Transcripts For CSPAN2 Book Discussion 20140824

Martin luther king, jr. But with started looking at him as this very sweet man, that he was a radical. He had very radical ideas and he wanted to change things in a very dramatic weight in america. And, of course, he did in very profound ways. So this book restores the radical king. Im very proud of that and there were working with cornell on a brandnew book called Justice Matters which will be out in 2015, and which looks not only at racial inequality in america but really at justice issues very broadly, including lgbt justice, including economic justice, including immigrant rights, all kinds of issues which are so important in america today. So we are happy to have cornell back and thats what theyre important to us. And then we also are publishing books cheryl, her book, place not race just cannot. Shes a very wellknown black legal scholar and she is looking at opportunity and injustice in america through the lens of place and, of course, that means class. It implies class, where people live and what opportunities, their place of residence gives them, or doesnt allow them. So thats one look at it and then her colleague, lani guinier come is look at the inequities we have an intricate society in judging marriage. Its a very test days. So she is questioning what is it that we use to measure, who was mayor, who gets to go to the elite colleges, book at all the opportunity in america. So these two women look at different aspects of justice in america with powerful, powerful books that we are really proud of. Very quick look at some of the books coming up by beacon press in the fall of 2014. This is booktv on cspan2. Heres a look at some of the best selling nonfiction books according to the wall street journal. Thats a look at this months list according to the wall street journal. And booktv is on location at the New York Public Library in midtown manhattan. Ann thornton is joining us from the library. What the deuce because i am the director of the Research Library for the New York Public Library. What does that mean . That are for research libraries. There is this one in midtown manhattan. The Schomburg Center for research in black culture in harlem. The library for the performing arts at lincoln center, and the business labor at 34th street and madison avenue. What do you do . Am responsible for collections, exhibitions, fellowships, reference and Research Services for all of the facilities as well as preservation. We will have ann thornton sure some of those collections and some of the Research Library are familiar. Where are we right now . We are in the magnificent rose reading them in the New York Public Library. This is what the heart and soul of the library. You see her lots of users are taking advantage of the libraries resources, not only our physical resources, books and materials, also access to technology which is incredibly important. Even though this room is kind of quiet and sedate, if you look at the window you can see the entire city of new york. Absolutely, thats right. When the library was founded in 1911, of course there were these Tall Buildings outside the reading the. All you could see was sky. So its really a place where the city has really grown up around the library. Why is it called the rose reading of the . The rose family name to this Reading Group in honor of their children when it was renovated in 1998. During that renovation every square inch of the services in this room were touched by a craftsperson. Its really been restored to its original splendor. The know about the paintings up on top . These are my girls that we had to recreate. They are in such a bad state of disrepair before the renovation, and so these were created in a studio on campus and being installed here. They are not painted michelangelo style. How much of the libraries collection of artifacts available for people to see . All of them. Our collections are more than 51 million items, and we have all kinds of things from books and manuscripts and archival material, photographs, prints, menus, maps, all kinds of material. One of those valuable items is this. What are we looking at . This is a gutenberg bible volume. We have a gutenberg bible in our collection. Many Great Research libraries around the world do. The significance of this gutenberg bible, which is a to point say, you see one of the blogs here, is that this gutenberg bible was the first one to be brought to the United States in the mid19th century. So its remarkable in that way. And its on display for everyone who was walking by to see it . Absolutely. The technology here of course is, whats remarkable about this, print is removable type in 1845. Up next, Michael Malone talks about the rise and importance of the intel corporation. He spoke about his book and the Computer History Museum in Mountain View, california. Thank you for joining us, everybody. Great crowd. Hello, everybody. Its an honor to be here with you guys. Put this down. I heard there was a new book coming out. Kind of neat to read passionate i think im selling more kindle copies and hard copies. Spent i was going to ask you to autograph this afterwards. [laughter] there you go. You and i could literally swap seats here because i second had the interview show and you cover Silicon Valley every day and knows what is going on. Half way through we will switch roles. I do coverage and the emphasis and we had this discussion before