Perplexity AI Accused of Stealing & Disney’s Bob Iger Plans Exit…Again
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Good morning, Brew Daily Show. I'm Neil Freiman. And I'm Toby Howell. Today, you've heard of Gen Z, you've heard of millennials, but later you'll learn about the sandwich generation. Then Disney thinks it's finally figured out its succession plans. Is this the time they can finally get Bob Iger to hang up his boots? It's Tuesday, October 22nd. Let's ride. There

There are only nine days left of October, so you gotta hear about this viral October theory trend before the month ends. October theory, which has been spreading across social media, argues that all those resolutions you typically make during New Year's, setting goals, picking up new habits, reflecting on the state of your existence, are all

all make way more sense during October instead of the dead of winter. The season is changing. New school years have started. It might make more sense to hit that reset button now rather than three months later. Tobias, New Year's in the wrong place in the calendar.

I mean, I get this. October is a very introspective time. A lot of it is that you're cozying up on your couch with maybe a pumpkin spice, something in your hand. The seasons are changing, like you mentioned. Plus, it just takes so long to actually make a habit stick, and there's nothing worse than trying to make a habit stick than in the dead of winter when everyone else is doing it. So once I read this, I said, yes, this makes a ton of sense. Plus, if you haven't started on your New Year's resolutions previously,

from last year, you still got three months to get it done. So I think it makes a lot of sense here. Yeah. Now my people have figured this out long ago because the Jewish new year is typically in late September or October. So I'm just used to doing this introspection and this new year's thing during the fall. And I always thought that made so much sense. And January 1st, this does seem super arbitrary. So maybe we should all, uh,

borrowed a page from Rosh Hashanah and say, let's put the new year in October. I guess it means time can be whatever you want it to be. It really does. Like, why do we need to stick to the calendar? Make your resolutions whenever you want to make them. Now,

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In the crowded world of AI startups, perplexity has been a standout. Countless articles have dubbed the AI-infused search engine as a potential Google killer. And just this week, most headlines read how it was in talks to raise $500 million at a valuation of nearly $9 billion. But those same news organizations that were penning those glowing headlines were

were also secretly cooking up a lawsuit against it. News Corp, the parent company of the Wall Street Journal and the New York Post, is suing the AI-infused search engine for copyright infringement. Yeah, at the core of this disagreement is an age-old grade school problem. The news publishers think that Perplexity is copying their work without giving them proper credit. And in doing so, they are rerouting traffic away from the publisher sites, stealing away valuable eyeballs and revenue in the process.

It is the latest showdown in the growing battle between news sites and the generative AI companies that are trying to piggyback off their content. The New York Times also sent a cease and desist letter to perplexity last week, demanding it stop using its content. Toby, these feuds are starting to escalate. Yeah, this actually dates back to July when News Corp sent a letter to perplexity, warning it of legal action if they continue to use its copyrighted works anymore.

And even proposed a licensing deal. They extended this olive branch. They said Perplexity ended up ghosting them. The complaint that this centers on is the fact that, one, they think Perplexity can reproduce full articles if you ask it to. You have to use it in a little bit of bad faith. You have to ask them to produce a full text response to a question, right?

which even though it is in bad faith, it can still do that. It can still really word for word reproduce an article that it's trained on. And then two, the other part of the complaint is that it hallucinates, which is something that we have talked about a lot when it comes to these AI models where it adds incorrect details that don't necessarily exist in the subject matter. So those two things are why it's been the crux of a lot of these fights between the publishers and

generative AI companies. And I don't think we're going to see this one resolve anytime soon. Well, there have been two methods of relationship between news outlets and the growing number of AI chatbots and search engines. On the one hand, some of these news companies are seeing these chatbots as a way, as a meaningful source of revenue. I mean, News Corp inked a deal with OpenAI

which makes ChatGPT, that's worth $250 million over five years. A bunch of other publishers have inked deals with both Perplexity and OpenAI to allow them access to their content for a hefty fee. And this comes at a time when news outlets are like, yeah, I'd love some of this money that you're throwing at us. And then there is this more adversarial approach

