cory: google is firing back with two new phones. ♪ cory: i'm cory johnson, in for emily chang, and this is "bloomberg west." verizon and aol creating "go 90," but can they really compete with vine and snapchat? thea is counting on

model x to hit its goal of 50,000 vehicles. and amazon takes a page out of uber's playbook. they are providing new services. now to our lead -- google trying to grab the spotlight back from apple. they unveiled two new smartphones to go head-to-head with the iphone, the nexus which uses the latest version of android called marshmallow. it has all the bells and whistles. we are joined by brad stone. what did you see? brad: as you know, google supports thousands of different devices for phones, tablets, laptop, but today was about the flagship. front and center were the two nexus phones. both run the latest software. they have a fingerprint sensor

on the back. these are nexus devices, so google does not sell them via wireless carriers. a large one starts at $499. they are expensive and the question is who are these for? are they reference designs for other makers or is google trying to go after the high-end android market, which samsung has control? i asked dave burke that question. >> you started -- you create android, and marshmallow is rolling out next week. we are stepping into a mobile operating system -- you can't change the hardware. hardware needs to be good, really perfecting it. first and foremost, that is how nexus is born. then we realize that we can showcase the very best hardware

and software integration. >> it seems today that you debuted -- google is trying to make computer science and machine learning, turning it into a competitive advantage. one of the nice features you showed is how apps can become aware to how you use them. how deep of a competitive advantage is that for google vis-a-vis other platforms? >> like machine learning and deep learning, it is one of the big strengths. to me, it automatically detects my one-year-old space, and he goes back -- one-year-old's face. it is amazing how the technology works. it is a cloud-based company, so we are integrating hardware and software in the cloud very seamlessly. brad: google, as it has been for

the past two years, has been under tremendous scrutiny from regulators in europe and the u.s., around its administration of android. how much does that constrain innovation? >> first and foremost, it is an open-source platform. we create the code and anyone can take it. from there, there are google applications. one of the things we have done on the new device, a new service that means when you are setting up the phone, we remove as many of the nonessential applications. you can uninstall the applications like any other app. that is the approach we have been taking. from there, people bundle whatever services they want. it is an open market. cory: people always ask with the apple events are like. can you compare google event? i can't imagine it has the same sort of geewhiz buzz. brad: it is completely

different. it is much smaller. apple packs it with visiting dignitaries. the google event was small. in a way, it is more authentic. they are talking about the product and what they feel their advantage is -- computer science, deep learning, the purpose in the point of the nexus device. two hours and you are done. you can argue that it is the less effective approach -- certainly apple gets a lot more attention. cory: so no one will stop you in the street and ask you have a was. should we even care about these things? there are so many more devices, such a wider variety of devices that run on android. the hardware is not the thing, the software is the thing. brad: look, a company like google is sending this message to consumers. it wants people to buy these

devices, that it is also speaking to partners. android has become this unwieldy thing, very fractured. lots of companies building low-end devices and doing quite well, selling a lot. then there's a massacre on the higher end were samsung is having trouble competing with apple. google is holding this event that is sending a message and being here is what is possible with phones, with these designs, integrating new technology, like a fingerprint on the back of the phone, different than where apple places it. it is about talking to partners and it is about expressing google's point of view, how it views these authenticating technologies, how it wants it to be more aware. i think there is some value in hearing from google. we heard from the new ceo today, and really understanding their perspective and how they see themselves as differentiating.

themselves as differentiating. cory: i have to ask you, overhanging all this is the investigation by the federal trade commission and the justice department of android, of the way android may be excluding some of their competitors -- was there any suggestion that they are trying to put up a prettier face on google in the midst of yet another antitrust investigation? brad: not really. google has been under scrutiny in europe for a long time, particularly in primarily search, but it has extended to android. bloomberg recently reported that the ftc is taking a look. but google has a pretty persuasive argument. android is open source. carrier than hardware partners are free to do what they want. i have a motorola phone and there are lots of motorola apps. it is hard to argue that they constrain the flexibility. i didn't get any sense that google was reacting to the scrutiny. cory: brad stone, senior executive editor of bloomberg technology.

