>> "bloomberg west welcome to -- ."l;come to "bloomberg west sam grobart is with me in new york. we are talking about the president's big speech and potential changes to the surveillance policies. the number one big thing as he has ordered his top legal and intelligence officials to think about how and where the data they're collecting allowed us -- about us is stored. plan onhave to, with a

the phone metadata, the records of calls between parties and that is something currently being held by the nsa that the plan may very well be for to be held by a third-party, possibly by the phone carriers themselves although they have certainly been very resistant. >> it could get very expensive for the carriers to hold onto this data. another thing coming out of the speech, the government seems to be open to tech companies like facebook and google being more open about the data requests they receive and more transparency. >> they can reveal what they are being asked for by the government. there was some language about not spying on our allies unless there was a compelling national security reason or we just really want to. >> it brings up the point that a lot remains to be seen here. if any changes are made, it could be months if ever. i want to get to a quick quote

from the president address today. take a listen. >> what a did not do a stop ease programs wholesale. not only because i felt they made us more secure but also because nothing and that initial review and nothing i have indicated that our intelligence community has sought to violate the law or is cavalier about the civil liberties of their fellow citizens. remains to be seen. >> it's a very limited to be struck ring of things. canceling anything. you want to keep options on the table. maybe put some limitations on them. >> i want to bring in our special guests today. bloomberg contributing editor paul kedrosky is with us in the senior vice president for communications at the albright stonebridge group, a senior the national

economic council. what is the headline from the speech today? reset thesident dialogue about surveillance and security which was really important to serve as an educator in chief to remind people why they exist in the first place and what the evolution was. from that point onward, what kind of partnerships we need to make sure we get the values right. >> based on what the president said, are we unable a safe today because of this? served for 18 who years in the government in the state department and the white house who counsels many of my friends in the national intelligence community, we are increasingly safe and we have been since 9/11. the challenge is to get these right in making trade-offs in a

way to minimize the risks we take. game, butt a zero-sum there will always be risks when you try to recalibrate. the key is to rely on the experts in the very patriotic fellows we have working to make sure that the risk is as minimal as possible while working with tech companies and congress in that effort. >> i wanted to ask you a question about this. silicon valley pretty cheesed when they learned about how the nsa has been subverting security measures to get into systems. in anything the president say made you feel that they will feel better or worse based on his comments ech? >> not really. i think the cheese will continue. i thought the comments were off, edging and over new wants to. meany that someone did not to violate that may get into

what the definition of is again. that they are more violations going on or things that were perceived as violations. the upside of all of this, the more positive side leaving aside facebook and google have been thoroughly embarrassed is from a start up standpoint, i spend most of my time investing in is a stage companies, this boom time. whenever we started bringing in so lose, it was a giant subsidy to all security startups everywhere. you have an open playing field because the government will continue to be mischievous so get out and sell. >> the president's speech today did not put debate to rest and there are a lot of issues to be worked out. what is your take on what all is saying here? did they not take enough responsibility, or should bthe discussion be behind us?

pieces theone of the president put out is in the evolution of these programs, congress has been involved, the courts have been involved, but he made it an issue that the public needs to be involved and in that are the private sector partners, those companies we all carries anyone who smartphone and so on. in an era where we increasingly put our lives into the cloud and elsewhere, how can we make sure is a country we are able to keep this balance right? tech leaders, business leaders, continuing to have them as partners in this conversation is essential and i hope some of that trust and confidence the president is seeking to restore can also be restored here in our own country. >> paul, another question for you. if phone data is ultimately going to have to be relinquished by the federal government and placed in the hands of some that berty group, will

a technological challenge? is the data the same from other carriers? will it have to be normalized? who's going to be able to do that? contractors are necessarily up to the task. what is your take on that step in this reinvention of our policy? hire cgi for the project. that would be the first take away. i totally agree. it's going to get extremely messy. one thing we've learned from five years of messing about his normalization of these data sets is a disaster and leads to all kinds of false positives and correlations where none really exist because of problems fundamentally with how you put the data together. i have no reason to believe this will be different. we should hang onto the data longer because it's taking a while to normalize it. then you get into how long you should hold on to it. we hang onto foreign data longer, domestic data, and whenever you get into these real messages we're

going to hang onto the data longer than we would expect because it will take us a while to sort out the intricacies of different data sets from different carriers and you get into privacy and rights issues. thee learned today that government is collecting our text messages. then, one start they -- what are n't they collecting? [laughter] >> i would not go into detailed intelligence matters other than to say some of the nuts and wherebut this is an era we have to find this balance between everything that we are putting out into the ether and the government. it's important to the former cia senior official, part of the review panel the president put together, and the president himself has said it's not on 10 he and collected but tried to get a large swaths of data to look for patterns and so on.

