Morning Brew Daily - Google's AI Redo to Challenge ChatGPT & The Year of T-Swift
Episode Date: December 7, 2023Episode 208: Neal and Toby explain if Google's new AI 'Gemini' will be able to compete with ChatGPT. Plus McDonald's is making big waves; bringing back the snack wrap and planning to open over 9,000 s...tores in the coming years. Neal shares his favorite numbers including why Taylor Swift was TIME's person of the year and why Tom Petty's streams are up thanks to GTA 6. Also, women's sports have never been bigger and what are the biggest foods supposed to be for 2024? Finally why a woman who assaulted a Chipotle worker was punished by... working at the restaurant. Listen to Morning Brew Daily Here: https://link.chtbl.com/MBD Watch Morning Brew Daily Here: https://www.youtube.com/@MorningBrewDailyShow Disclosure: This is a paid advertisement for Autonomix’s Regulation A+ Offering. Please read the offering circular at invest.autonomix.com Learn more about your ad choices. Visit megaphone.fm/adchoices
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Good morning, Brew Daily Show.
I'm Neil Fryman.
And I'm Toby Howell.
On today's pod, Google takes its biggest swipe yet for ChatGPT's crown.
Then McDonald's just brought back a cult fan favorite menu item, and it ain't the McRib.
It's Thursday, December 7th.
Let's ride.
Neil, happy Hanukkah.
Thank you.
Today is the first day, but I have a question for you.
As a non-Jewish person learning about Hanukkah growing up as a kid, I was always so jealous because
it's eight days of celebration compared to Christmas's measly one.
So my question is, do you actually get eight presents?
growing up? It definitely depends on the family. I think younger kids probably get more presents,
and as you get older, you don't get as many. I think many parents who are giving out all those
presents when their kids were young probably thought, I wish I were a dink at this moment. But do you
only get one present on Christmas? No, right? Oh, that's true. It's true. So it just depends.
It's more, it's just the one-day aspect versus spread out over eight days. But I also want to
talk about this, because LACAs are the most popular food around Hanukkah. And there's a raging debate
about whether you eat it with applesauce or sour cream.
And I know you have a lot of thoughts on this.
My thoughts are they're both absolutely fantastic.
I absolutely love Locke's.
I'm a sour cream guy, though.
I love the contrast of those flavors right there.
All right, before we jump into the news,
quick shout out to our friends over at Yahoo Finance.
I don't know about you, Neal,
but I only really feel like checking the markets
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It's also the trusted news updates and suite of innovative tools that sets it apart.
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check out finance.yahu.com today or download the Yahoo Finance mobile app to get it directly on your phone.
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It may be Sagittarius season, but at Google, Gemini is rising.
Yesterday, Google revealed Gemini its most advanced large language model yet,
and its most significant effort to date to topple ChatGPT for the top spot on the AI leaderboard.
When OpenAI released ChatGPT back in November, Google was caught flat-footed and has scrambled to come up with a worthy competitor.
In March, it released its own chatbot called Bard, but that hasn't impressed, neither the name nor its capabilities.
BARD's user base is eight times smaller than chat GPs. Enter Gemini. Google says Gemini is able to power a better version of Bard, and it outperforms OpenAI's GPT4 in certain areas. One of its coolest party tricks is that it's able to analyze both images and sounds, which is becoming only more important as people use chatbots for more things than just typing questions. The recent leadership turmoil at OpenAI has reminded us that the AI pecking order is far from settled, and Google appears to be using the opportunity to
say, hey, remember us. We're Google. This is an amateur hour. You've spent some time with the new
Bard, Toby. Is this a worthy competitor to Chad GPT? I was playing around with it yesterday and this
morning. It is so great because remember, the big thing that Google has at Open AI doesn't is that
it's integrated, it can integrate AI into its broader suite of tools. You can look up flights
using Bard. You can scan your email using BART. That's always been Google's main selling point.
But now, let's remember how kind of embarrassed Google was when Open AI came out.
Google's called itself an AI first company for over a decade, and all of a sudden,
Open AI comes and eats its lunch.