what a great guy. thank you, brad. turning now to the white hot cybersecurity sector -- a company now valued at $3.5 billion cyber security startup announced we have $120 million in a new funding round. we asked about the rumored funding last month. this is what the cto is hinting at. more funding and a bigger valuation. >> i can't say that the reports are inaccurate, that probably within the coming days or weeks or months, you guys look at the real story. emily: so you want raising money right now? [laughter] cory: that $3.5 billion valuation doubled his valuation from just five months ago. another story we are watching -- edward snowden is on twitter. the former nsa government contractor turned whistleblower tweeted out his first tweet this

morning, saying "can you hear me now?" he went on to joke with neil degrasse tyson, "surveillance never sleeps in the secret projects and freedom of press keeping me busy but i still find time for cap pictures." facebook wants its 2.5 million advertisers to know you better than you know yourself. sheryl sandberg is in new york today. how the company is making it happen. and the aol president shows us how his advertising technology is fighting back. ♪

cory: i'm cory johnson and this is "bloomberg west." facebook ceo sheryl sandberg was on stage at an advertising panel this morning. >> the thing that most surprised us three years ago was just how fast it was. we all had our models, the industries that models, and it outpaced all of them. when we adjusted it it would adjust again. cory: facebook has been changing the game on mobile advertising, partnering with nielsen. ads will be included in their total ratings. she explained how ad buyers would be better positioned to access facebook's 400 million monthly instagram users. >> we are rolling out a lot of

options on instagram. globally, we are rolling out self-service in the ability to buy in different ways. importantly, using it -- the power comes from getting the right message to the right person at the right time. cory: also after this week, verizon's new mobile video service picked up its first major advertising commitment. they are signing a year-long deal with $50 million. they are emphasizing code and data as the secret sauce in a bid to control the future of advertising. i asked bob lord about aol and its parent company. >> it's netflix meets snapchat meets twitter. it is a place where an audience can go, can stream exclusive content like the nfl, clip and share it within their own network, and express yourself on top of it. we are pretty excited. i believe it will bring us a

unique audience that is hard to reach, and we believe the content will draw the audience and. cory: i feel like you guys are in an interesting role that is not well understood. you sit between the content creators and the advertisers, in some ways like an agency. >> advertisers want us to get audiences for them. what we are using, automated media buying platforms, using data. to deliver more content, and add experiences on top of it. cory: geek me out with the details -- you have tribes of audiences? >> it is basically audiences that have similar interests and behaviors. you have a particular interest, i'm not advertising to you, im advertising to people around you that have probabilistic behavior.

we grouped those tribes together. cory: they may not all congregate at the one website. they are not all going to "slam" magazine, but they exhibit similar behaviors. >> you can use the example -- somebody they like a coffee brand. that has an affinity with the car brand. at carver and has an affinity with the hotel. you can understand the tribes, we grouped them together and use data to form what more content you want to provide. how to provide them with more content, and then i can go to a brand and say, i have this affinity group, this is right in your sweet spot. how do you want to reach them? cory: how many tribes makes sense for you in terms of the way you market? they could be limitless, it could be three. >> i think we are going beyond demographics.

typically when you look at how you are advertising tv, you look at demographics. we are going beyond that. we are going into behavioral characteristics, the content they are consuming, which is limitless, which is why you need technology to go and target. we are looking for it like behaviors. i understand what is driving that person, and i can swap out different creatives. some may work for one tribe but not for another. cory: i had a job once designing applications for the american express gold card, testing the size of the checkboxes, a different versions. it was maddening. it was a very different thing obviously, those kind of tests. >> if we can use technology to do that testing, why wouldn't you optimize for the right checkbox size? we are sort of in the middle now.

we have a lot of manual were going on in the media business but we need technology to get that labor out of that system. we can optimize better. cory: what does verizon get out of this process? >> verizon is our largest client, as is aol. verizon was are also with monetization. they understand the value we are bringing to them. they said to themselves, what can we do differently that would help to change the media landscape? one of the things they have is great data. they have mobile enabled data for an authenticated person, i know that person, i know when that person is on their phone. all opt-in data. the data was unlocked, and what they have done is we are able to take that data and locket on the behalf of all advertisers. they found a way of expanding it.

