Bloomberg TechnologyNvidia Roars Back and Adobe Unveils AI Video Generator Tools
Bloomberg's Caroline Hyde and Ed Ludlow break down Nvidia's shares on track for a record close, bouncing back after the company successfully calmed concerns about product delays and its long-term growth plans. Plus, Adobe embraces AI as the company unveils new AI video generator tools, and SpaceX celebrates a major milestone with its Starship rocket successfully catching its booster mid-air.
From Mahart where Innovation, Money and power colle in Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Live from New York and San Francisco. This is Bloomberg Technology coming up. In Vidia on track for a record close shares or bounced back after successfully calming concerns about the product delays and its long term growth plans.
Adobe's Embrace of AI will talk to the company's CEO about its new AI video generated tools as it kicks off the annual Adobe Max conference.
And a successful catch. SpaceX celebrates a major milestone over the weekend that Starship Rockets successfully catching its booster midair. We discussed but first let's check in on these markets because we are ramping high. Then now's that one hundred is a seat up five tenths of a percent, and we were higher up about a percentage point in earlier trade. But we see Mood Music once again wanting to plow money into some of the major Magnificent seven names, and across the board, we're really seeing a risk on feel is it whether China stimulus is going to come into play. That's what's being eyed by Bitcoin just a quick look at what's happening in the world or crypto at the moment, we're up now five percent percent now NASDAC and Bitcoin at the highest level since July.
And what are you.
Watching, Well, I'm going to go straight to Nvidia and if you're just waking up, you're just joining us for the first time on Bloomberg Television this morning. It is a name we're going to watch all day because, as you said, Cara, on a closing basis, if we trade at that level one hundred and thirty eight, just below one hundred and thirty nine dollars a share, and we close there, we will clipse that June record or record high that we close that in June. Actually, we're probably about a dollar away on an intra day basis from a record as well, which I know the team in Bloomberg Equities are going to be watching very closely. Is kind of like in Video's back, and that's going to be our folk as much as it has been for the last two years, which I'm very excited about.
As au It's back. Why is it back?
Why is it up eleven percent over the course of the month. Bruly, Meg's around Blastelica is with us, just talk us through the determed risk and feel around in video. What have they managed to tell the market?
Hey, good morning, thanks for having me so.
I'd say that there was recent weakness in and Video shares that was largely concerned about the company's Blackwold chips. There were some engineering snags, a little bit of the delay there. People didn't quite know how to suss out the impact that this would have on future growth. However, the CEO came out, he talked about how strong demand has been. There's been some positive analyst commentary looking at the orders for the Blackwold chip, all this has been very strong. I think that's helped to ease a lot of concerns that people had about the status of this chip, the future product roadmap, and just in general the company's flowity to continue executing, keep delivering these chips, which are at course at the forefront of the whole AI trade.
Do you know what's interesting about in video, Ryan, is that it's kind of constant communication. Jensen Wong does a lot of interviews, but he also appears on stage all of the time. He is at investor conferences all of the time. You cover such a broad range of technology companies. Have you ever known a company in vogue or not to communicate that much?
That's a great question.
Certainly, he is out there a lot, and he is obviously an investor favorite, so every time he speaks, everybody listens. And of course everything he has been saying lately has been pretty positive. It's hard to find too many, you know, presidents for this kind of thing. You'd probably have to go back to someone like Steve Jobs.
I guess maybe we'll have to go back to of course, companies that are that much in the spotlight, Apple.
One of them.
And with Steve Jobs and now in Video, what is there still perhaps remaining in terms of concerns. It looks as though people feel they've got a runway for the next twelve months in terms of orders.
Yeah, absolutely, I would say that, you know, they're considered pretty far ahead of the curve as far as competition goes. There's not too many concerns about that. There's a lot of optimism about the new chip, and we've I've seen a lot of Video's major customers like Microsoft, Meta Alphabet and so board. They're all sticking with their capbex plan So there's not really a concern that people are going to pull back on their spending and that they're going to see a drop up in the maand related to that. So I would say that outside of maybe valuation, that's probably the biggest concern you'll hear. But people are pretty positive aboutting video's fundamentals from here yep.
