Connect with us

Business

Movie theaters make plea for more films, rail against piracy at CinemaCon 2024

Published

on

Movie theaters make plea for more films, rail against piracy at CinemaCon 2024

Somehow, heartbreak feels good in a place like CinemaCon — where no matter how many hits the motion picture industry has taken over the last year (and, uh, it’s taken a lot), exhibitors from all over the world unfailingly come together to exude enthusiasm about the moviegoing experience and optimism about the future of cinema.

Flag bearers for the Motion Picture Assn., the National Assn. of Theatre Owners and other major industry players convened Tuesday at Caesars Palace in Las Vegas to deliver their annual state-of-the-business address and officially kick off the event. Movie stars, filmmakers and studio heads are expected to tease, extol and in some cases screen their upcoming releases.

There’s a lot riding on those movies in the wake of a box office slump partially brought on by the Hollywood writers’ and actors’ strikes, which delayed several movies and effectively halted film and TV production last year for about six months.

“We can’t shy away from the stark challenges of this moment, nor can we ignore this time of volatility in our industry,” said Charles Rivkin, chief executive of the MPA, during Tuesday’s presentation. Washington-based MPA represents the Hollywood studios, including Disney and Netflix.

“Yet no one should fear that uncertainty,” he added, “because after all, we work in a business where unexpected twists can make for an epic story. … We understand the stakes. We recognize the need to do everything possible to ensure the enduring health of cinema.”

Advertisement

Global box office revenue is predicted to hit $32 billion in 2024, according to film analytics firm Gower Street, which is nowhere near the $40-billion-plus heights of the pre-COVID-19 era. But since the beginning of 2024 — when domestic box office revenue was down 20% from the previous year — some glimmers of hope have emerged.

In March, the highly anticipated sequel to Warner Bros.’ “Dune” launched at $82.5 million in the United States and Canada — the first true blockbuster opening weekend since AMC Theatres’ “Taylor Swift: The Eras Tour” ($93.2 million).

Following the desperately needed success of “Dune: Part Two” — which has now grossed more than $255 million domestically — Universal Pictures’ “Kung Fu Panda 4” notched a solid $58-million domestic debut, Sony Pictures’ “Ghostbusters: Frozen Empire” posted a decent $45 million and Warner Bros.’ “Godzilla x Kong: The New Empire” drew an impressive $80-million bow.

Exhibitors on Tuesday also touted the rising popularity of Japanese cinema in the United States, including Crunchyroll-distributed anime hits such as the latest “Demon Slayer” movie and Toho Co.‘s Oscar-winning “Godzilla Minus One.”

Mitchel Berger, senior vice president of global commerce at Crunchyroll, said Tuesday that the global anime business generated $14 billion a decade ago and is projected to generate $37 billion next year.

Advertisement

“Anime is red hot right now,” Berger said.

“Fans have known about it for years, but now everyone else is catching up and recognizing that it’s a cultural, economic force to be reckoned with.”

Exhibitors are hoping that momentum holds despite also weathering several recent box office disappointments, such as Universal Pictures’ misbegotten spy thriller “Argylle” and Sony Pictures’ superhero disaster “Madame Web.”

When the actors’ strike concluded in November, theater operators expressed concerns about the health of the 2024 film slate. The overlapping work stoppages prompted studios to push at least a dozen movies to 2025 from 2024, including the eighth installment in Paramount Pictures’ “Mission: Impossible” saga and Disney’s live-action remake of “Snow White.”

Cinemark Chief Executive Sean Gamble estimated in February that 95 pictures were slated to open this year in wide release, as opposed to 110 in 2023. And nothing spells danger for exhibitors like a thinned-out release schedule. It doesn’t help that the average length of the theatrical window significantly shrank (from 90 days to roughly 35 to 40 days) after the COVID-19 pandemic shut down movie theaters for more than a year.

