tv Bloomberg Technology Bloomberg October 12, 2017 5:00pm-6:00pm EDT
it allows consumers to buy health insurance across state lines. officials say it may not be finalized in time to impact coverage for 2019. drums chief of staff says he is not leaving his job anytime soon. >> i am not quitting today. i do not think i am being fired today. >> president trump has introduced his pick for homeland security secretary. kristen nielsen is a petite chief of staff under kelly. the house has passed a $36.5 billion hurricane aid package. 16 million will pay for flooding. requestedd texas have about $40 billion. the death toll from wildfires raging is now 26. officials expect that to rise.
when an 8000 firefighters are battling blazes with additional manpower and equipment on the way. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. ♪ ♪ emily: i am emily chang and this is tech.. -- bloomberg technology. ton the public can expect see more than 3000 russian linked ads. my wide ranging exclusive interviews with executives. what they had to say about amazon's $4 billion windfall.
china officially demands a piece of its biggest tech company. we will put the potential power grab under the microscope. facebook ceo says the company absolutely supports public release of 3000 ads during the presidential election. she says it's is up to congress to decide the appropriate time to do so. me with --d.c. to meet with ceos. >> we are giving them our peace. they can understand the whole picture. what i reiterated in those meetings is that we think it is important they get the whole picture and they explain that. emily: joining me now is the
founder of google ventures. youh, i want to talk to first. what is your strategy here? she has been over communicating in this whole ordeal. they want to make the point that they are taking responsibility for what it was they ran on their platform. they are not taking responsibility for the fact that they were divisive political ads. sandberg mentioned several times freefacebook is all about speech. they do not want to limit anyone's expression. they do not want to be in a position of saying what can and cannot be said on facebook in terms of ideas. when it comes to fake accounts, she is taking responsibility. emily: how bad is it? >> they are dealing with a platform that was weaponize in an unpredictable way.
i think it is a surprise to a lot of us. there is some responsibility to bear for the users of facebook to not make decisions based on advertisements you might click on. emily: what is the responsibility? bill: to take seriously our responsibility in this democratic republic to understand the issues and look at the information, and make an assessment. say everyone is a victim in that sense. you have a nationstate in russia that is trying to influence an election. i think we need to focus on that as the real problem. i wouldn't hold facebook too much over the fire on this. emily: sandberg spoke in washington. what do they -- we know about the discussions. sarah: she explained how things worked on their end. she explained the extent to which they have gone into
looking at the russian ads. they realize there is more to do . she is asking for cooperation from the intelligence community. they looked at what the research agency in russia which is connected to the government. they need to know the other places they should be looking if there is more of a greater threat. this is something that mark zuckerberg came out and said after the whole discovery of a russian ads is with intelligence communities around the world, they want to be looped in on what they should be looking for and work with other companies. emily: your former company, google, is involved here. you have fake news spreading and russian ads on youtube. what is google's responsibility? bill: all of the owners and operators of tech companies have a responsibility. at the same time, you are seeing a nationstate that is trying to
take advantage of a population by dividing and making us choose sides and fermenting the sense among its own people. it is actually working. as we are fighting with each other, rather than looking at issues, we are under attack electronically. that can be almost as dangerous. emily: facebook is saying they are saying they are hiring a thousand more people. they are saying all humans will approve or disapprove of political advertising, correct? sarah: they are saying that will go through a manual review. they will get specific ads targeted at people based on politics or race and things that might lend themselves to a little bit more incendiary contents. these are actions coming from a particular nationstate. now that we know, what is the responsibility of the platforms? the right are doing
thing and cooperating with congress and being transparent and answering questions in being an open source at the ads in who would they were targeted. i have a lot of faith in these companies, but mostly the people that work there to try to do the right thing. what more can we ask of them other than to cooperate? emily: sandberg answered a lot of questions. what didn't she answer? isah: one thing she dodged the question whether the targeting on the ads that ran that were backed by russia had anything related to be targeting of the trump campaign. that is one of the things investigators will look at to try and see if there are any ties to the russian strategy to the trump strategy to see if they were working together. she said when the ads come out, they will release targeting data and i guess we can come up with a conclusion then. emily: looking forward, how big a crisis is it?