and lamented that Silicon Valley only looks ahead and so rarely looks back but those of us that dont look back are missing something and missing what will come next and a perfect example, you have one of the early spinoffs making money for investors through a stock offering, three volatile people, they really made the groundwork for what we see now. It all begins there. The question i give most in all the interviews is how dare i suggest intel is the most import company in the world . They havent done that well, why not face book . It has a million members. Why not google . It is the access point to the internet. If tomorrow morning the employees of intel decide to sleep in, they are tired of doing mores law for 50 years, all of this would ground to a halt. Intel is the high church of mores law, they are committed to keeping more slaw going forward. And accelerated reality and all the things we become accustomed to. It is not a law. It is a social contract. Intel and other companies that are in the business, samsung and qualcomm, made a commitment to keep the thing going, drive the technology forward. If they dont want to do it, all of this ends. Is it accurate that intel and the semiconductors are the basis for everything that came after everything we see today . We are doing uber and Autonomous Cars and all these things. We are so many generations removed from the world of ships that we forget that it all runs from there. To all emanates from there and the reason we have this progress is mores law flips every 24, the citys months and gives us a new set of opportunities in pieces moving forward. Host i want to get inside the book but first , a longrunning debate, science, theology, trinity. There are three people, the trinity, there is a religious not very subtle reference. Guest no one has ever accused me of lack of hyperbole. I was originally going to be trilogy, that is not enough because the more i thought about it it really is a biblical trinity. You have the father of Silicon Valley, you have garden and his law, the of holy spirit of the electronic revolution and the difficult but ultimately successful andy grove. And all sorts of passions going to work in all of this. Andys relationship with bob is really complicated. I am not sure i understand it now. I gave andy the last word on the book. I went to his office and talked to him. After all i knew about his history with other two founders, out of my chair, it was just the opposite of what i thought and suggesting even any doesnt and the stand his relationship to noise. Host i had to call trinity. The history of theology. It is and paranoia. And actually, it doesnt stop with intel. Look at the reverence past the life of steve jobs it borders on following not merely respect but following. Guest if you look back there is a series of key figures in the valleys history. It starts at stanford. He makes this happen. Packard, the first worlds historic figure to come out of the valley and he is the leader of the valley until the 60s. Noise, people dont appreciate that. 12 blocks that way, he was a lost kid and he couldnt find a mentor worthy of him, and he instantly realized noyce would always be able to teach him something and look at the story of apple it is apple patterning itself on hewlettpackard but jobs is patting himself on bob noyce and noyces early death scattered steve jobs. People dont appreciate what he did. It grew him up. Steve jobs grew up twice. If you near the debt the few new the early steve jobs he was an obnoxious guy. Noyces death and jobss illness created the steve jobs of legend. Jobss reputation which couldnt get any higher three or four years ago is slowly fading as the next post millennial generation comes along and they are looking at looking at Mark Zuckerberg but that wont work. I think theyre focusing on elon musk. I think he is the next major figure in the valley story. Host i would put forth this discussion, jack dorsey at square, they are still looking at what jobs was able to do at various stages of his career and think this is what i want to do to get to that point. Guest it is kind of interesting. Talking recently to andy, he suggested something happens every once in a while in the Business World where people just seem to like celebrate away from everybody else and they do something unimaginable, that they reset the rules of what you can accomplish and we saw that first with hewlettpackard, with a the great run of the h p away from 57 to 74 and we saw it at intel where intel takes the worlds with the processors, the x 86 processors and changes everything and keeps of this amazing pace and jobs gives us may be the greatest run of innovation in history where he produces three category creating 100 billion industries, one after another every three years. That is when business becomes something almost supernatural and these guys do it and if you talk to them they are terrified. They dont know what theyre doing in the thick of it but they keep going. That is worthy of a story to be told i think. Not just the results but what made from who they were. Host one person who hasnt gotten his do is robert noyce. His name is on the building. Theres a certain legendary status but we dont know as much about him. There is an amazing story you tell in the book where he had a pilots license which once almost took the life of both noyce and steve jobs. That is crazy. One of those richie valance moments. Guest it would have been