a sit down interview with my old chop ABC News and George Stephanopolis, the close friend and colleague, to sit down, and I believe I'm speculating now that they decided we really need to go out and prove credibly that this person is up to the job.
At this point, and they chose George I believe at least I'm prejudice because they thought he will be a tough interview and he'll put him through his paces, and then they can assess can the president dig himself out of this hole by a performance with someone like Georgetefanopolis in a one on one.
Extended interview that last line in the story clear eyed, They said that he has an uphill battle to convince voters, donors, and indeed political class. We thank you for bringing us to your insight knowledge when it comes to ABC and indeed what's happening when it comes to debates in politics.
David Weston there, we thank him.
Look, markets, they are going to be affected by the presidential election, They're going to be affected by worldwide elections. In fact, let's bring in Melissa Otto, head of TMT Research and Visible Alpha.
Look, we want to talk to you, Melissa.
About whether you should be going along in video in this market, whether we should be getting more into this chip stocks, but just more macro perspective. Are you thinking about the presidential election? How does it affect your your research?
Yeah, I would say that markets are terrible at discounting political risk in general. Ultimately, I think fundamentals are what drive starts, and there tends to be what we're focused on.
It is notable that many feel whether it's a Biden or if it he's in binding, whether it's a dumb, cractical Republican president in the Weiss House, they will focus in on technology, they will continue to invest and it has all been about supply chains of late. Just tell us a little bit about well, where you've been looking from a chip perspective, how much you've been factoring in geopolitics to in video's ability to sell into China for example.
Yeah, I would say it's a very interesting time right now for the broad AI landscape. I think the million dollar question that we're very focused on at the moment is what is ultimately going to drive broad adoption, what's going to get users around the world really fired up about generative AI, its capabilities, its ability to summarize, to save time, to make people more productive. And so there's two angles to this. One is a consumer angle and one is an enterprise angle, and it could be a
hybrid of both. And I think this is the broad landscape that we're looking at.
I think what's interesting is that what could really infuse our own use case is, of course Apple the partnership with open Ai. We're going to be debating that later in the show as to that board presence or board observation that Apple now has with open Ai. But to your point, where is the infrastructure investment still needed? Look, people are amazed that today we're still breaking new records even though Nvidia.
Is trading to the downside.
Have we seen all the value already accreted into these prices right now when it comes to the infrastructure, the picks and the shovels or more to go.
It's hard to say. I mean, I mean, based based on the analysis that we have done, their expectations have come up significantly since December. We've seen in our estimates revisions of in the ballpark of two hundred billion dollars since last year. So, you know, I think we thought it looked a bit long in the tooth last December, but it continued to rally. You know, estimates continued to rise another fifty to seventy five billion dollars into this year.
So it's it's really hard to say. However, there we take a step back and think about where we are in a hardware replacement cycle and what role AI may play in this. This could be a very interesting place to look in and where expectations have remained fairly muted for the moment, and it'll be interesting to see if that changes over the next six to eighteen months. What are you watching them very carefully?
What are the stumbling rocks with that?
I mean, Melissa, many talk to ultimately an issue with energy, but where can one be putting money to work that perhaps has been overlooked to late with that replacement cycle, with the need to refresh, with the need to invest.
Yeah, I mean, if we I mean the hardware cycle went bonkers in in the COVID era. You know, I think consumers enterprises just rush to get the latest laptops, smartphones to really equip people to be more connected, more mobile, and to be able to work without having to worry about going into the office. And so that was an enormous catalyst for driving that replacement cycle. Now, a normal
replacement cycle is normally around three to five years. And you know, given that COVID started in twenty twenty, we're squarely in that, you know, that area. So I think, you know, as we look out over the next year or so, it'll be interesting to see how companies start to think about spending and where they where they want to upgrade. Now, we've had a couple of compelling announcements by Microsoft and other laptop manufacturers, you know, showcasing their
new AI laptops. Now, are these new AI laptops potentially going to get enterprises excited about the capabilities of Generative A to make their employees more empowered, more productive in a way they could really hit their bottom lines and ultimately drive that replacement cycle more than expectations. Current expectations are right around fifteen to twenty percent below where the peak COVID units were, So what could potentially drive.
