cory: alibaba prepares a global warehouse building binge. what this tells us about jack ma's global apprehensions. i am cory johnson in for emily chang and this is "bloomberg west." coming up, the supreme court legalizing same-sex marriage in all 50 states. plus, augmented reality for the masses. and meerkat, the live streaming app, dealing with competitor periscope. all of that is ahead on "bloomberg west."

alibaba making big moves. it already handles 30 million deliveries a day but now they want to handle 200 million. alibaba has a 40% stake in its shipping company. it is heading to an ipo to fund the expansion. how does it plan to achieve this rollout? joining me from san francisco, my guest host and our guests. josh, let me start with you. what does this suggest about expansion plans within china and beyond? josh: china has never had this kind of infrastructure before. no fedex, no ubs. it is a great opportunity for alibaba to build this for the first time. cory: to that point, alibaba has not had an opportunity to go into a market where there is a

fedex. they have had to build up their own capability. is there any indication they are ready to take on fedex or ups? jared: to an extent. fedex and ups to operate in china to a limited extent. cory: ken, i think it is so interesting. we have seen real big changes to what is happening in the state of california were companies like amazon did not want to pay out sales taxes. but they built up a distribution center in tracy, so you see a big change and logistics in california. is there any indication that alibaba might be interested in having logistics in california in the u.s.?

guest: one way i see them building up their business building up exports from produce, from the united states, of course, from california to china. the chinese are very interested for safety and freshness. i would say our retailers like safeway and whole foods could do very well, in-depth collaborating with alibaba on this matter. cory: that's interesting. is there a notion that california grocers are agriculture producers are businesses do not have good distribution in china because of the infrastructure in china? ken: i do not think it is a market they have gone after in any great way. teaming up with alibaba would improve volume as well as

efficiency. it is an idea that i think those companies would really welcome. cory: josh, when you look at it from a capital deployment perspective, it's interesting that they are funding an ipo rather then funneling the cash alibaba raised with its own ipo. josh: it is a great question. in china the market is expanding so rapidly it some is more lucrative to raise it on the public market and float it and have it as the currency and then they will be able to do bonds and build up this massive infrastructure rather than trying to find it out of alibaba's on bank account. cory: jarrett, the chinese stock market was down 4%. they had a couple big collapses with equity prices. you think that they might float this is only a shanghai listing, or do think that this comes to the u.s.? jarrett: i am no expert on that,

but separating the revenues from the e-commerce business and the margins from the marketplace, i think that is a great move. cory: it is amazing how the business has grown. let me ask you -- when we look at this business with alibaba, is this the kind of thing where they have enormous growth left in china, or do we need to think of this as the beginning of a global business? jarrett: they do some work here in the u.s. they invested in shop runner. they are clearly testing the markets over here, you know. i think this is really about making the chinese market more efficient. most of it is done through couriers today.

if they can have more distribution centers in china, they can add more efficiency to the operation. this is a maturing of their infrastructure. cory: ken, i wonder if they want to bring u.s. tech companies and to china or do they want to be connected with silicon valley? i wonder what your perspective is. ken: i think it is both. there is so much wealth being created. they are looking at all kinds of industries, not just tech. manufacturing, agriculture. the movie industry has been very busy with chinese investors. of course they are looking for return, but they are looking to establish themselves globally. that is a big part of why they are investing in california. cory: jarrett, in terms of the logistics, is this something where alibaba -- i don't know the have the capital to do it, but do they have the cutting-edge technology and

smarts to get this done? jarrett: absolutely. all of our iphones are manufactured there and shipped out. cory: i talk about alibaba it, not just the chinese people. obviously there's a lot of smarts. but alibaba, they get logistics so well that they are ready to go toe to toe with the big players in the world? jarrett: absolutely. this is a much easier piece of the puzzle, but it takes time and i think it's not can they do it. it's how quickly can they do it? it's real infrastructure to quadruple the volume they are going to do. when it comes down to roads, you need bigger roads, bigger highways to do this volume. how quickly can they do it? cory: josh, you're going to stay with me, but i want to thank jarrett and ken petrillo.