As a reminder on an inter day basis, but a lot more likely on a closing basis. In VideA a fresh record Blimbo's Ryan Vasteliga, thank you very much. Another top story, TSMC is expanding its global footprint and planning more plants in Europe with a focus on the market for AI chips. That's according to Taiwan's National Science and Technology Council Minister wucheng Wen, who did not specify a timeline for the expansion in Europe. This is TSMC just broke round in August on a chip fabrication plant in Germany's Dresden.
Listen to this.
They had started the construction of the first fab. Interesting. They are already planning the next feel app in the future for different market sectors as well, but of course the most important would be the AIM market.
That's going to invest to take Michael Green is portfolio manager at Simplify Asset Management. Manages a suite of ETFs about six billion dollars in assets onder management. You've got a rich history in terms of thinking through the macro Michael, what then, of the exuberance still around chip names, is it right to have that reality?
Well, I think this is a natural challenge, right. This is what's called a positive bubble. It effectively is driving innovation and investment into a space that absolutely requires it, but there's almost no real opportunity for the company's currently involved to earn the returns that are actually built into these expectations. We may see that not happen in this month or in this quarter, but as we look forward, there's going to inevitably be a period of disappointment. This is, in a lot of ways very similar to the buildout around the dot com cycle, in which the Internet ultimately exceeded all of our expectations, radically changing how we shop and live our lives. But at the same time we saw extraordinary disappointment as many of the companies involved were unable to realize their potential.
Michael, that piece of news about TSMC in Europe shows there is data center and chip capacity activity here in the States, and there's the same in Europe. Is there pros and cons to kind of focusing your attentions as an investor on just one.
I'm not really sure that I would emphasize one versus the other, because again, this is all data that can be transmitted. A lot of the investment in Europe is going to be a byproduct of separate and different privacy rules and will probably continue to see investment around that.
The United States stands head and.
Shoulders above the rest of the world in terms of data center capacity. I forget the exact number, but I want to say it's roughly ten x its next largest competitor. And at the same time, we're seeing extraordinary gains in the efficiency of these data centers, which is actually going to of course, that the capacity ends up being much greater than we thought. The same underlying phenomenon we saw again with fiber optic build out in the late nineteen nineties, where we expected to have to use tons of dark fiber, we ultimately laid that in the ground, and we've used only a small fraction of it as other forms of technology improved alongside it. In this case, we're starting to see those efficiency gains from rewriting algorithms to optimize them for AI or data center applications.
So ultimately, I think in both places.
We're going to find that we have at least a period of access capacity that emerges, and I think investors in both locations should be considered of that.
Europe probably offers.
A better construction environment, as I said, because they have different rules, they're going to need to make their own investments.
So everyone going all in on basically the infrastructure build out. But where else in the stack, where else in the value add of AI should you be boarding out to?
Well, I think we're starting to get to the point that you want to start thinking about the implications of this. Right, So, financial institutions could benefit tremendously from an improved and the ability to run analysis or process components. We're starting to see shopping algorithms. Certainly, we're seeing things like support bots in terms of the traditional call center type work. The efficiency gains there are immens. Again, I think one of the real challenges that we're going to face is that disruption.
We're really uncertain of it.
Right, People remember the comparisons of Amazon to Barnes and Noble, and now they no longer remember Barnes and Noble except as a college textbook destination. My hunches is we're going to see a lot of the same things. The world is changing very rapidly. It's a period of uncertainty. You have to price that into effectively the optionality of these names once you start to realize that it may turn out that they are the vast majority are unable to deliver on the opportunity that was in front of them. Against that, I think that we're seeing lots of interesting opportunities that are being created in more mundane areas like fixed income, where we're beginning to recognize that the level of interest rates is unlikely to.