the end of the digital age at the end of a runway. That is amazing. Host that is amazing. Guest that is why they dont let a lot of modern ceos do that stuff. They used to go helicopter skiing. They finally quit, 12 people died in avalanches, fellow skiers and i talked to jim morgan about it, the chairman, he said he and david would go down a hill like that and noyce would go straight down. I always thought that was an allegory of bob noyce. Amazingly charismatic figure. Did anybody here note noyce . Good. Know noyce . Good. Very few people left. Theyre running slides of all the people, how long they had been at intel. The longest person who had been there was 17 years. Realized basically nobody at intel any more ever knew bob noyce. They see him on the wall when you walk into the robert noyce building. Host perpetually young. Guest yes. It is hard to explain noyces appeal. He is as charismatic, i have interviewed all these people over the years. He is may be the most charismatic person i ever met. More than packard, more than steve jobs. Those guys, you felt the reality distortions around steve and that you are talking to George Washington or god. Noyce had this easygoing gravitas, this deep baritone voice. You was a singer and also a champion swimmer and he built this gigantic company, he also had been coinventor of the integrated circuit so he was like baseball, talk about the five tool player, noyce had done everything, he was friendly and engage in and down to earth and you could see he had that effect on steve jobs. You wanted hang around with him, you wanted to be bob noyce. That is a hard thing to convey in words and very few videos, i did the last interview with bob before he died for my pbs show. It got erased. There it is one copy on video tape that is know we and scratched, at Stanford Library and that is about it. The visual record of bob swim, and the sad thing is he died too young before Silicon Valley became world phenomena. Died just before the dot. Com bubble before intel became the most viable Manufacturing Company on earth. He left this incredible voyage. I remember driving home, when jobs diet, and you were at apple headquarters, crews in front of Homestead High School and this sort of shock wave that went through the valley. Noyces shockwave on his bed was the same but smaller because the valley was smaller. He had every boardroom in Silicon Valley. Everyone admired him. Even his competitors and there was a feeling that the mayor of Silicon Valley, that is what his nickname was, there is now a vacuum and that vacuum has never been filled. The next generation, jobs and alice, dysfunctional mayors. Host the tech archetype dating back to albert einstein, bad here, social the inapt, or was it the mad hungarian . And then you have the smooth, good with women, where does that come from in the tech world . Guest that makes him stand out. He was a very cool guy. We havent had another bob noyce since. We have lost the sort of center to the valley. We lost the ideas that it was just assumed David Packard would meet when elizabeth when she came to the valley. Everyone went to hp and stood with dave packard when he met the queen. The feeling was when the japanese industry attacked, and bob noyce pull out of intel and went back to washington and was very successful. When president obama flies in, who was the person who stands there and says i represent Silicon Valley. There hasnt been one for 20 years. How many people here worked at intel . How many worked in the Semiconductor Industry . How many people lived here 20 years . 30 . Not many hands. 40 . 50 . 60 . Wow. The reason i want to get a sense, there are not a lot of twitter people here. That is a statement on the fact the valley doesnt think about history. I think about when i walked in this building. 50 years ago i was standing right about here with a pellet gun on my shoulder hunting birds because it was one continuous field by the 40 x 80 wind tunnel. And a school in Mountain View is over there and that is where i was going to school and that is where steve jobs, everything north of here, there was a drive in theater and 20 years ago i was in this building and it was silicon graphics. This would be theyre exciting new building and i came here as a reporter for fortune. To do a story on the huge ongoing success of s. G. I and the more i talk to people memorialized this was a company in serious trouble and i wrote the very first negative piece about silicon graphics. It caused a huge stir. History proved to be correct. If we bristol at the s g i Global Headquarters i would have some apologizing to do and then they were here year and a half ago for the celebrations for the pbs documentary bob noyce and fairchild, interesting that noyce is coming back in the public eye, theres a curiosity about him. Gordon in doers forever, immortal because his name is on the law. That is what counts. I have no doubt school kids 500 years from now will be following because this is an amazing, historic interval we are in. We are lucky to be right here, right now. What i find interesting is andy who bestrode the world like a colossus ten years ago and demand i think is the greatest ceo of the second half of the 20th century, he got to ride the tiger and he did it and look how difficult it is for everybody else to do what he managed to do. Andy is in this sort of period of semi eclipse. You dont hear about only paranoid survive, i think he will come back