it was important that the president tried to divorce this from the sensational aspect of snowden and what he's been putting out and broaden this to a real discussion about how to move forward and whether it is text messages or other items that will be part of the discussion. >> ban chiang, the albright stonebridge group, thanks for joining us. paul kedrosky will be sticking around with us. we will talk about the next wearable device from google. ontorpassing the glass and the ipo and we will talk about that coming up next. -- and onto the eye. ♪

>> welcome back to "bloomberg west." i'm emily chang in new york with sam grobart. the next wearable tech from google and these contact lenses could measure glucose in diabetic tears essentially.

a wireless chip between two very thin pieces of glass. >> measuring the glucose content would be that are than tricking your finger using those blood monitors right now. .> it's clunky pre-k's you can get data all the time. thehey've already met with fda about this. it seems to be in very early stages. it's interesting to think about google working on something like this. we talk about driverless cars for a much more mainstream audience but this is definitely more of a niche market. >> you may start there, figure it out, master that, and it leads you to branch out from that initial idea. pre-k's i'm curious to hear what paulhink about this, kedrosky still with us from san diego. you and i have talked over the years about google's focus. they're a page came in to try to streamline things and get to go

back to its roots. now we are seeing them back working on these ideas whether roboticiverless cars, pets, who knows trying to revolutionize the manufacturing and supply chain. what about contact lenses? what do you make of it? >> i have two levels of reaction. on one level, i love all of these connected sensors, whether it is refrigerators, eyeballs, . more data leads to less food spoilage, healthier humans, whatever. however,her hand, earlier i was joking that this was like nest for the eyes. are will know what you doing in your house, how do you feel about having google in your eyes? there's the potential for a lot of data flow back.

obviously, that will not happen, we hope, but what i think all of this will precipitate is a long- overdue discussion about what fundamental rights we have in terms of data privacy. maybe google will protect me for now and then it won't? this kind of stuff just cannot go on. there are issues related to hip and other things. other things. data may turn out to be the most valuable part of all of this. >> there is this utopian idea that sensors in or on our bodies will know when we are about to have a heart attack and then the ambulance will just pull up next to us on the street. on the one hand, it's great, on the other hand, not that they're the worst people in the world -- but maybe. if united health has access to all of that data, will they jack up my rates and do other things? clicked the implications are a

little crazy and creepy. >> you need to have the legal and regulatory structure beyond just the tech. >> even further, there is a reason why you get yanked into the er for an ekg. they track the data for a while because there are many oscillations over the course of 24 hours and you get all kinds of false positives thrown up. in many ways, the best thing is not continuous data tracking because humans get wacky whenever we see too much information and we become the great hypochondriacs. this kind of thing moving and i think there's a risk analysis that when you give a continuous flow of data, they feel this compulsion to back on it and i think it's equally dangerous. >> i'm not sure how i feel about any company knowing my body temperature as it's happening. we talked about calico, this held company that google has started, very secretive.

nobody knows the real things they are working on, but the broad idea is how do we cure things like aging, maybe cancer. we've been having a conversation all week long about google looking more innovative than everyone else right now. what do you think about what google should be doing? are they right to be going down all of these different paths trying to own the future even though we don't know what the future looks like ? companiesleave other behind or not? walter isaacson make this point the other day, the author of the steve jobs biography. the questions and applications for shareholders? this is an investor class discussion. the reality is almost everything they are monkeying about has

zero near-term positive implications for the stock and many have negative implications because it gets wrapped up in regulatory stuff and they get distracted and health care and decide this foray wasn't worth it. but most of this is neutral at best and possibly even negative with respect to investors. >> i might be asking the questions, that's all well and good, but how many in your company are working on something like, i don't know, search? can this concern like you be ibm research and all of these other things but you also have to be a business. >> right. these are the kind of questions they are increasingly asked in it happened with microsoft when r&dy went into this outside spending. we only give you so much rope before start questioning and after that, as investors, people

start getting really grouchy about it. thing to do with their own capital and another to do it in context of the companies. i'm uneasy but i just love the innovation because it's cool. >> bloomberg contributing editor paul kedrosky with us from san diego. coming up, "jack ryan, shadow recruit" is out today. you can watch us on our phone, tablet, bloomberg.com, and apple tv. ♪

x welcome back to "bloomberg west." themount is bringing back jack ryan series. films like hunt for red doc tober, a total classic.

