Prof G Markets: Is AI the Hollywood Killer? + Amazon’s New Return to Work Policy

AI Infrastructure

AI infrastructure investments are reshaping the tech landscape, with major players like Microsoft and Blackrock leading the charge. Scott Galloway highlights Microsoft's strategic move into AI infrastructure, noting its successful investment in OpenAI and the resulting boost in stock value. He emphasizes the importance of mapping out customer journeys and identifying friction points in business operations 1. Ed Mylett adds that energy demands are a critical factor, with data center energy needs expected to triple by 2030. This surge in demand underscores the necessity for both fossil fuels and renewable energy sources 2.

If AI is coming, then we're going to need three times more energy than we produce today.

--- Ed Mylett

The partnership between Microsoft and Blackrock, managing $100 billion in AI investments, exemplifies the shift towards asset management as a sustainable business model 2.

   

AI in Film

AI is revolutionizing film production, as seen in Lionsgate's partnership with Runway to develop a custom AI model for production and editing. Ed Mylett explains that this model, trained on Lionsgate's extensive catalogue, will initially aid in storyboarding but is expected to expand to backgrounds and special effects 3. Scott Galloway reflects on the impact of AI on the creative industry, comparing it to past technological shifts like the introduction of green screens, which reduced production costs 4.

The cost reductions and threats of AI will be incremental.

--- Scott Galloway

He argues that globalization and outsourcing pose a more significant threat to Hollywood than AI, as production becomes cheaper in locations outside Los Angeles 4.