in the public eye a few years from now. Host there is a smooth ceo, good looking ceo. Young ceos now will say bob noyce was a guy who would get the message across and so i think there is a little bit of that if you look at the jack dorises of the world, i can be smooth and on magazine covers and still leave the Company Guest and put on a shirt. Guest diane in the new yorker today which is the greatest thrill of my writing career just to see that fond gave me shivers. It is q and a by ended up saying theres a distinct difference between the battle crowd and the current crowd and that is if you go back and look at the founders of the Semiconductor Industry, founders of modern Silicon Valley, they are all sons of the working class. They have seen tough times. Noyce was the son of a preacher in iowa, apparently didnt get good sermons so got moved around. Board mores dad was the sheriff, a resting bootleggers. Gordon is of that first generation, the only local. Billups hewlett, the dean of the medicine medical program at stanford, lives in San Francisco. His dad died young social buzz with terrible dyslexia kind of a mercy acceptance at stanford. Andy went through hell budapest was overrun twice, he escaped in the 1915s literally over the wire and got here and the rest of the founders of the Semiconductor Industry in the valley really came from workingclass stock. They understood what it was like to live paycheck to paycheck and lose parents young and all those things and that gave them a sense of reality, a sense of this is what life is like for my employees and my customers and i dont see this in San Francisco. Host you could argue whatever the ethic was, the intel employees did well, they were able to feed their families, we are seeing that at facebook and google and twitter now that they have been enriched by success, they are now sort of spreading out. Guest ted live four houses away from me when he was inventing the microprocessor and he almost drove me over eight times racing down fremont avenue. I would run into David Packard in palo although. Is crowd, they are much more children they are Like Software engineers who are the children of Software Engineers and this oligarch entitled attitudes that i see in them which were seeing the backlash in San Francisco, the stoning of the buses and the attitudes that the hipsters are running the town, that i didnt see that in the old guard. Another factor is these guys were hard workers. Everybody from the Semiconductor Industry knows it is not even electronics. It is the chemical industry, it is fabrication. Real hands on stuff. The social network world, web 2. 0 is software, code, a code is more ethereal and detached from reality. Guest hardware still the basis of everything we do. Of the generation that is now a federal or will this last and will the children of the current oligarchs start their own companies whether they are software or hardware or whatever . Guest i think the software here is ending. It is dominated Silicon Valley for 15 years, and it moved the center of gravity. The center of gravity of Silicon Valley started in palo also in the apollonian elegant hills and went down to the dirty diane ec and world of the valley floor at california street in san antonio road where shockley and fairchild were, right down there. Mountain view and headed south through the Industrial Parks to the Golden Triangle in san jose, spread around the bay but consistently heading south but with the arrival of the internet it hopped north to San Francisco and the capital of Silicon Valley is San Francisco, 1998. There is a lot of mass down here but that is where the action has been. I am beginning to notice interesting changes and i am sure most of the lived close here, you probably noticed the changes too, most obviously they put up the house for sale signs in your neighborhood and households 14 hours later for 1. 6 million. My parents had a house in Mountain View they bought for 19,500, then in sunnyvale for 26,000, the house in sunnyvale last i looked was worth 1. 5 million and it has gone up 20 since the beginning of the year. I live in the oldest house in the south bay and it is in the neighborhood south of bernardo and they do not sell, they dont take longer than two days to sell and theyre selling at 30 of the market price. That is a clue that something is afoot. What i am beginning to notice is the valley is getting ready to make another move of its capital and this is ground zero right here. I think the next decade may be even 20 years of the valleys future is right in here, right here at the triangle of mountainview. Why do i say that . Two reasons, three. San francisco was becoming inhospitable. They are doing all sorts of things to drive Tech Companies out. They will basically follow their own wealth. You are seeing a backlash up their against this new crowd of rich young people. San francisco doesnt like children. San francisco likes dogs and so host they long had a school problem. Guest it stopped being a working town in 1965. A tourist town, now it is attacked town and now these 23yearolds who come to work for twitter and the rest are now 30, getting married, having kids and they have got to be saying i dont know if this is the right place to raise my kids which suggests they are going to go south. I think they will go east interestingly but we will get to that in the second. If you look around here facebook is down here, google is shifting ever