>> you are watching "bloomberg technology." president trump launched out at his critics today during an address of u.s. coast guard officers. of 2017 to the class "fight, fight, fight" when facing challenges in adversity. he says no politician in history has been treated more unfairly than he has. a white house senior official tells bloomberg that president trump has decided not to immediately move the u.s. embassy in israel to jerusalem. .rump had promised such a move the senate judiciary committee wants the fbi to provide memos

from james comey, and for the white house to turn over any audio recordings of conversations with the former director. the letter was sent to the justice department of the white house today. nobel priest ties -- peace prize winner emmanuel santos meets with trump tomorrow. that is after trump secretly met with mar-a-lago in march. he hopes to push for a peace deal stuck with -- struck with farc rebels last year. from washington, i'm alisa parenti. this is bloomberg. "bloomberg technology" is next. ♪

emily: i'm emily chang. this is "bloomberg technology." coming up, the tech entrepreneur with big plans to be maryland's next governor. alex ross joins us to discuss the growing divide between tech and politics. plus, our conversation with hiroshi lockheimer, the mind behind the most popular operating system on the planet. the google exec joins us from the annual developers' conference to map the road ahead for android. and our extensive interview with famed venture capitalist fred wilson. the twitter investor tells us where he is placing his bets and why he is still bullish on jack dorsey. first, u.s. stocks turning their worst performance this year -- turned in their worst performance this year. this after a memo surfaced that president trump asked james comey to drop the investigation into former national security advisor michael flynn. the crisis threatens to derail the policy agenda that helped push equities to record highs as recently as monday. tech shares were not immune to

the selloff. the nasdaq tumbled the most since june of last year. for more, we are joined by our bloomberg news stock reporter, abigail doolittle. abigail: what a selloff, as you mentioned, the worst selloff since september of last year, the worst of the year on this shift in sentiment. but relative to the nasdaq, as you mentioned, underperforming, both the dow and the s&p 500, by about 80 basis points, down about 2.6% on the day. some of the biggest drags are the biggest tech names, including apple, microsoft, facebook, and amazon. apple down more than 3%, its worst day in more than a year. that's the magnitude of the sentiment shift here. microsoft down in a big way. its worst since june of last year, since the time of the brexit. a big turn in sentiment. the reason this matters is that tech has been the best sector of the year. will this hold up? relative to apple, we can see that today's decline shows in

that chart. that goes right to the heart of what's happening today and questions -- there is a shift in faith as to whether or not president trump will be able to put through some sort of tax reform. if not, apple could have a very difficult time, or may not repatriate that huge cash pile. this matters because apple is the biggest member waiting in both the s&p 500 and the nasdaq. and a 5% weighting in the dow. if this sentiment continues, it could really drag on the markets. emily: what about the chipmakers? their losses even bigger. abigail: being dragged down by lots of the usual suspects. texas instruments, broadcom. valuation concerns. this has been a highflying sector, so investors taking a bite out of that today on this big risk-off day. that risk off also shows in the nasdaq 100. than 40%.e

we've been talking about the complacency. it's starting to reverse. finally, cisco plunging in the aftermarket, down more than 7% after they issued a very disappointing sales guidance for the fourth quarter. it's going to be interesting to see whether this selloff continues into tomorrow or if it's a one-day blip. emily: we will talk more about cisco later this hour. abigail doolittle, thanks so much for that update. the volatility in the markets triggered by volatility in the white house. president trump faces the deepest crisis of his presidency on reports that now-former fbi director james comey wrote in a memo that the president asked him to stop investigating his first national security advisor, michael flynn. for more now, we are joined by alex ross in new york, a best-selling author, former advisor to secretary hillary clinton at the state department, who has just announced he is running for governor in maryland on the democratic ticket.