It some upside?
Well, Best Buy certainly investing in their talent pool to be able to help sell those aipcs. When I say also, we thank you so much. Had a TMT researcher for Visible Alpha, all things markets and focus there coming up that we've got to get into the deal paramounts deal with s guidance.
It's been revived. We'll have all the details next.
This is BlueBag Technology. Shares of Paramount absolutely popping today. Once again, Speculation is rife. Have we got a deal between the company and the independent film and TV producers Skuydance Media. They've been revived looking to buy out Sharry Redstone, of course her particular controlling stake, and the deal reports continue to drive shares higher and indeed well analysts trying to understand whether this is in any way longer term
good fundamental for paramount National Amusements. Of course, in Skydance re engaging in those talks. Laura Martin, the senior entertainment internet analyst and niederm and Co. Has been following this saga that will eventually be a movie for the last seven months, and Laura, I mean, we get hints from the Wall Street Journal that of a price point of one point seventy five billion dollars for the National Amusement stake, is that enough and what does it mean for the non voting shareholders?
Right, so, the rumors is that the non voting shareholders in the second step would get fifty half of their shares taken out at.
Fifteen dollars a share, which is quite a bit higher.
Than today's move, which means that Wall Street's skeptical this deal will go through too. Otherwise, I think that gap would be narrower. So I think I think that Skydance. Look, two things changed in this deal compared to the deal Shearing walked away from a couple of weeks ago.
One is it doesn't require the.
Approval of the Independent Committee, but it all Instead, what she got was a forty five day shopping period. So in litigation, because she's going to get sued over this, because she's getting better terms than public shareholders, that when they get to court where the public shareholders are suing her for taking a sweetheart deal from Skydance, she can say, look,
we shopped her for forty five days. No one else stepped in at this price point or more, and therefore we didn't screw you over public shareholders.
So in that anticipation, the worry, the anxiety that Sharry Redstone has that she will be taken to court, what do you think that forty five day shopping experience will garne in any way? Laurie, You just give the viewpoint that no one's going to step forward.
You know, I think most other companies would rather just buy Paramount and not give the money to National Amusement to her, But I don't expect them to go away because as you say, this saga is like the Boy who Cried Wolf. I mean, this deal's been on and off at least four times that I can think of.
So if I was somebody else, I wouldn't stop doing trying to do deals.
And you saw the Warner headline today that Warner is thinking of trying to put it streaming businesses together, specifically HBO Max with Paramount Plus to try to create a bundle to comb out the Disney bundle with Hulu.
And so that's a smart idea.
So other business is going to get done here while the fight for the top of who actually owns controls the entity continues.
And potentially a sell off of BT we were expecting that and senior management looking to take that over in
some way, Laura. So there are different parts of the asset pile here, and yesterday we're all talking about the room and that Barrydilla was eyeing, and of course previously had run the problem at movie part of the business when you're looking at the share price and you're saying, at the moment it doesn't go all the way to potentially fifteen dollars a share, that the voting on voting b class would get what.
Should they do?
If I am an investor, a significant investor in the costbiches, what do I do at this moment?
So I would wait to see who's the president of the United States because as it currently so, the problem right now the Biden administration has really negative M and A people at the head of all these agencies. But if we get a presidential switch, this industry we're talking about right here all needs to consolidate.
They all need to buy each other.
There needs to be three competitors where they can rip out costs, and Disney gets needs to get bought by Apple. None of that consolidation can happen under the Biden administration. But if we get a flip in presidency, I would wait for that, And if the day that happens, I think they'll be massive consolidation in media over the next.
Four years because all those all.