closer this way into this 23717101 triangle. In Downtown Sunnyvale i am lindsey holds neighborhood and look up and there is 1 million Square Foot Office building in the middle of Downtown Sunnyvale and i drive by the sign linked in and obviously all of us drive up 280, the apple donuts is coming. There is a thing called 4 malone laws and the first lot is whenever a Company Builds a new Global Headquarters, short the stock. It works. It has always worked and the recent works is when you move into a fancy new building you are more concerned about where your office is and what you get a good window and where your parking space is as opposed to shipping products and host we have to wait to short apples stock until they move in. Guest you like apple . We talk about apple. When steve jobs died i wrote his obituary in the wall street journal and sort of made a prediction. I said tim cook will be a terrific ceo because he is the guy that always made the trains run on time at avalanche he knew how to handle steve because steve was like this radical elements that if you could control him he gave the magic but if you unleashed him he would destroy the companys morales and Everything Else and create chaos which is what he did the first time. What i predicted was apple would become more profitable and more successful for the first few years after steves death but what apple had lost was the guy who when you came in with the new idea looked at you and said that is not crazy enough. That is not a big enough risk. Steve jobs created, unique in history of American Business of Corporate Culture of a giant company that was progress as opposed to risk averse. You got punished for not being enough of a risk taker under steve jobs. Host the pirate flag. Guest cook is not that guy so we are seeing andy is beginning to play out sadly is apple is upgrading and advancing their existing products really well. And they will continue to do that and their Profit Margins will get higher and their stock will keep climbing but we going to see Ipod Iphone Ipad in the course of eight years ever again from that company . I dont think so so i think the age of apple as the most Exciting Company on the planet is probably done. Host it was exciting the same reason intel was doing and the products it was creating work setting and it is all hardware. Kenna Software Company be the most Exciting Company in the world . I tried to do stories on oracle and you cant use customer relation and software. You had to talk about the crazy ceo and that it was minting millionaires. A Hardware Company that is why you will have fun in the next few years because i think were shifting from software ear to hardware era. It is simultaneous with this move down south. They code stuff up there. If you look at tesla, look at all the wearables that are being created, we will see hundreds of thousands of products in the next decade, if you look at health care, medical monitoring, it will move to the watch andy will be testing your golf onyx in response. Host tell me how long i night. Guest measuring your gate and the way you walk as an early indicator of parkinsons. It may be the first indicator. Because of mores law that will get smaller and smaller. The sensor revolution is the least celebrated revolution in the last 30 years. That is exploding too. The age of testing samples is over. Now we test everything. We measure everything. We will measure every gust the very every fish in the sea because once these things become almost microscopic just throw them into the air and a float around for a generation in the hemisphere sending signals, were developing all these analytics, we literally ended a historic here at the last of 500 years of statistics and now we go to measuring everything. Hardware, we are going to stick stuff under our skin, swallow smart hills to measure our vital signs. We will do all these things, they will have software and cut but the heart of it will be physical things. When it comes to physical things. Host microsoft became the Biggest Company in the world on the back of intel chips. Thank you. Would you like to take some audience questions . Anything else you want to ask . Host they will be more intelligent than anything on this tablet so why dont we how would you compare in tels history and impact with more modern Companies Like facebook and google, is the era of great Component Companies over . Guest no. The era of components isnt over because we constantly regenerated and every two or three years. We have to keep doing that. Luckily if you look at the announcements coming out of ibm and intel and some University Laboratories over the last 5 years i made two great mistakes as a reporter. My first was declaring Silicon Valley dead about four times. Host you are not the only one. Guest every time i got stuck in traffic i got this off, went home and wrote an oped that the valley was unlivable and wouldnt last much longer. Host maybe uber will keep journalists happy and wont have to drive and Silicon Valley will live on. Guest the second mistake i made consistently as a reporter was suggesting mores law might end soon. All credit to the Semiconductor Industry, they have done one miracle after another. They should have hit a physical wall 20 years ago. They just keep getting smaller and smaller features, and now were looking at 3d gates and transistors. Ibm announced a new type of circuitry, getting down to seven nanometers. We are leaving