But now you can see that when Google released this, they made a point of comparing it specifically to GBT4.
They ran 32 of those benchmarks, and they won 30 out of 32 of them.
So they were clearly taking aim at the top spot and saying, hey, listen, not only are we going
toe to toe with Open AI now, our model is better.
than them in a lot of different ways.
We've talked a lot about various terms.
We've thrown out a lot of terms.
Gemini, Bard, GPT, 4, Chap, GPT.
Kind of want to take a second to explain the relationship between those.
You have the large language models, these algorithms that are trained on a lot of data,
and those are Gemini and GPT4.
And when those are product ties, those are the engines that power products like Bard and
ChatGBT, which are the chat bots.
So I just want to make that clear when we throw around Gemini and Bard.
but Jevonai Powers Bard and GPT4 powers ChatGPT.
Thank you for breaking that down, Neil.
I also want to highlight that multi-modality that you spoke about in the intro,
because whereas Chattebtee built its image and audio add-on separately,
remember that's Doll E and then their audio versions called Whisper.
Google included them all in this multisensory model,
and they eventually want to break into the physical world as well,
adding things that like action and touch,
which can translate into robotics type things.
So, again, Google is really, really going, trying, there's cramming a lot of things into one specific feature rather than spreading it out across multiple ones, which I actually think is smart from just a consumer branding perspective.
Instead of having to remember that GPT is for text and dolly is for images, it's just all barred.
Meanwhile, Elon Musk is entering the chat here because, as I said at the beginning, the leaderboard is far from solidified.
And Elon Musk thinks he can weasel into the AI race now.
There is a report from Axios that said that Elon Musk is kind of lessening his focus on X or Twitter and putting more focus on XAI, which is under the, which is his AI company that's under the broader X corporate umbrella.
I'm not really sure how it works.
But there was an SEC filing that came out this week that XAI is looking to raise $1 billion.
And there are reports that it has actually raised $1 billion to fuel more chatbots that come at OpenAI,
Microsoft, Google.
So Elon Musk is not sitting out this AI revolution at all.
I'm sure that since it's Elon Musk, he will be able to raise the billion dollars.
But if I'm an investor, why are you choosing Elon's vision of AI over Google's over Open
AI?
It just seems like those are the ones that have been working on this for longer.
Elon seems like he's playing catch-up at this point.
So, I mean, never count them out.
It's always Elon, but why give him a billion dollars when Google is obviously advancing this very advanced model?
So I don't know about the whole X-A-I thing.
All right, Neil, after seven interminable painful years, the McDonald's snack wrap is back, baby.
With its chicken business growing to rival its burger business, McDonald's announced the decision to bring back the cult classic snack wrap yesterday in order to sate that growing demand.
According to the company, Chicken is a $25 billion business for them, and the new McChryspy wrap is here to meet all your chicken desires.
It's the year of change and growth in general at McDonald's.
Ahead of its Investor Day yesterday, McDank set a goal of opening more than 8,800 locations and adding 100 million members to its loyalty program by 2027.
They also unveiled plans for its first new restaurant concept in the U.S.
And its more than 60-year history called Cosmic.
it's a smaller drive-thru-only concept focusing mostly on customizable iced drinks.
So yes, McDonald's is bringing back the snack wrap, introducing a Starbucks competitor,
and looking to aggressively expand in the next few years.
What's gotten into McDonald's?
I don't know.
They're growing like a weed.
There's a lot to tackle.
They made so much news.
I guess what I want to talk about first is the real estate footprint because you're
probably thinking to yourself, McDonald's needs more locations.
This would be the fastest period of growth in its 60-year history.
but they think that they're not going to rest until there's a McDonald's on every single block on Earth.
The CEO said that their current real estate footprint reflects population demographics based on 20 and 30 years ago, and people have moved.
There's, you know, people are growing in certain other countries.