The head of the DJ will change, the head of the FTC will change, the head of the FCC will change to a Republican, and I think they'll be far more sympathetic to allowing these the consolidation to occur to cut costs.
Laura, we love it because you bring the viewpoints so who remains on top. Who eventually in four years time, if we do indeed get a change in the White House wins out.
Who survives.
YouTube number one streamer, Amazon Prime, number two streamer? I think the Disney Empire number three streamer, although I think Apple should buy Disney, and I think these other ones.
I think Peacock.
Peacock can't buy CBS, which Paramount owns, but Warner Brothers can, so maybe Paramount. Ultimately it doesn't go to sky Dance because I'm sort of skeptical after they're on and off all the time.
Then it should go in pieces to different people.
I think they if they waited to see what happened in the election, they might be able to get a better price. But I understand that Sherry wants to get this done. She's got a lot of debt do it's unclear she can pay unless she gets the steal.
Done precisely, so she can't wait. We all look to what's happening in some valley. Will a deal be announced this weekend?
Do you think?
And ultimately talk us through the next steps of your own research at this point.
Right so, you know there's no Harvard Business School case ever that says three. A three person committee is a better form of leadership than a single leader, and that's what we have at Paramount.
We have a three person committee.
So really there's no management, like there's no government, so it needs to go. And they've just just destroyed like seventy percent of the value. Oh well, and then if Trump gets in and everybody's consolidating. It just took the the worst possible price because it had to at Paramount. But then I think we get a lot of consolidation over the next four years and we end up at the end of the true if there's a Trump administration, we would end up with three competitors, maybe four, including
Apple and Amazon. I'm sorry, Amazon and Comcast, Peacock and Disney.
So what eleven dollars do we buy.
At eleven dollars? No, I don't think you do.
I think they've gone on and off with this deal too many times, so no, I don't think you buy it.
Here, Laura Martin, we love having on the show. Thank you, Seing Entertainment and Internet over Anina and Co. Following the Supreme Court's decision to overturn that Chevron doctrine, lawmakers will now be forced to become or more specific about how they regulate AI, and for at least the past four years, judges have deferred to administrative agencies to interpret vague laws
written by Congress. But now with the overturning of the Chevron doctrine, it raises the states for Congress to write legislation more efficiently, which could prove difficult in the field of artificial intelligence. Of of course, the rapid development and the volatility of the technology. I'm talking with the technology and how it's being adopted. It's time now for our weekly AI in Action segment for more insight on basically how you the enterprise are adopting AI.
And please to say.
We're joined by Glean, CEO of in Jane and you're talking about well, a new launch, your new platform which is going to be helping companies build custom AI apps, maybe some AI agents. We have been talking about AI agents for months of in but there are still blockers. Is to really make them effective? How will you help businesses adopt it?
So, Gleen, AI agents are connected with all of it enterprise knowledge and think of them like humans that can actually use all of that knowledge to help you do your work.
How who do they work.
Who have you been already working with to ensure that when they're looking at their slack, when they're looking at their intercompany and communication, the agency AI they bring to bear really works with them.
So Gleen AI agents are actually used by almost all the people inside any enterprise. You know. Think about engineers, support people, your salespeople, all of them have you know, different needs. You know that now AI is actually you know, very capable of helping them with and like save a lot of time for them. So, you know, for example,
think about engineers. You know, they're always like you know, wanting to sort of get help writing code, helping toubleshoot issues, and so glean AI agents can actually help them, you know sort of do you know, work work on that much faster than they could before. Think about customer care agents, you know, day and day out, they are looking for like how to resolve questions that the customers ask, and Glean AI assistant will actually help them answer those questions for them.
I believe you've got over two hundred customers. We're talking data bricks, Camevra bill. But why would a company choose glean over I don't know, chatchypt enterprise or Microsoft suffering.