News Corp is suing Perplexity. And then the New York Times also last year sued OpenAI for copyright infringement. So we're seeing two paths that news outlets are following. One is more cozying up to AI and another is taking them on in court. Still, though, you can't help but...

draw parallels between these legal clouds that are rising up and the fact that Perplexity is one of the fastest growing startups out there right now. Intox raised more than $500 million. It'd be his fourth funding round in a year. Its valuation has skyrocketed. It last raised at $3 billion. Now it's in that $9 billion range. So clearly people think the product is something that is great. Jeff Bezos actually backed Perplexity from the beginning. It is one of those products that do seem to be

genuinely useful in the age of AI right now. So you have these two contrasting things happening where they are being sued by one of the biggest news publishers out there, but it's also one of the fastest growing startups in the world right now. Yeah. And I just want to note that this isn't a chatbot in the sense that ChatGPT is a chatbot.

It is kind of this hybrid between a search engine and a chatbot. It is essentially a better version of what Google AI Overviews is trying to do, whereas instead of you query it, and instead of giving you a list of links that make you dive deeper, it just gives you the answer right away and then cites its sources. The news publishers say that...

deprives them of people click on their link and going to their website, which is where they make money because they sell ads against this and then there's traffic. So that is sort of what perplexity is. And I know you are you're quite a user. Yeah, I use it every day, more or less, because that is one thing that perplexity could potentially lay out is that

you do have the sources right there. And very often, at least personally, I do go and click on it because you do want a little bit more information. Where did this actually come from? And it has its little citation numbers that you can click out into. The one thing that has maybe Google shaking in its boots a little bit too is that Perplexity is rolling out ads. It is

testing with a small suite of advertisers where you can potentially even interact in a chatbot-esque manner with an advertiser. So a lot of people are kind of shook by Perplexity right now, both on the publisher side, all the way up to big tech and Google. It is one of those maybe paradigm shifting startups. And you can see just from the amount of attention this lawsuit is getting. And I think there's just no question that the business model of search engines is changing thanks to AI.

Disney just announced the longest job interview process ever. The house that Mickey built said it's searching for a new CEO to replace current chief Bob Iger, and it will make its announcement in early 2026. This succession battle is sure to transfix Hollywood and will probably be the most closely watched across corporate America. That's because Disney's previous attempts to find a replacement for Iger have been a dumpster fire. And a lot of that is on Iger himself.

When he initially ran Disney from 2006 to 2020, Iger pushed back his retirement date five times, leaving investors in limbo. When he finally did choose a successor, Bob Chapik of the Parks division, he hated the direction the other Bob was going in, and the board fired Chapik, reinstalling Iger in 2022.

So will Iger finally relinquish control for good in 2026? Or is he going to draw this out longer than the end of the return of the king? You have the right to be skeptical, but Disney says this really is Iger's final two years. And yesterday it put an actual timeline on his retirement party for the first time. So let's dive into who the successor could potentially be. Bob Iger has four direct reports right now. One is ESPN chairman Jimmy P.

Taro and then the Disney theme parks lead is Josh DeMauro then there's two co-chairs of the entertainment division which is Dana Walden and Alan Bergman they have all interviewed with this so-called succession committee in recent weeks it's probably going to be one of those four those one-on-ones with Agar must be pretty intense but

But there's a reason to think that this succession process could actually lead to a successor to Iger because of one guy. And his name is James Gorman. Disney appointed Gorman the chairman of the board. And Gorman is the former CEO of Morgan Stanley. And Gorman left Morgan Stanley after 14 years in charge last year. And he was seen running a very mature business.

succession process for whoever would take over him. He had three people vying for his spot. He chose one whose name is Ted Pick, who's now leading the bank. But the other two people who were contenders stayed on as co-presidents, which is a sign that he did this in a very mature fashion.

professional way and they're saying, okay, you did this at this huge bank that was very thorny and now can you come and help us and do this at Disney, which has had all types of problems with succession over the past few years. Yeah, Gorman is kind of seen as the adult in the room here. So now,

what is the big picture here? There is a specific timeline on naming successor, but unfortunately you called it the longest job interview in history. This is going to be hanging over Disney for the next few years. But as long as Iger finally is shown the door, he doesn't do another reverse fake head fake Brett Favre's retirement and then come back. I think people are going to be happy wherever this lands.

