Planet us on the joins us from the Developers Conference to map the road ahead for android. We take a look at the evolving Threat Landscape in cyberspace. President trump discussed highly classified intelligence in a meeting with russian officials last week. They contend the information was wholly appropriate and based on opensource reporting. Take a listen to general mcmaster defending trumps actions. The story combined what was leaked with other information. It insinuated sources and methods. I want to make clear to everybody that the president and no way compromised any sources or methods in this conversation. Emily the Intelligence Community is working overtime. The attack a snowball the two affect 300,000 computers in 150 the attack has snowballed to infect more than 300,000 computers in 150 countries. Computers ranging from the you ks National Health service to the Russian Ministry of the interior. What are the bigger implications of both events for the Intelligence Community . Mike riley covers technology for lubricant news. Mike on a global level, the first wave of attack is been contained. People are looking for new versions and theys audit a wanna cry to point out that may or may not be from the same actors. Where the attention is focused is who did this. There is reporting by security firms that may be linked to north korea. This becomes a state operation, a couple of things that might affirm that diagnosis is the timing. The attack was released around the same time north korea did a new missile launch. Some of things it might cut against that is so far we know the ransom where that struck 100 countries is only netted 50,000 in the coin. This is a nationstate trying to fill its coffers because it suffering from sanctions, its not very effective. Emily there is a blame game going on. Microsoft is blaming the government and the government is blaming Companies Like microsoft. Who is to blame . Mike microsoft is not going to come out of this looking good. There was a patch issued when the initial vulnerability was leaked by the shadow brokers did Everybody Knows that not everybody does patches the way microsoft would like them to. They mightve shipped the operating system in a way that is much safer to begin with. However you look at this, they are not looking good. Is it the intelligence agencies or is there a move to look at the way these vulnerabilities were first developed by the nsa that they themselves had some insider hack that allow the information to be released . This is the way nationstates work. China does this. Russia does this. This is how they spy. The unit say is doing what it is designed to do. Emily thanks so much that update. The industry rallied off the news of the ransom ware attack. They were able to block 22 million attacks. They say they may know who is behind this. Joining me is greg clark. Your researchers believe that north korea is behind this. Greg we have some evidence that shows that the people involved in attacks linked to north korea, some of the code they used are present in this attack. That does not mean north korea and did it. It means there are fingerprints from the same kind of malware. The derailment before me mentioned the thing that would indicate this may not even cases the size of the ransom west. It does not track to the size that request. They were linked to the bangladesh attack. If you can get inside an enterprise and take over their systems, you request more than 300 in that coin. That doesnt help with the thesis. You never know. What may be another case it is here is a small group got hold of this nsa vulnerability and wrote a more amateur piece of malware that got out of control that was attack aimed it consumers. There are a few things being worked. Its not time to call Law Enforcement for this. There are some things we shouldnt talk about yet. I think the other point that the gentleman made which is important, microsoft is isinitely culpable for this, something we should talk about. Emily are they . I think microsoft has come a long way in recent years and hardening their operating system and how they deliver patches. This is about vulnerabilities. People become aware of them and they patch them. This is about i. T. And consumers being very quick to adopt the latest patches, whether it be an apple product and google, microsoft. Emily you say you have blocked 22 infection attempts how many didnt you catch . Greg we have a small number saying they had an infection. We are talking about a really small number, hundreds of thousands of enterprises runner product. We have some Artificial Intelligence in our product it figured it out and stop the all by themselves. Thats a big step over the industry. We have situations where other vendors may have been defensive who had blocks for it that were not updated. Thats how things got out of hand in europe. Emily thats the lesson learned. The u. S. Was largely unaffected. Greg primarily in our view because the researchers the done on this problem early and work it found a situation in this malware that would turn it off and make it go to dormant. That was put in place on friday night. By the time people got to the u. S. , it was already sort of dealt with from a dormant point of view. It still mightve been propagating, but not destroying the systems. Emily you expect spending to increase as a result . Greg definitely. Whenever there is a problem like this, we fare very well in it. We are starting to see that. I think the future is bright. Awareness is there. We are not the kind from that gets up and bashes our competitors or bashes platform vendors. We are here to fight cybercrime. We share our information with the cyber threat alliance. We shared that on friday. We are trying to help the industry. We are a good operator. We have huge research investment. Emily what trends do you see under President Trump . Our companies changing what they are spending . Is the Threat Landscape changing . Greg cyber criminals are emboldened, not just by the Trump Administration but why