thank you. an historic day on the supreme court, ruling all same-sex american couples have the right to marry. tim cook posted to twitter today marks a victory for equality, perseverance, and love. the salesforce ceo offered a note saying congratulations, and quality for all, and mark zuckerberg posting to facebook -- naturally -- today we took another step toward achieving that promise. next, an explanation of how augmented reality could be a game changer for industrial applications. plus, three reasons why you should care about this sunday launch. ♪

cory: i promised we would talk about augmented reality but in reality reality we have breaking news we need to get to. an executive who ran mergers and acquisitions for twitter has left the company. a very important position. leaving the company is a big deal. we are lucky to have josh with us still. what does it mean when a company that has done so many

acquisitions loses sort of the top person, indeed the top two people who run m&a at the company? josh: acquisitions have been an important part of the company, with periscope and vinyl the consumer side. there is a very deep bench on that team, so i'm confident that they will be able to keep moving forward, but rishi was a star and they will have to work hard to find someone my cam to pick up the slack. cory: of course, a goldman sachs, he was a tech anchor there. but really quickly -- does this change the nature of the valley where twitter was knocking on a lot of doors. will that grind to a halt right now? josh: there is uncertainty. they are going through a transition, so they will probably regroup and formulate a

strong strategy. on the other hand, they have been driving these strategy for a long while, so i bet you, they will continue to do it as much as they can, just with a reconfigured team. cory: so lucky to have you here on the show during this breaking news. it's a new technology that everyone is talking about in the valley. it is a company that augments what you are seeing by layering virtual content over the physical world. they have smart helmets. it sounds like an oxymoron. we have the ceo of daqri. why are you focused on industrial uses? guest: we are focused on the future of work and what work is. we think augmented's reality's

strength is to empower workers to better make decisions in the context of what we're doing. in today's paradigm the management makes the decision and the worker gets it right or wrong, but if you use augmented reality to give them the best information, they do not want to make a mistake, a b augmented reality can make that happen. cory: and maybe there is more revenue when you're talking to a business about fixing your business? guest: if you talk about the idea be internet of things and connecting machines and people in the data in the world, the opportunity can approach trillions of dollars and the augmented reality is the user interface bringing those things together and making them actionable. cory: josh, when you look at the start up and so many others in the valley and elsewhere -- that is our terrific tape editor at

bloomberg wearing the helmet. we did plan to throw her under the building after wearing this -- no, we are not going to do this. what is that home it look like that? -- why does the helmet look like that? guest: the smart helmet has an array of sensors and a computing platform that allows the helmet to do computer vision, so the computer understands how the home it is moving and then it can perform augmented reality in addition to bringing in the information that the sensors provide. for instance one of the capabilities and the smart helmet is thermal vision, so you can see what temperature things are just by looking at them, which becomes valuable from a production standpoint, but also a safety standpoint. if you approach something that is too hot, the helmet can let you know there is a danger there. cory: one of the things we know about the way work happens now

it is a different from the industrial age where you had very few educated managers managing vast numbers of people. this seems like it is focused on the old world kind of job where the worker did not have enough information at the time of the moment they are doing the job. guest: yeah, look, there are still tens and hundreds doing this kind of labour, work every day, and yet we still left a look at the analog world in the old way. if you can give it to people in a much more digestible way -- if something looks wrong on a chart, they can give you a big red warning area we think that this will revolutionize how people work and we are excited about daqri and many other companies. cory: what do you want to know from brian right now, josh?

