>> i am caroline hyde this is the "best of bloomberg technology." we bring you our top interviews from this week. coming up, the wikileaks data trove, thousands of documents of the cia. plus, the future of h-1b. the trump administration slams the brakes on the visa program for fast tracking overseas talent. google steps up its cloud business and sticks it to a major rival. we have all the highlights from

this week's google next conference. this week, wikileaks published thousands of documents taken from the cia that expose a massive toolkit of cyber spying techniques. cia hackers have the ability to access information from what were believed to be secured messaging apps. they can also run malware on windows and tap into samsung tvs. according to cnn, an official criminal investigation has been open. julian assange of said he will work with the technology companies to close the gaps identified. >> hearing these calls from some of the manufacturers, we have decided to work with them to give them some exclusive access to the additional technical details we have so that fixes

can be developed and pushed out so people can be secured. caroline: julian assange went on to say the disclosures show the cia has lost control of its cyber weapons arsenal. >> today we have been getting statements. they took a stab at julian assange. that was pretty interesting. we heard from them saying that the american public should be deeply troubled by any kind of leaks that wikileaks might be putting out there that could compromise u.s. intelligence. while they have not confirmed anything with the leaks, they have come out publicly to us, telling us directly that they don't stand for any kind of, anything that would compromise the u.s. ability to gather

information. they have also tried to make clear that they are not allowed to do electronic surveillance on u.s. soil. you see them pushing back at the accusations we have been hearing from these disclosures. caroline: we have been hearing julian assange weigh in on the webcast. have a listen. >> the cia developed a giant arsenal that appears to be the largest arsenal of trojans and viruses in the world that attack most systems that journalists, people in government, politicians, ceos, and average people use. they didn't secure it. they lost control of it. then, it appears to have covered up that fact.

caroline: accused of losing control than covering up the facts, how dangerous could it be if the cia did leave these vulnerabilities open for others to find as well? >> vulnerabilities, but the real aim is weapons. it is one thing to release the tools if you are wikileaks, but when you release the final abilities, those can be weaponize. we have seen within 24 hours of discovering a new vulnerability, especially if it is spread around the world, then attackers will use that vulnerability. 99% of major breaches happen because of an unpatched vulnerability. if wikileaks wants to be responsible for once, then they need to take great care and how they release the phone abilities. caroline: the fbi are now looking into how wikileaks came across this information. >> right, wikileaks told us that this trove of code and malware

and viruses and zero day security vulnerabilities was circulating for a long time among government hackers and contractors. they say one of those people handed that content over to wikileaks. the question is who could that have been. the cia will be making a list of who those people are and trying to find who that one person was that turned over this content. that is something we will have to wait to see if this will be happening, investigations, into this. caroline: this is a strained relationship between the tech giants and washington at times. our minds go back to the san bernardino shooting and the fact i don't like to allow back doors into their encryption. how do you think this puts the onus on the relationship going forward? >> i think government needs to make strong national security decisions about what they need to provide tech companies.

if indeed the cia did lose this information and knew it proliferated and hackers were using it, i would like to have seen an earlier disclosure and work with tech companies to help strengthen our defense. that is security, protecting the people in the u.s., national security, especially something so important as a cell phone and our data, which is where we put everything we do and say these days. caroline: still ahead, alphabet ups its cloud game, adding customers and partners, but will it be enough to catch up with amazon and microsoft? plus, blue origins reusable rocket is expected to debut before the end of the decade, and jeff bezos expounds on that vision. >> my long-term vision for blue origin is millions of people living and working in space. we need a spacefaring civilization for a bunch of reasons, and that is the vision. ♪ caroline: disney's ceo bob iger

is staying put on a panel of ceos to advise president trump. during a shareholders meeting, and activist requested that he leave the panel, suggesting his participation supports policies. take a listen. >> i did not believe nor do i believe that my membership in that group in anyway endorses or supports any specific policy of the president or his administration. i think it is actually a privileged opportunity to have a voice in the room. caroline: speaking of president trump, he met to discuss immigration policy with the widow of steve jobs on wednesday. critics have often cited steve jobs as an example of how the u.s. has benefited from welcoming foreigners.

