♪ emily: he is known for shunning convention, taking massive risks that could win or lose billions and investing in black swaps, companies with a complete chance of failure but if they succeed, the world will be changed forever. he grew up in new delhi, india. his parents agreed he could explore his boyhood curiosities with no limits as long as his grace to not suffer. he went on to study microsoft systems and then became a venture capitalist to help entrepreneurs take the same

risks he has no fear of taking. joining me today on "studio 1.0" a founder. thank you so much for being here. it is great to have you. >> great to be here. emily: you are known for being an investor that only challenges conventional wisdom but you exploited. however early did that start? andne of the privileges indulgences you get when you are comessful early and luck a lot is the ability to do things others may not have the freedom to do, so i used it to my advantage. i was always interested in radical change, big ideas and i got opportunity to do that. in india.aised what will we find you doing? the indian army

household and i read a story about a hungarian immigrant coming to this country to start a company. technology, the which was intel sounded very cool. i fell in love with the idea and stayed with it. i wanted to start a company and realized how hard it is to start a company in most parts of the world. emily: you now say technology is your religion. review raised religious? vinod: my parents were normal religious people but i early on realized at least priests and india were a scam. i was probably 12. i decided that if the purpose of religion was to do the most societal good, technology was the most powerful tool to do it so i adapted to -- science and technology almost as a religion for early in life.

a chairman and ceo but founded many companies before hand. vinod: we started another company about three months before we started. i love this story for the following reason. nobody remembers your failure. even though the probability of success was low, this is great about entrepreneurship. oneure does not matter, but failure gives some of the ability to succeed. if you are not willing to take a risk, if you are not willing to fail, you are not going to do anything interesting because most interesting things are new and new things involve risk and risks involved failure. emily: why did you leave and what was your biggest take away? vinod: i started a company called daisy systems which was successful area it had been public.

daisy made more money for me than i needed ever in my life. i then want to the freedom and i looked at careers like what else should i do? i joined one of my lead investors to essentially mentor and help others. emily: how did the venture industry back then compared to today? vinod: there are many more venture capitalist now, many bad ones, a few good ones and entrepreneurs should understand that. i get in trouble for saying that, but i think it is much more dynamic. they have many more options and that is really great. i love that. emily: you have multiple degrees, and engineering degree, biomedical engineering at carnegie mellon, nba and stanford. he wrote this post called, is majoring in the arts and mistake for students? would you indicated it does not set you up for success. this caused some controversy

which i know you are not shy about. one, to road, the real purpose of human existence is fundamentally tied -- tied to the simulation of wealth. what is your response? vinod: that is a nonsensical response. what liberal arts has become is an excuse to do less work. that is not everybody. i speak to that. 80% of students who actually do it for the wrong reason, but bottom line, if liberal arts goals are legal, then liberal arts as taught today and taken today at the wrong level. emily: what should they be studying? vinod: logic and philosophy should be an absolute part of liberal arts week is otherwise you do not learn how to think. linguistics, economics, learning how computers work because we live in the computer age. acquire another language when the most important language

is computing. not because people need to code but because it is a style of thinking. the critique is from people i feel fear to understand what i was saying which is exactly the point i was making. the comments like the one you mention reinforce the notion they did not get a good education. emily: do you think college is important at all/ -- peterel is p thiel is paying them not to? vinod: i disagree with peter. there are people that would do well without an education and people that would do well in the matter what subject they take. the top 10% or 20%. i think college gives you a grounding to be able to do things that i adapt over time. sets: what do you think countless ventures apart from the other top-tier capitalists? ♪

emily: you went on to found your own fund. what do you think says coastal adventures part from other top-tier venture capitalists? vinod: we tend to be much, much broader. it is an enterprise software company but then we would do and possible foods. dodo rocket lab and we would very hard science stuff. unusual groupvery of things robotics, semi conductors, we have even done a new ear project. ily: you believe most of

vc's hurco companies. vinod: applying traditional school metrics to startups is the wrong thing. 's andeople focus on irr rates of returns, it actually hurts the company. i do not believe just because you are an investor, you are the right to advise as a board member. if you're going to advise entrepreneurs, you should have started companies, know how hard and painful it is, how difficult the trade is. it is painful being an entrepreneur. life is not easy. nonetheless, you have empathy for an entrepreneur having done it yourself. you do not have the right to advise much for newer, so one rule i have in 30 years i have awarded an entrepreneur. they do not eat hypocritical