with verizon allows a will to do is accelerate what our strategy is without data, as well as now we have almost half a billion reached globally with microsoft and nbc. cory: and i would imagine google has similar data. >> that is slightly different. google has a set of data, its own. i believe our data and what we will have, the authenticated record, the digital-mobile record, is slightly different, and we are really excited to serve our market. cory: that was bob lord. coming up, tesla's first model x will roll out the factory doors tonight. worth the wait? and amazon moves into the gig economy, and on demand postal service. ♪

cory: time now for the daily byte, one number that tells us a whole lot. 40%, as in the u.s. postal service handled 40% of amazon's shipping volume. that is important because a big chunk of business could be threatened by amazon's new flex project, unveiled today. flex is an ube servicer-like, -- and uber like service. $18-$20 a pop, only available in seattle right now although they expect to expand. they could lower amazon's overall shipping costs but will pose a competitive threat to fedex, ups, and the u.s. postal service.

now to tesla. the company will ship their chick car, the suv crossover model x. elon musk unveiled the car in 2012 with an expected ship date of 2014. a you're behind schedule, this car will rollout factory doors tonight. what can we expect from the launch? we are joined right now. matt, this is an important -- i can emphasize how important this is, to go beyond their $95,000 model s. >> they are going in the wrong direction. they are making something that is almost net more expensive, p85d turned into a crossover. cory: this is going to be bigger, much heavier. matt: it is the same platform as the two-engine model acts. it is going to be much heavier with big, heavy doors, that this is basically another model s. we should give credit for great

engineering, but let's not give them too much credit for inventing an entirely new car. cory: one analyst suggested that it will cause $135,000, plus $1200 delivery. matt: that's right. cory: it is $135,000. matt: but let's also remember that porsche sends $135,000 station wagons that are a little bit slower. the cayenne turbo s could run you up to $150,000. the tesla model s is a little pricier, but close to the range you are looking at in terms of like audi. cory: they are only making a few of these to hit their deadline of shipping before october. matt: right. these are the founder series

cars. that is what these cars are. they originally said they would make 7000, which i am a little bit skeptical of. these numbers are probably fewer. cory: how many cars do think they are making? matt: maybe 24. cory: by these production parts -- these vehicles, could they be made by hand -- indeed, they may not even have production parts and that much of the car will be recalled and replace later on. matt: that is entirely possible. the press cars that go out for review are often key production models, which are put together, 99% resemblance to what you will get. while tesla has delayed this and delayed this, -- 2012, elon musk said it was coming out

2013. but when you like to a politician it is ok. [laughter] cory: so, is there a history where we saw a similar thing? a lot of it got recalled and there were some issues -- matt: tesla doesn't do recalls. they will just make modifications. it all follows the silicon valley model. they will ship out updates, like when you download ios. it's not called a recall. cory: the ntsb has some issues with that as i recall. when do you expect this car to be in production as opposed to handmade vehicles? mat: they are pretty close. i don't think tesla is dumb enough to put this on a big

event. what we want to see is them to build the 20,000 cars they say they have preorders for. cory: the forms online suggest there is more. matt: there were 20,000 earlier this year but we don't have a final number. cory: and importantly, there is a refundable deposit that went out before they knew how much the car would cost. what percentage of orders do you think it canceled because it was so expensive? matt: people put on deposits to wait that long -- i think very few will be canceled. i think some of them may be canceled because no one wants to wait for two years. we have to see how quickly they can ramp up production. 15%. cory: good stuff. betty liu will be there in california. she will take a test drive. we will get you all the highlights first thing tomorrow. check us out tomorrow when the

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announcer: from our studios in this is "charlie rose." charlie: tonight, vladimir putin. i went to moscow to report on an interview with the president of russia. it took place outside of moscow and lasted for an hour and 40 minutes. it was shot by our cruise at 60 -- crews of 60 minutes. >> we support the legitimate government of syria.