Pardon, me 48. 38, and now trading at 48. 64, a lot of the reason that we are negative today is because of the news that opec failed to implement a production ceiling, and concerns out there that there is too much supply in the market, and reasons that crude oil is supported at this point, but that is the main reason to be seeing a e lower session today. Normally the inventory number of iraq would have an impact here. Carl, back to you. Thank you, jackie deangelis. Good thursday morn, and we are live in the code conference in ran chose pal low ver ranchos pal low verde, and joining us is kara swisher, and walt mossberg, and take a bow right now, because it is an amazing conference. And first, elon musk making a ton of headlines, and this is what he said about the rumored plans to get into the car business. I think that they should have worked on the project sooner actually that, but i dont know i dont know, that they dont share with me the details of the production plans. I dont think it is going to be and i dont think that there is going to be any volume production sooner than maybe 2020 is the soonest. All right. So we have two questions. One reflections on what musk said to you last night, and two, what are the big fat narratives that people should walk away with this . And which part, because he said so many thing, and in the end, we are in a simulation. And yes, it is like taking the s. A. T. S at 10 00 p. M. At night. He went everywhere and incredibly smart and nerdy and geeky, and super futuristic. And a i is a big issue here. And we had a lot of conversation about the a i, and he is very worried about it. He said things that none of us, and we talked a lot about the a i throughout the conference and we can discuss that, but elon musk was unusual in that he thought that this is a serious danger to humanity, and not very long before the a i could be orders of magnitude smarter than us, and kara asked him compared to what . And he said that essentially, we are going to be dumb as p pets, and a i will control us, and one company, and i think that he was referring to google we all did. And facebook and one company with a handful of people in charge, and that is a dangerous situationb and he has a open a i to try to create the a i for the masses, and if it is going to happen, everybody should have Artificial Intelligence capabilities, and so, he sort of has the vision of the future that is very apocalyptic. Cyborg defense . Yes, the terminator. And he was essentially saying without naming them, the google, and we think it is google and skynet, and i mean, also, im not making this stuff up, because we are there. I know. And he was talking about implanting and how we need to implant what is called the neural lace which turns out to be a real thing, and people were madly googling it. Ironic. Yes, ironically, and that would give you a inputoutput with your digital self. And advanced capabilities, and there wouldnt need to be surgery, and you could implant it in the back in the veins. And the tesla production targets are oh, yeah, he talked about that. He did. He did. We asked the sim isple question of why does the rocket have to land in the ocean, and this is like a 12 minute lecture about aerodynamics. And what is important is that she is a very big thinker, and the themes of this is the big thought, and we talked about the cars and the health care with Susan Desmond and the zika virus, and a lot of them were big topics. Philanthropy. And this is the census of what people are thinking, because when it is bad, they dont want to think big thoughts, but little thoughts to get us to the better place so maybe a tone of optimism than we have seen no, i dont think so. I think it was you dont see that . Well, no the election that elon correctly said it is not the finest moment of our democracy, and it isnt. And yet jeff bezos was feeling good. And yet, he was in a defensive posture of lawsuits and election and how he is being attacked and so it is a point of pause that more entrepreneurs are thinking the bigger thoughts about the important issues and not the next app. And so, we talked to bezos, and it is worth talking about what he told walt tuesday night i believe. Take a listen. I believe that the Amazon Studios koud tu s could turn in fourth pillar, and what this is is happening with alexa, and other Artificial Intelligence agent agents. And by the way, i think that there are going to be a number of the artificial agents in the world and there are going to be apps and websites that are specialties, and maybe you are not going to have the same a i for everything. From the business point of view, we will monetize the content in an unusual way, because when we win a golden globe, it helps us to sell more shoes. Walt, im interested to think of what you thought about that conversation . I thought it was great conversation, and happy with the way it worked out. He is different from musk, but like musk, he has his hands in many thing, and the way of tying them together. He was just talking about selling more shoes, and he talked about a i h helping him to sell more shoes, and later in the conversation, i asked him if he wanted to be a big media player, because prime video is the big deal, and he kind of said, nah, you know, we see prime video is selling more shoes. It is all, you know, kind of ties back. But he spoke strongly about the freedom of the press, and the free speech, because he owns the Washington Post and he was not crazy about donald trump either. And what is interesting is that the contrasting versions of what a i is going to do for society, and you had Sheryl Sandberg, and also the ceo of facebook, and how the good is going to outweigh the bad, and then elon said, no, wait a seco second. And sin dar