So Glean has some of the world's leading enterprise companies, many companies in the you know, you know, you know Global two thousand that used to you know, Glean and bring the product to all of their customers. Some of the key reasons why Glean works better than Microsoft you know Copilot or or Chat GPT is Gleen actually comes with deep integration, you know, built into all of your enterprise systems, like systems like Slack or sales Force or
Google Drive or Microsoft systems. Like if you think about any large enterprise, you know, they have knowledge, there's you know that's spread across many of these different systems, and you know, and and actually to make AI work on all of that knowledge and do useful things for you, you have to first go and connect with those systems and do it in a secure and safe way. And that's where you know that Glink comes really handy, you know, with our enterprise integrations.
Okay, so you've got the integrations. Maybe that could be replicated replicated by others, but I'm interested is what perhaps they can't replicate over at Microsoft is well using other large language models. They're fully embedded with open AI whereas you're kind of more agnostic. You've got open AI, you've got anthropic Why go that route?
Well, I mean, like you said, I mean all of these models, like there's so much competition in the market and and you'll see, you know, each model having like you know, some you know unique strength, and you know, as a customer, like you want to make sure that you know you have access to the best of all the models that are out there. And that's what Gleen
actually helps you do. We work with all the different AI models and depending on like your use case, your environment, like there's a particular model that you know suits your needs the most and will actually use that model for you and give you that flexibility.
Great to have some time with you. Thank you for coming to us live from India today. Glean CEO OF and Jaine say, well, meanwhile, it's time now for talking tech and first up.
Keywords Studios.
Let's agreed to a two and a half billion dollar offer from investment firm EQT. Investors will get about twenty six dollars forty per share in a cashdown from an earlier offer of twenty seven dollars fifty. That's because Keywords worked on popular titles such as Fortnite in Call of Duty, but accepted the lower price after the gaming services industry was hit with delays and canceled orders. Now Jim Rackliss
Inears Group is delaying its electric suv. Production of the vehicle was expected to begin in twenty twenty seven, but the company has now put the car on the back burner, citing waning consumer demand for ebs and.
Uncertainty around tariffs.
No new timeline for production was specified, and shares a soft Bank rising to an all time high. Look the rally has been indicating a vote of confidence in CEO Masayoshi San as he's really been ramping up investments in oddificial intelligence and semiconductors. Soft Bank also getting a lift with a help from the nickety two pis recovery. Of course, it's expected to help boost the firm's earnings. Welcome back
to Bluemog Technology and Karen Hide in New York. Quick check on these markets because a lot of political anxiety here in the United States, But more broadly, we're focused on the macro data fact that we've got perhaps some slowing services data and indeed a little bit of calling going on in the labor market. All eyes on non farm pay rolls later this week. Now's that one hundred and up to five tenths of a percent. Can the FED cut into a scenario where services is cooling?
That is currently the bed on Wall.
Street, I'm looking at ten yure yield crushing down some eight points on the back of some of that data. But interestingly, we're looking at what's happening in Europe. We close out the day on the higher side on the stock six hundred and indeed on the foote one hundred and six tens percent. That says, of course the UK population head to the polls come tomorrow. We're up six tenser percent because largely minus international company is doing well.
Move on, have a look at some of the individual movers that I'm seeing and look four percent higher for Tesla, let's call it five percent, let's call it most of the losses of twenty twenty four are raised so far with Tesla, with all eyes on the Robotaxi event August the eighth, all eyes on the fact that actually deliveries came out better than expected, even if we did slow and quarter a year on year. I'm looking at Nvidia down well up two point seven percent, if we're now
back on top. It was lower, and there was much being said about the fact that the S and P five hundred yesterday reached a.
New record high.
So did the naznag even within Vidia not playing Today we go along and again we're up at one hundred and twenty five dollars for the chip maker. And of course what's happening with Apple training flat on the day we had actually seen up about five ten percent in earlier trade.
Much being made really on what's.
