>> jack is back. a new day at twitter as they enter the post dick costolo era. i am corey johnson in for emily chang and this is "bloomberg west. the cloud tax coming your way. also, robots and the most dangerous places on earth as a look at the economy continues. stephen hawking and the

terminator. arnold schwarzenegger grilled mark zuckerberg. we will have their questions later in the show. but first, the beard is back. it was his first day as the interim ceo for twitter. dick costolo's run as chief came to an and yesterday. how strong can the twitter business become and what has jack got the addict didn't? what do you think twitter needs to do? guest: thanks for having me. it will be a little weird advice wise. that is why i am on, so i appreciate that you like weird. i think what they need to do that everyone else doesn't is they made -- they need to avoid this. people do not understand twitter. the other thing they need to do

is get a really good on boarding process, because right now twitter is alienating. it is hard to use, and it is a place that if you are not familiar with it, it is easy to make a mistake and embarrass yourself, and they need to change that. they need a great self-serve ad platform. if they do those two things they are not facebook, but they can be hugely successful. they are kind of well-positioned. cory: interesting, because they are being urged to do those kinds of things. paul, the user base is one of the things that jumps out. you cannot imagine twitter without looking at the user base. i mean, user base is not moving at the pace it used to. yes, they have the monthly active users, and that is a good day, but the pace last quarter was better than the previous quarter, but really not -- they have to be accelerate the user growth, and one of the ways is making it easier to onboard and

bringing in casual users on to the service, on to the platform so that they can monetize those users, because if they are not logged off of the platform, they cannot do this. that is the big issue, number one, which is to re-accelerate the user growth. how do you do that? i think it all comes back to product. as they think about who the ceo is, they have to think about product first, not sales, but product, and they have to think about ways to innovate the product you make it easier to attract a larger user days, and -- user base and that is where they need to be. they may not be a facebook story, but they certainly need to be bigger than 300 million if they want to be viable for a large number of advertisers. cory: yes, i will give you some

more of my pathetic attempts to be an analyst again. when you look at revenue per user, it has gotten a lot better at this company. every quarter seems to get better. i think the recent quarter, it was one dollar 40 cents more and we look at the increase -- yes, it was down from december but it is a year-over-year basis. a 47% increase. the good news is it was an increase. the bad news is the pace of the increase is coming down. guest: by no means a pathetic. we have got great growth. it is great growth. the problem is if you're $24 billion market cap, you're expected to do great growth all of the time, and the other thing, to your point, they have

a problematically high ratio of voyeurs to exhibitionists. you want to have exhibitionists because it keeps content fresh and keeps people logging in all of the time, and they have had a high number of watchers to do worse. -- deal with. cory: voyeurs to exhibitionists. that was made to tweet. thank you for that. i am going to let you have the last word here. i wonder if the key for them or the false promise is the ability to use data from customers and come up with a more relevant result, both in customers and for advertisers. it does not seem like they are getting that. guest: you mention it is not increasing, and that is because they are doing a better job, and that is the good news. i think there is a lot more they can do, making it easier to onboard, and number two on the advertising tools, making it easier for advertisers to advertise on the platform, so i

think the real issue for investors, unfortunately, it comes back to the comparison with facebook. is twitter more of a niche advertising medium, and it is hard to say that with 300 million users, or is it more of a mass advertising unit, like facebook with 1.4 billion, and i am not sure where they need to be, but they need to position the story better in terms of the advertising platform. cory: we have got max and paul and we appreciate it. in terms of exhibitionists and lawyers, i am going to let you figure that out, but i do thank you for your time. the so-called cloud tax takes effect in washington today. it is a 9% tax applied to amusement's such as netflix,

spotify, and other services. netflix is already making arrangements to charge the tax to chicago residents. $96 a year in springfield, $104 per year three hours away north to chicago. this is an old tax to chicago where you always said to pay for -- had to pay for stuff that you lease. the city has just assented to -- consented to apply it to a cloud application. some are crying foul, saying the tax could be a violation of the internet freedom tax which prohibits discrimination for content delivered over the internet. it's still something far from being defined. coming up, we are going to talk robot in space. looking to explore mars through nasa plus, the best of mark zuckerberg. find out about what stephen hawking's asked, next. ♪

cory: at&t may soon be free to buy directv. the $48 billion deal is about to clear justice department approval with out any conditions. but it is not clear yet.