thank you so much for joining us. let's get right to it. do you think what trump has done, allegedly, is grounds for impeachment? alex: i do. if he is seeking to shut down an ongoing investigation by the fbi, it's a demonstration of his lack of fitness for the office. he has already proven incapable of basically the executive functions of the presidency and, now, clearly, and not surprisingly to a lot of us, he lacks the moral and ethical backbone necessary to be president. it would not surprise me if before 2020, we have a president pence. emily: so, what could next steps be -- an independent commission, a special prosecutor? how can this republican congress get behind it? alex: the obvious thing is to appoint a special counsel. there are a few republican members of congress who are suggesting as such, but i think

unfortunately, too many of these folks are licking their finger, holding it up to see which way the wind is blowing, and they are afraid of their approach trump -- their pro-trump base. a lot of them, i think, have forgotten why they came to washington in the first place. they are focused on their reelection, their popularity. we will see how many dignified men and women do come forward from both parties and insist on a special counsel. emily: trump is the reason you decided to run. why? alex: talent is everywhere and opportunity is not. the simple fact of the matter is, in places like coal country, where i grew up, people overwhelmingly voted for donald trump because they felt so disconnected from our politics and from our politicians. so, the reason i'm running for governor of maryland is to try to respond to the legitimate needs of struggling people in the working-classes and try to figure out how this innovation-based economy can

work for more people. emily: talk to me about your accomplishments, alec. what have you done that you want voters to know? alec: we need entrepreneurs, people who have been successful in business getting in and doing the hard work of government. i also think that as we transition from an industrial-based economy into an information-based, technology-rich economy, we need folks like me, who have worked in that world, who understand what the really tricky policy challenges are, so we can figure out how people in our stagnating working and middle classes can go from an industrial-based economy to a technology-based economy. that's what i've done the last 23 years and it's what i hope to do as a public servant. emily: tech has been proposed as the solution to everything. i know that you think an increase in education in computer science will lead to economic betterment. but is learning how to code all it's going to take? alec: absolutely not.

but i'll tell you what, computer code is the alphabet that much of the future is going to be written in, and it's important for today's kids to be literate in that language. right now in the united states of america, there are 500,000 unfilled jobs that require computer science skills. for all the on employment and underemployment we have, there are half a million jobs just begging for people who have very basic computer coding skills to take them. 20,000 in my home state of maryland. i do think, while making sure that every kid from kindergarten through 12th grade is computer literate, it's not going to solve all the problems, but what it is going to do is help make sure the kids from every zip code can help fill those half a million empty jobs. emily: speculation has swirled that mark zuckerberg, the founder of facebook, is considering a presidential run. there was a report that sam

altman of ycombinator may be considering a run for california governor. what do you make of these reports? alec: it's the same thing that threw me into the run for governor. a lot of us care deeply about the rise of the rest. those of us who have worked in the innovation economy and do believe that it can help more people -- government is powerful. you can do a lot in the private sector. you can build your workforce. you can build wealth. but there are some things that only government can do, like run our public schools. and so, i'm encouraged when i hear about people like mark and sam -- i don't know if they're going to run or not. but in general, i think it's good for people who have been in a little bit of a bubble, who have been successful, to say, you know what, i'm going to go out and try to solve problems beyond just maximizing shareholder value. emily: as long as they are not president trump? he's a businessman, too.

alec: he was a terribly unsuccessful businessman. he inherited a couple hundred million dollars from his daddy. if he had just put that in an index fund, he would be richer than he is today. nobody with that many bankruptcies i'm going to call successful. charlie: all right, alec ross, candidate for maryland governor. thanks so much for joining us. alec: thanks for having me. emily: the patent battle between qualcomm and apple is heating up. now the chip company has sued assemblers of the iphone for allegedly not paying patent royalties. among those qualcomm has sued, foxconn and pegatron. unlike other smart phone companies, apple does not have a direct license with all, -- with qualcomm. instead, foxconn pays contractors to make its phones. part of that money is used to cover royalties. coming up, the annual google io conference kicks off in mountain view, california. we will hear from the man behind the company's android operations, hiroshi lockheimer. this is bloomberg.