some of the effectiveness of some of the attacks. We heard about some things in saudi arabia that were very concerning. Nationstates operate on other nationstates outside the u. S. Cyber criminals are more emboldened than we have seen the past. We produce an annual threat report. We reported that ransom ware is on a huge rise. It is targeted at consumers. They have nowhere to go. There is no cio. The average prices got up to 1000 to repair. There is a way of making money for criminals and it is definitely an effective enterprise and on consumers and their digital safety. Ly that was semantic ceo ceo greg clark. Disney is being held ransom by hackers. Bob iger revealed the news to employees on monday. They claim to have stolen and unreleased film identified by hollywood news outlets as the latest pirates of thed caribbean movie and are threatening to distribute online. The attempt as part of a larger global cyber attack or it it comes to weeks after netflix confirmed that hackers are responsible for leaking new episodes of orange is the new black after they refused to pay a ransom. Come up, is the vc market oversaturated . We catch up with fred wilson next. If you like bloomberg news, check us out on the radio. You can listen on the bloomberg radio, bloomberg. Com, and in the u. S. , on sirius xm. This is bloomberg. w emily in this weeks wrote in this weeks revolving door biz , stone is rejoining twitter after he left and two months after he sold his start up to pinterest. He said he will be focusing on Company Culture and will not replace another executive. We spoke to stone last thought over and asked about the at the recent challenges at twitter. Biz i dont follow the rig up and downs. I dont look at the stop on a quarterly basis. I think great leadership thinks in terms of decades, not quarters. Jack is in the grand scheme of things, jack has just got the job. People are like, he has already had it for a year. A year. Thats nothing. Emily shares of twitter jumped tuesday after the announcement that we are among their video partners. Union Square Ventures remains bullish on the stock and we caught up with fred wilson wednesday. His firm has invested a number of Companies Including twitter, tumblr, foursquare, and kickstarter. I caught up with wilson at the conference and started by asking if the vc market is oversaturated. Fred its hard for me to know. I dont know what the demand side of that equation is. Its clear to me that there is probably more good Investment Opportunities in the Venture Capital industry then a decade ago. We can order more capital. These things go up and down in cycles and we could be at a place in the cycle with there is more supply of capital than there is demand. We are on an upward sloping curve on both. I dont know. Its hard for me to say. Emily if there is more supply than demand, what are the implications . Fred prices go up. Returns go down. Capital leaves the sector and there is more demand and supply and prices go down and returns go up. Thats the evident flow of Capital Markets and the pc business. Emily i know you watch the bloomberg started from her the tracks the Health Environment for private tech companies. Its down from its peak in 2015. One of the negative signs and positive signs you seen this year . Fred there is a lot of sobriety in a number of sectors that is been very frothy in the past. We have new sectors that are now frothy. They will have to go through their own cycle, if you will. Emily twitter is one of your most prominent investments. Jack dorsey, the ceo, Just Announced he is bringing back biz stone. How likely is it they can we accelerate user growth, reaccelerate revenue growth, and sustain that over the long term so that they are bigger than it is today . Fred i am very bullish on twitter. I own a lot of twitter stock. I want those viewers out there to know that. I think twitter is unique company. The content you can get on twitter is unlike the content you can get anywhere else on the internet. That is becoming more and more the case, particularly realtime breaking news. I think anybody who wants to consume breaking news, there is no better place to do it than twitter. I love that the band is coming back together. When jack came back, that s the beginning of good things for twitter. Now with biz coming back, i had no it was happening. It made me smile. I am so happy about it. Emily facebook is been copying snaps features, what is your prognosis for snapchat . Fred facebook has no original ideas. It tries to put in a but of by tries to put Innovative Companies out of business by copying them. I think that is the question to really ask. Emily does that mean you are optimistic about snaps future . Fred no. Im just saying its depressing that a company like facebook cant come up with any new innovations on their own and have to copy companies. Emily what about uber . Obviously, they have had their share of issues. What went wrong there . Fred i think the issue is they believe they can run the table on the market and capitalize the company and build a strategy around doing that. What has turned out n be the case is unlike search or social media or ecommerce, ridesharing doesnt look like its going to be a winner take all market. They are really struggling the realization that they are in a highly competitive market that is going to be competitive for the longterm. A lot of the things happening to them are kind of happening because of that. They have become a lot more desperate. I think its tough times there. When those things happen, you see companies, and glued a little bit or it thats what it looks like is happening there. Emily how much of it comes down to the leadership . What responsibility this travis avenue . Fred they created the strategy and get it. They are accountable for that, arent they . Emily that was fred wilson. Coming up, the google conference kicked off in mountain view, california this week. We will talk to the man behind the android operation. Amazon made its debut as a public company. We will talk about how it became the tech behemoth it did today. This is bloomberg. [ emily a seattlebased bookstore opened to the public market. The company was amazon. The value, nearly 440 million. Today, this book startup is actively running the ecommerce world. Amazon is worth 460 billion. The stock is trading around 600 times its price on the day of the ipo. A 10,000 investment back in 1997 would he worth 4. 