pachai is all for it. Yes, and tease are the big issues that have to play themselves out in the next forward and the quantum leap in computing. Yes, everyone we know is running one of these companies, and this is part of the theme this year thinks this is the battleground of the next ten years, and if the smartphone was thet battleground of the next seven or eight years, a i is now the battleground. So if i were going to pri prioritize the narrative, autos, a i, smartphone, and video a i would win . Yes. And we made a serious effort to talk about Global Health and Racial Injustice on stage, and talk about philanthropy, and you cannot forget that we may soom off to mars or into a i, but we have a lot of problems. And there are other problems, because if there is not a simulation that is a i is going to kill us, but it is the asteroids that are going to kill us and they are headed to earth. And the erraf to super powers of google, facebook and amazon, and yes. And at the same time that uber got 3. 5 billion from the saudis and then gene liu saying we are getting more. And she is raising like roughly 10 billion for one ride sharing company. And granted, china is big and a big market, but 10 billion for ride sharing but it is not ride sharing, but it is the bigger issue of how to manage the cities of a state of too many cars and congestion and pollution, and again, the bigger issues, and it is not just fun and games anymore. And again, it is making goldmans targets on apple seem pe des tri yarngs but they cut the estimates and the targets and what mary meeker said about smartphone growth in general. And she said that is the easily growth is going to be coming down. We will put the slides up all week on re code, but she asked what is the next big thing, and what is working. Did that make you nervous . I the will tell you what made me nervous about marys slides, because the Smartphone Market is not going away and i dont own a smartphone company, so i am fine, but i was worried about the macro slides of the beginning of the deck and those who have not seen it should go to recode. Net, because she is not optimistic about the macro situation over the next couple of years. Too much Government Debt and the Interest Rates were a huge fuel to growth, and the demographics. Yes. And political instability. And the whole six or the seven slides were kind of scary macro slides and then she had some good slides for tech, and some down and bad slides for tech like the smartphones. She does like snapchat. Who doesnt . Lots of Growth Potential in india. But it is complicated, because any of the Companies Operating in india, tim cook would tell you it is very complicated and less straight forward than china. And the question is how do you top this . I assume that the work starts tonight . Absolutely. We have some ideas. And we have some stuff this morning that we have nick denton talk about the situation with peter theil. I am about to go. And just a second. We have john poe ddesta from th Hillary Campaign talking about that and devin winnig and a whole panel of failure, and what is it like to fail, and that is a good theme in that and what inning for you guys . You are completing each others sentences or cutting each other off. That is not new. Funb . Yes sh, it is great. It is fantastic and my mind hurts from the conference from the things they have learned. Just great. Join the club. It is great to see you guys, and we love to come see you. And you look great, carl. Did you get a swim in . No, but we drove a tesla. Oh, my god. Such guys. Walt mossberg and kara swisher. We will see you inside. And we have a update on donald trump and the tough day for box, and jack dorsey also live, and some intel about face. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Welcome back to breaking news on oracle, as well as some Political Development s s in th valley. We go to josh lipton with more on that. Josh . Well, kayla, news on oracle and the whistleblower lawsuit that oracle has been hit by a suit by a former employee who claims that she was fired for calling out improper Accounting Practices in the Cloud Business. And oracle is responding to the suit saying that we are confident that all of the Cloud Accounting is proper and correct. This former employee worked at oracle for less than a year, and did not work in the accounting group. She was terminated for poor per for mans and we intend to sue her for malicious prosecution, and of course, oracle, the Cloud Business is critical and it did 375 million in sales and so it is a relatively small part of the overall business, but it is growing quickly at 40 clip, and not the last that we will be hear about the lawsuit, and keep you posted on that. Meantime, in other news out here, intels ceo brian krasanich was going to be holding a fundraising event at his home for donald trump, but the New York Times had an article inquiring about his support, and so in fact, he is very unusual here, and trump right now has little support among Silicon Valley power broker, and you remember that facebook, and Mark Zuckerberg criticized and not directly trumps immigration stance in the stage of the developer conference, and right leaning of those like Marc Andreesen said that he will be voting for H Hillary Clinton in the election, and meg whitman who now runs Hewlett Packard enterprise, and she said that trumps policies would sink the company into recession, and at least one tech heavy weight that trump can count on which is peter theil, the billionaire investor, and paypal cofounder is said to be a trump supporter. And the tide is turning slowly, and interesting wrinkle there with josh lipton out in san francisco. And now, shares are struggling despite the beat on the earnings and the revenue, and