jon erlichman sat down with the producer behind every one of the jack ryan films. take a listen. >> what is it about this guy that makes people want to go to the movies yo? >> jack is an all-american hero. he is also the kind of guy you'd living next door because if your house was on fire and you had to throw a baby after the second story, jack would catch him. pre-k's multiple actors have played this character -- eris and, ben affleck, now chris pine. charactors, harrison ford. first one. the him "the i offered

hunt for red october" and he turned it down. he wanted to play the russian submarine cap didn't. kind oft was not the casting we had in mind but when i sent him the script, he haddiately react to and we two films with him which were great fun to do. then we spent a long time trying andet "sum of all fears" then paramount said ben affleck was interested. i said he was very young. how do we do that? i thought we will pretend we have never done a jack ryan movie before. not specifically based on a tom clancy book. script together when you run out of books? walk us through that process. i made the original

contract with clancy before he was a full-time writer and before he had a major agent, i just gave him a standard contract which gave us the character rights, prequel, and originals. i reminded paramount to check the contracts. i thought we could do originals. jack ryan films do you think we could continue to see? leastould love to see at two more after this. >> he wanted to get this done for something like nine years? >> it took nine years. >> may be speed up the timeline. [laughter] results arex office good this coming weekend, i think we will immediately put another one into the works and hopefully we can get that when

done in a year or year-and-a- half. producer of the jack ryan shadow recruit with jon erlichman. coming up, we are going to be talking with the guy who basically invented google glass before google glass. wearing -- here he is, wearing them back in 1993. >> he wears a lot of other things now as well. >> more on that in the future of wearables next. >♪

>> you were watching "bloomberg west" where we focus on the future of business. i'm emily chang. tim cook visiting a china mobile store as they started selling the iphone after six years of negotiations. he said he's working on great things but wants to keep them secret. sounds familiar. discovering more news about the world and not just about their friends, the air -- and they are launching a trending topic feature similar to twitter. it will keep users updated on the hottest facebook topics and will be rolled out in the coming weeks.

the president of nintendo says they are considering a new gishness model after slug demand for wii u. they are also forecasting $240 million loss for this year. all week long, we've had a very with artificial intelligence. i've certainly learned a lot. >> i already knew all of this stuff. >> am so excited about our next guest. this guy was basically wearing wireless glasses 20 years before google glass actually came out. joiningtech professor us now from the bureau in san francisco. i believe you actually -- you are wearing them. collect this is a prescription pair, but i have my own stuff. take a look at it.

>> tell us how that first be.ion came to it was 1993. >> we did not have a name for it. personal computer was already taken by the ibm pc so we're looking around for a name and we came up with the wearable computing. this call reflection technology display and this is the backonable version of it then. >> it looks awesome. >> it has a mirror that creates the illusion of the image. >> could you actually see? >> it blocks one i. but it shares the image between the two so it seemed like i could even though i could not. it was an illusion. >> you've been doing a lot of work with google and it's a great story because you actually ran into larry and sergei in the

1990's while you are wearing these glasses and later you send them an e-mail when they came out with android suggesting that they consider wearable technology. "now that you are doing android, you should really take a look at wearable computing technology we've been working on in academia. tell me about your encounter with this. >> when you wear something like this and you have a shoulder bag, a big computer -- remember those old cell phones were about two pounds and you had a motorcycle battery to power it all? also have a third revision of this wireless keyboard. headset,earing this this keyboard, a device over your shoulder and you are taking notes and conversation, people, to you and say, what are you wearing and why? i was at a little conference for

ibm. i was just waiting at the coffee andy steven stanford students walked up to me and said, hello. my name is larry and we would like to talk to you about your computer. can we get a demo? talked about wearable computing and they told me about this new service they were talking about called google for better web search. it was just grad students talking to each other at the time. it was clearfter the smartphone thing was really taking off and was going to be successful, i sent him an e-mail saying, why don't you take a look at this work that's really progressed a long way and the next thing i knew, i was out there working on glass. they decided independently of me about two months before they