Advertisement

At Tuesday’s presentation, exhibitors pleaded with distributors to take a leap of faith and commit to releasing movies in cinemas year-round — not just during times that have historically seen heavier foot traffic.

“For my friends in distribution, please embrace digital’s flexibility and offer your awe-inspiring movies 52 weeks of the year to every exhibitor,” said Chris Johnson, CEO of Classic Cinemas. “Eliminate print counts and trust us to make programming and scheduling decisions that yield the best results for all. … If you have a hit, we will hold it.”

Michael O’Leary, CEO of the National Assn. of Theatre Owners, also made the case for more small- and medium-budget releases that attract cinephiles, citing prestige titles such as A24’s “Past Lives” and Amazon MGM Studios’ “American Fiction.”

“It’s not enough for us to simply sit back and want more movies,” O’Leary said. “We must work with distribution to get more movies of all sizes to the marketplace.”

This year, a number of potential upcoming blockbusters remain.

Advertisement

Universal is cooking up “Twisters,” “Wicked” and “Despicable Me 4”; Warner Bros. is sitting on “Furiosa: A Mad Max Saga,” “Joker: Folie à Deux” and “Beetlejuice Beetlejuice”; Paramount is distributing “Gladiator 2” and “A Quiet Place: Day One”; Sony is launching “Venom: The Last Dance”; Disney is set to release “Inside Out 2,” “Moana 2” and “Deadpool & Wolverine”; and Amazon MGM Studios is about to drop “Challengers,” starring Zendaya.

The last few years at CinemaCon have drawn battle lines between exhibitors and streamers. During the streaming wars of 2021 and 2022, studios threw an excessive amount of resources and funds at streaming projects in an effort to compete with Netflix.

At the time, streaming was painted as theaters’ archnemesis. But the great streaming boom of the early 2020s has subsided as entertainment companies — reeling from financial losses — are tightening their belts and greenlighting less streaming content.

In December, Disney unveiled plans to re-release three Pixar titles — “Soul,” “Turning Red” and “Luca” — in theaters this year after initially routing them directly to streaming. Additionally, “Moana 2” — originally conceived as a TV series to be streamed on Disney+ — was reworked into a feature coming to the big screen in November.

Though streaming undoubtedly still poses a threat to movie theaters, the tides appear to be turning ever so slightly in exhibitors’ favor as studios rethink their release strategies and film fanatics continue to splurge on Imax and other premium large formats.

Advertisement

“You can watch a movie on TV or on your tablet or on your computer, but you experience it in a theater,” O’Leary said. “And part of what makes the movie so special is the theaters themselves.”

However, exhibitors at CinemaCon did repeatedly express concerns about the rise of illegal streaming and digital piracy. Rivkin condemned the practice as “insidious forms of theft” that harm production workers, actors, directors, writers, craftspeople and even consumers who risk falling prey to malware viruses when watching movies illegally online.

Rivkin estimated that on average, piracy costs the movie theater industry more than $1 billion per year. During his state-of-the-industry address, he called on Congress to enact site-blocking legislation that would prevent internet users in the United States from accessing websites that stream films illegally.

“Piracy operations have only grown more nimble, more advanced and more elusive every day,” Rivkin said. “These activities are nefarious by any definition. They’re detrimental to our industry by any standard. And they’re dangerous for the rights of creators and consumers by any measure.”

Advertisement

Business

Commentary: Trump’s ‘weird war’ on wind power will jeopardize our energy future and cost Americans billions

Published

on

Commentary: Trump’s ‘weird war’ on wind power will jeopardize our energy future and cost Americans billions

Trump is shelling out $2 billion of taxpayer money to kill wind power projects, but his hatred for the technology is based on myths

Picking the wildest fantasy promoted by President Trump as a basis for public policy is increasingly challenging — is it his yarn about schoolchildren being secretly abducted from their classrooms and given sex-changing operations? The notion that the vaccines given to children are like “a vat, like a big glass, of stuff pumped into their bodies?”