news,ection aside, fake political advertising, how hard are these issues going to be for the platforms to deal with? bill: the key is to secure the platforms as much as we can from future influence. they will find other ways to try hurt thets and american people. the key is to try to minimize that. i don't think it is a crisis. a crisis is a fire raging to north carolina and hurricanes and that people are dying. this election interference should be taking seriously -- taken seriously. 32 andalk about section a little bit. thank you so much. bill: bloomberg technology is live streaming on facebook. bloomberg technology streaming live on facebook.
capital, bring a beautiful amount to $89 million. the music royalty companies start out council bill maher's .s their leading investor he is also joining the board pillion dashboard. bill maher's is joining us. you raise $160 million -- bill maris iss -- bill < joining us. google, we were doing 50 to 100 investments a year. to 17 a year feel somewhat leisurely. i am also drawing on a network of entrepreneurs that i have noon -- known for quite some time. balt physician --
magician. -- musician. look athen you potential investments, what are you seeing? do you see promise and high valuations? i am seeing the market has changed tremendously and the last five to 10 years. it is changing and a way where it may not change back. $100ank is out with billion fund which causes a lot of strange behaviors for startups. it compresses returns because of valuations go up artificially. i am also seeing changes with regard to cryptocurrencies and coin offerings that may obsolete a large part of the venture business. emily: how so? bill: when you can raise outsource money from a large couple of people in a week, that makes it a much less hateful process than talking to people like myself and going through the analysis and the time that
it takes to raise venture money. that is a more attractive opportunity. and how dramatically could this impact silicon valley? bill: it is likely to fundamentally shift. it will not obsolete everything, but it will shift the way startups are funded over time and way a lot of transaction are handled. emily: what does it mean for the big bc --vc's. bill: you'll have to adjust a slightly. the bell is not pulling right now. there are a lot of a venture funds and a lot of people with capital. that will change the way we invest. and that the bell is tolling for that? bill: we will see. bitcoin. you have invested in it.
it is said that it is a fraud. what is it? tradebitcoin is a way to cryptocurrency. i think that is an error. if you take the value of all of these startups, it is a $70 billion industry. if that is a bubble, it is not very big. there is technology that is likely to last and we disagree on that. emily: we have talked about ai. some people say it is hype and some people like you -- elon musk say it is the end of the world. bill: if you think russian interference via ads placed on social media was bad, ai could be much worse. that wee in elon's camp should be gravely concerned of the potential for misuse of a technology this important and powerful but also incredibly optimistic about the way it may transform society for the
better. emily: what are the potentially dangerous consequences? bill: if you can teach a computer to teach its self, look at it in these terms. it would have been very difficult to predict that russia would try to interfere in an election to get someone like donald trump elected at that time based on what we knew about that platform. to look forward five years and 10 years and think the same about ai. whatever prediction we make will be incorrect. there will be some ways it will be used that are unpredictable and probably negative in some ways. i am optimistic we will find the right way to deal with it. to be concerned. emily: you think there is potential for an ai up our? bill: definitely. emily: how so? bill: think about a computer that can teach its self and is smarter than anyone on the planet. who controls that technology?
