We have all the highlights from this weeks google next conference. This week, wikileaks published thousands of documents taken from the cia that expose a massive toolkit of cyber spying techniques. Cia hackers have the ability to access information from what were believed to be secured messaging apps. They can also run malware on windows and tap into samsung tvs. According to cnn, an official criminal investigation has been open. Julian assange of said he will work with the Technology Companies to close the gaps identified. Hearing these calls from some of the manufacturers, we have decided to work with them to give them some exclusive access to the additional Technical Details we have so that fixes can be developed and pushed out so people can be secured. Caroline Julian Assange went on to say the disclosures show the cia has lost control of its Cyber Weapons arsenal. Today we have been getting statements. They took a stab at Julian Assange. That was pretty interesting. We heard from them saying that the American Public should be deeply troubled by any kind of leaks that wikileaks might be putting out there that could compromise u. S. Intelligence. While they have not confirmed anything with the leaks, they have come out publicly to us, telling us directly that they dont stand for any kind of, anything that would compromise the u. S. Ability to gather information. They have also tried to make clear that they are not allowed to do electronic surveillance on u. S. Soil. You see them pushing back at the accusations we have been hearing from these disclosures. Caroline we have been hearing Julian Assange weigh in on the webcast. Have a listen. The cia developed a giant arsenal that appears to be the largest arsenal of trojans and viruses in the world that attack most systems that journalists, people in government, politicians, ceos, and average people use. They didnt secure it. They lost control of it. Then, it appears to have covered up that fact. Caroline accused of losing control than covering up the facts, how dangerous could it be if the cia did leave these vulnerabilities open for others to find as well . Vulnerabilities, but the real aim is weapons. It is one thing to release the tools if you are wikileaks, but when you release the final abilities, those can be weaponize. We have seen within 24 hours of discovering a new vulnerability, especially if it is spread around the world, then attackers will use that vulnerability. 99 of major breaches happen because of an unpatched vulnerability. If wikileaks wants to be responsible for once, then they need to take great care and how they release the phone abilities. Caroline the fbi are now looking into how wikileaks came across this information. Right, wikileaks told us that this trove of code and malware and viruses and zero day security vulnerabilities was circulating for a long time among government hackers and contractors. They say one of those people handed that content over to wikileaks. The question is who could that have been. The cia will be making a list of who those people are and trying to find who that one person was that turned over this content. That is something we will have to wait to see if this will be happening, investigations, into this. Caroline this is a strained relationship between the tech giants and washington at times. Our minds go back to the San Bernardino shooting and the fact i dont like to allow back doors into their encryption. How do you think this puts the onus on the relationship Going Forward . I think government needs to make Strong National security decisions about what they need to provide Tech Companies. If indeed the cia did lose this information and knew it proliferated and hackers were using it, i would like to have seen an earlier disclosure and work with Tech Companies to help strengthen our defense. That is security, protecting the people in the u. S. , national security, especially something so important as a cell phone and our data, which is where we put everything we do and say these days. Caroline still ahead, alphabet ups its cloud game, adding customers and partners, but will it be enough to catch up with amazon and microsoft . Plus, blue origins reusable rocket is expected to debut before the end of the decade, and jeff bezos expounds on that vision. My longterm vision for blue origin is millions of People Living and working in space. We need a spacefaring civilization for a bunch of reasons, and that is the vision. Caroline disneys ceo bob iger is staying put on a panel of ceos to advise president trump. During a shareholders meeting, and activist requested that he leave the panel, suggesting his participation supports policies. Take a listen. I did not believe nor do i believe that my membership in that group in anyway endorses or supports any specific policy of the president or his administration. I think it is actually a privileged opportunity to have a voice in the room. Caroline speaking of president trump, he met to discuss immigration policy with the widow of steve jobs on wednesday. Critics have often cited steve jobs as an example of how the u. S. Has benefited from welcoming foreigners. An organization has supported immigrants and refugees affected to trumps immigration order. Google sees a competitive advantage over amazon and microsoft. At a Company Conference on wednesday, diane greene cited data that ranked google as the most reliable company. She went on to say google cloud is attracting clients such as ebay and verizon to a broad portfolio of products. The ceo said he sees Cloud Computing evolving into one of the companys core products, such as search advertising. Google cloud is a natural extension of our mission. We are just doing it for businesses. It means increasing the availability