So it thinks that it needs to put more locations in certain areas, not only for getting people to come to the restaurants, but also for faster delivery as delivery becomes a bigger growth driver in.
the fast food business. So by 2027 McDonald's wants a global footprint of 50,000 locations. Just for
comparisons, Starbucks wants to reach 55,000 by 2030, up from its current 38,000. And I mentioned the
comparison to Starbucks, because I want to talk about Cosmic to. Super interesting. No burgers, no fries,
mainly just drinks, and ice drinks at that, like flavored lemonade, turmeric spice lattes,
pear, fleshes, churril frappes. It's all those high, sugary, really complex drinks that
Starbucks has just absolutely dominated recently. So I think McDonald's took a step back and saying
Starbucks has eaten our lunch on these drinks. What can we do to kind of break into the space?
And the eventual answer they landed at was this drive-through only, no dining room,
drink-focused concept called Cosmic. It's a bet for sure. If you live in the Chicago suburb,
I think the first one is coming to you sometime this year. So get excited for that. The final thing I
want to touch on is this burger revamp. They are redoing their burgers for the first time in many years
because McDonald's burgers don't perform well on satisfaction tests. McDonald's burger came in 13th in
burger quality. Only 28% of respondents to a burger survey said they crave McDonald's burgers. So they're
making them bigger. They're making more than 50 tweaks to their Big Macs and different burgers
because it seems like they're not sort of doing that. They've kind of lost focus on their bread and
butter. I think they got to go to the smashburger route. I mean, places like Smashburger,
Five Guys, Shake Shack, they all have that Smashburger. And it's just head and shoulders above everything
else. I love those little crispy edges. But instead, it looks like McDonald's is like changing their
bun. They're going brio. So we'll see because I am still a McDonald's fan. So I hope that their new
burgers are good. Okay. Welcome to Neal's numbers, the segment where I share three stats from the week's
news that will make you feel like your Jimmy Neutron and a world of Sheens. But since it's my segment,
I'm going to bend the rules like Beckham and run through four numbers since there were so many great fact toys recently.
For the first stat, we have to talk about Taylor Swift, who was named Times Person of the Year yesterday.
Toby and I predicted it would be Sam Altman, but deep down, I think we knew it was always going to be Swift all along.
And with her award, she becomes the first musician to be named Times Person of the Year.
Here are some numbers behind Taylor's epic year.
The Erez Tour grossed about $2.2 billion in North American ticket sales alone, and it's one.
well on its way to becoming the highest grossing tour in history. Whenever she went to a city to
perform this summer, it was like a Super Bowl was being staged there. Her 53 U.S. concerts this
year added $4.3 billion to the country's GDP. When she went to Minneapolis, for example,
hotel revenue was almost $6 million that weekend, up from $2.7 million the same weekend a year
before. And a few weeks ago, Bloomberg calculated that Swift was a billionaire because not only
is she a generational performer, she's made an astounding amount.
of savvy business moves along the way to capture as much value for herself as possible.
The right choice, Toby.
The right choice.
I mean, the Fed even gave her a shout out for boosting the U.S. economy this summer
because through the hotel bookings, through just like the hoopla she brings to any city she's in,
the heirs to are absolutely dominated.
Even NFL Sunday night football viewership got an 8% boost at games that she attended
to see her boyfriend Travis Kelsey.
So, again, it was the year of Taylor.
I think we were wishfully thinking.
that it would be more business focus with Sam Altman.
What's more business focus than this?
She propped up the entire U.S. economy.
We didn't even talk about the movie.
I know.
The movie, the Erestor movie, was one of the top 20 biggest films of the year,
and she did this creative partnership with AMC and sidestep the studio, so she recoups
57% of all the sales of this movie.
That's why she's a billionaire, Neil.
She's savvy.
All right, my second number concerns the hype around the trailer release for the next
Grand Theft Auto, the first entry into the franchise in more than a decade.
The trailer, which was leaked Monday night when it was supposed to come out Tuesday,
earned 90 million views in 24 hours on YouTube,
topping a Mr. Vease video for the most viewed non-music video on the platform.
It also led to a ridiculous spike in streams for a song featured in the trailer.
Tom Petty's Love is a Long Road.