Here’s one that has disrupted the economics of renewable energy generation and will cost Americans billions of dollars: It’s Trump’s “completely weird war on wind power in the United States,” based on a sheaf of “fact-free arguments.”

That judgment comes from Steven Cohen, a climate policy expert at Columbia University, who points out that wind already accounts for 10.5% of U.S. energy generation, that it’s destined to continue growing — and that most of it is generated today in red states such as Texas, Oklahoma, Iowa and Kansas.

Fifty years from now, people are going to be amazed that we burned these rare, useful hydrocarbons for fuel, when the sun was just sitting up there providing an essentially infinite source of energy.

— Steven Cohen, Columbia University

Advertisement

There is no question that Trump’s weird war against wind is full blown. On the day of his second inauguration, he issued an executive order shutting down all new permits for offshore wind farms and ordered the Interior Department to review existing permits.

A federal judge in Massachusetts blocked the executive order in December, and his orders suspending work on existing offshore wind projects have been halted by other federal judges. The Trump administration has blocked or delayed as many as 165 wind projects on private land, citing “national security” concerns, according to the American Clean Power Assn.

Most recently, Trump has reached agreements with offshore wind firms in which the government will pay them a combined $2 billion to abandon their U.S. projects.

Advertisement

At some level, this crusade resembles Trump’s misguided effort to revive the American coal industry, which is on the glide path to inevitable extinction. In that case, Trump is waging an explicitly partisan and ideological battle. “We’re ending Joe Biden’s war on beautiful, clean coal,” he declared last April.

Trump’s anti-wind program is part of his campaign to dismantle U.S. renewables policy because of its roots in the Biden administration.

Additionally, multiple commentators conjecture that his hostility to wind originated in 2011, when he groused that an offshore wind farm would be visible from one of his golf courses in Scotland. He sued to thwart the “ugly” project, and lost.

But Trump has mustered other arguments against wind, on- and offshore, none of which holds water.

During a cabinet meeting in July 2025, he called wind “a very expensive form of energy.” In fact, on average it’s cheaper than natural gas, coal and nuclear generation. Perhaps more important, the cost has been coming down sharply as technology improves and the sector reaches critical mass: falling to eight cents from 21 cents per kilowatt-hour from 2010 to 2024 for offshore projects, and to 3.4 cents from 11.3 cents for land-based wind farms over the same period.

Advertisement

Trump blamed wind turbines for mass killing whales and birds. Neither assertion is correct.

The National Oceanic and Atmospheric Administration, a federal agency, says “there are no known links between large whale deaths and ongoing offshore wind activities.”

The Audubon Society reported in January that although wind turbines can present hazards to birds, “developers can effectively manage these risks without significantly increasing project costs.” The biggest risks to birds come from the climate: “Two-thirds of North American birds are at increasing risk of extinction from global temperature rise,” the society reported — a threat that wind power can ameliorate.

Trump spokeswoman Taylor Rogers didn’t respond to my questions about the derivation of his anti-wind stance, but told me by email only that “President Trump has been clear: hard-earned taxpayer dollars shouldn’t be wasted on unreliable and costly wind farms that pose serious threats to our national security. Instead, we should be strengthening and expanding our infrastructure that produces reliable, affordable, and secure energy like natural gas plants.”

That brings us to the recent deals with offshore wind developers. The largest single deal, signed in March, was with the French firm TotalEnergies, which is to receive approximately $1 billion from the federal government to abandon all of its U.S. offshore wind projects and invest instead in oil and gas projects, including a liquefied natural gas export facility in Texas.

Advertisement

In his March 23 announcement of the deal, Interior Secretary Doug Burgum called offshore wind “one of the most expensive, unreliable, environmentally disruptive, and subsidy-dependent schemes ever forced on American ratepayers and taxpayers.”