an organization has supported immigrants and refugees affected to trump's immigration order. google sees a competitive advantage over amazon and microsoft. at a company conference on wednesday, diane greene cited data that ranked google as the most reliable company. she went on to say google cloud is attracting clients such as ebay and verizon to a broad portfolio of products. the ceo said he sees cloud computing evolving into one of the company's core products, such as search advertising. >> google cloud is a natural extension of our mission. we are just doing it for

businesses. it means increasing the availability and lowering the cost of data storage. caroline: we also set down with the chief scientist for artificial intelligence at google cloud come asking about the transformation of machine learning in cloud technology. >> i think it will be tremendous. i think not only cost savings because of the machine intelligence and data analytics, it will open up financial services. we can have better service in terms of personalized banking or in retail. we can have new ways of delivering products to customers. ai and machine learning is huge. i deeply believe this is the driving force of a

transformative time for our industry. caroline: is it why you went into business, academia, to come to google? what attracted you to alphabet in particular? >> i think you are totally right. i have been working with technology for 20 years, and in the field of ai and machine learning. i want the field to grow into this major force of our society and the future of our business, and i want to participate and contribute in this transformation. i thought hard about what can ai and machine learning contribute, and the keyword is to democratize technology. i don't want to technology to be in the hands of only a privileged few, so cloud is the

best vehicle to democratize ai. it delivers the power of the technology to so many people and businesses. caroline: as machine learning and ai show what they can do, the question of ethics comes into machine learning as well. is that something you think businesses and academia are keeping pace of? >> it is an important topic that we should invite the whole of society to participate. every time there is a new technology transformation in our human civilization, that technology becomes a force of change in the way we live, work, conduct our business, do regulation, create policy. this is inevitable, but the important thing is that all parts of the society participate, whether as an educator or as a technologist, i care deeply about this.

caroline: a cucumber farmer using google cloud, is the price going to continue to drop? will the competition in the market help continue that? >> i'm not a business person, so i won't talk about price. i don't think i have many things sensible to say, but what i want to talk about is that the competition will not just be price. it will be the product we offer, what we can give to the customers that they need. i know and we know the customers are going to need powerful, easy to use a i and machine learning tools, and that is what i will be focusing on. caroline: how do you think google cloud and ai machine learning elements of that are better than the rest? >> we need to look at google as a company, it has the deepest in

terms of ai talent and technology. before i joined google, i was in academia and i know some of my best students go to google, and i know my google colleagues, the engineers, researchers produce some of the most phenomenal work in machine learning and ai. if you look at what google brain is doing, the work they have been doing in health care, winning challenges in ai competitions. we look at our colleagues and many things, so i think google is unmatched in its ability of ai technology and machine learning technology. caroline: that is what continues to attract people such as yourself. i have to ask you about the

ribbon. it is international women's day. i look around us and it is not particularly filled with females. >> you are being charitable. i think we should acknowledge that the diversity issue in ai and stem continues to be an issue. it's not just gender diversity. there is other diversity. caroline: coming up, wikileaks exposes alleged cia spying techniques, and samsung smart tvs are getting unwanted attention. more on the south korean giant's latest debacle. plus, jeff bezos's space colonization dream gets its first paying customer. this is bloomberg. ♪ caroline: making waves in

nevada, the company has revealed the first images of the first full-scale test track in the nevada desert. the goal is to get a test run in the first half of the year to prepare for the construction of its first commercial installation. hyperloop one will focus on transporting goods, and eventually passengers, at high speeds. blue origin saw a lot of action. jeff bezos tweeted pictures of the new engines. they announced the rockets first paying customer. blue origin has signed a satellite operator as its first client. this as the company prepares to launch more powerful rockets in the next decade. jeff bezos announced the news in washington. >> a few months ago, we started approaching customers and the