and lowering the cost of data storage. Caroline we also sat down with the chief scientist for Artificial Intelligence at google cloud come asking about the transformation of Machine Learning in cloud technology. I think it will be tremendous. I think not only cost savings because of the Machine Intelligence and data analytics, it will open up financial services. We can have Better Service in terms of personalized banking or in retail. We can have new ways of delivering products to customers. Ai and Machine Learning is huge. I deeply believe this is the driving force of a transformative time for our industry. Caroline is it why you went into business, academia, to come to google . I think you are totally right. I have been working with technology for 20 years, and in the field of ai and Machine Learning. I want the field to grow into this major force of our society and the future of our business, and i want to participate and contribute in this transformation. I thought hard about what can ai and Machine Learning contribute, and the keyword is to democratize technology. I dont want to technology to be in the hands of only a privileged few, so cloud is the best vehicle to democratize ai. It delivers the power of the technology to so many people and businesses. Caroline as Machine Learning and ai show what they can do, the question of ethics comes into Machine Learning as well. Is that something you think businesses and academia are keeping pace of . It is an important topic that we should invite the whole of society to participate. Every time there is a new Technology Transformation in our human civilization, that Technology Becomes a force of change in the way we live, work, conduct our business, do regulation, create policy. This is inevitable, but the important thing is that all parts of the society participate, whether as an educator or as a technologist, i care deeply about this. Caroline a cucumber farmer using google cloud, is the price going to continue to drop . Will the competition in the market help continue that . Im not a business person, so i wont talk about price. I dont think i have many things sensible to say, but what i want to talk about is that the competition will not just be price. It will be the product we offer, what we can give to the customers that they need. I know and we know the customers are going to need powerful, easy to use a i and Machine Learning tools, and that is what i will be focusing on. Caroline how do you think google cloud and ai Machine Learning elements of that are better than the rest . We need to look at google as a company, it has the deepest in terms of ai talent and technology. Before i joined google, i was in academia and i know some of my best students go to google, and i know my google colleagues, the engineers, researchers produce some of the most phenomenal work in Machine Learning and ai. If you look at what google brain is doing, the work they have been doing in health care, winning challenges in ai competitions. We look at our colleagues and many things, so i think google is unmatched in its ability of Ai Technology and Machine Learning technology. Caroline that is what continues to attract people such as yourself. I have to ask you about the ribbon. It is International Womens day. I look around us and it is not particularly filled with females. You are being charitable. I think we should acknowledge that the diversity issue in ai and stem continues to be an issue. Its not just gender diversity. There is other diversity. Caroline coming up, wikileaks exposes alleged cia spying techniques, and Samsung Smart tvs are getting unwanted attention. More on the south korean giants latest debacle. Plus, jeff bezoss space colonization dream gets its first paying customer. This is bloomberg. Caroline making waves in nevada, the company has revealed the first images of the first fullscale test track in the nevada desert. The goal is to get a test run in the first half of the year to prepare for the construction of its first commercial installation. Hyperloop one will focus on transporting goods, and eventually passengers, at high speeds. Blue origin saw a lot of action. Jeff bezos tweeted pictures of the new engines. They announced the rockets first paying customer. Blue origin has signed a satellite operator as its first client. This as the company prepares to launch more powerful rockets in the next decade. Jeff bezos announced the news in washington. A few months ago, we started approaching customers and the company was very interested right away, and it was, it is really a great partnership, because they have done so many new vehicles in the past, so we couldnt hope for a better first partner because theyre going to be able to help. Caroline bloomberg was at the satellite 2017 conference and joins us from washington. It is a huge step for blue origin as a company. This is a company that has lived on jeff bezoss dream, and now they have revenue in the form of a paying customer. It is notable that this announcement was made at satellite 2017. This is the First Step Towards more paying clients in the future. Caroline i believe they have already been a customer of spacex. How do space x and Virgin Galactic compare . We are seeing the Continual Development of new and more powerful rockets able to launch satellites to geostationary orbit. The rocket blew origin is working on, they say their launch contract is for 2021, so still a couple of years out, but it will be a powerful rocket on the scope of which we have not seen for quite some time. You are seeing jeff bezos expand to paying customers. Caroline there is a great story on bloomberg about taxpayers and how much they might be on the hook. Is this something you think is becoming known by the general public, or