This is what Huck Finn would call a “stretcher,” given the decades of subsidies spooned out to the oil and gas industry, reaching more than $30 billion a year in federal and state tax credits, indulgent regulation of pollution and low-cost access to federal lands. Indeed, the investment firm Lazard recently reported that renewables, including wind, are a cost-competitive form of generation even without subsidies. (Lazard’s calculation is of the “levelized cost of energy,” meaning the average cost over a generating plant’s lifetime.)

TotalEnergies fell into lockstep with the Interior Department in its own announcement, explaining its willingness to renounce U.S. offshore wind power because “offshore wind developments in the United States, unlike those in Europe, are costly,” echoing the agency’s position that “the development of offshore wind projects is not in the country’s interest.” Never mind that one factor that makes U.S. offshore wind development costly compared with Europe is the Trump administration’s opposition.

The government subsequently reached an agreement to pay the French company Ocean Winds $885 million to walk away from two offshore wind projects, including one in the waters off California. Ocean Winds described the deal as one driven chiefly by economics, but hinted at pressure from the White House.

“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” Michael Brown, the chief executive of Ocean Winds North America, said when the deal was announced last month. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”

Advertisement

The TotalEnergies deal, which the government has described as a “refund” of money the firm paid for its offshore leades, raised the hackles of congressional Democrats, who assert that it violates the law and constitution in multiple ways.

“We will hold you accountable for this billion-dollar ripoff,” Reps. Jamie Raskin (D-Md.), ranking member of the House Judiciary Committee and Jared Huffman (D-San Rafael), ranking member of the House Committee on Natural Resources, warned TotalEnergies CEO Patrick Pouyanné in an April 29 letter.

Among other infirmities Raskin and Huffman alleged, the government’s national security rationale for canceling offshore wind leases looks “fabricated”; the payout violates the statutory formula for compensation for canceled leases; the money is to come from a fund designed only to pay court-ordered judgments and settlements of lawsuits, which don’t exist in this case; and includes a provision preventing the deal from being reviewed by a court.

The last of those provisions would have to be authorized by Congress, the letter states, asking for documents and a response from the company by Wednesday. Committee spokespersons weren’t available to say whether they received a response from TotalEnergies, and the company didn’t respond to my request for comment. I received no response from the Department of the Interior.

The California Energy Commission has opened an investigation into the Ocean Winds deal.

Advertisement

“The Trump Administration is recklessly spending billions of taxpayer dollars on backroom deals that would turn back the clock on innovation” CEC Chair David Hochschild said. “Taxpayer dollars should be used to build a sustainable energy future, not to pay to make projects disappear.”

What’s especially wasteful about Trump’s crusade against wind power is that it’s almost certain to be time-limited.

It’s hardly debatable that renewables such as solar and wind will be our principal sources of energy in the future; holding back the clock achieves nothing but injecting uncertainty into investment decisions that need to be made now, at a time when the price of oil is on the upswing thanks to Trump’s Iran adventure and Europe and China are racing to transition away from fossil fuels, while the U.S. remains becalmed by ideology.

“In the long run, fossil fuels will be used for petrochemicals and not for burning,” Cohen told me. “Fifty years from now, people are going to be amazed that we burned these rare, useful hydrocarbons for fuel, when the sun was just sitting up there providing an essentially infinite source of energy.”

Advertisement
Continue Reading

Business

Judge denies move to dismiss State Farm collusion lawsuit

Published

on

Judge denies move to dismiss State Farm collusion lawsuit

A Los Angeles judge has denied a petition by State Farm and other insurers to dismiss two lawsuits accusing them of colluding to drive homeowners onto California’s FAIR Plan.

The lawsuits, which accuse the insurers of violating the state’s antirust and unfair competition laws, were largely upheld in a decision Thursday by Los Angeles County Superior Court Judge Samantha Jessner.

The judge struck two less significant claims from the lawsuits filed last year, but allowed the case to proceed against more than a dozen major California insurers, led by State Farm General, the state’s largest.

“This is very good news for our people, our plaintiffs, because we’re going to be able to go ahead now with our antitrust claims in both cases,” said Bob Ruyak, an attorney representing the homeowners.