there are more than one or computers decide humans would make nice pets or are not very helpless to the future? i do not think that is overstating it. it's warns concern and conversation. just as if we were developing the first nuclear bomb, it can be used in terrible ways. uber in investors. travis is out and there is a new ceo. what do you make of the reckoning? bill: i don't think travis is ever really out. he is not ceo anymore. i would like to think a season one of over has ended. i am waiting for season two premiere. i think very highly of the new
ceo. they are optimistic trying to correct the things that were done wrong. emily: how much responsibility bear for the problem getting out of control, or forgetting travis to much control? bill: i can only speak for myself. whatever influence i had was not useful and was not heeded. emily: what kind of advice did you get? bill: given advice that -- imply that someone answered the phone. i think investors bear some responsibility, but we should hold those who took the actions to be responsible. you are a minority shareholder. you do not have control or a board seat. you try to influence things as much as you can to go in the right direction. at the end of the day, the right
emily: amazon tells us it would not rule out partnerships with major rivals if that means improving voice-activated technology. i sat down with vice president of alexa and toni reid to see what she is focusing on to better improve experience. what are the challenges that remain to get more people to do this?
what are you most focused on? toni: i am most focused on trying to reduce friction for customers and drive toward customer experience. the idea there is that alexa is more humanlike. it is conversational. can shorten the past from where the customer is starting in where they want to be with less and less work on their part. emily: is alexa going to be uh-huh.ing with a toni: i joke that that will happen. emily: how much further can you go when it comes to understanding human language? are we there when it comes to how much improvement can be made? toni: we are not there. it is super early. say we are at
the beginning point of machine and artificial intelligence. i think we will see a lot of improvement over the next few years. emily: how so? toni: the technology is there and having developers being able to feature a cloudtoni: the tece and and it allows for a lot of compute power. and that what is missing from alexa? emily: what is missing from alexa? toni: human conversational behavior. and the skills we have today are great at reducing the expanse making more delightful. we still have a long ways to go to make it an even more robust experience. you partnered with your rivals. what do you see in court, that
they might not get with alexa? -- with the cortana? toni: you will have experts in certain domains and bring more data. it is kind of like the internet in a way. customers will be able to search out experts annual probably have a broad set of ai who can handle it. and that when we see you partnering with other rivals, do we see that in december? toni: why not? emily: how do you make that happen? toni: it has served us well. we are passionate about the customer first approach. it will benefit customers and improve the experience, we will work towards it. emily: is the vision for alexa a center of a bunch of home
devices or the home device? toni: we see alexa as being an ambient experience in the home. customers can invoke this experience wherever they are. we also see that going outside of the home. --have announced partners partnerships with automobile dealers. we have a partnership when you are traveling with business and you are checking into a hotel, you can experience alexa there. we see it going beyond the home. emily: d.c. on security as an area of interest? -- do yountionally see a security as an area of interest? tony eventually. emily: amazon and alexa got a huge jump. now the competitors are there. what are you doing to stay ahead?
toni: i am impressed with a lot of the innovation that is happening in these days. we are focusing on building for the customer. with think the customers will be happy. emily: that is toni reid. coming up, amazon not only taking over home with a alexa, but keeping its head in the cloud. our exclusive interview with web services on getting to the front of the market. this is bloomberg. ♪ retail.