silicon, three and five on the periodic table, every time you think they cant keep going, the laws of physics will get in the way they pull another rabbit out of their hat. Host people are starting chips unbecoming come monetized. Many of you in the audience know firsthand intel stock is at its highest level in 12 years so that is wall street coming around and saying oh yes, this is important to Everything Else that is going around out there. Guest intel screwed up five years ago. Days did when they should have zagged. It is easy to say they made a dumb decision, but the whole point of being in shell is you take a bit risky decisions and the genius of intel is not the fact that they dont make mistakes. I gave a speech at intel where i concluded intel made more mistakes than any company in history. But intels ability to recover from mistakes is there genius and everytime intel was on the canvas andy would keep them moving. Host they won the stake. Guest companies that dont make mistakes come in two forms, startups that make one mistake and Mature Companies that are risk averse and dont make mistakes and become obsolete. Intel keeps taking big risks. One of the big risks was Craig Barrett took the company towards networking and committed other acquisitions towards networking and the world went the other direction and intel got left behind and has been racing to catch up and the financials last week told wall street we are now being designed into an awful lot of smart phones and tablets and all of that. Intel is back in the game. At least for now. Did we answer that question . Host the impact is legendary. Will these have more time . If you can call google and upstart will they have the impact intel has had . Guest everyone thinks of google as a Search Engine but it was a Stealth Marketing effort to still advertising away from the media which it did brilliantly. Everytime the New York Times or fortune or vanity fair put a Google Search box on their home page they gave away their advertising to google so googles impact has been enormous. Facebook of two mines. On the one hand 1 billion users which makes it the most impact for service co. Of all time. It ranks with cocacola. 1 billion users but what keeps them there . Host i would argue, in the mobile world we carry them around with us. Microsoft user of years past use his or her product when they were at their desk. The Facebook User has that with them and has built a pretty big chunk of their life with them that they take with them everywhere. That is very impact. Guest it made some bad business decisions. One was not protecting its users from creditors and the other was trying to monetize too hard, and everyone one morning left. I kept looking at facebook and thinking this is a company that keeps pushing the envelope, try to make money off of its users and it is perfectly willing as shown to take your private information and sell it to the worlds. And this is another reminder why you want people with gray hair in the company to tell you know, you really dont want to share peoples purchasing information with their friends because the friends, do you really want to share the fact you bought preparation h or your wife sees the you bought flowers that were not for her . This is what happened and they keep trying to do this. The thing about facebook is i dont trust them because i never believed they had my best interests at heart. Host the devils advocate, i will speak for those who dont yet have gray hair because there are those. That private information is willingly given up. Host guest theres a different relationship between millennial sense younger people towards privacy but nevertheless facebook is playing a dangerous game and if they make a mistake people will look. Theres not much holding peoples there. Mayport lot of stuff in but once again that is the femoral. Host we are talking people who are by definition short attention spans. Host zuckerburgs strategy have been brilliant latinos the vulnerability of facebook so he goes out when facebook is beginning to fade, when your grandma has a face book page and you are 16 years old paths so they go out and they buy instagram. So instagram is no longer the flavor of the day. What do they buy next . 19 billion, 55 employees. I heard that every vested employee at whats apps will make 52 million for less than a years work. Why would mark spend that kind of money . My vision of his Business Model is this warring river, zeitgeist, technology revolution, and he is jumping from rock to rock. As facebook begins to fade, instagram, whats apps, he has money. Guest host if you did bottled water sized thing in that river he now comes up with 19 million. Paddle down that river. Guest every company is like Scrooge Mcduck all filled with gold collinsins. I figured out apple has more money than the gnp of most countries. Why deliver why compete with some new Company Coming at you head on. Go sideways and keep moving. Host carol hart said that is the beauty, the rest of the tech world is a farm team and youre in the major leagues and it has worked pretty well. Pretty unparalleled but she did well. Guest she was the most fun person at Silicon Valley. Host you have not dropped any f bombs during this. Guest she is the them all. We reporters regularly voted her the ceo you want to go after. Host could intel have happened anywhere but Silicon Valley . Guest that is a good one. It succeeded to some degree in texas and in motoro