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. Im 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 amazons 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 president ial election. She says its 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 anyones 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 wouldnt 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 googles 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 didnt 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 dont 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. Emily this is Bloomberg Technology. Emily tesla is recalling about 11,000 model x suvs due to possible issues with the second role seat. Them have issues. The problem involves incorrectly adjusting seat cables pair tesla said it has not received reports of accidents. Cobalt announced it has raised another 14 million of gross capital, bring a beautiful amount to 89 million. The music Royalty Companies start out council bill mahers. S their leading investor he is also joining the board pillion dashboard. Bill mahers 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 vcs. Bill youll 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 elons 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. Its 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 dont 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 thing happened and is happening and there is a reckoning. Hopefully things will be set straight. Maris. N thank you for being here. The surprising links ecommerce is willing to go to. This is bloomberg. Emily amazon tells us it would not rule out partnerships with major rivals if that means improving voiceactivated 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 uhhuh. 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. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. In new york. Ton youre watching Bloomberg Technology. President trump sign an executive order to expand health insurance. It is a move he says will result in staggering competition between insurance companies. Scoreadministration will how can expand shortterm, limited duration insurance. These policies are not subject to obamacare rules. Mark white house chief of staff john kelly conducted todays 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 antiimmigration law. We dont 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. Amazons 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 dont think any of us wouldve 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 dont think we would have predicted that we would be at 15 billion revenue, 40 yearoveryear. I dont 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 cant 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 youll 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 amazons 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 amazons consumer business. In fact, if you were to talk to netflix, they would tell you that aws treat reflects as important as amazons consumer team. Thatnk you have to live to and amazons consumer business they are really just one other large external customer and th