Netflix Co-Founder Reed Hastings Talks AI, Future of TV

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Bloomberg Talks 26 min 5 speakers 4 chapters transcribed
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What is the main topic discussed in this episode?

Karen Moskow 0:00
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David Westin 0:40
A master's in computer science from Stanford in 1988 in artificial intelligence. I was a new partner at a law firm called Lomer Cutler and Pickering in Washington during international trade. What did you see in artificial intelligence at the time?
Reed Hastings 0:54
It's an honor to be with you all. I wish I had been a behavioral economist. That was my only real big regret in life. And so what did I see in AI, which is sort of related, what's the nature of intelligence? I think I saw a dream of understanding ourselves and our society a little better. And that was sort of the primary motivator. I will say that the AI that I studied was the equivalent of the sun goes around the earth field. So we had a fundamental theory in the 1980s that was completely false and didn't work, but we didn't know it at the time. So me and many other people then fled to all kinds of other fields. And it's exciting now to see a new set of techniques really be transformative. And to Mike's reference on the news this week, you know that I'm enamored with subscription models.
Reed Hastings 2:03
And now I've become more aware about tender offers. And I like TV channels. So we're announcing today, Mike, a tender offer for Bloomberg. We hope you will consider it appropriately. Your board members are willing to debate the transaction. But unfortunately, as you would suspect as a board member, that's all I can say on the news of the week.
David Westin 2:34
So you're not going to answer my boss's question? Who's going to win? I think it is all answered. So looking back on AI as you saw it then and whatever you saw then and comparing it to now, I hear a range of things being said as extreme as this is as big an invention as the industrial revolution. Some people say it's the discovery of fire. Are we overestimating or underestimating the effect generative AI will have on us?
Reed Hastings 3:02
Well, let's think back 30,000, 40,000 years ago, and we're a bunch of Neanderthals, and we're in the entrance to our cave.

What insights does Reed Hastings share about his background in AI?

Reed Hastings 3:10
And we've been the dominant humanoid species for a couple hundred thousand years. And the two of us look down, and we see Homo sapiens. We're like, look at those guys. They're so skinny. They're hairless. What? They're pitiful. But those guys were really intelligent. and ultimately those homo sapiens dominated the Earth and killed off us Neanderthals. So I would say intelligence per species has been highly selected for and that homo sapiens intelligence has allowed us to become the dominant species on Earth because we use our intelligence to make tools and do other things. So I think it's a lot different than, say, mechanizing muscle power. So if you think of bulldozers and how did that transform society, it did a lot, but it did it over 100 years.
Reed Hastings 4:10
And although muscles are important, they're not the core human attribute, thus the dislocation of the Neanderthals, which were much stronger than humans. So if AI develops to actually be superintelligence, then it will be a lot more profound, I think, than anything else, and that we will have actually real species threats because the AI will keep getting smarter and smarter and smarter without limit. And natural selection works quite slowly in terms of making humans more intelligent. So then we have to sort of say, okay, how fast and how, you know, will the computers really think? Obviously, when we all use AI as consumers, we can find, you know, it's pretty miraculous in some cases, but in other cases, it's not very effective.
Reed Hastings 5:04
But, you know, we're understanding more and more of the techniques.

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