emily: pinterest allows users to access directly through the wrap. what does it mean for e-commerce? i am emily chang and welcome to a special edition of "bloomberg west." i'm coming to you live from las vegas where hewlett-packard is holding his discover conference. later i will be joined by martin fink and i will also be speaking with the hp ceo meg whitman.

also outlining ipo plans and why aren't there are more ed tech unicorns? i will be joined by blackboard's ceo, all ahead. first pinterest moves into e-commerce. pinners will be able to purchase directly through the website with i/o bowl pins they are calling -- with buyable pins, they are calling it. you will be able to pay with apple pay or your credit card and they are working with stripe and braintree as payment partners. sarah frier covers interest for us. she was at interest when they made this announcement. so, pinterest users have wanted to see a company get into this. will they need to leave interest

if they want to search on amazon or google if i want to buy a? >> you will have a blue price tag at the bottom of pins on your site. whether that changes the experience of pinterest and makes it less about inspiration and more about purchasing -- whether that turns people off we will have to see, but it's true that consumers have been asking this for a while. emily: i want to bring in one of pinterest's buyable pins partners from shopify. what is the nature of your partnership with interest? i wonder how big you expect this

partnership to be? guest: we are excited to work with the pinterest twin. it's the aspirational cataloging of things that are of interest to them. they have the opportunity to take those unique, discoverable goods and bring them into the pinterest ecosystem. i think the key is that word discovery. what you are not specifically looking for, but that is what interest is making possible today. emily: what is the highest traffic driver for shopify. -- shopify?

guest: facebook has been the highest. but pinners are willing to spend more from what we can see. emily: we spoke with tim, the head of e-commerce about what he had to say. tim: i think social networks are about sharing things you didn't pass, you are doing in the moment with friends and family. that is not what pinterest is. pinterest is for you to plan your future. what do you want to cook for dinner, what do you want to buy at the mall? it is about pinning your future. it's not about sharing with friends or family necessarily. emily: it is interesting ben. i will bring you in. you see the intent to buy on pinterest is huge, but it's still a small company. 70 million users growing 5% here

in what is your take on how this move will supercharge growth? will it? ben: certainly if people know they can curate and purchase in the same place i think they would get more users rather than less. we have lots of social networks and lots of advertisers, and typically until a site has users in the u.s., they are not that interested. what is that pinterest is more like a social engine then a -- search engine than a social network. then the potential usage is probably higher because people are actually curating things and planning to buy things. emily: sarah, should google and amazon be worried? sarah: definitely. when you look at what pinterest achieved here, they found out

how to say this person is interested in buying this kind of thing and we are showing you that, you can click on it buy it directly. i am sure they have gone to amazon or google to find that item. now they can do it directly with interest. emily: and google, as we talked about, is working on a buy button, facebook as well twitter as well. where do you see the future in those giants were the traffic really is, although the intent to buy may not be just as strong just yet? ben: that is the key. twitter has demotivate what people -- has to motivate what people are doing rather than to buy. for pinterest it makes more sense. clearly for google it make sense, too. in some ways they are catching up with amazon, but in a more social from the way. advertisers will not say i'm going to do facebook or

pinterest. they will say, i will give this a try. and which is the better used or higher monetizing buy button, my guess would be pinterest in terms of her user. they're looking to buy. facebook has a lot of traffic so people will try that, too. emily: buyable pins are rolling out next month. thank you for joining us. thank you all. we have new details on fitness plans to go public. the maker of a wearable fitness tracker is seeking $478 million in ipo. meaning fitbit could reach a evaluation of more than $3 billion. and the company is hot right now. they shot up to 740 million dollars while turning a profit of $100 million, but it's not an easy sell to investors. a third of the people who wear these grad -- gadgets typically