charlie: -- emily the google i/o conference : is taking off in mountain view, california. among the new developments, a new supercomputer chip. google is making its digital assistant available on the iphone to compete with apple's siri. google also unveiled updates to android, the dominant mobile operating system in the world. we spoke to hiroshi lockheimer about some of the most exciting announcements. hiroshi: we announced a lot today at i/o. there are now 2 billion monthly active devices in the world running android. that's very humbling, and it's a huge number, obviously, and it's hard to even comprehend, but we are really excited about that. we also announced the beta for android o, our next release of android. also, we announced a new configuration of android that we call android go, which is aimed

at devices in emerging markets, devices that have one gigabyte of ram or less, and making that experience great for those users. those are some examples of a lot of things that we announced today. emily: what progress you think you have made over the last year with android n? hiroshi: we announced android n last year and launched in the fall. a number of devices have launched with android n, and many devices are upgrading to android n. there's a lot of good stuff in there and the rollout continues. emily: with android o, what sort of new security features are you integrating? what are you doing to combat fragmentation? hiroshi: around fragmentation, there is a lot that we are doing. it's something we have been working with the industry on for many years now. specifically, this year, we announced what we call project treble. it's a re-architecting of the lower layers of android. a customer won't notice it, but for the industry, it's a big deal.

we have completely redesigned the bottom part of android that deals with the hardware to make it really easy for manufacturers and operators, the people who sell android devices, to update these devices and have a quicker turnaround time. emily: and what about security? what new security precautions have you introduced? the world is weathering another global cyber attack. hiroshi: around security, we have been doing a lot for many years now. one of the things we realized was, a lot of what we have been doing has been behind the scenes. there's a lot of protections we put in place. obviously, the architecture of android to begin with, but also protections put into place through google play. we scan all of your apps all the time. but we realized no user of android was aware that we were doing this. we have now put these systems front and center for the users so they can see what we are doing, so that they can have a sense of security that actually reflects the real state of the world. we call that google play protect. that is something we will be rolling out soon.

emily: last year, you introduced something called instant apps. what kind of progress have you made there? hiroshi: we've been in beta with with instant apps since the last i/o. we have been improving the infrastructure for that. starting this week, we are expanding that so that anyone, not just the beta, any developer can develop instant apps, which really facilitates making it easier for users to get their apps without having to go through the installation process. emily: pixels, the new phones that google has been making, reportedly haven't sold very well. how has that impacted android? hiroshi: the pixel is an android phone developed by the hardware team within google. on the platform side, i work with everyone, all the manufacturers, samsung, lg, huawei, you name them. we don't really comment on any

particular device from an android perspective. we are just happy to have more device manufacturers targeting their user segment. that's what makes android great. it is a scaled ecosystem across multiple partners. emily: you have announced new auto dashboard systems with volvo and audi. what is android's strategy in the car? hiroshi: we have a number of products available for the car. the first one we call projected mode, which enables a customer to take their android phone, plug it into their car, and have the phone power the car's infotainment system. that's been available for a while now. there's hundreds of models that support this already. what audi and volvo announced is actually running android itself in the car directly, so that you don't need a phone anymore. it's kind of a behind the scenes thing. it's how the car manufacturers are making their cars. they happen to be using android, which makes it possible for android developers to bring their apps and services easier into the car environment. emily: we are expecting a big

redesign of the iphone from apple later this year. as the head of android, how do you brace yourself for the iphone revamp? hiroshi: it's an exciting time to be a consumer, because there is so much going on, so many manufacturers working on interesting innovations. i think it's a good thing. it keeps the android manufacturers on their toes. it makes them work harder. it makes us work harder. i think it's great. emily: are you wearing an android smart watch? i'm curious what's holding android back in wearables? hiroshi: i am wearing an android wear watch now. we make our platform available to anyone to build products with. that's our strength. we have a lot of partners now in the fashion industry, as well as consumer electronics industry, building android wear-based wat ches. -- watches. emily: hiroshi lockheimer there. google svp of platforms and ecosystems. we will have more coverage from

google i/o later in the hour. we will speak with google's vice president of engineering. coming up, shifting from hardware to software may be more challenging than expected for cisco, out with >> a disappointing fourth-quarter sales forecast.