Spotify said that streams of the song jumped 37,000% week over week, thanks to the trailer.
It says that it's seen soundtrack.
skyrocket before, but never like this. For comparison, Linda Ron's
long, long time jumped 4,900% when it was featured in HBO's The Last of Us.
So my takeaway here is when GTA6 is released next year, it's going to make $5 trillion.
When you're going toe to toe with Mr. Beast numbers and you're having 30,
you're the 30,000s percent of stream increases, you know people are excited for this game.
The funniest thing about the trailer to me, too, is that people found
specific scenes within the trailer that were referencing news stories from it's set in Florida.
And so they were comparing real-life news stories to some of the Easter eggs within the trailer.
So people combed over every single inch of this.
I also wanted to compare the increase in streams to Kate Bush's running up that hill that was made popular by Stranger Things this year.
That only soared 8,000 percent.
So this is a whole different level of hype that we're talking about.
Also, this Tom Petty song was a deep cut.
Deep cut.
So I think it did, like, the baseline was basically maybe two people listening to it for a week.
Yeah, just for a comparison, it's been streamed 11 million times now post-hypice cycle, which
if you compare it to Free Fallon, which is Tom Petty's most famous song, that has 600 million
streams.
So you're right.
You got to give some context here.
Yeah.
And the most, the thing that people paid attention to also on GTA6 is that it's going to have
the first female protagonist of the franchise, which is a big deal.
I might, I might play the game.
I never played the original one, but I want to give it a go.
All right, before we get into the next two numbers,
we're going to take a quick halftime break.
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We are back, and my third number is about the boom in women's sports,
which is expected to hit a major milestone next year.
Revenue from major women's sports is projected to cross $1 billion for the first time in 2024,
according to a report from Deloitte.
That is a big number on its own, but maybe the real story here is that would be a 300% increase in revenue from the year before.
And you can't help but sense a surge of momentum in women's sports.
Demand for Women's Basketball Final Four tickets on StubHub was higher than it was for the men's final four for the first time.
The WMBA more than doubled its audience for the finals,
and who could forget 92,000 people turning out to watch Nebraska volleyball play in Memorial Stadium,
the most people to ever watch a live women's sporting event.
Toby, women's sports is one of the fastest growing sectors in the entire economy right now.
And I think the big deal that you didn't actually mention yet was the NWSL's TV deal,
which was 40 times larger than the pre-existing one is $240 million.
And that to me is so important because TV money is the lifeblood.
These broadcasting deals is the lifebud that has propelled men's sport specifically to the level it is.
So it's good to see deals like that.
It bodes well for future growth.
And then, yeah, WMBA got a dream matchup between the Aces in the Liberty,
dream matchup in the NCAA finals, too, between Iowa and LSU.
So I do think we're just seeing a lot of storylines converging.
the women's national team has a Netflix show about their run through the World Cup.
Unfortunately, it ended not how they wanted to.
But you just start to take in the broad expanse of what's happening in women's sports.
And of course, it seems like a billion-dollar opportunity.
There is a difference between popularity and cultural impact and translating to money.
But it finally seems that investors, capital markets, are starting to actually pour serious cash into women's sports.
I mean, Mark Cuban just sold the Mavericks.
And there's rumors is because he thinks that the market's kind of,
topped for how much bigger could the NBA's TV deals do?
So if you are a capital allocator, of course you look at women's sports because
men's is a little oversaturated.
Right.
And just for comparison's sake, they're expecting women's sports revenue to hit $1 billion next
year.
Just the YouTube Sunday ticket deal alone for the NFL is worth $14 billion.
There's room to run.
There's room to run.
There's room to run.
Okay.
For my final number, Jerome Powell might need to turn his attention to New Haven because
grade inflation at Yale is out of control. Almost 80% of all grades given to undergrads at Yale
were either A's or A minuses last year, according to a report from an economics professor there.
That is a sharp increase from the 67% of A's and A minuses that were handed out in 2011 and 73% in
2019. So something clearly happened during the pandemic that caused great inflation to
soar. And this isn't just confined to Yale. At its arch rival, Harvard, 79% of all grades given to
undergrads in the 2020, 2021 year were also A's or A minuses up from 60% a decade earlier.