look at the cloud sector the, and look at the Top Executive at drop box about that in a moment. Why are you checking your credit score . You dont want to live with mom and dad forever, do you . Im making smoothies so, how can i check my credit score . Credit karma. Dont worry, its free. Hmmmm. Credit karma. Give yourself some credit. Despite beating the earnings and revenues, drop box, a competitor facing new challenges as they are looking to cut costs and boost profits. We bring in thomas hampton, Vice President of revenue at drop box. And the knock on the drop box these days is that perhaps you moved into the Enterprise Business late. Box has been kind of finding a way out of it for a while, and trying to compromise the software needs, and how are you doing on the revenue sides to get on the vertical areas to differentiate for the competition . Yes, good morning. And so this is the thing that we started the company, and we have been fortunate to the users in the middle east with the solution, but we have exceeded half a million british producers and it is from that base of users, satisfied users that not only are satisfied but love our product, and this is how we get on the the enterprise, and it is a solution that is used in 8 Million Companies across the world, and we have 8,000 paying company, and we have made Real Progress there, and while at the same time maintaining the focus on the user and the satisfaction with a straight easy solution to use everyday. What is your approach and boxs approach then in terms of the value that you hope the add to the vertical industry say Like Pharmaceuticals which have certain requirements of how the data needs to be stored in order for them to pass the regulatory requirements . Yes, specifically in the health care industry, it is all about being hipaa compliant, which we are, but it comes back to the platform, because we have a very strong api, and we have integrations into 4,000 company, and is so literal lu any enterprise and the vertical solution and industry they are, that solution can integrate into the dropbox. We have more than 1 billion connections taking place off of the strength of other peoples platforms. We have wonderful partners with microsoft, an ibm and hpe, soft bank, telemix, and Many Companies extending the platform. And a lot of discussion about the seasonality of the revenue, and whether it is getting worse arguably on the large transactions, and is that so, and if so, why now . That is not a experience in the drop box at all, and we as a private company are in a fortune situation, and on the user satisfaction, and that is to be the solution that is deployed, activated and used before we really started the big push for the larger end ingagreements fo larger enterprises. As a big and well established startup, i wonder how this talk of the valuations in the valley might affect you. Customers certainly are going to be thinking about that as they are thinking of engaging of you, and what is the size of the company, and the close ipoready are you, and what is your answer to that . Look, first of all again, it is wonderful to be a private company, and give us the luxury of what really matters. It is the user, and the user first and foremost, and of course, innovating and growing the front line, and continuing the lead in that space. So i see enterprise across the world at all time, and i have not seen the valuation or the ipo question at any time, because it does not matter to the useers out there, and whatt matters is that the solution can work, and they can get the userers across the Large Organizations to use it everyday. The classic challenge in i. T. Has been i. T. Would select a solution in the space, and then train employees and try to get it used, and in the classic i. T. Space, shelffwear shelfwear, and the big thing is that we lead with the user first. We wont see the Enterprises Like that, and where there is the cio of expedia six months ago, and we went in there and they have a large office, and 365 7 user, and so, when i went in to see him, he actually had 4,000 people bringing drop box to work everyday without them being a dropbox customer. So it is making the sale easier . The discussion is easier in, hey, we can have quick success in rolling it out, and by you, as i. T. Rolling it out, you can be the hero in the eyes of your own company. And some say that the transition to public life is that much more jarring, dont you think . Well, again, what we focused on is the focused on building a great product, and the notion of the ipo and the public is not something that we spend time on. And we look forward to getting a look at the numbers behind the user growth and all of the partnerships and the technology that you are building. Thomas, thank you for joining us. Thank you. And coming up, not a great milestone for twitter officially cast by snapchat and active users to i da, but user s today, but we want to look at an exclusive interview coming up with jack dorsey next. Hi, everybody. Im sue herera, and here is the cnbc news update at this hour. Los Angeles Police have identified the man that they carried out the murdersuicide on the ucla campus as mainak sarkar. They say that he is a former doctorial student who accused clug of stealing his computer code and giving it to someone else. And the takata air bag recall had gm at the largest total, and covering pickup trucks and suvs, and the total recalls are coming up to 16. 4 million. More evacuations in Southeast Texas as the brazos river continues the rise. They are rescuing those who had hoped to wait out the rising waters. And madonna is continuing her lawsuit with a copyright snippet from vogue that originated from the song claimed to be lovebreak but would hardly be recognized.