emily: cisco shares plunging over 8% post-trading after posting third-quarter earnings. shares down 8.37% after hours. this, after a disappointing sales forecast. revenue was relatively in line with analyst expectations, while profit per share was slightly higher. the company giving that disappointing forecast, highlighting the challenges facing its multibillion-dollar hardware business as the industry shifts towards cheaper software-based networking products. joining us, our research analyst who covers the company. what do you make of the progress or lack thereof on the

transition from hardware to software? glenn: it's a long process. it's going to take a while. i think maybe some investors are getting impatient with the transition. but its core networking business is on a slight decline. there's a lot of headwinds in that business. moving into the software space, i think cisco is making some good progress there, but it's going to take a while to offset that huge amount of revenue in the networking space. emily: cisco is normally thought of as a bellwether for the tech industry. with all this political uncertainty, the trump tax agenda, cisco could conceivably benefit from it because they have so much cash overseas, but with trump's future in question, what does that mean for cisco? glenn: i won't comment on the political landscape. but should that tax holiday come

through, it will be a real boon for cisco shareholders. cisco has an enormous amount of cash overseas, as do other tech companies, like apple and microsoft. but if they can bring that back, they are going to use some of it for expansion through m&a, but a lot of that is going back to the shareholders. i think we will see that across the tech industry. emily: what sort of m&a are you expecting? glenn: more software. made robbins, the ceo, has it pretty clear that he's going to turn this company into a software company, his most recent acquisitions are indicative of that. it will be more software assets, for sure. potentially some storage, but there has been a lot of debate about that. emily: cisco did make a small acquisition called mind meld, $125 million, meaning that they

are entering a very big battlefield of ai. what is the potential for cisco when it comes to artificial intelligence? glenn: every tech vendor on the planet wants to get in on the ai game, and for good reason. the algorithms and the technology that goes into these various things that people like to call artificial intelligence -- these things are the future, because it gives you the ability to make sense out of enormous amounts of data. we are swimming in data. we have to try to make heads or tails out of the needles in the haystack. and, you know, it gives the tech company some stickiness, in the sense that, for most of this technology, it is pretty easy to reverse engineer it and to compete with a product that is like the one that you are copying. and there is a constant game of leapfrog that just keeps going on. but good analytics is sticky because it is hard to reverse engineer. you can hide a lot of the magic under the covers. that means if you're going to

buy technology in this field, you are probably going to keep buying it for a while. that makes for good long-term revenue and profits for the company selling it. emily: glenn, we're still feeling the ripple effects of the rent somewhere hack attack -- ransom ware hack attack. clearly, there are renewed concerns around security. what does that mean for cisco? glenn: cisco and other vendors who are in the security space -- and yes, cisco has a business and security -- these companies are all benefiting from the mass hysteria and justified paranoia around this. but where we see the real future for security is building security into these technologies. cisco has done a lot to build security into the network. emily: ok. glenn: and that's great, but we have to expand that baked in security across the board. emily: thanks so much for

joining us. and be sure to catch our interview with the cisco ceo thursday, 9:40 a.m. eastern on "bloomberg daybreak: americas." this is bloomberg.

seem tohe bond markets be saying that the people in washington could throw the feds off if the rate hike passes. the fear that the fed raises rates next month are about 60%, but down from about 80% a week ago. the chances of a move in september are also falling, and the fed funds futures market is not pricing and a full hike until november. veteran investors say there is no question there is no risk in backed companies offer a level of security.