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in staggering competition between insurance companies. scoreadministration will how can expand short-term, limited duration insurance. these policies are not subject to obamacare rules. mark: white house chief of staff john kelly conducted today's press briefing. he called the north korean nuclear missile threat manageable. the flick at travel plan -- the fight against president trump travel ban is back in court. new york attorney general tells the revised van is an attempt to circumvent anti-immigration law. >> we don't think that solves a
fundamental problem. the new travel restrictions are scheduled to take effect over 18. -- october 18. quit funding the agency in 2011. in meeting today with french president and mayor macron started negotiations. the discussions come as protests continue across france over the first set of measures macron signed last month. just after 5:30 here new york. my colleague has a look at the
markets. adam: good morning. we are up and running and trade is coming in we will going to the first. the pound has rallied nicely. u.k.l barnier may give the a couple years of little room. the ups iow turn to numbers. numbers. ♪ >> this is bloomberg technology. amazon's web service says a shift to the cloud is just the
beginning. sales surged 42% last quarter to $400 million. take a listen. fast.has grown really i don't think any of us would've had the audacity to particular growth as fast as it has. we always believed it had a chance to be a significant business. inside amazon, we have a lot of faster andlp move to more cost effective applications. thisact that amazon wanted . i don't think we would have predicted that we would be at $15 billion revenue, 40% year-over-year. i don't think we would have predicted we would have several
sizes than the next 14 combined. we have a six to seven year and start. emily: of course, your competitors -- hardy make sure amazon stage and leading position question mark >> there are a few things. everynot a surprise that large companies interested in building a replica of aws. others will want to participate. i think there are differences between platforms. functionalitymore and we are getting faster clips. the gap continues to expand and i think there are different ecosystems around these platforms. most staff providers will --
some will do 2, you have time to do three. you -- you -- you can't learn certain lessons until you get to different elbows of the curve. with several signs that several times the size, we have not learned those lessons yet. aily: you just added ge as customer. you lost the fight in group two of america and microsoft. tell us the lengthy were going to keep new customers. a new way to think about customer for aws -- we have millions of active customers and they expand victim it. most of the big successful
startups have built their businesses completely from scratch. these are companies like pinterest and air beneath collect, mo, and robin hood. the last three years, the enterprise of the public sector has dramatically increased to the cloud and you see every meaningful business using aws whether you are talking about one, bank ofital , shiner electric, and phillips. even though we compete with them in our video business and in the public sector we have nearly 3000 government agencies worldwide. we have a lot more customers and you'll find elsewhere.
isly: you mentioned netflix your biggest competitor in streaming. where youny scenario would not serve them? >> it is amazon consumers biggest competitors. that if we wanted to serve a lot of amazon's consumer business competitors, week had to have the most optionality and platform, but we also had to treat the customers as every bit as important as amazon's consumer business. in fact, if you were to talk to netflix, they would tell you that aws treat reflects as important as amazon's consumer team. thatnk you have to live to and amazon's consumer business -- they are really just one other large external customer and that is the way we treat the
relationship. alibabaoogle, facebook, -- what do you ensure to do your talent does not get coached -- poached? people fromto hire your culture. when i say builders, i mean people who like to present and look at other customer experiences. that get the launch is the starting line and the finish line. anything you want to will be successful long-term. you want to hire what fits with your culture and you want to actually -- emily: he hopes that it goes to a place where there is strong education. are you jostling for your
hometown? >> none of us really know at this point where it is going to be. we are in the middle of the process. emily: the doj over trump, over been -- has said cloud companies need to turn over data. how much is that a concern russian mark >> customers from hasvery beginning of a ws always cared about this issue and they always want to make ise the data they the cloud secure and private. our view is that our customers data is our customers data. in the scheme of things, even anugh it has become interesting issue, there have been occasions of government asking for the data, but for companies worried about it. what they do is they encrypt the
data in when you do that, you keep the keys yourself. even if the government tries to get access to us we always advocate that they have to come with a subpoena and in the odd cases where they may be able to come with a subpoena, if you encrypted the data and the own the keys, there's not much people can do. you see aws and five years? years?five >> the past majority of -- the last majority of computing is going to be done in the clouds. very few companies will own their own data centers and they will have much smaller footprint. i think we are in the beginning of this shift.
you can expect a lot of expansion from us. you can expect huge investment in substantial capabilities of machine learning and ai and connected devices. i think the database is radically changing or think customers are fed up and i think -- i think yout and iee more serverless think voice will be increasingly larger percentage of total applications out there. mice visit interview with andy jesse -- a lot my exclusive -- rview with andy jesse my exclusive interview with andy jesse.
bitcoin. it rose above the $5,000 mark. recently, there were reports that china would ease regulations. cities across the u.s. are ramping up their campaign to secure the location for amazon's second headquarters. washington governor jay inslee keep -- t it takes to amazon'ss a signal of incredible success. growing faster than any other creation in world history. they are adding another 6000 jobs in seattle with hundreds of square thousand feet so the growth will continue in washington state.