ditch them after six months. there's a lot of cap attention -- competition from apple to garmin. fitbit is accused of plundering employees and trade secrets from rivals, which could turn into an expensive for value. but they are projected to triple business in the next two years. we have breaking news to tell you about. the u.s. senate passing a bill that reforms how the nsa accesses u.s. telephone records. the bill also reauthorizes expired surveillance. we talked about this yesterday. the house has passed this bill. president obama is expected to sign into law. coming up -- closing the gap between the internet revolution in the classroom. i will be joined by the ceo of the ed tech veteran blackboard. and check out this teeny tiny

drone. it weighs eight team grand and is being tested by u.s. special forces. it can fly for up to 25 minutes. we will be right back. ♪

emily: have you ever wondered what school would be like if it was invented today? well, max started a startup to answer that question. his project has big names behind it -- mark zuckerberg -- and it announced last week $100 million in funding. joining me now, jay bhatt ceo of blackboard, which has an online dashboard for teachers and students to share test assignments, and more. ben is still with us. jay you have been in this business for a long time. i'm curious. you see a lot of venture capital, but you do not see these unicorn valuations often. why is that? why is it so difficult to scale and education technology business? jay: it's interesting.

you're right, there's a lot of money flowing into it. the system is changing before our eyes. for far too long, i think the education system has not focused on the personality of the student. the system is changing around the student. the student has changed from traditional learner to sort of nontraditional learner. 85% of american students are nontraditional. they want flexibility. they want technology. they want social media to inform education. i think a lot of education companies have a hard time penetrating that because the system has really changed as we look. -- it's really evolutionary right now. emily: sure, technology can expand your horizons, but also limit them. ben you have three kids, they

have been educated partially in the u k and partially in the united eights and you have advance -- you have observed differences. ben: yes, and i was thinking, why on earth, can't they are from the best teacher on the earth? it does not matter if they are living in delhi or someplace. it needs to be much more around helping kids reflect on what they have learned. the content out there is amazing. i am absolutely onboard. this issue can be totally transformed. emily: what are the most innovative things you are seeing out there? also reinventing google from the beginning. what do those ideas look like? jay: i think there's a lot of really cool things happening.

a lot of really cool things. ben is absolutely right. the paradigm shift with technology is allowing the school things to happen. take a nontraditional learner. i was in new york last month. i got in and cooper car. and the driver has the laptop up on his arm rest. i talked to him. he is a city university of new york student. he is taking it in between fare fares. 85% of students are doing that. we are trying to change our technology around the student. whether it is consistency in the user interface, and importantly whether it is consolidating the data under the student will behavior, allowing them and teachers to analyze it so intervention can happen before problems occur. emily: interesting, jay bhatt

and ben legg, thank you those for joining me. we will continue to watch this. it's rapidly evolving. jay: thank you. emily: we are focused on the irs. remember last month the agents the -- the agency announced that identity thieves access the records of more than 100,000 people. we have learned 13,000 fake tax returns have been filed, adding up to an estimated loss of $39 million for the government. this came from testimony from the irs director to the senate finance committee today. he warned the agency's push to go into online services makes it more likely that they will be hit by hackers and fraudsters again. and apparently this is a drop in the bucket. they lost more than 100 million dollars to refund fraud in 2014. coming up -- hp's dream machine.

we take a look at its supercomputer as the company prepares for an historic split. plus, details of facebook's latest ai investment, next. ♪

emily: it is time now for the daily byte one number that tells a whole lot. and it is six. that's the number of researchers facebook hired for is artificial intelligence lap in paris. they are working on so-called deep learning. it is the third such lab for facebook in addition to existing ones in menlo park in new york city -- and new york city and

eventually facebook will employ 40 to 50 people. why paris? the paris lab well tap into these strong city ai lab research immunity. also, teed up employees were formerly based in paris. now two hewlett-packard's big moonshot -- the machine. it is a new kind of supercomputer built to handle the growing demands of big data. how bold is h pre-'s demand -- is hp's demand for this machine? their ceo joins us from las vegas where he is currently at the this cover conference. martin, thank you for joining us. there is so much fascination around this machine. i know it is a work in progress. i'm sure you can tell us, if you