The problem with grade inflation is that you can't just hike interest rates to bring it down,
and no school is going to be the first one to tackle the issue, because if Yale starts cracking
down, then Harvard students will look better to employers and vice versa.
So not a simple solution here, but when you give A's 80% of the time, kind of defeats the
entire purpose of grades.
I mean, I am probably the worst person to talk to you about this because I literally went to
with school that for the majority of classes, you could take pass fail. Brown allows you to take
a lot of the classes without grades. Some of the more mathematics and economics-focused courses
you do have to take for a grade. And we see this breakdown even within the spectrum of these
everyone getting A's. Less than 65% of grades in economics, math, and chemistry were A's or A's-minuses.
So those more STEM-focused classes are still on the heart end of the spectrum, even though even those
classes have been seeing some of that grade inflation.
Well, if you're giving 80% A's, you might as well just move to a past fail.
Yeah, at a certain point, yeah, what's the difference?
So maybe Brown's ahead of its time.
No grades.
I love it.
Okay, we're coming to the end of the year, which means not only is the existential dread
of what to get your siblings for Christmas mounting, but the end of the year lists and
predictions are also coming out.
The latest to drop comes from the Spice Maker McCormick, who is named Tamarind as its
24 flavor of the year. Tamarin got the nod because, according to McCormick's head chef,
it brings out all of what we saw for this year, which is a rise in growth of tangy and sour foods,
as well as some over-the-top takes on childhood classics that she calls nostalgic foods.
So if you want to seem trendy, get Tamarin involved in your cooking game.
But Axios also released a food trend prediction list that tabs pickles, Halumi, and Camel Milk
for breakout years. Some of the other trends, Axios notes, ultra-processed food.
are on the out, more raw ingredients are in.
Pickles are the new It ingredient again,
and the It pasta shape is the Cress Degallo,
which has an extended ruffle resembling a rooster's crest.
And if you're more into restaurants,
West African, African, and Lebanese foods
are on the upswing, according to Open Table CEO.
And finally, camel milk, which is easier to digest
than cows milk, is also predicted to become a staple
in households next year.
Neil, which one of these trends stuck out to you?
I would say nostalgia, which is an interesting term,
but to me, I'm seeing a lot of those old foods come back,
but put in a, like, a bougie twist.
That's not how the people put it,
but I would say it is bringing back something
that used to be not necessarily the most fancy thing in the world
and packaging it up all nice
and selling it at an artisanal shop for $14.
Like pickles, like tinned fish, I think is another example
of this nostalgia trend.
I was looking at one of these restaurants
in Carroll Gardens, Brooklyn, yesterday,
and it said it was like a soda fountain,
Mountain Pharmacy, but they spelled pharmacy instead of the pH, they put an F.
And I was just like, oh, this is nostalgia at its best slash worst.
Way too fancy.
If I could buy one stock in one food slash drink this year.
Camel milk.
Not Camel milk.
It's espresso martinis.
They're one of the fastest growing menu items of the last 12 months.
Every single person I see going out these days orders an espresso martini.
It's a crazy thing to order.
Wait, espresso martini's peaked in 2021.
They peaked in, no, they were like a 90.
He's fat, and I think they're still on the up trend right now.
Oh, you're saying it's on the downhill.
They were the drink of the summer in 2021.
No doubt.
I think espresso martini has peaked.
I would short it.
Some other hot foods that are, according to Data Essential, which is one of the data providers
for Axios, Schwarma, shaved ice, mustard seeds in spam.
Also, the National Restaurant Association predicts a rise in beeria, wagu beef, stuffed
vegetables, hot honey breakfast sandwiches, and grilled slash cooked cheeses.
I like all those, too.
Team trends that have been existing.
I don't think these are, anyone's really going out on a limb here, especially, and I want to talk about this, the life cycle of a food fat right now is so fast.
It's whatever TikTok wants.
