(the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. >> the chinese president met with business leaders and said that the relationship has enormous potential on the same day that we learn about records of federal workers that are stolen. how is obama to approach friday? ♪ emily: this is bloomberg west. bloomberg goes with chinese commuters.

it is the first time uber global product. how badly does it need china. officially hitting 400 million monthly active users, most what is next for instagram? you will not want to miss my interview with sam altman. that is ahead on bloomberg west. the guest of lede, honor on the coast, the chinese president. there are serious tensions between the united states and china on the economy and cyber security. there was a major winner, boen ing. joining us now, what can you

tell us? >> good to speak with you. right now, i am at the plane manufacturer north of seattle. interesting, looking behind me, every single 747 comes out right through those hangers. as for the deal between the united states and china and with boeing, that have green nlighted $30 billion. aijing has also greenlighted finishing center and it is the first that they will have in the country. us has one. this is a big coup for boeing. emily: cyber security is an elephant in the room.

we learned about the cyber security hacks and the record stolen and the experts say it is not just chinese hackers. it is the chinese government that is behind this. have to president xi say about cyber security? down, he and, hands says that china does not hack. backsay that china companies that hack the u.s. and around the world. office ofout the personnel management and washington, d.c. has been hacked and a compromised former and current federal workers. united states airline's -- u.s. airlines has been hacked. i is addressing it. looking ahead to what is happening, we will see if the words translate into action. that camepew study

out that said that cyber security and cyber espionage is one of the top three issues for americans looking overseas to china. emily: what can you tell us about any progress that was made xi andmeeting between , like timeaders cook. >> it is good that you brought them up. it was a closed door meeting. k leaving andm coo we got good footage. in terms of what happened behind the closed doors, that is for the 30 executives from the united states and china to digest and talk amongst themselves. emily: all right. ng, thanke, at boei

you for your report today. i want to talk about the visit and what the president had to say. what went onnow behind closed doors. how productive do you imagine something like this is? >> i don't know. i am not there and i cannot speak to it. i do not think anything much comes out of the meeting. the issue between the united states and china is that there is a lot of talk around industrial espionage in technology and the other issue is around services and cloud services have certain limitations and difficulty in offering services in china. i think that google, obviously, made it very clear that they have issues with china.

there is a lot more work that needs to be dumb between the united states and china from a technology standpoint. visible and it is more about the jobs. it is about yesterday's ,echnology and the older industrial way of doing things. the future is about economy and we need to have much more priority. the importance of united states tech companies to china, like apple. isis ironic that facebook blocked in china and google is off of mainland china. what does the president have to do when the chinese government says they do not hack? >> they say one thing and do another thing. i think that we have to confront this issue.

ashink we still think of war old school, industrial war. emily: we are in the middle of a cyberwar right now. >> it has an impact on everyday basis and the chinese president inying anything is happening, do not have to believe it and neither does the president. you arem malik, sticking with me throughout the show. 6 and 6s.dered iphone the big apple will have to wait. yorkers oflling new delivery delays because of the pope. apple sent an e-mail to customers in zip codes affected saying that there will be

traffic restrictions and they will make it up to new yorkers on saturday. from washington, to new york, to philadelphia, it is ok. you can wait. on tech my interview valuations and unicorns. plus, a startup that helps investors get gadgets off of the ground is no more. details on the rise and fall of quirky. ♪

emily: welcome back. i am emily chang. i sat down with sam altman. ted, "i am more scared of unit economics than burn rates." money beforelose making money. that happened at facebook and google. that is ok. i worry about companies that are losing money and have no plan to make money. super-low-margin businesses that operate like they are high-margin, that is a problem. so, if you have the operating , but thef facebook margins of amazon, that is a problem. emily: what are your plans?

>> to make a lot of money. this is like a lightbulb for people. takes 20 years and, eventually, it happens. it is ok to lose a lot of money up front and you can invest in growth. you have to have a plan to make lots of cash. this is the economic demand of shifts. why are so many investors getting in to on demand set ups? >> uber has burned more capital than any other startup ever. i do not think uber is immune to this. i think they will be a hundred alien dollar -- hundred billion

plusr -- $100 billion company. emily: what do you think of the changes reddit made? >> i disagree with the premise that reddit needs to make a come back. it is growing fast and it has not done the easy wins. un should preferred the optimized startup. there is no great mobile strategy and you can be even better. optimized, there are no easy wins. emily: she spent a few months at reddit and she decided not to appeal the kleiner perkins situation.