succeed, what is possible? it's basically a data center that can fit in the size of a refrigerator and is completely low-power? martin: thanks for having me. you made a comment when you started that it was a supercomputer and really the machine is an architecture that thinks about the supercomputer all the way down to phones, so it covers the gamut. i will get to what this means when we separate. let me give you an example of the kinds of things the machine will be able to do that will resonate with a lot of people watching. you know, i'm a business traveler. i fly a lot. one of the things that sometimes happens you land at an airport, the pilot comes on and says hey, good news. we got here a half-hour early. bad news we have no gates. you see all of these empty gates. how could this happen? turn the plane, park the claims.

why is it so hard? for airlines, that is a really hard problem to solve, weather events, changes in schedule etc. what the machine allows us to do, take the entire airline network, the set of pilots ground crew, the flight attendants for every gate, every airport everywhere in the world all have them in the machine, in memory, at the same time, so we can solve problems, so when we have these news events of weather, storms, etc., now the airlines have the mechanisms to route around that. that is one example of what the machine will be able to do as we go forward. emily: give us an update on the roadmap for this. i understand it has a super low-power chip that will vastly improve data storage. you said that that would be available next year and you told us a couple months ago you were

working on timing for a test vehicle. where are you in that? martin: as i said, we have made tremendous progress in all layers of the machine. our goal is to have a prototype of the machine running around mid next year, if all goes well. this is a research project. we are going to have ups and downs. we said the target for a final product would be end of the decade. that part has not changed. but we are working on having that demonstration vehicle with memory happening around the middle of next year if all goes well. emily: moonshot's our moon shots because they can fail. what happens if it fails? how much does hp have riding on this? martin: that's a fantastic question. the beauty of the machine is it is a collection of technologies. we have technologies around the

processing engine, technologies around what we call the fabric, where we use light instead of copper to communicate. we have the memory technology you talked about. and there are more of them. and each one of these technologies are valuable in its own right. we're just using the machine as a vehicle to bring them all together. but even if, as you said, moonshot as you described it does not occur, each one of these technologies can have a dramatic effect on how we do computing using a conventional architecture today. so, we are not sort of doing an all or nothing. we have so many steps in between we can take. that is why progress on every one of these steps is so important. emily: you have been it hp for so many -- for 30 years, which means you have seen so many leadership changes and reinventions of this company. how would you describe your confidence that what meg whitman

is doing splitting the company is the right thing to do and this will indeed turn the company around? martin: great point. i have lived through every noun founder -- non-founder ceo this company has had. it has been a tremendous ride. part of the strength of hewlett-packard has been to reinvent itself from everything from the mini computer era and the list goes on. we are reinventing ourselves again for the cloud era, the big data era. the energy is through the roof. everybody is very excited on both sides of the separation because of what it enables. it allows the ceo for hp inc. to really focus on the pc and renter market. it allows meg whitman to drive the enterprise side.

i can tell you the excitement the energy level is as high as i have seen in my career. emily: quickly, martin -- we have about 30 seconds left -- where do we see hp and hp enterprise in about 10 years? martin: where do i see hewlett-packard enterprise in 10 years? i see is reinventing the foundation of the computing architecture and the part of every data center that drives all of the applications for consumers. so, we are the innovator that drives every new technology difference in the industry, and i think that is going to continue and in 10 years, i'm really looking forward -- especially for the machine to be able to change the industry in solving problems we cannot even think about solving today. emily: martin fink, hp cto and hp labs director. thanks for sharing your thoughts

with us. that does it for "bloomberg west ." tomorrow, we will bring you my conversation with hp ceo meg whitman. meg whitman tomorrow. ♪ . .

john: im john heilmann. mark: i'm mark halperin. and "with all due respect," and with all due respect to roger goodell -- it's not hard. see? mark: happy national rocky road day. in our lineup, the florida chatter, the bernie matter and intercept blatter. nevada has voted on it bill that would change its caucuses to a primary. who wins and loses? mark: it's a