Yeah, it is maybe these kind of data providers that are doing trend forecasts are behind the boat because TikTok moves way fast.
That's what I think.
So TikTok's a much better trend prognosticator.
But you can't, you don't know what's going to pop off.
Yeah, that is true.
Although, we got to try camel milk.
I mean, apparently.
I've never seen camel milk.
Either of I.
I quizzed my friends the other day.
I'm like, what animal's milk do you think is popping off?
It was 30 guesses before we got to camel milk.
So it's apparently it's better for your stomach, though.
Well, have you had tamerent?
I've had tamarind.
You never had tamarind?
I'm way behind everything.
It's very popular in Mexican candy, so if you go.
Oh, I have had tamaritan.
Okay, it's good.
I like it.
It's got a little pang.
Our last story of the day is also food-themed, big food show today.
In a fantastic example that karma is alive in well in Ohio.
a wild woman who was convicted of assault for throwing her burrito bowl at a Chipotle worker must
now work for two months at a fast food chain in order to reduce her jail time.
Rosemary Hayne is a 39-year-old who went viral for screaming at a Chipotle employee
before hurling her food back at the woman's face, and a judge decided to get creative with
her sentencing.
He told Hayne she could cut off 60 days in jail if she agreed to work at least 20 hours per week
at a fast food restaurant for two months.
Neil, this is not a normal thing for a judge to do.
No, I didn't know there was such latitude.
Can a judge just be like, you have to come clean my house for a month instead of jail time?
Like, I don't, I didn't know that you have the power to do this.
But he said in an interview, why should the city taxpayers pay for her and feed her for 90 days in jail if I can teach her a sense of empathy?
So he's taken on this paternalistic figure.
I really don't know why either whether you can do this or why judges haven't done something like this in the past.
But it is kind of like a walk in their shoes kind of thing.
Which other creative ways would you like to see judges pass down to reduce jail time?
Okay, so I thought of a few examples here.
So for some of our most notorious offenders, for SBF, instead of jail time, I think he should
just have to go to a casino, find the most reckless gambler there, and just have to constantly
fund that person until, like, just go into the ATM, take out hundreds of dollars,
give it to this person to put on like one number in roulette until all of the, until all of
SBF's money is gone.
And then there's another one for Billy McFarland, who made Firefest.
I say we just dump him on a deserted island for 10 days.
Give him just, feed him just cold grilled cheese sandwiches instead of jail time.
He would probably thrive in that environment.
I was thinking, and this isn't a crime, but for anyone who tweets something critical or derogatory at an athlete,
they should then have to attempt the action they are criticizing.
So if you tweet out a field goal kicker for missing a field goal, you have to go on national television
an attempt a 25-yarder with people running at you.
That would be good comedy right there.
All right.
So we still don't know where this person is going to work.
I assume they have, I don't know how much of a choice they have,
but where would you work?
The best place is probably Chick-fil-A.
That is such a fine oil machine.
But I don't even know if Chick-Fleigh would take her
because, again, you can't have a weak link
when you're serving so many people a day.
I think the worst has to be any of the combination fast food restaurants.
So combination Pizza Hut, Taco Bell, Taco Bell, Long John Silvers.
the intermingling of food smells doesn't sound very fun to work in.
So those are kind of my best and worst.
All right.
That is a wrap on today's show.
Have a wonderful Thursday.
It's time to start thinking about weekend plans if you haven't done that already.
Mostly a reminder to myself.
As always, feel free to send your thoughts on the show or just say hi at our email address,
Morning Brew Daily at Morningbrew.com.
We've also been seeing messages of you sharing MBD with your networks.
That is awesome.
And we'll be announcing the winners of the mug giveaway on the show tomorrow.
Let's roll the credits. Emily Milliron is our editor and producer.
Raymond Liu is our associate producer.
Yucenoa Ogu is our technical director.
Billy Menino is on audio.
Hair and makeup got a bee at Yale somehow.
Devin Emery is our chief content officer and our show is a production of Morning Brew.
Great. Saturday, Neil, let's run it back tomorrow.
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