Happening with Apple and it's AI play Apple Intelligence and indeed Open ai the relationship there we understand it secured an observer role on open AI's board as part of an agreement announced last month. Who had the scope of course ours our own Mark German And so is this impactful to almost be neck and neck with Microsoft here with an observer position on the board.
Thank you so much for having me. Yeah, having an observer position on the open ai board means this partnership between Apple and open ai is a little bit tighter
than we had anticipated. Right, This seemed like a simple integration of chat GPT into Apple Intelligence obviously the first partner here by by having a board observer role, Apple gets more insight into the decision making at the company, and this is something that probably came in response to all the controversy that was facing open AI in the months prior to the agreement between Apple.
And the company being announced.
Apple probably said, if you want this to go through, to know how your company is run and what's going on.
There, and tell us about Phil Schiller, who they've chosen to be that observer.
Still Schilder, his title is Apple Fellow. He's in charge of the app store and Apple's product presentations, including the one where the opening ideal was announced in June at its Worldwide Developers Conference. He's been at Apple about three decades, very much a top lieutenant still to Tim Cook and was one of the closest lieutenants and friends of Steve Jobs. He ran Apple's marketing organization for well over twenty years.
He's known as one of the biggest defenders at the company of Apple's privacy stances is product development process, it's overall brand image and given the concerns over different concerns from open AI and the safety with AI training, concerns about Sam Altman, concerns about their technology concerns about ethics
and artificial intelligence concerns about hallucinations. It doesn't make sense for someone like Schiller with that mindset to be the one in that board observe role, especially if they're looking for someone who's not from the AI sided Apple, who would be in direct competition with the AI side of open Ai.
Yeah, some awkward moments where maybe you're having to be excused from certain board meetings when they really get into the nitty gritty of AI.
Mark.
I'm interested in whether or not it is all about open ai for Apple now because they were in talks with other providers for large rue which models.
Yeah, open Ai certainly, they've said for a while offers the best chatbot with chat GPT and that feature that open Ai is integrated into. It's all about the chatbot, all about texting questions or voicing questions into Siri while using your iPhone, iPad or Mac and as a reporter. That's going to come to the Apple Vision pro as well as early as next year. But it doesn't stop
at open Ai. Apple's goals to have an ecosystem of different chatbot providers that users can choose from, not dissimilar to how you can choose between Yahoo being Google, Duckdutgo as your search engine in Safari or any other mobile platform. So they're still engaged in conversations with Google Gemini as an alternative to Open AI for people who may want to use that platform. Obviously, that would be an extension of the Google Search deal, so it would makes sense
that Google would get in there. The other company they've been talking to is Inthropic. They're also a big AI provider. One company that they're not talking to and you should not expect to be integrated into Apple platforms is Meta with Lama. That is something that is not happening. They had a brief conversation around February March timeframe when we reported on the Open AI and geminideal initially, but neither party moved to any sort of discussions or advanced negotiations.
I would imagine there's going to be more providers down the road. Apple hinted at wanting some sort of specialized chatbots in there. For instance, maybe someone comes up with a chatbot that's all about food recipes. Maybe someone comes up with a chat pot that's all about medical terminology and medical information. Perhaps a doctor would want to use that during a doctor's visit. So there are many, many opportunities for more chatbots to be integrated.
Into the OS.
It's just to be seen how the integration is done and when it happens. I expect Google to be done before the end of the.
Year an app store Forreyi chatbots.
Marco Hemman, we thank you so much on all things open AI and Apple. Meanwhile, AI is everywhere we know, and it's particularly in the.
World of bench capital.
It would seem that venture deal making coming back, and it's all really thanks to artificial intelligence. Let's bring in Blomberg's Katie Ruth, who's deep within the VC team nowadays.
And look, we're back.
When it comes to VC deal making, but it's very specific.
Right It's got to be AI or one of the other hot categories like defense tech right now. Otherwise it's really hard to raise money right now.
I mean, if you look at the data.