company was very interested right away, and it was, it is really a great partnership, because they have done so many new vehicles in the past, so we couldn't hope for a better first partner because they're going to be able to help. caroline: bloomberg was at the satellite 2017 conference and joins us from washington. >> it is a huge step for blue origin as a company. this is a company that has lived on jeff bezos's dream, and now they have revenue in the form of a paying customer. it is notable that this announcement was made at satellite 2017. this is the first step towards more paying clients in the future. caroline: i believe they have already been a customer of spacex.

how do space x and virgin galactic compare? >> we are seeing the continual development of new and more powerful rockets able to launch satellites to geostationary orbit. the rocket blew origin is working on, they say their launch contract is for 2021, so still a couple of years out, but it will be a powerful rocket on the scope of which we have not seen for quite some time. you are seeing jeff bezos expand to paying customers. caroline: there is a great story on bloomberg about taxpayers and how much they might be on the hook. is this something you think is becoming known by the general public, or is this something private companies should look to themselves?

>> the launch industry as an industry is familiar with mishaps, and whenever a rocket explodes, it is a setback for the industry because images of burning rockets don't do anyone any good. the insurance question is interesting. often times there is dual insurance, the deals tend to be different for each provider, but what you will see going forward is bigger, heavier, more powerful rockets capable of launching heavier and grander payloads. if you are a satellite company, you have more options. so for the satellite industry, this is great for them because they have more options and there is more competition, which will lower the cost for everyone. caroline: great for satellites. what about great for the consumer desperate to get into space?

do you have any time frame for what blue origin is talking about? >> they are talking about taking tourists to the edge of space for weightlessness and in bringing them back. i don't know the timeline, but it is within the next few years. they have leaned on what they learn from test flights to develop the new rocket they are talking about. caroline: remind us of what jeff bezos's grandview is here. we know elon musk is a visionary, but what does jeff bezos hope to achieve? >> they are similar guys, both tech billionaires who made their fortunes in the internet, didn't immediately plow those fortunes into private space companies. jeff bezos started blue origin 15 years ago, and they were relatively quiet until recently, but his vision is similar and he wants to have millions of people living and working in space.

caroline: it is more headaches for samsung. according to documents released by wikileaks, samsung tvs could be used to spy on users. they have a microphone which can pick up and transmit information while the device appears to be switched off. it says it is aware of the report and looking into the matter. the south korean tech giant is hurting from recent debacles, jay y. lee preparing to stand trial for bribery and investment. >> there were many competing devices that were mentioned in that report from wikileaks from apple phones to android phones, but this is the last thing that samsung needs right now. they are trying to get back on track after the troubles with the smart seven.

they are poised to introduce the next smartphone, so they don't need any more hits to the brand name. the wikileaks documents show the cia was using a program called weeping angel to convert smart tvs into something that looked like it turned off, but would be monitoring what is going on in the room, so not a good thing for them. caroline: not a good thing when it is a product element, and the helm of the company, jay y. lee, facing court once again. explain to us how much the investigation into the executives has broadened out. >> that's right. today we have the preliminary hearings for the trial. it is not clear whether jay y. lee will appear, but attorneys for both sides will appear. one thing that is striking is how quickly the investigation is moving at this point.

the special prosecutor was tasked with investigating these allegations of trading favors at the highest level of government, and only given 90 days to do that, which is quick by international standards. he asked for a 30 day investigation extension, and the same administration of the president who has been in peach denied him the extra 30 days to keep digging. they also won't let him into the president's residence to continue the investigation, so he is playing a quick game and now the trial will begin and move quickly. caroline: how is asia responding? the investor base, samsung is at all time highs, but is there concern jay y. lee could end up in prison? >> it is a high hurdle to prove he personally was at fault in some of these payments. samsung has denied any

wrongdoing and said they did kill tens of millions of dollars in payments to this confidant president park, but said it is not an exchange, so there is a high hurdle to prove jay y. lee was involved. the samsung business has continued quite strong, shares near an all-time high, chip and display business is doing well, so that has bolstered them come and now they will come out with this new smartphone at the end of the month. caroline: coming up, president trump's latest order puts the brakes on h-1b visas. what does it mean for silicon valley attracting top talent? all episodes of bloomberg technology live streaming on twitter. check us out at @bloombergtechtv at 5:00 in new york and 2:00 in san francisco. this is bloomberg. ♪