>> i do not want to comment on a situation to appeal or not. -- i enjoyedd working with her and she brought women into the forefront of public interest in the way that was important. emily: did you learn anything? are you doing anything different ? >> everybody talks about diversity and the thing you should do is not talk about it and just act on it. equal -- flat, equal partnership and we fund women at the rates that they apply. there are things that we can do to help. i don't think that diversity in tech is just about men and women. we try to go in a lot of different directions.

think funding at the rate they apply is enough? >> it is hard to do more than that. we want to encourage more women to apply and women in our partnership go and meet with them to talk about startups. it would be hard for us to fund at a higher rate than when they apply. partnershipemily: how do you seg out? >> it seems expensive to me. maybe it gets more expensive or crashes. really matter returning quality of life for people. so, i tried to pontificate on the environment to people who come on the show. emily: is the unicorn theme

dangerous? >> what do you mean by that? mark aboutlked to seeing unicorns rather than a $1 billion valuation. atmore than half were valued $1 billion and $1.5 billion. people are obsessed with getting to this mark and they are willing to put structures on terms to get there. i think that, if you look at ein and chilled day to, you would say there is some fraud going on. there is a huge desire to get right to $1 billion. i do not care about it and i don't think it will make a company great or not. emily: will it come back to bite

them? worthyou should have been 200 million and -- two and million dollars and you are worth $1 billion, that will come back to her you. -- to hurt you. you can get terms that will come back to bite you. the presidentman, of a startup. he seems to have hit a groove now that he has done this for a year-and-a-half. >> it is great. i am glad that he is more plainspoken. he does not get into specifics. name the companies you do not think are doing ok. you should talk about it. aroundd to people companies and i learned a lot

about those companies. emily: hang on. bill, who i interviewed last week, expressed concerns about on demand startups and compared it to webvan. everybody loved it. it was not, economically, possible. thereple who are close, is a gray area on whether they make it or do not. think i am equipped enough to make a judgment call. if sam feels there are companies at risk, he should name them. he is pretty plainspoken, otherwise. mostly, the other thing i say, startups should not optimize for evaluation, that starts at sea

level. that education of valuation and being smart about how to value your company has to start at ground zero, not at the $1 billion valuation. they should have this in place to make people more educated on these things. malik, you are sticking with me and we will talk about uber in the next block. it is a far fall for the company that once raised $79 million perkins,nd kleiner among other investors. later, the company was halting activities. they plan to sell their assets.

insights, 30cb startups have failed this year. we will be right back.

emily: it is time for the daily byte. million, the 400 number of monthly users instagram says they have, more than twitter. they say most of the user growth comes from europe and asia and it is music to the ears of the guys who own instagram. willding to forbes, it reach $1.5 billion in revenue.

cities,comes to global uber has a new favorite. they are testing out a new andice called uber commute it follows the big market leader. theing me to discuss change, gabe. i lived in china and went to chengdu. serviceagine this is a the chinese would be excited about. testing this service in china, what you make of this? >> it is smart. nobody notices. they have to try china and india as markets. that is where the future is for uber and things like uber.

all, are they in second and third tier cities and do they have a commuting carpool service? >> they have 80% of the market, inpared to 20% and they are big inies and they are china. this, i of uber doing agree with them. i wonder, with the issues of them being cast as the taxi competitor, are they re-casting themselves as a transportation company? emily: they may require drivers and cars to be commercially

licensed. world did an around the tour and you had observations about how it works abroad. ubere same time, we see having trouble in paris. there is a service a lot like uberx. >> i loved the experience of never having to bother with telling people where i am going and that was great. is an abundance of drivers. it does not work when there are not enough drivers. in tokyo, they did not have that many drivers and they times are longer than you and i are used to. the wait time was 7-12 minutes and the pricing was

lower than what i paid in san francisco. on theect is based number of people who drive for uber. the more people there are, the faster the prices go down. you were part of the department of transportation in chicago and washington, d.c. these regulations are different. lyft triumph? >> china is a different animal and subsidy rules. getser subsidizes the most the most drivers. i think that it is a different animal and i liked the partnering over there. it does not mean we shouldn't. emily: all right. gabe, we have to leave it there. thank you both.

tomorrow, i will interview the ceo of oculus. do not miss it. ♪

john: oh, i'm john heilemann. phil: i'm phil mattingly. withd trump's appearance stephen colbert last night -- really smart, really great, and hillary, who has become very shrill, and i have better hair did do we agree i have better hair than she does? he has better hair than i do. on the show tonight, a poet.