Yes, we're up from where we were two years ago. But two years ago was practically done Bust two point zero, So we're back from from dead. But you know, we're not back to normal or the ideal that many vcs are hoping.
Fifty five point six billion dollars was invested by US vcs of about a half from a year earlier quarter, we understand. So this is all coming from pitchbook. Is this a global theme? Are we really thinking that? You know, we just had arvind On from Glenova based in India. Are we seeing VC US VC money back international AI stories.
Yeah, it's more or less the same theme throughout the world. The VC ecosystems pretty interconnected. But yes, AI is exciting investors throughout the world, particularly the leading AI companies are getting lots of money, and that's partly worth skewing the data. And also you have companies like Elon Musk's Xai that raised six billion dollars, which you know accounts for a
size of percentage of that. And so it's really that it's not that there are a large number of companies that are raising money.
I think the data actually showed it.
Was the lowest number since the second quarter of twenty twenty. But it's that it's concentrated in the heart companies that are bessers are excited about Katie Ruff.
Great to have you on the VC beef with us, Thank you very much.
Indeed, meanwhile, let's stick with venture Nick Stronski you know him, of course for the last decade shaking up banking with his financial services firm Revolute in the UK, while he's now looking to pull off a similar fee in venture capital. He's actually built a quantitive investment firm for early stage companies called quantum Light. It relies on algorithms AI over human input to source deeals and it's invested in almost a dozen startups in the past year after raising about two.
Hundred million docs.
I mean, while coming up, we're going to be talking big business and the adoption of AI. Paul Hudson's CEO of son off E. It's going to be discussing how he's integrating generative AI in the world of biofarmer.
That's next. This is blom Make Technology.
Look, we've got to talk about the impact of generator AI in real life across industries, biofarmer being one of them. And I'm priessed to welcome of the show. Paul Hudson, CEO of Sanofi, discuss how your enormous French bio farmer company has been leveraging the new technology in its operations. And yes there's drug discovery, but also what's so interesting, Paul is you're integrating it within the functionality of your business on a day to day basis.
Yeah, thank you, and it's a pleasure to be here. We're really trying to do incredible things for patients and
discovering new medicines. And you know, with AI being the great disruptor and all of the excitement last year, the wow of large anguish models, and this year for us, it's all about the how and how we can get our you know, the large amounts of our organization focused whether you're in a lab doing experts, whether using generative AI in regulatory or text driven parts of our business, and importantly snackable AI when we're looking at really trying
to give better decision intelligence for almost everybody in the organization with the sole intent of becoming much more efficient effective in delivering HU meds. And it's amazing.
Really, I love this snackable AI you're using play it's a proprietary app. But I've got to ask sort of, how have you thought about which underlying large language model you.
Should look to.
How you integrate this do you go to outsourced, do you build it from within?
Point?
Well, look, we're drug discoverers and developers. We're not coders at our heart. So we have this first of its kind relationship now with open Ai, a partnership with Formation Bio translating that for is to make sure that we can be customizing large language models to look at drug discovery, to try and drug undruggable diseases. To this point, and we're doing things that have really never been done before.
It's early days, but it's extremely promising. And remember there's such a large amount of diseases that don't have medicines available for them because we simply have not had the computing pair of the opportunity to deploy ourselves. And now just now we're at this next great revolution in science. It's such a privilege actually to lead a company at this point. As for play, our sort of snackable approach, we've partnered with a small startup out of Germany, a ley.
They've been working weathers, they've grown weathers, and that's by the way, open for everybody. We don't own it, we have it to share it. We want all boats to rise win healthcare after all, and so the more users, the more fun, the more accuracy, the more chance to discovering new medicines.
So have your talent reacted because there's so much do mongering that AI is going to take all our jobs.