A new rule proposed by the Biden administration yesterday would require private health insurers to cover specific FDA-approved over-the-counter contraceptive products without a prescription and at no cost to consumers. Think birth control pills and condoms, but also emergency contraceptives like Plan B or devices like IUDs. They all make the list of approved measures that would be covered by normal private health insurance plans and

and without cost sharing. Now, birth control actually did become available to those with insurance without copay back when the Affordable Care Act was first passed in 2010, but still required a prescription. This expansion of coverage to include over-the-counter products

would be the biggest in over a decade. - Yeah, and there was a big development last year that has spurred this push to cover non-prescription contraceptives, which is the fact that this O pill, which is a birth control, daily birth control pill,

became FDA approved for the first time over the counter. That didn't exist in 2010 when the Affordable Care Act was first implemented. So it just didn't, this rule didn't need to exist. But now that that's happened and more could be on their way, that's why the Biden administration is saying, okay, let's have private insurers cover these non-prescriptions as well as prescriptions because they are, uh,

quite pricey. It's $19.99 for a one-month supply for Opel and $50 for a three-month pack. So they're saying, okay, that's great that they're over-the-counter, but if people can't afford them, the people that need them, let's issue this rule requiring private insurers to cover them. So there is a brief comment period on this proposal

proposed rule. And if it is approved, it would go into effect in 2025. But this proposal comes at obviously a very key moment ahead of the upcoming election. Reproductive rights have been a very key campaign issue, especially following the Supreme Court decision to overturn Roe v. Wade in 2022. This access to contraceptives is a

is very popular across the political spectrum. There's a recent 538 poll around the topic, and they found that around 90 percent of Americans said condoms and birth control pills should be legal in all or most cases, and 81 percent said the same of IUDs. It gets a little less popular among Republicans when you're talking about things like Plan B pills, but still 70 percent overall said these methods should be legal. And that's the question of legalization.

legality, not access. But the Biden administration is looking at these things and saying, OK, how can we move the needle to get more people to get them in more pans of more people and make them less expensive? Up next, what is this sandwich generation and why are they under so much financial pressure?

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Are you someone who pulls double duty by caring for your children and a parent? If so, you're part of what's called the sandwich generation, whose ranks are growing due to demographic shifts and are bearing higher and higher financial costs. According to a Wall Street Journal report, at least 11 million people in the U.S. are now part of the sandwich generation, taking care of a child and at least one adult.

And the typical Gen S, as I'll call it, is changing. Not too long ago, according to the Journal, the average double caregiver was a woman in her late 40s with teenage kids and a part-time job. But as of 2023, the AARP found that the average age of a Sandwich Generation member is 44 and more are men, almost a third older.

are millennials and Gen Z in the critical stages of their career. And because of their growing numbers, people caring for multiple generations have drawn the attention of the two presidential candidates. Earlier this month, Kamala Harris proposed allowing Medicare to cover in-home health care, which can get super pricey for aging parents. In response, Donald Trump's campaign said it would give priority to home care benefits and offer tax credits to support

unpaid family caregivers. Toby, these people must be feeling seen for the first time. Yeah, and there are a lot of them too. According to one estimate, there's at least 11 million people in the U.S. that currently fit this bill of being a part of the sandwich generation. A couple of factors are leading to this. One, people are having children later. And then two, the

People are just living longer in general. So that is why you're seeing this crossover of having younger children and also older parents providing a burden to someone that you have to take care of on both sides of the spectrum. This has big ramifications for society, though, at large. One, it makes your career more difficult to pursue because if you are a full-time or even part-time caretaker, it's harder to provide.

prioritize your career. It weakens your quality of life because you are trying to take care of two people at once. It is a big hit to your budget. It is a huge financial burden, and it impacts your family's financial health long-term as well. Say, for instance, you are taking $1,500, $5,000 a month, and you're putting it towards supporting an aging parent. Instead of investing that in the

Yeah.