♪ caroline: welcome back to the "best of bloomberg technology." i'm caroline hyde. this week, president trump took a second crack at his controversial travel ban. the new executive order replaces the original and restricts entry to people from six predominantly muslim countries. iraq was removed from the first list, and the language was amended to make clear that visa, green card holders and citizens will not be denied entry. it is more onerous in certain areas though, with the suspension of the 15-day premium processing program to pass track applicants for h-1b visas, a process that silicon valley tech firms used to find the best and brightest talent. we caught up with michael

solomon. >> i believe what we are looking for right now is the beginning of the dismantling of this program, and i think that will work counter to the administration's goals, which is unfortunate. caroline: we know there are some key issues at the heart of it and, sometimes being misused. how could it be improved rather than dismantled, as you are currently worried about? >> i believe one of the things we talked about the last time i was here that we can increase the threshold for hirings, so rather than a $60,000 minimum, move that to $120,000. the companies who need to bring in foreign talent because they can't get people here can easily afford to pay twice what they are paying now. they can afford to pay much higher expedited fees. that is good for the government.

that is good for the economy. it will not take away jobs from people here, because if people here are qualified for those jobs at lower prices, they will take them. the problem is that you reduce the number of tech talent that come in, all you would do is increase the pricing for those here. it will not create new jobs. caroline: how have your clients been reacting to this? have they been trying to find talent ahead of any sort of cutback? we know it starts in april and they are allow their new allotment of people coming in on h-1b visas, but how are they trying to maneuver? >> i think everybody is sort of frozen right now. we have seen this administration moves,lot of very bold then retracting from them, and i believe what we observe is everyone trying to understand the changes, how quickly they will rollout, and hal it will impact them. the announcements just made are speak, andted as we i think we will see what the

tactics are. the truth is that for a lot of companies relying on those expedited thesis, they will have a shortfall and have to deal with the fact they will have to find local talent, and it may not be the right talent for a but maybe worse, they move those roles offshore completely come in which case we all lose out. caroline: are you starting to see that or hear that voiced by clients? >> it is sort of a simple equation. when you have a job that needs can't find and you people here to do it and can't bring people here to do it, you will go somewhere else. caroline: there is talk of canada -- which countries do you think are being looked at the most? >> india comes to mind first because they have a very large population of educated people, but i hear especially as you look in the data science realm and machine learning, more about eastern europe, and russia in

particular, but there are other places in eastern europe that have large swaths of tech talent, and we are just going to see these jobs and the tax base go other places because somebody has to do the work. caroline: have you seen openings piling up? is the talent crunch already upon us? you said at the moment we have on, buta freeze going are you seeing it being demonstrated? >> i believe the talent crunch has existed for years and will continue to exist for years. i have not seen something happen in the last few months that makes it much worse, but i do think we are going to see as this policy and the effects of this policy come into play, we are going to see rising prices. that is the first thing we'll see, that companies will pay more for jobs that they were paying less for prior. caroline: the cost of basic going higher. michael solomon, do stick with us, uber employs are starting to

explore exits from the company. that is according to a report by the financial times. last week, two executives resign from the ride hailing app, and the company draws scrutiny of its every move. how does being under such a microscope impact employees? michael solomon, let's bring you back, founder of 10x management. i want your take on this, xitause is there an uber e going on at the moment? are you seeing a pool of talent coming from that business? >> i think we will see some big changes as result of what is going on at uber. there are a couple of things you have to note. when a company has a misstep, everybody can be forgiving, acknowledging that all companies and management make mistakes. when you have a second misstep, more people question whether this was a one-time anomaly, a trend, a failing of management? when you have a third and fourth misstep within a two week