Advertisement

Sevag Sarkissian, a State Farm spokesperson, said the ruling did not “address the accuracy of the allegations” and that the company looks “forward to presenting our case in court.”

The lawsuits allege the companies financially benefited when policyholders were dropped and moved onto the FAIR Plan, since they financially back the insurer that sells more expensive policies which offer less coverage.

One lawsuit led by Todd and Kimberley Ferrier — whose Pacific Palisades home burned down — seeks to compensate 60 homeowners who experienced fire losses exacerbated by the FAIR Plan’s limited coverage.

The other case is a proposed class action that would compensate policyholders for the higher premiums they paid to the plan.

The case has garnered the attention of the federal Department of Justice, which filed a brief this month disputing an argument made by the insurers to have the case thrown out.

Advertisement

The insurers had alleged that they were shielded from antitrust liability under both California and federal law due to a certain legal doctrine.

While the department took no position on the merits of the collusion allegations, it said it files such briefs “where doing so helps protect competition and consumers, including by encouraging the sound development of the antitrust laws.”

The decision by the department to insert itself in the case followed a March post by President Trump bashing State Farm on social media after a visit to Pacific Palisades by administration officials.

The president called State Farm’s treatment of January 2025 wildfire victims “absolutely horrible” and asked EPA Administrator Lee Zeldin for a list of insurers who “acted swiftly” and those that were “particularly bad.”

Also this month, the California Department of Insurance filed an administrative action against State Farm seeking possible suspension of the carrier’s insurance license, alleging State Farm mishandled January 2025 wildfire claims.

Advertisement

The company acknowledges some claims were mishandled but rejected claims it engaged in a “general practice of mishandling or intentionally underpaying wildfire claims.”

The company says the California’s homeowners insurance market is the most “dysfunctional” in the country, with state regulators contributing to “delays and uncertainty that have contributed to fewer choices and higher costs for consumers.”

Continue Reading

Business

What Trump Gained, and Didn’t, From China

Published

on

What Trump Gained, and Didn’t, From China

Andrew here. With President Trump set to arrive back in Washington on Friday, we’re taking a hard look at what his high-stakes summit in Beijing actually achieved. The TL;DR: It didn’t lead to the “grand bargain” many had anticipated.

While there were optics of cooperation between Trump and Xi Jinping, concrete deals — including on Nvidia chips or tariffs — were few. Trump just said that he rejected a proposal from Xi, China’s leader, to help broker a peace between the U.S. and Iran, leaving the critical Strait of Hormuz effectively shut.

Ultimately, the president is coming home to rising oil prices and a slumping bond market.

President Trump departed Beijing a few hours ago, hailing “fantastic trade deals” struck during his two-day summit.

Still, many analysts and investors appear underwhelmed by a lack of details or breakthroughs on key issues like tariffs, Iran and tech restrictions. The summit seems to have fallen short of already diminished expectations.

Advertisement

For the 17 business leaders who accompanied Trump on the trip, the deal flow also appeared thinner than what was announced on his last presidential trip to China, in 2017.

Here are the highlights so far, Grady McGregor writes.

Nvidia and Citi apparently scored wins. Shares in Nvidia, the chipmaker, hit a record on Thursday on reports that Washington had cleared 10 Chinese companies to buy its H200 semiconductors.

That said, Beijing, which is looking to champion domestic rivals like Huawei, has not signaled it would be open to permitting the sales — an issue echoed on Friday by Jamieson Greer, the U.S. trade representative.

And on the eve of the summit, Beijing approved Citi’s application to operate a securities business in China, ending a yearslong regulatory application process. It is unclear whether the presence of Jane Fraser, the bank’s C.E.O., on the trip played any role in Beijing’s decision. Citi shares gained on Thursday.

Advertisement

Boeing landed an order for 200 aircraft, a deal Trump highlighted in a Fox News interview last night.