will make sure major sectors do not stop during the downturn. mobius says the industry should participate in china's initiative and says investors have reason to be optimistic. >> at the individual company level, there is no question that there are risks, but when you look at the major state owned enterprises and banks, there is no risk. this is a planned economy. the government decides what is going to happen to these companies. shery: the justice department is said to be preparing to sue fiat overler as talks t emissions fail. negotiations continue and may result in agreement three at the case alleges the use of illegal to disable pollution control and enhance performances

. volkswagen admitted in 2014 to using similar technology. this is bloomberg. asian traders playing a cautious this thursday, sending regional stocks to a six week low amid high turnover and a return to volatility. aussie shares falling over 1% as rs take in positive economic data. indonesia's stocks managing to eke out gains ahead of the bank of indonesia's policy decision due this afternoon. we are also looking at the mexicans -- mexican peso, a steep selloff. the trump drama and then folding crisis is putting pressure on high-yielding emerging assets. take a look at what is going on with the dollar. good.s. the index looking but the strength of the

speak of the volatility that still exists for greenbacks. -- commodities, we are seeing pressure on iron ore futures in china. ♪ charlie: -- emily: this is bloomberg markets -- bloomberg technology. i'm emily chang. as we discussed, it was the worst day for stocks so far this year. it's tumbled the most is in september. volatility is back in a big way. the vix skyrocketed more than 30%, its biggest jump since the brexit vote last year. the corporate finance system is a broken. that is what fred wilson had to say about early stage investing techonomyh economy -- conference on wednesday.

they say users should have access to investing in companies before they go public, not just extremely wealthy investors. wilson's firm have invested in a number of web 2.0 companies. we caught up with him at the conference and asked if the vc market is oversaturated. >> it is hard for me to know, because i don't know what the demand side of the equation is. it is clear to me that there is probably an order of magnitude more good investment opportunities in the venture capital industry than there was a decade ago, so that would suggest that we could manage an order of magnitude more capital, but obviously these things go up and down in cycles, and we could be at a place when there is more life capital than demand. but i think we are in an upward slope on both. it is hard to say. emily: if there is more supply than demand, what are the implications? >> i think that means prices go

up, returns are down, and then capital leads the sector, and then there is more demand than supply. prices go down and returns go up. that is the ebb and flow of the capital markets and the venture capital business. emily: i know you watch the barometer that tracks the health business environment for private tech companies. it is down from the peak in 2015. what are the negative signs you see this year, and what are the positive signs you see this year? >> i think there is a lot of sobriety in a number of sectors that have been very frothy in the past, but we have new sectors that are now frothy. they will have to go through their own hype cycle, if you will. emily: twitter is one of your most prominent investments. just announced he is

bringing back one of the original court -- cofounders. how likely is it that twitter can really accelerate user growth and sustain that over the long term so that twitter is someday significantly bigger than it is today? >> i'm very bullish on twitter. i should disclose i own a lot of twitter stock. i want viewers out there to know that. i think twitter is a unique company. the content you can get on twitter is unlike anywhere else on the internet, and that is becoming more and more the case, particularly real-time breaking news. anyone who wants to consume real-time breaking news, there is no place better to do it. i love that the band is coming back together. when jack came back, i think that was the beginning of a lot of good things. when i saw the news yesterday, i had no idea it was happening. it made me smile. i'm so happy.