period, you will see fallout from that. you will see people leaving. you will see lots of discussion about management and culture changes, and you will see people ready to go, because there is no shortage of jobs for these people. caroline: does it still look like a good place to have worked do you think? people putting off applying for jobs there? when people are leaving, do they want to brag they are there? >> funny you should ask that. we have a returning client to us who has uber in his experience, somebody we have done work for in the past, and we had a long discussion about whether that is something we should list right now. i will say that when we started the discussion two weeks ago, it was an absolute yes, with me ly that this isar a big, strong company and the fact you work for them was a good thing and no one will hold you responsible for mistakes management made, but as the stories of the last two weeks have continue to unfold and it seems like foible after

foible, you start to question that. i still think it is worthwhile to list it as a company. it is an amazing platform and amazing piece of technology, but from a cultural and management standpoint, i think that is a hard line to walk. caroline: coming up, our exclusive conversation with udacity and google x founder sebastian thrun and his take on automated driving. we speak to one of the biggest peer-to-peer lenders in the united kingdom, how the company is faring after brexit and what is ahead for the u.s. business. that is next. this is bloomberg. ♪

♪ caroline: now sebastian thrun is known to be one of the most innovative minds in silicon valley. a research professor at stanford , and founder of google x. now he has moved on to found udacity, the online education

start up that offers skills for automatedd jobs like cars. the company just announced two new nano degree programs along with 19 new hiring partnerships. we caught up with sebastian thrun and asked how partnerships will help students land jobs at companies like facebook and google in the future. >> we have companies as far ranging from google x and irobot, companies that want the latest and best talent. there is a huge gap between the talent that exist today and the talent companies want. udacity gives every person a chance to upscale themselves and get the right talents so they can find the right job. caroline: the timing is fascinating. yesterday we were discussing the executive order put in by donald trump making it harder to get h-1b visas. this is something that is

depended on by silicon valley in particular to get the right talent. we have amazing talent in this country. it is not available for everybody. udacity makes education accessible and gives people brand-newt are leading edge. , udacity he trains more self driving car engineers than all combined at this point. we have companies like were mercedes, waymo, and tesla will end up hiring them. caroline: how much has there been a worry, concern that these technology degrees and technology schools haven't always had the employee and indeed the amount of employment that many had hoped? has that tarnished udacity? or do you think people understand the rates at which you can get people into the workforce and quickly?

>> again, i believe our students trust us. we are working really, really hard to keep costs down and get people jobs. that's why we make things like money back guarantees and so on. we hold ourselves accountable. the difference between us and everybody else is we devise our content directly from companies that end up hiring those students. we go to top companies like amazon and facebook and ask them what would it take for you to hire a person, then they say they need to prove proficiency. that becomes our curriculum. caroline: talk to me about the rest of the world. before we have seen tech talent coming to silicon valley, particularly from india, china and other parts of the world, and europe. are those people going to remain and create jobs at home now if the visa applications become harder, if moving to the united states becomes less palatable? the sametell you,

talent is needed around the world. every company now is a mobile company because of android and ios. every company is a machine learning and big data company. they realize they have to use the data. our students fine jobs in many other places. we are proud of this. we opened up and saudi arabia. and saudi arabia, women aren't allowed to drive, so they are all online and speaking wish, and we can empower women in , and we canh empower women in saudi arabia that has not happened before. caroline: you're talking about saudi arabia, but are there other areas of the globe where you want to be? >> i would like to be in every household and make it free if i could. i would love to give more scholarships. the reason is that there is a huge inequality in the world. africa, middle east, indonesia, india, south america, you have