Be what Wen, I'm sorry to interrupt you, then, Michael, I just want to say, when we consider the US economy on Bloomberg Technology in particular, it's often through the lens of infrastructure, and that's kind of end of the economy. But interestingly, specifically when it comes to the labor market, you've been thinking about the gig economy, and we're going to go very deep on that later in the program. So I just wondered if you'd outline your thesis for us.
Yeah, So one of the things that we're really dealing with is again this sort of radical change. Two thousand and nine with uber was the advent of the app based gig economy that initially targeted professional drivers. In twenty twelve, that shifted with the introduction of Lyft and uber x to effectively allow anyone to use their car to make additional money, either as a side job or as a substitute for unemployment.
The interesting thing that's happened is we haven't.
Really had a normal cycle or period of unemployment, and one of the things that we're finding is that the gig economy is effectively better destination for people than filing for unemployment claims.
That would imply that the economy is actually the labor markets quite a bit weaker than we're.
Getting in the headline data, and we're seeing this in sentiment surveys of consumers.
And households, but it's not showing up in the official data.
One of the examples I give is California, for example, where if you file for unemployment, your maximum benefit is four hundred and fifty dollars a week for a maximum of twenty six weeks.
That puts you at half of.
The poverty level for a two person household. In contrast, if you already have a car and you're going to face that depreciation associated with it, driving for Uber allows you to replace a much larger fraction of your income by utilizing an asset that you are no longer using.
In commute to work, et cetera.
That I think is really a key story that we're going to have to figure out the reason why it becomes an issue, And I want to emphasize I think it's better that people are finding alternatives in the private sector, but those private sector alternatives have their.
Own feedback loop.
Whereas more people find themselves driving for Uber, simultaneously, the demand for these ride sharing services and gig economy and applications begins to decline and the competition for the revenues associated with them increases. Again, we're starting to see the signs of that that people who are driving for Uber are suddenly discovering that their incomes are beginning to fall significantly.
So this is going to be a real challenge for our time.
Do we actually understand the data as that's coming in, particularly with central bankers choosing to try to be as data dependent as they possibly can. That data could change very rapidly if we have a misunderstanding of the system.
Michael Green, portfolio manager at Simplify Asset Management, thank you very much. And in line with what Michael was saying coming out, we're going to go in detail into a Bloomberg investigation which looks into how Uber and Lyft use the loophole to deny drivers in New York City millions of dollars in pay also taking a real quick look at shares. I think of NAP, which got a downgrade in the market earlier this morning and has taken a little bit of a hit, maybe actually not as severe as it was in the market open, but down about a percentage point one point one percent. We'll get a little bit more on that later in the program. This is Bloomberg Technology. This was the Bloomberg Big take over the weekend. Uber and Lyft have found a money saving loophole in New York City lockouts. By simply preventing drivers from logging into the apps, the companies set themselves up to save as much as hundreds of millions of dollars in driver payouts. That's according to Bloomberg estimates. Listen to this.
The summer of twenty twenty four was a stressful time to be an Uber or Lyft driver in New York City.
Kill even Ballmark because there's Lackold's currently.
In May, Uber began preventing drivers from working seemingly at random for hours at a time. Lift soon followed Suit.
They opened their app and normally you would be able to click the go button and go online. But when you're locked out, when you press go, nothing happens.
An individual lockout could happen from anywhere from five minutes up to eight hours.
We understood that this stemmed from a six year old pay rout.
I started driving for Uber to be able to work at my own schedule because I went through a lot of trauma with a divorce. I was a mess emotionally. So basically, a lockout is when you cannot go online to work, so essentially your micro fire.
Every day I would get locked out of Uber. It was very frustrating.
It was also affecting my self respect. What am I just the I'm a robot? Like getting locked out like I'm a person. I have to feed my family.