Just if you're caring for children and elderly at the same time, both of those costs are absolutely skyrocketing. According to a care.com survey, 60% of U.S. families spent 20% or more of their annual household income on child care last year. That's up from 51% of families in 2021. So a big jump in just 30%.

two years and then elderly care is also getting way more expensive especially those home health aids median cost of a home health aid climbed 10 last year to 75 500 and then if you want talking nursing homes the average

cost for a private room at a nursing home is $116,800 a year. So I know I just threw a lot of numbers out there, but essentially the bottom line is that caring for kids and caring for your aging parents is getting more expensive on both sides. And then one thing that we didn't even really mention is just the emotional toll it takes on these people as well, because the

if you are having to choose between taking your aging parent to a hospital appointment or missing your child's like dance recital or something like that, that is something, those are years that you can never get back. And there's no right answer here too, because you want to take care of your aging parent, but you also want to be there for your child. So just, just,

I mean, we're calling it the sandwich generation, which doesn't sound that serious, but this is a very serious problem that is facing society. I'm sure a lot of our listeners can probably empathize with this kind of conundrum that we're describing here.

Right now is one of my favorite times of the year, not only because I get to do another episode of Morning Brew Daily with you, Neil, but also late October is when Whole Foods drops its annual survey, peeling back the curtain as to what they see as the major food and beverage trends for 2025.

So without further ado on this edition of Toby's Trends, we're going to dive into what the grocer expects to see lining its aisles next year. The big overarching trend the report identified was a rise in international flavors. The ever-reliable dumpling was highlighted as popping up more frequently, with Asian fusion foods in general poised to explode in popularity next year. In terms of

texture, the report called out crunch as the texture of the moment. Breakfast or dinner, salty or sweet, crunch is everywhere right now with granola and nuts, crispy chickpeas and dehydrated fruits called out as specific textured winners. And finally, in the beverage department, there's a tea boom going on now, according to the report, with functional brews with added adaptogens and benefits set to be the new hot thing. Neil, lots of trends wrapped up into this

Toby's trends. I know you are a food guy. What stood out to you? Well, my takeaway is that some of the hottest trends during the pandemic have not gone away, which was super interesting. If you look at cottage cheese, Whole Foods identified cottage cheese as sticking around and being really the it girl in dairy. And then same with sourdough, which is super surprising. We all thought that would have gone the way of Peloton or other pandemic trends. But sourdough has still remained and remains a force to

in the food world. So those were two things that stood out. I was like, what is it, 2024? And we're still talking about cottage cheese and sourdough. So those are two of the takeaways that stood out to me. Another thing that they called out too was just the rise in water bottles right now. If you think about most people you know, think about your office or your friends, someone is probably lugging around a Stanley or something like that, which has led to this increase in consumption of

just cooler stuff to drink in general. They say that you go to trade shows these days and you see sparkling coconut water, chlorophyll water, even protein water. There's this whole trendy category emerging in between water, soda, and energy drinks. I mean, I'm calling it super water. You can call it whatever you want, but it is just these elevated beverages that have health benefits, but also are just cooler to drink than maybe the typical drinks you've grown up on.

To close out the show, we're going to try something a little different, a rapid-fire rundown of other headlines from the day's news. Still working on naming the segment. If you have any ideas, feel free to shoot them our way. Okay, here we go. Goldman Sachs said, enjoy your stock market returns now because this party ain't going to last.

In a new analysis, the bank's strategists predict that the S&P 500 will post an annual nominal return of just 3% over the next 10 years and get beaten by bonds and inflation. They wrote investors should be prepared for equity returns during the next decade that are towards the lower end of their typical performance distribution. Toby, this shouldn't be a problem for you because your typical performance isn't very good to begin with. Oh, come on. Wait, you have made money in the market over the last decade? No.

Goldman says the stock market party is over. You can always have these kind of big bearish forecasts. You never know until you're in the moment. But saying that they expect returns to be in the 3% range compared to the 13% that we've seen over the last decade, that is a little bit scary. We'll see if they are correct.

There is still some hysteria around Listeria. After an outbreak of the bacteria tied to boar's head liverwurst killed nine people earlier this year, Treehouse Foods has issued a voluntary recall for hundreds of varieties of its frozen waffle products due to potential Listeria contamination.