politeness from both and not help them think through all of the risks they are going to face and a challenge them. want tome board members give advice on things. emily: you do not go to board meetings if you can help it. vinod: i cannot stand to listen to them talk about things i think hurco companies. emily: what is your advice to ceos and entrepreneurs about how to be a ceo and how not to be a ceo? vinod: do not take advice because it is from the board. ignore the board for the maximum extent that you can. consider the influence of people who have real experience with your thinking. emily: this is interesting because it talked about the lack of women in the venture capitalists industry. i know you are looking for a woman partner but what does it take to be a successful venture capitalist? you need to have a stem degree?

do you need to have been a founder, ceo? vinod: you do not need to have a stem degree but it helps. probably, and this is not even essential, the most important requirement is having been in oxford or. emily: is that why it is so hard to find women to fill this role? .inod: there are fewer women women are increasing and we have many entrepreneurs who are women. you are in a very deeply tactical area. any to get enough experience and will be a great partner, but you need the flow at the bottom to increase. we need to encourage more women to be entrepreneurs. broad range of a investments rocket, food, ai, health, finance, energy. companies with a usually high

failure rate. you say every four to five years you go deep into an area you know nothing about. what has worked and what has not worked? vinod: all of them have worked in the sense that i really enjoyed learning a new area. it will be five years before i know i am right or wrong, but independent of whether the companies are successful or not, i think i will have learned a lot. i think the two most important things that can happen in technology and that would really change humanity for the better andrtificial intelligence nuclear power, unlimited energy. i cannot think of any two things that could impact humanity more than those. tweeted, ifecently ai scenario happens we will have abundant gdp to take care of everyone but great disparity. only people who want to work may need to work. paint the picture for us. vinod: if ai does what humans can do or most of it, i think it

is pretty likely in 40 years of quality jobs you can do today, the majority, more than 50% will be done by machines. it does not matter if it is a hamburger flipper, legal researcher, radiologist, oncologist. it does not matter. if that happens, we will have dramatic gdp growth, dramatic productivity growth. all of the traditional economic metrics and because more people are in the world, more income disparity. people i'm pretty sure happen. -- it will i'm pretty sure happen. emily: what happens to those people without jobs? vinod: how do we fairly address thepeople i'm pretty sure happe. people that are left out of this, and it will be most of the people.

the good news, we will have enough gdp to provide basic income for everybody. i know it sounds terrific, but we will have the resources. if per capita income is $150,000, $300,000, i think some sort of basic income as per capita income climbs above $100,000 will become very, very important and that will be a social and political issue we have to address. ♪ this is a company so many people have been excited about and now they are facing serious allegations. when do you say, it is time for new leadership? ♪

emily: a company that so many people have been excited about and now they are facing serious allegations. -- the doj is involved, accused of buying their own products off the shelves. when you say, it is time for new leadership? vinod: let me flip this question around. there was a bloomberg article recently. the reporter believed an ex-employee who bought some stock and then accused the company of giving false information. stock.pany offer to buy if you thought he was defrauded,

why did he sell the stock back? he could have gotten his money back. he did not feel defrauded. his wife is on the board. she is on the board. she looks into the details. maybe there is other stuff we will discover and i cannot say what else i will discover. i personally went and spoke with him and he did not have one credible allegation. he suggested i talk to three other people. i went and talked to three other people. emily: to the allegations bother you are concerned you? vinod: of course. every company have allegations. right,es 20% they are 70% or 80% of the times they are just bitter. we look into them whenever it is serious. i will not comment on the specifics but am sufficed to .ay, we are always looking

is the buyback relevant? the $77,000 reported? completely irrelevant to our investment decision. why is somebody investigating? do you know under the freedom information request the american was trying to destroy attempted creek because the egg industry hated them. they sued hampton creek and was for the lawsuit when they realized how bad it was. there are many enemies the company has, including using federal funds in the department of agriculture to target a company and emails discovered by a reporter in washington, how can we prevent them from getting distribution? why would a federal agency be trying? why? there is interest involved. people were being disruptive and

will get hurt. i will tell you, it is a complex story, but i cannot go into specifics. emily: how would you describe your faith in the ceo? do you still think this will be a winner in your portfolio? do you think this company can transform the food chain as we know it? vinod: hampton creek has already done a lot to change the food chain. male chicks are crossed when they are born. he is changing this tactic. are they making a difference? absolutely. even if they are not successful, they would've made a difference for bringing visibility to these real issues that the egg industry is trying to distract from. we normally talk to his team and