Lockouts happen every hour of the day, every day, and that's despite Uber saying their particular schedule of open access times where people shouldn't be locked out. We found that there were more than four hundred instances of lockouts happening insert zones. So there's definitely potential impact there on consumer pricing. A lot of people. Through our interviews, we learned that they are working way beyond their usual hours to try to make what they've made before.
Check out The Big Take Daily podcasts anywhere you get your podcasts. I think that is one you definitely want to check out.
Carrac Yeah, more on the sharing economy because cities around the world are debating how to regulate short term rentals, for some going as far as banning services like Airbnb or erbo, others are trying to find a compromise through limits and regulations.
You just saw her in that package.
We now have Natalie Lung live on sets talk about the different approaches with Airbnb and the like and solving some of the concerns and if they work. Natalie, what are we currently seeing a city like New York trying to compromise on.
Right The New York City had introduced almost a de facto ban on short to rentals last year, basically ruling out the short to rentals of less than thirty days and more than a year into the law, we've seen that vacancies have not gone up, so like hosts have not released those short to rentals as expected, turning into long term rentals, and the rent decreases we've seen in the over the past year were attributed to other factors. So our Airbnb is arguing that the law is not as effective as the city had hoped.
As we write in the Natalie, there are two sides to this story, and in the middle there is compromise. Where have the companies and also like the hosts themselves because they want to make money and the regulators found compromise.
Airbnb has introduced something called a city portal back in twenty twenty to basically encourage more transparency, sharing more ways that cities can access the data own listing, so cities can ensure better licensing registration as well as an easier way to collect tax revenue. So by increasing the data they share, cities can ensure better enforcement.
Yeah, they need more transparency ultimately about what people are making as well right to be able to declare a win win with tax revenue going to the government as well as to the people are hosting.
Yeah, that's the argument basically, and Airbnb is saying a de facto band, like a blanket band like New York City is almost like a cautionary tail, and cities shouldn't go that far.
The question simply is what happens next. You know, in New York City is a really interesting example where there's a debate about where the laws get changed.
Natalie.
Interestingly, about a year, like a month ago, exactly a year of this rule coming into effect, Airbnb came out with taking stock of the effectiveness of this rule and saying they are kind of appealing to the city to perhaps adjust some provisions in the laws so that some hosts can come back to their platform.
Bloomberg's Nasty lung across two very important stories in the gig economy.
We really appreciate it. Thank you very much.
We can see those chats.
You should want to hurt cover.
SpaceX caught the attention of the world over the weekend, making a first historic catch mid air for one of its boosters. For more and what this leap means for space exploration, Bloomberg's Lauren Grush joins US and was on shift over the weekend covers SpaceX for us. Actually, there were two milestones, and we need to talk about the kind of Starship component of it.
But let's start with the booster.
Why that was significant and the idea of rapid reusability.
Lauren, right, Yeah, this.
Was a big hurdle that SpaceX needed to clear in the road of development for Starship.
As you mentioned, Starship's promise.
Is that it's going to be fully reusable, so both portions of the vehicle need to survive after launch.
But with the booster, you know, when they.
First proposed this idea, I think a lot of people were skeptical. Obviously SpaceX has perfected landing its rockets with its Falcon nine, but when this was proposed, catching the rocket in midair rather than landing it, I think a lot of people were wondering how this would work. But it seemed to work just like a charm, at least from what we saw. And so I think they've proved a lot of skeptics wrong over the weekend.
And now NASA going is fall to consider that maybe we'll be landing on the Moon, maybe using of cool Starship as lotly as twenty twenty five, told us through what needs to happen to get that on.
Yeah, I think the current plan is landing in twenty twenty six with people, but you know, just to caution, there's still quite a long road ahead for Starship. Obviously, this was a huge milestone for the company, but next they really need to showcase that they can refuel Starship in orbit and so that's essentially like filling up at the cast tank, but with a lot more engineering challenges.
But this will be crucial to.
That because they have to catch and then relaunched the booster over and over again with back to back launches in order to perform those refueling missions.
So the other Starship gets up to orbital altitude, orbital speeds, goes around the world, and control lands into the Indian Ocean.
Taught me through that part please. Yeah.
So during the last flight, you know, Starship struggled when it came back from space. We could see it kind of burning up and breaking apart when it was plunging through the atmosphere. But SpaceX said that they did a total revamp on the heat shield on Starship, and from what we saw, it seemed to survive relatively intact. I think we saw a little burn through, but definitely not nearly as significant as the prior play. And then so it did survive, and then when they tried to splash down in the ocean, they were able to flip and kind of do a pretty precise landing. So yeah, it really was a big milestone for both the Booster and Starship, showcasing that maybe this rocket can be fully reusable, which is, to be fair, something that SpaceX hasn't been able to achieve yet with its Falcon nine.
You know, part of the Falcon.
Nine still goes unused or is destroyed after launch, and so this would be a huge paradigm shift for SpaceX and the launch industry in general.
Line crash, Welcome back to bluemog Technology. I'm Caroline Hyde in New York.
Now I med loll in San Francisco.
Quick check on these market said, because we've got to risk and feel that we're dialing back from our previous highs on the NASAQ, we're still up some six tenths percent. All eyes on earnings, All eyes on, of course, where we'll see stimulus coming from China. Now, interestingly, the NASDAT Golden Dragon Index, which tracks some of the key tech names over in China. Training here in the US is down by a percentage point. Even though Chinese stocks managed to ramp up higher in their day of trade.
We maybe call off.
We're still waiting for that fiscal stimulus coming from China, China being factored into crypto more broadly. But once again, Bitcoin up five percent, a good strong play for that, and we're seeing and it's training gets higher since July. That as we also debate what is happening in terms of the US economy where interest rates go and the like move on, have a look at what's happening in terms of overall big names that drivers higher. I'm looking at Adobe up two point three percent. We have a crucial conversation coming with a CEO, new generator of AI in the world of video.
We'll get that to.
You in a moment. A SML though one of the key points drivers on the nasat one hundred, of course, European chip equipment maker is driving up one two point six percent. Look all eyes on earnings they come out on October the sixteenth, and I'm looking at Video. Look once again, this three trillion dollar company is managing to help take the benchmarks higher, all based on optimism around the Blackwell focus, but also just AI more broadly. But we've got an interesting take on.
AI now ed okay, buckle up. Open ai is going to war with a man who owns a trademark and website with the name open Ai with a Space. The man at the center of the lawsuit filed a trademark on the name open space Ai the same day Sam Altman and Greg Brockman announced their company Open Ai. This man, Guy Ravine, claims to have invented the video sharing technology later made famous by Snapchat and TikTok. Evan Ratliff wrote about it in Bloomberg BusinessWeek and joins us, Now, it is an incredible tale, some incredible reporting. It's probably one where chronology is important. So let's start at the beginning. Open space AI and open ai were born at the same time.
Take us from there.
So essentially, this gentleman, Guy Ravine, who is a kind of technologist inventor, who was in Silicon Valley, he had come up with an idea and he could document this for open ai with a Space, and the idea was that it would be a nonprofit that would be engaged in deep learning research, and the way that they would lure researchers away from Google, which was dominating deep learning research at the time, was that they would say that everything would be open, the research would be open, it would all be done for the benefit of humanity. And if you know anything about open ai, the company, the organization open ai without a space, that is also.
Their origin story.
They just launched some months after Ravine can document that he was pitching this story around Silicabaluy, so they launched in December of twenty eleven.
The pitching is important because you originally thought Evan might be a bit of a scammer, and then he went to some of the really key names in Silicum Valley, Jan Lukumb for example, and asked like did he come to is he legit? And one key person came back and said, I think he is.
He did, And that's to me is what makes this story so interesting and different and kind of the story that you don't hear about very often, which is that it had first seemed like this was kind of what they call a trademark troll lawsuit, like he filed at the trademark the day that open ai launched like maybe he's just trying to usurp it from them. He owns the domain open ai. But then it turned out that some of the people that he had pitched to, one in particular Tom Gruber, who's the co inventor of Siri, who used to be at Apple, who's a respected name in AI, he's backing guy r v Up. He says, yes, he pitched me this idea. Not only did pitch me this idea, I can document that he had it before open ai the company launched, And so it's not a case of someone just claiming something out there in the blue. It's actually there are people to whom he pitched the story, and there are documents showing that he pitched the idea before it launched. Now whether that legally matters is going to be decided in the courts.
If you're just joining us on Bloomberg Technology, this really is a must read in the BusinessWeek magazine. There's litigation on going here, right, there's the trademark dispute. There's a suit. Just update us on the latest on those front seven.
So essentially, I mean open ai has has really prevailed in the arguments so far. I mean they got a preliminary injunction against Guy Ravine, so he can no longer use open ai the trademark or the domain open dot ai, which he again bought well before open ai launched.
So he can't use either of those right now.
He filed a countersuit against them, claiming they stole the idea from him. That most of that countersuit was dismissed and now it's been refiled, so he's had setbacks in court, but they're a long way.
From you know, what would eventually.
Be likely a jury trial if they ever got that far that that would be minimum months.
If not, you know, over a year away.
These things always take an awful lot of time. Evan, what do you think the response will be from open ai to this investigation of yours? How have you been talking to the company without a space, Well.
The company didn't have much interest in commenting. I mean, of course they've they've filed a lot of arguments in court and so they're sort of their comments are in their legal briefs. Their only sort of general comment was, you know, we took legal action action to stop the intentional use of open ai from confusing and misleading our users.
Now, I think one of.
The big questions around the lawsuit is why don't they just settle this lawsuit? Because the money that they're spending in lawyers is probably, you could guess, already greater than they might have settled the lawsuit for it. And the longer it goes on, the more that's true. Now, whether they want to make an example of Guyravine or with their new funding round, it doesn't really matter to them how much money they spend.
I think those will be the questions.
But I think the pressure always mounts the closer you get to actually having a jury trial.
Extraordinary story. Go read it, Evan Ratliff. We thank you, ed what forgot?
Many more stories in today's Talking Tech and first start what are we looking at? Bank of America has folded its fintech investment banking team into its tech practice, moving about fifty bankers into its roughly two hundred strong tech group. According to the Bank's chairman of Global m and A, this is a move reflecting an industry wide shift in financial service is toward software. Speaking of fintech, so far as Reeds to Bild to use two billion dollars of Fortress Investment Group funds for the origination of personal loans. The online banks in the agreement will expand its loan platform business of brokering deals for pre qualified borrowers and originating loans on the.
Behalf of third parties.
And South Korea's exports of tech products slowed for a third straight month, in indication that global demand may be peeking out, according to government data that also showed memory chip shipments and prices are starting to lose some momentum.
Caroline, Now, let's talk fast fashion giant. Shean's potential London listing has attracted controversy and mere allegations of forced labor.
Now.
UK Prime Minister Kirs Starmer addressed these concerns today. The Bloomberg's head of economics, Stephanie.
Flanders, well, I think we've got to get the balance right and clearly we've got to have standards, high stands. We do have high standards, not least for example in rights at work, and I address that in my speech here today to say look better rights and protection for people in their workplace are.
Good for growth.
So we're clear where we stand on standards, but we're future looking, we're pragmatic and subject to those standards. Then yes, we do want investment into the United Kingdom because we desperately need growth in this come. We have had meaningful growth in the economy in the United Kingdom for fourteen long years. We're determined to turn that around.
Just to be clear on that, so the government would need to be sure that sheeds not using forced labor in Hinjang before it could list in the UK.