the fcc is looking at net neutrality rules. shares gained on the day. and a robot where no humans have gone before. a japanese tech giant is sending a scorpion like robot into the fukushima plant. the mission is to assess the damage inside and find stuff that has fallen down all around from the earthquake a couple years ago, but how can you design a machine that can withstand intense radiation for hours at a time, and we are joined from new york with more. stephen, this was so interesting to me because i do not know what problems radiation poses in the physical world outside of the problem that living creatures have with it. what do you have to design around for a radiation-proof robot? guest: it is the radiation itself. the radiation, the intense radiation that you see at fukushima, i imagine, is so large that it pretty much what for right normal electronics

and the fukushima robot, i understand, could last 10 hours exposed to the intense radiation and its electronics will survive and not be damaged. cory: in a scorpion-like shape? what is that all about? stephen: i am not sure, but maybe that the robot was specifically designed for the fukushima plant, rather than like in the 1990's where robots were developed to be universal that they could be applied to different kinds of nuclear power plants, but this one i think was developed strictly for fukushima, and it is a design that probably has been very carefully been made small with a scorpion back to provide lighting so it can get into the areas that they know exist throughout the plant. cory: right.

i also wonder in terms of designing robots for the purpose of hostile environments, are there lessons that can be learned there that could apply to other things, like space exploration? stephen: well, space is a hostile environment. i work for nasa. my company has put some devices on the rovers that are on mars now. mars is extremely hostile. it is very, very intensely cold at night. there is almost no air, and these things have to operate perfectly all of the time, day in and day out, and we are developing equipment for robots that someday we'll go to venus where the surface temperature is 900 degrees fahrenheit, and the atmosphere is sulfuric acid, so these are hostile environments also. cory: so papier-mache is out. is this a material science issue?

are there things like the gears that they work with have to have more leeway or less? talk to me about this. stephen: the electromechanical systems have special lubricants. it is a material sciences issue, especially in the case of venus. we developed actuators that can survive these temperatures. on the earth, the highest temperature and electric actuator can survive is about 270 degrees, and these actuators survive about 2000 degrees, and they are simply made of materials that no one has ever tried before. cory: i also wonder about artificial intelligence. you have numerous resources with artificial intelligence and machine learning, and great concern around that that maybe there is a chance that robots can benefit from that? stephen: robots to benefit from artificial intelligence? my goodness, yes. cory: you are welcome to say "duh" to me.

stephen: look, to me, a.i. and robotics arco joined. i mean you can look at this as a , platform for artificial intelligence, if you will. cory: we have heard voices of bill gates and even elon musk, a quote saying that even with artificial intelligence, we are summoning the demon. all of those stories where there is the guy, with the pentagram and holy water, and, yes, he can control the demon, but it does not work out. stephen: you see, for me, this is a problem that i never thought about, but when i hear that stephen hawking and elon musk are worried about it, i have second thoughts. to me, this is a classic, small problem, consequence model. it is like the killer asked right striking the earth. -- asteroid striking the earth.

the odds of this happening are almost infinitesimally small but the consequence would be catastrophic, perhaps even to end human life on earth, so we do take measures, and we are taking measures to deflect asteroids from the earth. similarly, i think with elon musk and stephen hawking, what they are saying is it may not be probable that it will be a problem from a.i. machines taking over, but the consequences would be just awful, so they are taking precautions. cory: yes, stephen hawking and elon musk, different approaches for what they are trying to do in the world. thank you very much, stephen really fascinating stuff. thank you. stephen: thank you, cory. cory: we continue the conversation on commercial robots with the cofounder of clear path. staying with ai mark zuckerberg

says telepathy is one of the goals for facebook, calling it the ultimate he medications technology, part of the latest session, and here are a few highlights. legendary physicist stephen hawking, who i just mentioned, asking what are the questions in science he you would like to know the answers to and why, and questions include how will we be unable to live forever and how do we cure all diseases and how does all of this work? and on facebook, people will naturally read a lot more news, and finally, i should be doing these in the accents, don't you think? [speaking in accent] by the way, what do machines when? -- win? zuckerberg said i make sure to work out three times a week, and no, the machines do not win.