But shares in the plane maker fell sharply in premarket trading on Friday: The number was short of analysts’ forecasts of at least 300 planes.

The Board of Trade looks like a go. The Washington-Beijing body would manage trade in sectors such as aviation, energy, medical equipment and agriculture. Greer said it would aim to reduce tariffs on roughly $30 billion worth of goods.

He added that he expected the tariff truce the countries struck last fall in South Korea to be extended.

What’s still unclear:

Advertisement

Major cryptocurrency regulation clears a key hurdle. The Senate Banking Committee passed the Clarity Act, which has been promoted by crypto companies and investors like the venture capital firm Andreessen Horowitz. The bill heads to the full Senate, where it faces a less certain fate.

Federal prosecutors will drop criminal charges against India’s richest man. The move to end the case against the businessman Gautam Adani came after one of his lawyers — Robert Giuffra, who is also one of President Trump’s personal lawyers — met with Justice Department officials, The Times reports. (A presentation by Giuffra said that Adani was willing to invest $10 billion in the U.S., though sources told The Times that the withdrawal of charges wasn’t tied to the offer.) A settlement in a parallel case by the S.E.C. was announced Thursday in which Adani agreed to pay $6 million.

Bill Ackman bets big on Microsoft. The billionaire financier said on Friday that he had acquired a major stake in the tech giant and that he believed in the long-term prospects of its productivity software and its spending on A.I. Other hedge fund managers have bet the opposite: TCI, the firm run by Chris Hohn, recently sold off an $8 billion stake in Microsoft.

The high-stakes legal showdown between Elon Musk and OpenAI is finally headed to the nine-person jury.

Over more than seven hours of closing arguments, lawyers for each side sought to paint the other as untrustworthy.

Advertisement

Here are some of the highlights of Thursday’s proceedings.

Can anyone trust Sam Altman? That was again the central attack by Steven Molo, Musk’s lead lawyer, who has argued that Altman, the OpenAI chief, deceived Musk, a fellow founder, about plans to convert the company from nonprofit to for-profit.

Molo told jurors that five witnesses had called Altman a “liar,” and he hammered home his point with a creative metaphor:

Imagine that you’re on a hike, and you come upon one of those wooden bridges that you see on a trail, and it’s over a gorge. There’s a river that’s 100 feet below and it looks a little scary, but a woman standing by the entry to the bridge says, “Don’t worry, the bridge is built on Sam Altman’s version of the truth.” Would you walk across that bridge? I don’t think many people would.

Can jurors trust Musk’s version of events? OpenAI’s lawyers, from the law firm Wachtell, Lipton, Rosen & Katz, argued that the billionaire knew about the company’s plans for for-profit conversion earlier than he admitted to and that the statute of limitations for his claims had passed.

Referring to Musk’s claim that he hadn’t read most of a 2018 email about OpenAI’s plans to seek outside investment, Sarah Eddy, a lawyer for OpenAI, said:

Advertisement

Here you have one of the most sophisticated businessmen in the history of the world and he claims he didn’t read a four-page summary term sheet.

The outcome of the trial could drastically alter the A.I. landscape. If OpenAI loses, its operations could be disrupted at a time when rivals are gaining steam.

The artificial intelligence boom has been a tale of haves and have-nots. Some companies have benefited mightily, most recently the chip maker Cerebras, whose stock shot up 68 percent in its debut. But many enterprise software providers have been walloped.

One of them was Figma, the design-software maker whose shares have tumbled since it went public last year. But as it reported strong quarterly earnings on Thursday, its C.E.O., Dylan Field, spoke with Michael de la Merced about why he believed his company was poised to survive, and even thrive. Here are our takeaways after the conversation.

Remember the “SaaSpocalypse”? Referring to “software-as-a-service,” it referred to investors’ worries that tools like Anthropic’s Claude Code would devastate the entire category of subscription-based software companies, like Figma.