more than half the world's population and you won't find a single top talent university. that does not mean those people are dumb and don't deserve education. it means they don't get it. we are bringing great education to all those people. caroline: you have had interesting competitions, and china in particular. where do you think silicon valley needs to be worried right now in terms of competition and the talent of technologists and indeed technology companies? >> china has done an extraordinary job in tech. if you look at the big tech companies, four out of 10 are chinese at this point. none are european. i think silicon valley will remain this force of crazy, disruptive innovation. i think the people who think new things and build something completely out of the box tend to come here and work with us and others. i think china is doing great job in part because china is very

large. the market is very large. that is why there are so many great chinese companies. caroline: will the u.s. always been the number one market for you? prophet in had a my family to know. but ithe world is going, love the united states. i love what we do here. you can be an entrepreneur and invent new things here and get away with it, which is great. we are in some sense the university of silicon valley now. we are reinventing what the university should be. caroline: do you think that is a risk under the new administration? >> i am still in my wait and see mode. obviously there are many things to be set on both sides, but i think everybody, including the president, has the good of this country at heart, and everybody i talk to really worry about how can we take the great american

workers and make them fit for 21st-century technology. so actually i think udacity is silicon valley's response in taketo this nation, to everybody along and leave nobody behind. caroline: that was udacity founder sebastian thrun. this week, we have been focusing on digital lending with the peer-to-peer lending picking up steam globally. we kicked things off on monday with some of china's regulatory hurdles, then turned to the u.k. and u.s. funding circle, the london-based peer-to-peer lending operates in four countries. funding circle cofounder sam hodges joined us for more. >> there are some big differences between the u.s. and u.k. markets. the starting point is the in borrower, the customer we are trying to service similar. it is an established small business owner looking for capital. the u.s. market is bigger and

more fragmented, but over all a lot of the principles also apply well in the states. caroline: what about the growth targets for origination of loans here in the united states? can you paint us a picture of where it goes? >> absolutely. we have grown the business precipitously in the last few years, anticipating between 75% and 85% based on strong performance in 2016. we continue to see a huge opportunity to serve small business customers across the state and are focused on delivering a high quality experience for all of them. caroline: what about the credit problems in the loan book that struck funding circle in the u.s. in 2016? you had to stop making new loans. how has the credit scoring changed? >> we actually grew our business through 2016. certainly there were pockets of 2015 loans that underperformed intoxpectations, but going

2016 and now in 2017, we feel positive about the overall performance. our 2016 book is holding up well from a delinquency perspective, and i think our institutional and individual investors are happy. caroline: you talked about institutional investors there, are we seeing a heavier weighting or similar waiting for of institutional investors wanting to buy up the loans in the u.s. vis-à-vis the united kingdom? >> we form capital in three different ways globally. here in the states, we have a number of large institutional players. last week, we announced another $100 million commitment from community investment management, which is an institution focused on social impact. we are excited about that. beyond that, we have a fractional marketplace with credit investors. over time, what i anticipate is you see that reasonably balanced across those three legs of liquidity. caroline: would you ever get a banking license? would you want to make loans on your own balance sheet?

>> we are licensed in the u.s. the weight we have approached our regulatory framework is on a state-by-state basis. we hold licenses in 13 states, and in other states, you don't have to be licensed or passport licensing from other areas, so we don't necessarily see a need to get a banking license in the united states. we have a framework that works very well as it is. caroline: still ahead, the company that is looking to be the netflix of fitness classes. we focus on the technology of peloton next. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg app, bloomberg.com, or sirius xm. this is bloomberg. ♪

♪ caroline: peloton is one company taking advantage of the demand for on everything with proprietary bicycles and tablets that let users tap into classes from home. convenience comes at a cost. carol massar has the story. ♪ >> this may look like your average cycling class, but it is not, and what you can't see in the studio are the hundreds of writers joining in from home. >> last one. i need you to be magical. >> peloton is one of many companies disrupting the fitness industry. from daily burn to crossfit, fitness is becoming more about on demand and all access. there is an increasing number of workout companies using technology to offer members unlimited streaming workouts s users take classes from different locations or in the convenience and privacy of their home. peloton cofounder and ceo john foley.