see if the team supports the ceo. when they do not, we need to have a conversation with the ceo. do we make mistakes? absolutely. it is a constant evaluation process. emily: you are very passionate about creek -- clean technology. some would say investors like you and john doerr made a mistake by going too far into this field. what have you learned and what is your response to that? vinod: i think is an important area. climate change is an important risk. as you climate change no different than iq homeland security, nuclear proliferation, terrorism. they are all risks. we should insure against them. how much of our gdp do we spend ensuring against foreign attacks, national defense, homeland security?

we should treat climate change the same. the business decision on how much insurance to buy. we should encourage new competitive technologies to come off and stop supporting them when they get to a certain size. it is time to stop supporting wind. maybe solar, maybe subsidies should start to decline. we have done ok and clean technology. we probably have three companies that are worth $1 billion, it another try and fail than fail to try. emily: you are incredibly philanthropic, pledging to give away half of your wealth, but one of the stories about you is about a lawsuit you are involved in a rough public access to your beach. some would say that is at odds. vinod: i normally do not like to talk about things under thatation, but giving up it will not affect my lifestyle. it is not a huge sacrifice. what i find is i can spend more

of my time working on technology . i will probably have way more impact than from my giving. the other half of that is having principle. having a point of view, a belief system. it is amazing to me how many fortune 500 ceos read the press, the wall street journal and respond to it instead of saying, this is what we believe in is a company. passionate entrepreneurs like elon musk, larry page, mark zuckerberg, they have a passion eir desirexceeds th for short-term profit, and because of that, they make more profit over the long haul. in fact, there is freedom to do what you want to do a many people get trapped into this cycle of making more. that is not that interesting.

doing all of the deals, he thinks of the smart to avoid taxes. it just blows my mind. i am religious about my belief system. when i have a battle on the beach, back to your question, it is about property rights. and about a set of people that , they told me they would like to embarrass me to giving up my rights. if you have a belief system, even though it is unpopular coming monday press has knocked you ford, you want to live by your principles, whether it is that for protecting private property rights and fighting for what the law is and then it is not clear. there are clearly things that are not in the law and it is important to get them legally resolve. the courts of the way this all things, not the defendant, press. emily: what are the dangers of technology. ? vinod: a 700 million people on

the planet have been rich lifestyle. energy rich, resource rich, healthcare services rich, education rich. 7 billion people want to. technology can be used for good or bad. i can use nuclear technology to make a nuclear bomb, or i can use it for nuclear power that provides a great services and saves hundreds of millions of lives because of power and extra energy. energy correlates to less mortality. emily: do you worry about the dangers of technology? vinod: i think we as a society should worry about it. it has negative uses, ai being one. there are things to worry about. the greater the role technology plays in society, the more we will have to use it to service people at the bottom of the pyramid. the value talk about

of failure, making mistakes, do you ever worry about overusing failure as a tool or being too willing to fail? vinod: everything is a matter of predation. when things fail, it depends on who you are. america as a society cannot afford to fail. the world depends too much on us. 100 am a mature company, people, 1000 people, 100,000 people, i should not fail. that does not mean i should not encourage failure. i only say, encourage experiments that might fail, but or 10% fail, you lose 5% of your assets, resources, your cash, marketing, but if you succeed, if any of these 10 succeed, you double your salary. i do think failure is key to innovation because risk is key to innovation. if you discourage failure or do not reward intelligence failure, then you are not innovating, not

allowing yourself to succeed. emily: thank you so much for joining us today. it has been great to have you. vinod: it has been fun to be here. ♪

♪ rishaad: i am rishaad salamat coming to from bloomberg's asian headquarters. this is "bloomberg markets: asia." ♪ rishaad: a tale of two companies , soaring on reports that it may be a close to a settlement. forver, another nightmare toshiba, wiping away all the years gains in three days.

in the bag, kate's pay jumping spadest in five -- kate jumping the most in five years. trading underway in jakarta, the general trend to the downside. weakness across the board, new zealand the only bright spot in asia today. seeing australian market pullback from highs yesterday, and japanese stocks falling 1% on yen strength. banks and exporters leading that drop, and toshiba feeling the , sharestending the drop falling as much as 26% to