Figma appears to have dispelled at least some of those worries:

Advertisement

The company’s results held up after an A.I.-related change in pricing. For most of its existence, Figma charged companies per user (known as seat-based pricing). But A.I. agents that can do work once reserved for humans promise to drastically reduce how many “seats” customers need to pay for.

In mid-March, Figma switched to a system in which it charged users for how much A.I. they used past a certain amount. The company said that more than 75 percent of its business users kept using A.I. tools despite the cap.

The result: Shares in Figma are up more than 10 percent in premarket trading since the report.

“Market narratives are market narratives,” Field said to DealBook about the SaaSpocalypse sell-off, playing down the investor concern while pointing out Figma’s strong performance.

“The way we see it, A.I. is going to create more software than ever,” he said. He added, “Design matters.”

Advertisement

But Field remains on guard. Makers of A.I. models have muscled into Figma’s territory, notably Anthropic, which in March introduced Claude Design, a tool seen as a competitor of sorts. (Only three days before, Mike Krieger, a senior Anthropic executive, resigned from Figma’s board; Field reportedly complained about the situation.)

“You have to take a company like Anthropic seriously,” Field told DealBook.

The musical playlist for Thursday’s state dinner in Beijing for President Trump drew big buzz on social media. It contained some Trump favorites, including the Village People hit “Y.M.C.A.”


Every week, we’re asking a leader how he or she uses artificial intelligence. This week, Jeremy Allaire, who leads the stablecoin issuer Circle, told Sarah Kessler that he had built a “C.E.O. prioritizer.” The interview has been condensed and edited for clarity.

How do you personally use A.I. at home or work?

Advertisement

One interesting one is a C.E.O. prioritizer. If there’s a request for me to meet someone or do something, you go to the agent and it interrogates you about it and does background research. Then it assigns a one-to-five score, with one being “Completely ignore it” and five being “This is a highly strategic use of your time.”

Circle wants to be part of the infrastructure that helps A.I. agents spend money. Tell me more about that.

The primary units of work in the economic system are going to be executed by A.I. agents. And increasingly, it’s going to be agents that are operating in teams.

You need an economic system to support that. We need a way for one agent to access and use the services of another agent. For example, you might have research data in a particular domain of biology, and I want to make that available to A.I.s to consume. And it’s going to be 5 cents, 10 cents. Whatever it is, you receive that payment, and the A.I. then can consume that data and use it.

And this transaction would take place via stablecoin and not dollars, because there is less friction and these are tiny transactions?

Advertisement

There’s no payment system in the world except for something like USDC that can conduct a transaction for a fraction of a penny. Or even 5 cents or 10 cents. And it’s all programmable.

You said on your latest earnings call that 85 percent of your employees are using A.I. coding and automation tools. What does that look like?

We’re able to basically go through the entire software life cycle with A.I. agents conducting work. Agents are seeing feature requests, picking them up, coding and submitting the code for review. We have other agents that perform code review. Humans then obviously come in to do subsequent reviews.

What about outside of engineering?

It’s in every single function. If you want to build a creative strategy for a campaign, there’s a whole agentic workflow. If you are creating public communications content — we’re a regulated company, so we have very strict guidelines — there’s an A.I. that will vet all of your content and point out the issues with it.

Advertisement

Deals

  • Investors led by Egon Durban, a C.E.O. of the tech investment firm Silver Lake, have reportedly struck a deal to buy 25 percent of the Las Vegas Raiders at a $9.9 billion valuation. (CNBC)

  • Michael Carr, a longtime top M.&A. banker at Goldman Sachs, died on Tuesday. He was 68. (Bloomberg)

Politics, policy and regulation

Best of the rest

  • Boeing and Toyota are said to have donated $1 million each to fund a reality-TV video series starring the transportation secretary, Sean Duffy. (WSJ)

  • “In a City of Big Dreams, Many Young Adults See a Cloudy Future” (NYT)

We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com.

Advertisement
Continue Reading
Advertisement

Trending