The better you use ai, the more your work and business skills increase.

(1) the main contents
■ a. Google DeepMind unveils video creation model Veo
■ b. Changes in the Input value of the User Interface as inferred from Google Ask Photo and increasing needs for new search output values
■ c. Google Cloud’s 6th Generation TPU Trillium Revealed

(2) (2) Implication
■ a. A small number of big tech companies that use AI well penetrate the business areas of traditional SaaS companies
■ b. Advance H/W functions through AI and develop a trend to diversify input values used in UI
■ c. Attention is paid to semiconductor small manager companies with AI-driven beneficiary/growth stories

(3) (3) a. ImageFX & VideoFX
■ A tool to create images and videos solely from text prompts. VideoFX is based on Google DeemMind’s video creation model Veo (vs. Sora)

■ An editing function will be added to the tool in the future. This could pose a long-term threat to companies such as Adobe. The Creative Cloud division TAM, which includes Photoshop/Illustration, is a very large market with a size of about $63bn. It is also more attractive to big tech companies because it is a product that can perform 90% GPM/OPM/50%. This is an area that can penetrate not only Adobe but also the market of workplace-related companies such as CRM/ERP/HR

■ In the past, SaaS companies’ growth strategy was transition to “On Premise → Cloud.” Recently, their strategies include 1) securing product competitiveness by adding AI integration services, 2) maintaining retention, and 3) ultimately raising prices. However, it is worth paying attention to the fact that Big Tech, which internalized AI, is attempting to enter the market in various ways

■ From a domestic point of view, it seems to be applicable to drama production companies. In the past, the filming (Input) performed by the actor himself was required, but in the future, the input value that produces some quality can be approached from the perspective of cost-effectiveness only with a text key. There will still be Pandustry with the concept of famous (popular)/aura (original), but replacement of filming/work efficiency using AI is in progress in the incidental area

■ Companies like Sud have relied on Q-oriented growth, such as rising OTT penetration and export of copyrights to China, over the past period (OTT utilization simultaneous broadcasting model partially contributes to margins). The structure of subtracting the SG&A fee from the SG&A fee of 120% may change in the future. In other words, we can expect the possibility of reducing the cost structure centered on actors and writers and reducing top lines but improving profitability (of course, in the distant future). For example, if the existing profit or loss structure was 10 billion/cost/profit, respectively, it would change to 5 billion/4 billion/10 billion in the future..

■ When asked if OTT/channel operators will accept content in this format (using AI), can the influence of their favorite actors/directors/writers be ignored from the consumer’s point of view?- The likelihood of not doing so now seems much greater, but the possibility is always open because changes come from what I thought would not be everyone. According to recent writers, there are quite a few attempts using AI in screenplays, music, and editing

(4) b. Diversification of Input values and increasing demand for AI functions in everyday life
■ The input value of the User Interface is likely to diversify in earnest without fundamental changes in existing devices. In his keynote speech, Pichai mentioned ‘Ask Photo’ when he told him to find his license plate in a photo without suffering

■ If you type “Show me how your daughter’s swimming skills are improving,” the AI will only select photos of her swimming, list them in chronological order, and even comment. In addition, if you run camera mode in Google search box and take a picture of a broken turntable, the AI will find out the brand/product name of the product and provide text/YouTube video on how to fix it

■ In other words, the UI is expanding from finger-tying texts (keyboards) to photos and videos. This contributes to finding more intuitive and accurate information than before, and means that search using AI is expanded to all areas of daily life. In the end, the essence is user traffic, and it suggests that the front line to secure it has moved to the ‘AI utilization area’. From the perspective of big tech companies in the future, it is expected that whether the original main job can be advanced through the capability of internalizing AI models will determine the direction of corporate value in the future

■ Meanwhile, the advertising industry has grown to a large axis of offline → digital (PC → mobile). DA in digital advertising is programmatic based on user information (access/click/purchase), and SA has chosen the structure of CPS or provides top-recommended exposure to paying companies

■ Changes in AI are particularly closely related to SA. This is because it not only further advances the search value itself, but also gives it an advantage in user traffic competition by diversifying the input value. Portal/messenger/social media companies are expected to become a key factor in long-term corporate value through internalization of AI capabilities in the future. Eventually, small and medium-sized companies will not be able to acquire a newly created TAM by outsourcing or giving up the area, and the competitiveness of existing business units will also weaken

■ From a domestic point of view, both Naver and Kakao are driving their own AI, but they are inferior to Big Tech. In order for Naver to level up, it would have to improve its commerce capabilities through Clova to scratch Coupang’s market share, which seems very unlikely (AI aside, it seems that food will never be available). Kakao is also trying to make various attempts, but there seems to be nothing to see. Eventually, it is expected that MSFT vs. GOOGL will be in global sync with their direction and the second round match

(5) c. Keep an eye on the narrative of semiconductor sub-headings
■ Google Cloud has unveiled its 6th generation TPU Trillium per chip compared to its existing model, TPU v5e