he likened it to people wanting in on their terms, their time, and more convenience. >> at 8:00 you had to be there for magnum pi. now with netflix and streaming, you can watch content and consume content where you are, when you want, so i think fitness is the next frontier of that, and i think peloton will help to pioneer it. >> today, some $26 billion is spent annually on fitness and the u.s. digital workouts are taking a chunk out of that number. on demand fitness services jump to nearly 8% of total spending on workouts last year, up from nearly 5% in 2014. at peloton alone, sales doubled from 2015 to 2016. the company made $170 million in revenue last year, nearly three times as much as the year before. peoloton, founded

hopes 2017 will be the company's first profitable year. how do you see yourself? >> at our core, and innovation and technology company. >> health and fitness? >> we are in the fitness category and the first to enter the category. >> yet peloton has its own stationary bike that let's users tap into classes or a library of workout offerings at any time of the day in the privacy of their own homes. how many bike owners do you have? >> so we are approaching 100,000 bikes in the market. >> ok. is that globally? >> it is effectively globally. we sell domestically, but people have taken them to 26 countries, so we have devices all over the world. right now we are focused on selling the bikes in the states. >> there are rides where you can be in europe riding or part of a

live class or download a menu of different types of classes. i'm just curious, what gets the most use? >> interestingly, only 20% of the rides taken our live. i think the live experience is much more fun because of the energy of live music. you are there. they can give you a shout out, break the fourth wall, look into the camera, and say you will pull us up the next hill, and it is very immersive. you are part of the theatrics and entertainment for a live class. on demand is 80% of the rides, and what it tells you that people care about their instructor, their time, controlling that environment versus being driven by our schedule. >> have your own stationary bike and still want access to classes at home? there is a peloton app for that. who do you see as your competition? >> we are rooting for the category.

we love soul cycle, flywheel, yoga. we are trying to be good in the fitness category. so to your question, what keeps me up at night is whether apple, google, or amazon were to enter our category. those are the only three companies that have the tech resources and tech chops that could give us a run for our money. >> ipo this year? >> no. >> because? >> we are looking to do a fund raise in the next couple of months that would allow us to be as aggressive as we want and take our time considering the public markets. >> next year maybe? >> maybe. >> maybe. i read something about a $10 billion valuation in five years? is that real? >> i would be disappointed if it weren't real. i think that certainly starts to be in the order of magnitude as what we are seeing as the opportunity here. it is on the low side of where we see the business going in the next 5-10 years.

>> this april, the monthly subscription service which grants users access to classes plans on rolling out its own video on demand feature, joining daily burn and beach body on demand, which have been offering streaming since 2015. while currently only 15% of fitness consumers are working out on demand, it's not expected to stay that way. >> in five or 10 years, we will see the digital fitness trend grow. i think the new entrants to the market will be in turn with new technologies, including augmented and virtual reality. >> i think americans are living busier lives, so they want things to work into their schedules and work into their locations versus having to go somewhere. i think that is a dated concept. caroline: that does it for this edition of "best of bloomberg technology." we will bring you the latest in

tech throughout the week. tune in wednesday. remember, all episodes of bloomberg technology are now live streaming on twitter. check us out at @bloombergtechtv weekdays. that is all for now. this is bloomberg. ♪

♪ coming up on "bloomberg best," the stories that shaped the week in business around the world. in the u.s., fierce debate over a travel ban and health care plan. >> members of the united states senate have said it is a nonstarter. >> it is dead on arrival. scarlet: china sets its economic targets, and britain accounts for brexit. >> i call it cautiously optimistic or upbeat, but with few giveaways. scarlet: jamie dimon fires from the hip in an exclusive interview. >> the banking problem's not his people say. scarlet: