Latest / What the Flux / News Corp positions itself for AI | Lyka leans into pet humanisation | OpenAI’s $110 billion mega-raise from friends

Transcript

News Corp positions itself for AI | Lyka leans into pet humanisation | OpenAI’s $110 billion mega-raise from friends · What the Flux

• 0:05
  Speaker 1: This is what the Flux I'm Brett and I'm Justin
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  Speaker 1: and it's Wednesday, the fourth of March.
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  Speaker 2: Flux Family I comet bearing some new odds that may
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  Speaker 2: not sit in your favor. If you have a mortgage,
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• 0:55
  Speaker 2: Article Three Brilliant Stories Today dosie boy, let's do it
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  Speaker 2: for our first. News Corp has declared itself an AI
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  Speaker 2: input powerhouse as it expects to hit record profits in
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  Speaker 2: twenty twenty six thanks to a big, fat open aideal.
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  Speaker 1: Never thought I'd hear News Corp and AI powerhouse in
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  Speaker 1: the same sentence. BAMN must be manifesting this into reality,
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  Speaker 1: so tell me more so.
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  Speaker 2: News Corp is the global media and publishing giant whose
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  Speaker 2: origins started back in nineteen fifty two in humble old Australia.
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  Speaker 1: And b Man. It has some major media assets globally
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  Speaker 1: like the Wall Street Journal and book publisher HarperCollins.
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  Speaker 2: While in Australia it owns the Australian newspaper Sky News,
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  Speaker 2: tens of regional papers, and a sixty one percent stake
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  Speaker 2: in Aria Group and be Man. It's been pretty slim
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  Speaker 2: pickens for media companies over the past decade, but News
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  Speaker 2: Corp CEO claims they are back. Yeah. It's CEO Robert
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  Speaker 2: Thompson reckons the company is on track for record profits
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  Speaker 2: this financial year.
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  Speaker 1: News Corps cut more than one hundred and sixty million
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  Speaker 1: US dollars in costs over recent years.
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  Speaker 2: And of course, a little deal with open Ai.
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  Speaker 1: And b Man, NewsCorp now sees itself as an input
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  Speaker 1: company in the AI economy.
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  Speaker 2: So what's the key learning here?
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  Speaker 1: In this context, an input company is one that provides
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  Speaker 1: a cent ingredients that other businesses rely on.
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  Speaker 2: Think semiconductors for chip makers, or energy for data centers,
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  Speaker 2: or raw materials for manufacturers.
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  Speaker 1: In the AI world, high quality data is one of
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  Speaker 1: those input ingredients, and news Corp produces a lot of
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  Speaker 1: articles of data.
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  Speaker 2: So Jazi boy. By positioning itself as an input company,
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  Speaker 2: it's arguing that it's journalism, its books, and its real
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  Speaker 2: estate data are raw materials that AI models need to function. Well,
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  Speaker 2: here's where it gets interesting for investors. We know that
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  Speaker 2: AI companies often command premium valuations.
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  Speaker 1: True, so if NewsCorp can embed its content into AI
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  Speaker 1: systems through long term licensing deals, it moves closer to
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  Speaker 1: that AI value chain. It's US two hundred and fifty
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  Speaker 1: million dollar deal with open Ai is an example of
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  Speaker 1: this shift, and the Man then, instead of being valued
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  Speaker 1: purely as a traditional media company, it starts to look
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  Speaker 1: more like data infrastructure with some tasty recurring AI linked revenue.
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  Speaker 2: For our second story, like the Australian premium pet food
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  Speaker 2: company has raised sixty seven million bucks as its grand
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  Speaker 2: plans for global expansion.
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  Speaker 1: She dog is your soul mate. This one is for you,
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  Speaker 1: so b man, tell me more so.
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  Speaker 2: Laika was founded by a former bank consultant in twenty
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  Speaker 2: eighteen after she was a little unsure what was in
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  Speaker 2: the commercial pet kibble she was offering for her dog.
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  Speaker 1: Bit of cheap corn here, bit of preservatives there.
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  Speaker 2: So she started cooking fresh meals for her own dog
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  Speaker 2: named Laika, who's still kicking on at seventeen years of age.
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  Speaker 1: If you do not mind next minute. The fresh pet
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  Speaker 1: food brand Alaika was born and Jaziboy.
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  Speaker 2: Since twenty eighteen, Laika has one hundred thousand active dogs
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  Speaker 2: in Australia as opposed to inactive dogs and Jazi Boy.
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  Speaker 2: After hitting two hundred million dollars in annual recurring revenue,
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  Speaker 2: Laika has raised sixty seven million bucks in a Series
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  Speaker 2: C round and as part of this round, the goal
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  Speaker 2: is to expand into new products and overseas markets. And
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  Speaker 2: despite the premium pricing of its fresh food products, clearly
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  Speaker 2: there's a big market in Australia and abroad. M hm.
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  Speaker 1: You can't put a price tag on that for emotional
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  Speaker 1: pet owners who have really leaned into pet humanization.
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  Speaker 2: Mm hm, So what is the key learning here?
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  Speaker 1: Pet humanization is the growing trend of treating pets as
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  Speaker 1: integral family members rather than just an animal.
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  Speaker 2: And as pet humanization increases, spending naturally shifts towards premium,
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  Speaker 2: personalized and health focused products for the doggos yep.
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  Speaker 1: And then according to like, seventy five percent of Australians
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  Speaker 1: are letting their dogs sleep on their beds.
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  Speaker 2: It tells you everything you need to know about how
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  Speaker 2: emotionally invested we are.
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  Speaker 1: Yeah, so b man Like. It isn't just selling dog
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  Speaker 1: food anymore. It's tapping into something much deeper, our emotional psyche.
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  Speaker 2: Now, Jaziboy layer that onto a twenty one point three
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  Speaker 2: billion dollar Australian pet industry, with food accounting for almost
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  Speaker 2: half of total spend.
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  Speaker 1: That is massive and it's an expanding pool of dollars.
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  Speaker 2: So Laika is positioned right at the intersection of two
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  Speaker 2: powerful forces. Number one, a growing addressable market what.
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  Speaker 1: Else, and number two a customer willingness to pay more
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  Speaker 1: for quality and supposedly longevity for the doggos. For our
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  Speaker 1: third and final story, open ai, the creator of chat jbt,
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  Speaker 1: has landed a record breaking funding round of one hundred
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  Speaker 1: and ten billion dollars, which includes a cheeky fifty bill
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  Speaker 1: from the Zon What man, these investment arounds are getting
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  Speaker 1: a little too incestuous for my liking, So can you
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  Speaker 1: tell me a bit more?
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  Speaker 2: Yeap? So open ai is obviously the company behind chat jbt, one.
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  Speaker 1: Of the key players that have driven the generative AI
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  Speaker 1: boom since twenty twenty two. And we know that continuing
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  Speaker 1: to build these models and run these models is very expensive,
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  Speaker 1: so it requires a lot of capital.
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  Speaker 2: And now open ai has raised one hundred and ten
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  Speaker 2: billion US dollars, which takes its evaluation to seven hundred
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  Speaker 2: and thirty billion US dollars, which is.
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  Speaker 1: Up from just five hundred bill just a few months ago.
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  Speaker 2: And jasbo this raises more than double its previous record
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  Speaker 2: round last year, which.
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  Speaker 1: By the bye was already the largest private tech funding
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  Speaker 1: round in history.
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  Speaker 2: Huh. And this time Amazon is tipping in fifty bill.
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  Speaker 1: In Video and soft Bank each investing thirty.
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  Speaker 2: Bill, and many of these investors in this round are
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  Speaker 2: also open AI's customers. The old Ai Merry Go round
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  Speaker 2: continues to go round and round it does. So what
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  Speaker 2: is the key learning here?
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  Speaker 1: The AI investing merry go round is the circular cycle
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  Speaker 1: where top tier tech companies and AI startups fund each other.
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  Speaker 2: Yeph because a little like this, the tech giant invests
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  Speaker 2: billions into AI labs like open ai or Anthropic.
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  Speaker 1: Then those AI labs spend on chips from in Video.
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  Speaker 2: Then they also spend money on cloud services from the
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  Speaker 2: tech giants that they received investment from.
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  Speaker 1: So essentially, a portion of the money they received in
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  Speaker 1: capital goes back to the investors as revenue.
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  Speaker 2: And this circular cycle can inflate revenue and valuation.
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  Speaker 1: Even if external demand isn't growing at the same pace.
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  Speaker 1: Get this, Microsoft invested one bill in open Ai in
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  Speaker 1: twenty nineteen and other ten bill in early twenty twenty three.
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  Speaker 2: Amazon has invested eight bill into Anthropic and now fifty
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  Speaker 2: bill into open ai.
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  Speaker 1: In VideA, the chip designers also invested thirty bill into
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  Speaker 1: open Ai in this round.
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  Speaker 2: And juzuboy, that's really just the beginning.
• 6:39
  Speaker 1: Plux am. We all know to diversify your portfolio, but
• 6:41
  Speaker 1: what does that actually mean and which assets should fit
• 6:44
  Speaker 1: within it? Well? In the flux app. We've broken down
• 6:46
  Speaker 1: fixed incomest term deposits and what is really the difference.
• 6:49
  Speaker 1: You want to learn more, make sure you download at a
• 6:51
  Speaker 1: Flux app and check out our latest article.
• 6:53
  Speaker 2: Thanks for listening and we'll see you on for Friday