Well, I think our approach has been how to weaponize our people to do better. Like you know, I don't know whether you're familiar with Ways, the driving app, but I see it very much like that. I got to get in the car, I'm going to start the end and drive to the end of the street. And if Ways says I'm statistically more likely to have an easier journey turning left rather than turning right, I want that
advice as crowdsource large data, real time. I want our people to feel they are amplified or multiplied in that event. In that event too. The goal is not about less people.
The goal is about putting our people to be more effective and to make and to have better decision intelligence than itself gives us a great opportunity to do something incredible, and we've only seen a huge Appetite's why on any given day we have eighteen thousand people in our organization using the EI we make available, and I think that's pretty fantastic.
Let's talk about doing the amazing, the incredible, because we have just seen a push up in your share price on the day. And you've been reorientating this business of Sonofye and thinking about more R and D, about drug discovery and applicate and look some costly cases in the way that you have to experiment in clinical t but they've paid off today and we think about the drug discovery when it comes to a key lung chronic long disorder.
Can you just tell us about what that means to the business.
Well, in Europe, just yesterday today we got approval for chronic constructive coon me disease COPD ficks a huge number of people, third biggest killer. We're ready to go now in Europe to be able to provide an advanced therapy that will reduce their chance to go to hospital by a third, and that's a breakthrough when there's been so
little innovation. We aspire to be the world's leading immnology company, and that's partly driven by moments like that that we live for in our industry to do things that transform
or protect patients' lives, will prevent disease. You know, the reality is we're a very proud, huge, big company, but we wanted to be at the forefront of science again, and we've made some big bets, but appropriately so to try and make sure our science is some of the most exciting and it's first in class or best in class. And to couple it with our conversation of earlier. The more we add AI, the more we improve our decision intelligence, the more opportunity we have to do more.
In that space.
And I think that's what's catching the excitement in our organization, and we believe we're quite far ahead. I mean, of course we're very responsible about how we use AI, but others are still hesitating. We're taking our moment, but.
Sometimes you need good data to feed in to these large language models. Paul, what about the data on viruses such as well bird flu at the moment here in the UK and the US. Indeed, Look, there is a worry that the data hasn't been good enough in the United States. Is that something that worries you and you need to be developing a new vaccine for that.
Look, I mean, we've been through one pandemic. I think we've learned a great deal about trying to have the best data, and I think we position ourselves to take advantage of those opportunities on behalf of society. Frankly, we played a part small part in COVID, but we stand ready should we be asked the data and it's legitimacy,
you know. We often that data comes in through government channels, through health systems, you know, and we work at real time speed to make sure that we have the very best data available in terms of large language models and the rest of the data sets. You know, we collaborate far and wide. We have punishes with oak in with atom wise, with excyensia. We really are trying to make sure that we have at our fingertips huge data sets to mean our accuracy and our predictive capability is far
ahead of the competition. We won't get it right everywhere, but the data integrity of the absolute fundamental start in place. Our relationship with open AI and with formation by it, we're putting our own data at play to make sure that they can learn from it too. Again, all boats your rights. We're in healthcare to do good.
You're also selling off bits of healthcare because you're focusing in on the R and D, the drug side, and maybe the consumer business goes for a hefty price tag. You've been thinking about IPO and you've been thinking about sale.
How is that process going poor?
Well, we announced that October that we were going to become a pure play by Farmer. You know, we want to double down on the things we just talked about, and we have an incredibly successful and energized consumer business. We feel that they feel, in fact, that they can stand better on their own two feet and be independent, raise their own capital, take on their own projects, and we want to support them in that. It's the right
thing to do. Our capitals should be allocated towards discovering new medicines, and there should be about growing their business fast in the market, which by the way, they're doing very successfully. We've declared that buy as early as Q four twenty four will be ready to go to separate that business. We haven't shared how we will do it, but I think it's quite well known that, you know, we're talking to interesting parties, certainly Pe, and we have
the capital markets vehicles available to us too. So no, we're excited for them. There's a huge amount of interest. It's a great business and we hope to create value for patients, for stakeholders, and indeed for the people in the business.