i imagine you have a million questions as well. josh: do you think that this will just be focused on making work better? guest: it is a great question. there is a clear extension of what we're doing in the industrial work place today. it moves toward other workplaces and ultimately gets into our daily lives. i'm sure that you do what you do because you love it. i think work is that way for everyone, and it leads over into the rest of your life. i think technology start that way. it is like cell phones. eventually it will be on everybody's head. cory: certainly in our brains right now. thank you. i've got some breaking news. the new york times reporting that richard w. matt, one of the

convicted murderers who escaped prison a couple weeks ago, was killed. that is crossing just now. today in out of this world -- we look at spacex. another rocket launch. big whoop, why should you care? three big reasons. the international space station is running out of supplies. a couple of resupply missions blew up, including a russian rocket that spun out of control and burned up in the atmosphere and had a huge payload of water and oxygen headed for the international space station, and spacex will attempt to carry the -- catch the booster in the atlantic, and they think it is closer than ever to landing on a barge named, of course, i still love you. and, the rockets shipping headsets to the space station,

to provide virtual aid to the astronauts from earth. up next, a game changer in the industry. lithium ion batteries will cost half of what they do today. plus, meerkat ceo ben ruben is here. you can check him out live on the app and live in the studio next. ♪

cory: i want to get back to that breaking news, news out of upstate new york sang one of the two inmates and that dramatic escape from prison has been killed.

this was reported just a little while ago, one of the two convicted killers they have been hunting for three weeks of course, looking for these guys one shot and killed. richard matt was killed. david sweat is still on the run. the official was not authorized to talk to the public, but did talk to the associated press. the new york times had a similar source. new york governor andrew cuomo said that richard matt and david sweat used our tools to escape from prison. cut a hole in the law, leading to one of the biggest manhunts we have had in new york state ever. both of them had life sentences. one of them, that life has ended. david sweat still on the run. it is time for the daily byte, one number that tells us a lot. 50 as an 50%. that is how much 24m says it can

slash from the cost of lithium batteries. they cut down to 80% of nonessential materials. it's really about manufacturing not chemistry. the founder has spent five years in stealth mode amassing private funding for the development of his battery. what is next? he aims to have a battery ready for use in the electrical grid by 2017. meerkat diving into partnership with the discovery channel just in time for -- everybody knows it is shark week. starting july 5, you can watch feedings and interviews on the live streaming app. what content will it get users to bite? see what i did with bite and sharks? it's like a joke. joining me, we have meerkat

investor josh elman and ben rubin. talk to me about sharks. sharks? ben: we wanted to find a way that we can embed -- [indiscernible] and let everyone basically stream throughout the week. cory: i'm really interested in this means for media, and josh. at some level meerkat and twitter and facebook posts and let's go back in time to blogger or even geocities. it allowed lots of people put up things for small audiences with a long tail. this sounds like something else. this sounds like it is trying to go after an audience that is his big as shark week. josh: our phones have taken to a point where we are hanging out our phones, not really together.

live brings us together. when you are watching shark week, you're are watching with hundreds of thousands of other people at the same time, connecting with each other. it's a powerful new way for media to start interacting with real fans and letting them interact with each other. cory: the shark puns will continue, but ben, i suggested that you see blood in the water when you look at your competitor periscope at twitter. how does the shakeup at twitter give you more opportunities to grab market share now? ben: the way that we look at the whole interaction in this space, we are focused on the community and the product. one of the things that we always emphasize is, it's time people spend interacting in real time and actually our last month was three times higher than march or

ever. so, there is a lot of measurement that we choose to focus on, and i think we're doing great and were very happy with that. cory: what is the right verb? are we meerkating right now? what about celebrities? there are a lot on meerkat. there are a lot more on periscope. does that matter? josh: as we saw on twitter celebrities brought people in the front door, but they stayed around because of the community. we see that on meerkat. that is what we really focused on. cory: thanks very much, near cat ceo. that does it for this edition of "bloomberg west." on monday, we speak to the ceo of one web.

he is going to share his plans to build the largest and light satellite -- internet satellite network ever. have a great weekend. ♪

josh: i'm josh green. john: and i'm john heilemann. and with all due respect to president obama -- [cell phone rings] >> i just want to say congratulations. john: thank you, mr. president. happy national chocolate pudding day, sports fans. if you were happy to you the news from the supreme court today you are probably celebrating. here is how president obama commemorated the gay marriage ruling in the rose garden with the birds literally chirping. president obama: it is the consequence of the countless