Greetings!

Artificial intelligence is everywhere. And while millions of people are embracing the technology, just as many are likely intimidated by its rapidly growing influence and potential to disrupt everything. 

But it's critical that everyone understand AI and the hype around it. That's why I dedicated my first story at TheWrap to tackling the topic and demystifying one of its most jaw-dropping aspects: the insane valuations on companies tied to this sector. 

If you want to learn even more about the intersection of AI and the entertainment, join me on Wednesday on LinkedIn for a roundtable I'm hosting featuring executives from Nvidia, Adobe, Flawless.ai, Moonvalley and a writer of "Brooklyn Nine-Nine" and the upcoming "Wedding Crashers" sequel. You can sign up here. 

Roger Cheng
Managing Editor of Business and PRO
roger.cheng@thewrap.com

PS: We just kicked off a free 2-week trial of WrapPRO. If you’ve been wanting to check out our full coverage, now’s the time. Feel free to forward the news.

AI VALUATIONS HAVE GONE CRAZY

Is AI in a bubble? The answer is a bit complicated. Most agree that yes, prices are way out of whack with reality and traditional business fundamentals. But no one is saying whether this bubble will burst anytime soon. 

Just look at the recent activity:

• Google paying $2.4 billion for a few executives and researchers
• Thinking Machines Lab raising $2 billion on a $12 billion valuation 
• Anthropic eyeing a $100 billion valuation
• Nvidia briefly hitting $4 trillion in market capitalization

What's driving this frothiness? An unprecedented pace of improvement in AI and good, old-fashion FOMO. 

DON'T MISS

ICE raids have created a chilling effect in Los Angeles, and have been particularly scary for members of LiUNA 724, a union that represents everyone from janitors cleaning the studios to utility workers on sets. But, as Jeremy Fuster writes, Hollywood has largely been silent on this issue. 

CATCH UP

Analysis: "Superman's" David Corenswet is having a moment, but as history has shown, escaping the typecast trap can be extremely difficult

Upfront: Fox saw double-digit volume growth in upfront revenue from news, sports and entertainment

AI Watch: A proposed congressional bill would ban AI companies from training on copyrighted works or personal data without consent

Job Cuts: Fortune cut 10% of its staff, blaming the onset of AI and a decline in web traffic

Booted: The Trump administration removed the Wall Street Journal from the press pool covering the president's Scotland trip days after its Epstein story

BIZ CORNER

Exclusive: "Supergirl" scribe Ana Nogueira has been tapped to write "Wonder Woman" for DC Studios 

"Ted Lasso" will see the return of Jason Sudeikis, Hannah Waddingham, Juno Temple, Brett Goldstein, Brendan Hunt and Jeremy Swift, although one role will be recast 

"School Spirits" Season 3 adds Jennifer Tilly, Ari Dalbert and Erika Swayze as guest stars

"Andor" star Adria Arjona replaces Taylor Russell as co-lead in Michael B. Jordan's "The Thomas Crown Affair"

A "Cinderella" musical series is in the works for Disney+ from Rachel Shukert and Jennifer Lopez

IN OTHER NEWS...

Executives need to get smart about AI quickly if they want to make the most of it. Don't treat it like a tech issue, but a leadership issue (Fast Company)

A look at how traditionally audio-only podcasts are now largely focused on video (New York Times)

Tanning is back, and it's not just about looks; it's part of a whole ideology (The Atlantic)

Breaking down the complicated and nuanced fight over WNBA salaries (Huddle Up)

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This report provides a high-level analysis of daily developments within the entertainment sector. It compiles crucial data points and insights from industry leaders, highlighting key trends and shifts in business strategies.