Q four twenty four is pretty notable given that we're in quite a politically uncertain time. Look, we two bricks sit here looking that there's going to be an election and people voting in the UK tomorrow and then of course this weekend is all important for France. How as a leader of such a French giant, are you feeling about the political risk of doing a deal in this market?
Well, look, you know, in terms of healthcare and being a leader of ann incredibly important French company, you know, our first priority is to ensure that whoever governs, they provide a predictable, stable environment because research is a ten to fifteen year process, so you know, we need to think long term. We hope that whoever leads the country will think long term. We know the current government has been incredibly supportive of innovation and creating that ecosystem. We
hope that that would continue. Of course, you know, there are people trying to understand what it means for the economy,
much like for the change in government. If it's to come about in the UK, and people want that predictability in the markets too, you know, we'll long term player trying to do the right things for patients, trying to drug the undruggable, and we hope to partner with whoever's in power, of course, because we have to be ready to do our part for society, and you know, so far we believe that can continue.
Paul, it's been great talking to you the intersection of drug discovery of artificial intelligence snackable AI as you call it, Paul Hudson, great to have some time, CEO A Sanofie. Can you believe it? Today marks one year of the existence and metas Threads up in a bid of course at the time to capitalize on the struggles of Elon Musk's platform X number those cage fights and the talk of that when one year in, Threads may soon compete with X actually for advertising dollars as well.
Let's discuss all of this in Bloomberg's Kurt.
Wagner and what what was notable about Threads is there wasn't advertising and there still isn't.
But will there be? Will that tap be turned on soon? Yeah, that's the plan.
Conversation with Adam Assari who runs Instagram Instagram overseas Threads and you know he said they want to do ads sooner rather than later, right, And that's a big deal. If you are X because Meta's ad system is just
so much more advanced. Advertisers are already used to spending on Facebook and reels and Instagram, and if you add you know, Threads into the mix, I really do think that could be the kind of thing that takes you know, money away from X, which is already struggling as you know what is.
Adam and the team at Meta really sort of admitted to and learned because it was a fascinating launch.
Threads sort of was.
Almost iterated on and built while we all played with it.
There was talk of decentralization. What has actually occurred with the product?
Yeah, I mean they have moved quickly. There are there are some good things that they've done in the first year. You know, they did launch an API. Recently they've sort of came out with this like tweet deck like feature so that you could have multiple columns of you know, feeds at one time. But where I think they really struggled is to figure out, like what is the point of threat? What's the purpose?
Right?
I think Twitter, before Elon got there, we knew.
What it was.
It was the place you went for breaking news, and that was the specialty. I don't think Threads has a specialty right now, and it's kind of been reluctant to lean into breaking news in the way Twitter did, And so I worry for them. If they're not great at one thing, what do they.
Become And to that point will that put off advertising or was there a threshold that Adam felt had been hit that then meant okay, we're good to go.
We can lean into turning on the money now.
Well.
I think the benefit they have on the advertising the front is that people are familiar with their ads systems, right, so you could go and you could put money in, and you could just take a little sliver of that money and say, hey, send this over to Threads, right like, you don't have to if you're an advertiser learn something brand new, which I think is a huge advantage for them.
You know, it'll determine It'll be interesting to see if advertisers think Threads is relevant enough for their ad dollars. But for now, I think it's a very interesting thing that people will eventually want to test out when they do choose to turn the ads on.
It's meant to be a nicer pace place to play. And I know Kurt Wagner.
You're out there on threads putting out some posts, so go check them out there. We love you for your work, Thank you for coming on. Meanwhile, that does it for this edition of Bloomberg Technology. Do not forget to check out on podcast Provide Not on the terminal, as well as online on Apple, Spotify, and iHeart. Meanwhile, we wish you are very happy July fourth tomorrow, but tune in if you want to catch me.
I'm still on. This is Bloomberg Technology.