is this something private companies should look to themselves . The launch industry as an industry is familiar with mishaps, and whenever a rocket explodes, it is a setback for the industry because images of burning rockets dont do anyone any good. The insurance question is interesting. Often times there is dual insurance, the deals tend to be different for each provider, but what you will see Going Forward is bigger, heavier, more powerful rockets capable of launching heavier and grander payloads. If you are a satellite company, you have more options. So for the satellite industry, this is great for them because they have more options and there is more competition, which will lower the cost for everyone. Caroline great for satellites. What about great for the consumer desperate to get into space . Do you have any time frame for what blue origin is talking about . They are talking about taking tourists to the edge of space for weightlessness and in bringing them back. I dont know the timeline, but it is within the next few years. They have leaned on what they learn from test flights to develop the new rocket they are talking about. Caroline remind us of what jeff bezoss grandview is here. We know elon musk is a visionary, but what does jeff bezos hope to achieve . They are similar guys, both tech billionaires who made their fortunes in the internet, didnt immediately plow those fortunes into private space companies. Jeff bezos started blue origin 15 years ago, and they were relatively quiet until recently, but his vision is similar and he wants to have millions of People Living and working in space. Caroline it is more headaches for samsung. According to documents released by wikileaks, samsung tvs could be used to spy on users. They have a microphone which can pick up and transmit information while the device appears to be switched off. It says it is aware of the report and looking into the matter. The south korean tech giant is hurting from recent debacles, jay y. Lee preparing to stand trial for bribery and investment. There were many competing devices that were mentioned in that report from wikileaks from apple phones to android phones, but this is the last thing that samsung needs right now. They are trying to get back on track after the troubles with the smart seven. They are poised to introduce the next smartphone, so they dont need any more hits to the brand name. The wikileaks documents show the cia was using a program called weeping angel to convert smart tvs into something that looked like it turned off, but would be monitoring what is going on in the room, so not a good thing for them. Caroline not a good thing when it is a product element, and the helm of the company, jay y. Lee, facing court once again. Explain to us how much the investigation into the executives has broadened out. Thats right. Today we have the preliminary hearings for the trial. It is not clear whether jay y. Lee will appear, but attorneys for both sides will appear. One thing that is striking is how quickly the investigation is moving at this point. The special prosecutor was tasked with investigating these allegations of trading favors at the highest level of government, and only given 90 days to do that, which is quick by international standards. He asked for a 30 day investigation extension, and the same administration of the president who has been in peach denied him the extra 30 days to keep digging. They also wont let him into the president s residence to continue the investigation, so he is playing a quick game and now the trial will begin and move quickly. Caroline how is asia responding . The investor base, samsung is at all time highs, but is there concern jay y. Lee could end up in prison . It is a high hurdle to prove he personally was at fault in some of these payments. Samsung has denied any wrongdoing and said they did kill tens of millions of dollars in payments to this confidant president park, but said it is not an exchange, so there is a high hurdle to prove jay y. Lee was involved. The samsung business has continued quite strong, shares near an alltime high, chip and display business is doing well, so that has bolstered them come and now they will come out with this new smartphone at the end of the month. Caroline coming up, president trumps latest order puts the brakes on h1b visas. What does it mean for Silicon Valley attracting top talent . All episodes of Bloomberg TechnologyLive Streaming on twitter. Check us out at bloombergtechtv at 5 00 in new york and 2 00 in san francisco. This is bloomberg. Caroline welcome back to the best of Bloomberg Technology. Im caroline hyde. President trump took a second crack at his controversial travel ban, replacing the original and restricts entry to people from six predominantly muslim countries. Iraq was removed and the linkage amended to make clear that visa, green card holders and citizens will not be denied entry. The suspension of the 15 day Premium Processing program to pass track applicants for h1b visas, a process that Silicon Valley tech firms use to find the best talent. I believe what we are looking for right now is the beginning of the dismantling of this program, and i think that will work out or to the administrations goals, which is unfortunate. Caroline we know there are some key issues at the heart of it and, sometimes being misused. How can it be improved rather than dismantle . I believe one of the things we talked about the last time i was here that we can increase the threshold for hirings, so rather than a 60,000 minimum, move that to 120,000. The companies who need to bring in foreign talent can easily afford to pay twice what they are paying now. They can pay much higher expedited fees. That is good for the government, good for the eco