were going to do the wearable computer so my timing was perfect. >> having worked on this for more than 20 years, it's pretty obvious it's gotten so much better. processing power has gone up exponentially. from today looking forward, what are some of the next major breakthroughs that are going to facilitate the next generation of the things you're working on? >> a lot of it will be intelligence. i really believe we are going to get smarter and smarter assistance for you in your daily life. already, there are services out there that can predict the traffic from one appointment to the next and remind you if the traffic will be that or remind you of your next appointment or on my waybout -- here, it was reminding me about good photo spots. wouldn't it be cool to have

something listen in on her conversation and actually suggest ideas or that might be relevant to the conversation? going where we are really through this, ai through symbiosis. we could actually make a computer that lives your life with you, that observes what you're doing with your hands, your body, how you interact with the world and learns what it is to be human and then provide intelligent assistance second by second and that is why i call it symbiosis. assistance,for the it learns a lot about the human world and i have some examples for you on that. >> i would love to see them. the technology may be close or even already there to do some of the things you're describing. in your opinion, are we ready for that kind of a relationship between technology and ourselves? would argue we are. we've been ready for a long time.

i don't know if you've ever worked with a ceo from a major japanese auto company, but they always have an assistant with them that helps make their interviews and interactions seamless. if you have a good conversation and they know they're really interested in the piece of work, the assistant will allow the ceo to have more time and rearrange theyest of the schedule or can move the next thing and is like having an intelligent older who knows your preferences. assistant ist being trained to be the ceo of another major company. wouldn't it be great if we could have that good english butler experience but for the everyday person? i think we can actually start doing it with technology. >> do you wear google glass everyday all day long? collect these are my best ascription glasses. >> obviously you are fascinated with this tech, but not

everyone is ready to wear it all day every day. there are reports that it will not go mainstream for another decade. >> it is already mainstream. look at mp3 players, the first thing we predict it, and our member being offered $2 million a start a startup doing wearable computer and we predicted these mp3 players would be the first thing. now they are ubiquitous. go back to the wearable computing conference and most things we were talking about have been taken over by smartphones. they are not as fluid. they take too long to interact with. you don't have access to that contact, that world around you. people are already using workable computers, smartphones, mp3 players, it's already there. this is just an evolution. >> not everybody is wearing the glasses yet. at that point are people going

to get comfortable with wearing something like that every day? do you imagine that it's glasses that people will be wearing every day at some point down the line? we were talking earlier about implantable devices. you look pretty cool but not everybody wants to wear them everyday. >> just like the smartphone, everyone uses a smart phone or an mp3 player every day. it takes a while for it to hit frequent mass to go for early adopters to constant use. in truth, we will see a constellation of devices about the body for where the hands are, ears, eyes. it's going to be a suite of devices going forward. mentioned you had some examples about future applications for artificial intelligence so we will talk about that a little bit more after this break. who came up with a

wireless glasses tito decades before google glass. we'll be right back. -- two decades before google. ♪

>> welcome back to "bloomberg west," and we are working on our ai series. thad starner is with us. you're working on a lot of different areas and you have even a some interesting applications of this

technology. a glove that can help you play the glove and a car that can tell you how to fix it. talk to us about the work you are doing and the areas you are focused on. times, the stuff we're doing is five to 10 years ahead of industry. we try to do stuff the industry cannot do yet because it is too speculative. wet we are learning is that are making a lot of progress recently. in particular, what i've been looking at in my researches to have a machine that watches your life as you live it. yourre just watching hands. can we actually learn about the world around you from watching how you interact with it? this is what it is for. i think you may have a picture of this somewhere, but this is something we are using, sign language. the idea is you put this on and you can do sign language and the system automatically discovers

the signs in the language. recognize using it to each side one after another, give it a lot of examples of phrases and it will automatically discover the individual words in the language. worked on this in one of my colleagues made a sterling idea where it says you're trying to identify the objects around you, object recognition is a big deal with ai. it's very hard to recognize books because each cover is anything and it can be on the cover you can think of so it's very hard to recognize from one camera image but if you actually look at someone paging through, just track the hands and suddenly you can recognize the book by how it's being used. moment forstartling me personally when i saw this research saying, i can identify