I'm not going to get into individual businesses. What I will say it and be very clear about it. Standards and high standards do matter to us, So of course we'll be looking at any issue that goes to high standards with a particular feature on the rights of the workforce. And we've been really clear that we see that as two sides of the same coin when it comes to growth. Good employment rights and protections and a lot of drag on growth. They're fundamental for growth, and I think pretty well all good businesses understand that, which is why in many cases they've already put in place some of the rights and protections that we are bringing forward in legislation.
Okay, coming up, Adobe launches a new AI video generator. We're going to speak with Adobe CEO Shantanu Naran. That is next, what a conversation. This is Bloomberg Technology.
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 Open Ai, 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 it 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?
Well, 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 in 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 Santani.
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 develop 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 at 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 extend concept, which is you know, 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 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. Chantanouje, 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. 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 you 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.
Chantonau 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 customer models. As I said, so if your 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 said, We're going to support all these models because they will do some things differently and better.
Adobe CEO shantanoon I ran, it's great to finally have you here on Bloomberg Technology.
Thank you for your time.
President Biden announcing six hundred and twelve million dollars in recovery aid for areas stricken by hurricanes Milton and Helene as he surveyed the aftermath of Milton and Florida. Biden said last week that the damage from Milton alone could be about fifty billion dollars based on early assessments. Let's talk about access to aid and how technology might be able to help here too. FTW Ventures founder and general partner brand Frank has joining us, and look, you are all about food security. You're all about food safety and innovation around that. One innovation is needed in these moments.
FTW Ventures were early stage venture fund focused on a sustainable food system. We believe technology provides the unlocks like it has for many other industries, to create safety, security access, optimal nutrition.
And the outcomes.
We all want to live a healthy and happy life, especially in these times of need when we have war and disasters that are taking a toll on our food system.
Brian, are we talking about hardware or are we talking about software?
We're talking about all of it.
The reality is technology, from biotechnology to hardware and automation to AI and mL.
All of these technologies that have been pioneered for.
General purpose and for other industries like the automotive industry or energy generation can now be applied directly within the food system. And so we're talking about replacing plastics with sustainable materials. We're talking about biotechnology to grow our next generation food. We're talking about AI and mL to speed and optimize the supply chain in which food can reach people. So it's any and all technologies that can be applied directly within the food and agricultural sectors.
What sort of ey of check you having to be writing at the moment, How facing competitive is it in this space or not?
Yeah, it's the venture industry, and as the whole has taken a turn in the recent year, we've seen the amount of capital deployed down and the valuation of companies coming down.
Slightly as well. However, we're still writing.
Significant checks of two hundred and fifty thousand dollars to a million dollars into early stage startups that are really trying to innovate. They're bringing the first science out of loud where they're bringing their first technology out of their offices to apply it to the food and agricultural sectors.
Brian, is this US centric or it's happening around the world.
It's happening around the world.
We had FTW focus on the North America market, but we believe technology and innovation in North America should be brought to all corners of the world. So we're working with regions like Singapore and Southeast Asia to really bring food security and safety to those members of the community as well. We're also I'm also personally a advisor to the World Food Programs Accelerator, which helps in places of Sub Saharan Africa and Latin America with food access, security and safety as well.
And so it's happening.
Everywhere and we're just trying to bring the best technologies played up level this industry. It needs to see ten billion people on the planet by twenty fifty Ran.
Frank, thank you for joining us. FTW Benure's general partner there. Meanwhile, for this edition of Bloomberg Technology, we still have all eyes on those record highs for Invidia.
Yeah, a reminder if you're just joining us, keep an eye on Nvidia. There may be a fresh record plenty to recap on the podcast. You know where to find it online on those platforms and on the Bloomberg platforms. Shout out my friends and the team in New York City, the big team out here in San Francisco.
One day down, four to go.
This is Bloomberg Technology.