9 million today. To transform itself, amazon has pumped cash into areas like amazon prime, web services, the amazon echo ai platform. While this cash burn his worried investors, they have turned a profit for eight straight quarters thanks in part to the strength of his Cloud Computing business. The market cap for step of walmart, worth 230 billion, half of amazon. Amazon is stepping further on to walmarts turf, opening brick and mortar stores. A Battle Royale to watch for the next 20 years. Took place this week and among the new developments, a new supercomputer chip for ai and they are making a digital assistant available on the iphone. Google offered updates to android. We spoke to the man who runs android. We talked about some of the most exciting announcements. Hiroshi we announced a lot today. There are now 2 billion devices in the world. That is very humbling. Were really excited about that. We announced the beta for that is aimed at devices in emerging markets, but have one gigabyte of ram. We are making that experience great for those users. Those are some the examples we announced today. Emily what progress has been made . Hiroshi we announced android n last year and many devices are up rating to it. There is a lot of good stuff in there. Emily what sort of new security features are you integrating . What you doing to combat fragmentation . Hiroshi there is a lot we are doing. It is something weve been working with the industry on for many years now. Specifically, we announced project trouble. We are reconfiguring it. For the industry, its a big deal. We redesigned the bottom part of android the deals with the hardware to make it easy for operators and manufacturers to update the devices and really have a quicker turnaround time. Emily what about security . What new security precautions have you introduced . We are weathering another global cyber attack. Hiroshi weird doing a lot for many years. One of the things we realized is a lot of what we have been doing is behind the scenes. There are a lot of protections we put in place. Also protections we put in place to google play. We scan all of your apps. Were scanning them all the time. No user of android was aware we are doing this. We put the systems front and center for the users so they can see what we are doing so they can have a sense of security and that reflects the real state of the world. We call that google play protect and we will be rolling that out soon. Emily last year you introduced instant apps. What kind of progress of you made there . Hiroshi since last io, we work with Many Developers on this and improve the infrastructure for that. Starting this week, we are expanding that so that anyone can develop instant apps. That facilitates making it easy for users to get their apps without having to go through the installation process. Emily the new phones that google have been making have not sold very well. How has that impacted android . Hiroshi pixel was developed by the hardware team. I work with everyone, all the manufacturers. Lg, samsung, you name them. We dont comment on any particular device. We are to have more manufacturers out there and targeting their user segments. Thats what makes android rate, it goes across multiple partners. Emily you have a new auto dashboard system with volvo and audi. What is the strategy in the car . Hiroshi we have a number of products available for the car. The first one we call project did mode. It allows the android to be plugged into the car and have the phone power the cars system. That has been a while for a while. There are car models that support this. With audi and volvo, its running android itself in the car directly so you dont need a phone anymore. Its kind of a behind the scenes thing. Its how they are making cars. They happen to be using android, which makes it easy for developers to bring it their apps into the car environment. Emily coming up, bill maris is coming back to the vc world. He is completing his new firm. We are asking him where he is putting his money next year. This is bloomberg. Emily welcome back to the best of bloomberg technology. I am emily chang. After singing he was out, bill mirus is returning to the investment world. The founder of Google Ventures has raised 150 million for his new fund, section 32. We spoke to him in an exclusive interview. He oversaw startups like uber. Bill i think we are still at peak, but i wasnt happy with the fund i was constituting in terms of the Investor Base, so i had to reconstitute it and build a smaller, more focused fund. And i think the majority of the Companies Invested in our based on relationships 10 years or so. , how dof we are at peak you break in and french eight yourself . Bill hopefully i dont have to break in. With a smaller fund, i can be selective in the companies i invest in, the people i hire. That is in an environment of over funding, selectivity is your ally. Emily you dont often see lone wolves, you are doing this from san diego where you live and you are not just investing in health and biotech, but tech, which is super competitive. How do you think you can step up . Bill i lived in san diego for years, i exist in the cloud. Especially coming out of San Francisco, the idea we are limited by geography is kind of crazy. Its probably the best returning fund of all time, and emily you dont necessarily plan to do it all by yourself . Bill no, not forever. Emily where are you placing your bets . What is exciting to you . Bill more readily in my mind available are getting excess attention, ai Machine Learning, vr, etc. Even health care has become a trendy area for inves