books, cups, shaking hands with someone. i can actually learn about the world around me, how to use a doorknob tom a car door, ignition, how you shift, just why having a camera looking down and watching how you interact with the world. one of my other colleagues at georgia tech went further. he said, if i put motion sensors on my wrist, elbows, shoulders, maybe i can interact with things and teach a humanoid robot how to move. i can use my everyday motion to train a robot, the connecticut motion equation, how to move and interact with the real world. you can put part -- start putting sensors on the body and computers andand robots dealing with the world on human terms. >> you are talking about putting sensors around and on the human body and they would have to be

very small, very light weight to function successfully. what i wanted to ask you about is about power and batteries because that has always been something that has not moved quite up the same pace as other technologies. how do you solve powering all of these devices on your body? is the current technology available kind of holding you back? >> we are seeing a revolution there as well. there's a couple ways you can go about it. one is to use the human body motion to power it. if you can get this down small enough, if i put in excel or letter or a microphone on the wrist and try to pick up the sound of me interacting with a doorknob so it understands, the actual motion, the actual sound may be able to power the circuit and announce the information back to a machine in your pocket . another thing you can do is to use rfid. , he hasd matt reynolds

made a system by which you can actually get a megabit per second of data off a passive rfid chip where we created power field and it sends the data back to the main system. we are talking very small amounts of field here as well. technology professor of computing and technical lead of google glass, fascinating stuff. we will be watching you from afar. a look at what's coming up tuesday on "bloomberg west," twitter cofounder biz stone and company. next up, we are going to play with cars. >> we been talking about artificial intelligence and robotics. we tend to think about it in this newl terms, but toy set is going to blow your mind. >> i cannot wait. ♪

>> welcome back to "bloomberg west." in new yorkang here sam grobart. ai is already here. be somenot going to special daywear, congratulations, it's here. i got a chance to play with this new toy. it is like a radio controlled and let's take a look at it right now. most of the time when we talk about artificial robots and intelligence, we think about terminator or the workplace.

we usually don't think about little toy cars. new toy istly what a all about. engineers from carnegie mellon, it looks like one of the old radio controlled car set you would play with while waiting for "the cosby show." but it's much more advanced than that. it can work as a wireless steering wheel, but the same smartphone controls all of the other cars on the track. they know where they are and you are in they adapt in real time s different. we've seen this kind of artificial intelligence and video games but this brings it into the physical world. not only can you out run but you can't fire imaginary weapons. hold down a button and watch the car in front of you country screeching halt after you have zapped it with your cannon. all of this innovation is pretty

impressive but what it is not is cheap. the starter will be $200, a track and two cars. want more -- $70 per car. it only works on ios right now but they say an android app is in the works. game time is not everlasting. after 20up the battery minutes of play. but robotics, artificial intelligence. the future is here. the future is now. the future is -- kind of expensive. that game withy the ceo and it was super fun. he killed me. >> he's been at it for a while. group ofs a supersmart founders. why focus on gamers instead of something else? >> they say there's already a industryil focusing on but we wanted to find a place where there was not as much and they want to be

able to get out there by themselves. >> we know that there is a dearth of engineers and programmers. they need more people to learn how to code to fill these jobs. computers are going to become more and more sophisticated and they answer complex questions, somewhere down the line, are coders going to be out of work because computers are doing all forwork you? >> they code other computers and it will be like we are in "wall-e" floating around, sucking on a big gulp. >> he has been on a tweeting binge. if you're worried about robots eating all the jobs, maybe we top programmings students as if they are robots. what do you think he means by

this? >> i have no idea. >> may be thinking about the relationships between humans and computers and what it will really be like. >> it reminds me of something steve jobs had talked about, the intersection of engineering and liberal arts. it cannot just about science, tech elegy, economics, math. there has to be that the the actual artistic impulse that drives the more applied sciences. >> i was speaking with the cofounder of square with jack dorsey and he is a glassblower. he talks about his art has actually informed science and the way he approached a technology company. really interesting stuff. exciting eventy on tuesday, microsoft chairman bill gates will be joining "in the loop" for a special conversation with michael bloomberg and betty liu. that will be 9:30 a.m. eastern

on "in the loop." ♪

>> welcome to lunch money. get the menu today. in tech, tim cook goes to china. he says great things are coming for china mobile companies. life after sports. chuck e. cheeze gets a new life, but will parents ever like him? the nba going to london, and it is getting a new commissioner.