arnold is pumping his next movie. and coming up, the maker movement. a new class as we know it getting a makeover, and plus, a big factor in trying to sell your house but for a price tag in the fastest connection possible, next. ♪

cory: some breaking news, and two companies we are watching, hewlett packard, shares up after

hours because a lot of news is coming out about what the split up of the company is going to look like. they are going to split it up into two companies, one called hewlett packard enterprise, and the other called hp ink. the enterprise company, a very interesting discussion right now about who is going to get the lion's share of the debt and who is getting the lion's share of the cash breed we know that hp -- cash. we know that hp enterprises going to end up with liabilities of about half of $1 billion, so a very small piece of the debt so the old hp is going to be getting a lot more of the dat. -- debt. a lot more details coming out about who is going to what company and what the details will be, hewlett hacker telling us they expected this breakup to -- hewlett packer telling us they expected this breakup to be on track to happen before the end of this year, so we we hear what it will look like in the split company so they can write the slate clean. new pieces to hewlett-packard.

and time now for the bwest byte, 5437, which is the value of a fiber-optic internet connection and what it adds to a home. according to researchers at the university of chicago carnegie mellon, they looked at different home prices and which ones work, which once added value, and real estate professionals said it was a deciding actor when buying -- factor when buying some homes, the fiber-optic connection is about as valuable as a fireplace or half of a bathroom in the homes that they had to attach that price too. interesting stuff. alright, time to channel your inner inventor as we take the temperature of the maker movement, always the province of the hobbyist and tinkerers those who love to crochet, i don't know, but much more potential about making things for business.

the time and cost of what they call rapid prototyping. what about the school and the classroom, and how is the maker movement pushing thinking ? anthony collins at me ask you -- anthony, let me ask you first. 3-d printing get something pretty excited, but it is hard to do. how do you bridge the gap between what people would normally be modeling with clay, and doing 3-d design on cad systems is an enormously more complicated. anthony: that is one of the challenges, the level of accessibility, so like professional engineers, those used to cad, architects, designers, it is very simple but for students, younger people, people who are not used to it, it is a huge challenge, and part of what makerbot needs to do to make this technology

more available to everyone is to take down those their ears, and -- those barriers and to do , that, we need to build software tools that are not cad based. software that is easier to use, slider-based or parametric-based or model based. cory: it will be interesting to see. every kid can make a coffee cup. the kids want to do so much more. explain what you guys do briefly. guest: electronic building blocks to allow anyone to create inventions large and mall, so we -- large and small, so we allow kids to be able to design anything from a robot to a remote doorbell is snapping magnets together, but we also teach stem and seed concepts and the use of electronics at various age levels and in various places.

-- various grades. cory: so kind of like legos meets heathkit. guest: yes. but with an extra educational twist on them. cory: so what is it about this particular era that allows this to exist? there have been pushes to get technology into schools, and all of the companies trying to sell school stuff, but what is it about this era right now in terms of using technology in schools, or is it the same old thing? guest: i think it is about the technology being right. there is a lot of excitement around the maker movement. we saw this in the maker movement with designers that went to tinker with technology but we have since grown far beyond that. we have schools using it, about 200 or 300 universities, and the key thing is that they find the product to be fun, and they also find it to be versatile, so you can use it to teach mechanics in an auto shop class, or you can

also use it to teach gravity and different scientific concepts, but you can also use it for teambuilding, so it really is kind of having the versatility and the creative prospect on the teachers and the students, and it is not constrained by the technology we create. cory: anthony, 30 seconds. is it a business plan or an idea that once you teach 3-d design that good lead to more improvements in the home or business? anthony: absolutely. when children have used 3-d modeling, it is so natural for them to use these tools in their professional lives, so making that more accessible is kind of our mission. cory: anthony, thank you for joining us on "bloomberg west," and we will see you tomorrow. ♪

>> from our studios in new york city, this is charlie rose. charlie: we look this evening at the continuing negotiations with iran. the united states and its negotiating parters announced on tuesday that they are extending the deadline for talks until july 7. american officials hope to reach a final accord in order to submit it to congress for a 30-day review period. the u.s. warned early this week that the framework deal reached in switzerland in april must remain the basis for a final agreement. the remarks came after iran's supreme leader rejected key demands of the p5+1 in a speech last week.