this is a signal of their thattion and growth curve geography is an issue so it is not shocking to us that are rapidly expand his us we willing to look at other options, but our state will suggest locations for them and there will be proposals from a variety of communities around our state in the event that they see washington as potential options. one way or another, our state is a perfect place for them and i think some proof of that is there success today. >> look at the growth here and what is to come, are their advice you would share with other governors on how to manage or attract large successful impanies question mark >> think we have a strategy for technological growth which is exceeding not just amazon, but
google, facebook, expedia, microsoft. we have a whole host of companies that have had rapid expansion and that is the several pillars of our strategy. one is to develop talent. the number one agreement tools intellectual talent to make it grow. that is why we had focused on computer science programs in our schools and secondly come having an open door, welcoming approach to welcome talent to our community. that wea secret sauce has welcomed smart people from other states and other countries to be able to help build these companies and that has been very attractive to develop the nucleus of an ecosystem which continues to build once you get critical mass and what we have companies that the
cross pollinate so a computer scientist and might be working a narrow space one year is working in the biomedical industry the next so we have that creek amassed and it continues to feed on itself to grow these businesses. policies.ve smarter it is one of the reasons we almost have two dozen companies working on autonomous vehicles because we've had a welcoming so these companies can brother new technologies on this new revolutionary stride forward. we also have a perfect place to live and enjoy life and we are .ow in a recruiting battle someone can come to washington and enjoy the beautiful place with clean air and clean water.
great place to record a .3 old computer scientist >> that is washington gov. jay inslee speaking with our news reporter. airbnb is getting directly involved in business. tenants will be encouraged to put their faces online -- sublet their places online. be inrst moving will -- kissimmee,ida florida. coming up, the chinese government is pushing to take control over the biggest names in technology. can they succeed? ♪
emily: the chinese government is looking to gain a stronger foothold in some of the biggest tech companies in the country. this is according to the wall street journal. they are looking to obtain 1% stakes and eight management role. this was presented in a draft proposal in 2016. joining me to discuss, selina wang. we know the chinese government already holds a powerful sway over the companies. how is this different? >> this shows it is getting more powerful and more interest in today's large tech companies. it is can turn them because these are no longer media companies. >> chinese have historically taken a position, but they have mostly erred on the side of content and that is something we
have really seen happen over the course of this past year. unclear how much it would decisions.iness they have also entered into transportation. it is really to control the on-time -- know the social networking service that was blocked her at how does this fit into me note that is the only company? >> you talk to experts in this area and they say this is the new normal. this is the new regime. he does -- easily taken the chinese government and he wants to establish a persona leadership of the country.
-- it has gone quite far and it is really a concerted effort to clamp down on these companies. >> i spoke to -- it looks like they're going in the opposite direction when it goes to the chinese government to request overall, it is forming in china. china, there are regulations and policies that any company needs to abide by. >> obviously, it seems to me they are going into the opposite direction. for specials this management shares #>> a source told bloomberg it is pretty
advanced. the exact methodology is not quite clear. be enterprising buying these shares question mark how much of a control with a have for content. this is definitely the risk that .s ongoing no matter how successful they are, they cannot predict what regulators are going to do. there's always a gray lines there are >> do know how much companies push back? toeven when i speak executives, they say yes, that is the law. there is a sense that there is a gray line. the party congress is coming out at this point in time. -- it is much safer to push back.
time, -- thes overarching theme is there will fortricter crackdowns and companies like facebook and google, the then try. >> thank you so much for that update and thank you for watching this edition of bloomberg technology. be sure to tune into friday's show. the we look talk about team's travels to china. back tomorrow. ♪ who knew that phones would start doing everything?
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♪ announcer: from our studios in new york city, this is charlie rose. has been it cheever to be a pseudo-since 1969. he has covered the pentagon, white house and state department . for 24 years he was the anchor of face the nation. he ran 2015. he is 18 emmys and has been named a living legend by the library of congress. his latest book is called overload. last week and here's this conversation -- that