As of now, there have been no reported illnesses, but Neil, maybe opt for pancakes at breakfast time instead of waffles. The big revelation here is that one company supplies the store brands for every single major grocer, including Walmart, Target, Harris Teeter, Publix, and Food Lion. So when you go to these different grocery stores and you're buying their store brand frozen waffles, you're buying it from the same manufacturer. And obviously that is a huge problem when there is a listeria outbreak.

The production company behind Blade Runner 2049 sued Elon Musk, Tesla, and Warner Brothers Discovery for copyright infringement, alleging that Musk used imagery from the sci-fi movie to promote Tesla's RoboTaxi during the car's launch event earlier this month. The suit accuses Musk of using AI-created images that mirror scenes from Blade Runner 2049, including one featuring a Ryan Gosling lookalike. They got a case? They do have a case. I mean, if you just look at the photos...

Separately, too, a director of the 2004 science fiction film iRobot accused Musk of copying his designs for his humanoid machines, his self-driving vehicles. I think it's good PR to have these science fiction movies saying, your stuff looks so futuristic that it looks like the stuff we put in our movies. I actually think any PR is good PR in this sense.

Cooper Hefner, one of three sons of Playboy founder Hugh Hefner, made a $100 million all-cash offer to buy the Playboy brand yesterday. He says that this opportunity is, quote,

while innovating for the future. Neil, Playboy hasn't published a physical magazine since 2020. Does this mean I have to start covering my eyes when I walk into gas stations again? It might, but you actually have to start covering your eyes when you look at Playboy's stock price because in 2021, when it went public, it had a valuation of more than $2 billion. Now its market value is down $1 billion.

99% to about $53 million. So who knows? Maybe another Hefner is just what Playboy needs. An airport in New Zealand is going viral after it implemented a three-minute time limit for passengers to hug their loved ones goodbye before boarding the plane. Dunedin Airport on New Zealand's South Island hung up several signs warning

publicizing the rule, one of which reads, it's hard to say goodbye, so make it quick. Three minutes max. Another is more direct. Max hug time, three minutes. For those tweaking, quote, fonder farewells, people should use the car park, the airport says. Toby, is three minutes enough to get your hug in? I am so sore for this because, one, who is hugging anyone for three minutes? And then, two, anything to keep the flow of traffic moving at the airport. I mean, the emotional anguish you save

by having the airport experience move more smoothly outweighs any emotional loss I'm getting from a shorter hug, so I am absolutely for this. Finally, New Yorkers, clear your schedules on Thursday at 10 a.m. because your New York Liberty are celebrating their WNBA championship with a ticker tape parade that will travel north on Broadway to City Hall through what is known as the Canyon of Heroes. It is a fitting way to end one of the more historic seasons in WNBA history. What is going to be your lasting memory from this season, Neal?

What is going to be my lasting memory? Watching the Liberty win in overtime that night. That was so exciting. It's going to be New York City's first pro basketball championship in 50 years and New York City's first parade since the 2012 Super Bowl for the New York Giants. We'll see if there's going to be two this fall because, of course, the Yankees are in the World Series against the Dodgers. But the WNBA is in full growth mode. There's three new expansion teams coming by 2026, so they just hope to keep up the momentum.

That was fun. I think we'll wrap it up there. Thanks so much for starting your morning with us and have a wonderful Tuesday. For any questions, comments, or feedback on the show, send an email to morningbrewdaily at morningbrew.com. And if you're enjoying Morning Brew Daily, spread the word. Share the pod to those friends, family, and coworkers who might be a little out of the loop and could use a dose of news in the morning. For more sharing ideas, Toby always comes in clutch. Okay, this one's a little random, but I want you to share today's podcast with someone who's...

who is really into the show "Survivor." Honestly, I just started watching it for the first time and am very obsessed. So I want the Venn diagram of "Survivor" watchers and MBD listeners to grow today. - Let's roll the credits. Emily Milliron is our executive producer. Raymond Liu is our producer. Olivia Graham is our associate producer. Uchenna Waogu is our technical director. Billy Menino is on audio. Hair and Makeup is a proud member of the hot dog generation, not to be confused.

with the Sandwich Generation. Devin Emery is our Chief Content Officer and our show is a production of Morning Brew. Great show, Daniel. Let's run it back tomorrow.