emily: snap stock plunged after its first earnings report, facebook has been copying snap features and deploying them across their products. what is your prognosis for snapchat? >> what is the prognosis for facebook? it has no original ideas and just tries to put innovative businesses out of business by copying them. i think that is the question to really ask. emily: does that mean you are --imistic about snapped snap's future? >> no. i think it is very depressing that facebook can come up with any innovations on its own. emily: what about uber? uber has had its share of issues. what went wrong there? >> i think the issue with uber is that they believed they could run the table on the ridesharing capitalized the company and built a strategy around doing that, but i think what turned out to be the case

is unlike social media, e-commerce, ridesharing doesn't look like a winner-take-all market. they are struggling with the realization that they are in a highly competitive market. i think a lot of things happening to them are happening because of that. i think they've they have become a lot more desperate. i think it is tough times there. i think when those things happen, you see companies, glued -- come unglued a little bit. emily: how much does it come down to the leadership? >> well, the leaders are the ones who made the strategy and executed the strategy. if they had the wrong strategy, they are accountable. emily: so, what is your reaction to the latest revelation that president trump reportedly asked

james comey to drop the investigation into michael flynn? fred: i don't really follow this stuff. when trump got elected, i stopped following anything to do with trump. i mute the term on twitter. i'm not really interested in the president, and i am not really following any of this. i am paying attention to things that matter to me. emily: as long as trump remains in office, how does it impact investing, how does it impact startups? is the political climate changing anything you are doing? fred: no. not at all. emily: all right. so, you clearly care about social issues. you have done campaigns for planned parenthood and the aclu. you are blogging about immigration. diversity is a huge topic right now, diversity in d.c., especially.

when you plan to hire your first female partner? >> as soon as we possibly can. emily: how important do you think that is? >> very. emily: [laughs] you have also blogged about generational shifts in d.c.. how long do you plan to stay in the game? fred: as long as the game will have me. we will see how long that is. it is a great business to bn in. i love working with entrepreneurs and with important companies. i couldn't imagine doing anything other than this in one way or another. emily: that was union square ventures cofounder fred wilson. in china, tencent is showing that online spending keeps defying a slowdown in the economy. tencent reported a 55% surge in quarterly revenue.

blockbusters and gaming content drove one billion -- coming up, flight officials have banned laptops on flights from the middle east and africa. now they are worried about laptops from europe. we will explain why, next.

emily: in today's funding board, crowd strike has raised $100 million in its latest funding round. the company is led by xl and values the company at more than $1 billion. it is a timely investment, given a global ransomware hack attack that affected computers and more than 150 companies. crowd strike's security services helped the democratic committee

respond to a breach linked to russia during the 2016 campaign. u.s. anti-terrorism officials met in brussels with their european counterparts to discuss the exposed expansion of a laptop and an airline passenger cabins. caroline hyde joins us live from london. caroline? caroline: great to be joining you, as ever. and we are joined by mark weatherford. weatherford was previously appointed by president obama to serve as the department of homeland security's first deputy rector of cybersecurity. a man who knows all these key stories very well. going back to the rent somewhere hack attacks, how would you rate the global response? 10? mark: it of don't think the global response

had time to evolve, because it stopped relatively quickly. but over the weekend, it continued on where more people found they had been infected. the global response i think is more just an awareness of right now. the response to the event itself is still unfolding. caroline: where does this evolution take us, because at the moment there is much consideration about who might be behind this. at the moment, we are at a loss as to whether it is state actors. north korea comes to mind and has been talked about. whether it is a group of terrorists or hackers, or indeed a group of kids. can you illuminate what your world is thinking? >> yes. the social media inside the cybersecurity community has been lit up over the past four days. i have seen every wild imagination you can possibly think of as far as who is actually responsible. over the last day or so, we have heard something about north korea, perhaps.

i don't think we really know, but i also believe that certain government organizations are putting a lot of effort into figuring it out, and they will know at some point. caroline: the u.s. being one of them, i'm sure. let's talk about responsibility. do you lay blame on microsoft, for example, for not letting companies patch, or do you blame the nsa and the u.s. letting it get into the hands of the wrong people? >> vendors are in a tough spot. microsoft being the vendor in this case. they have a strategy for new products and then eliminating support for older products. unfortunately, in this case, many of those older products are vulnerable. it truly is an economic issue for microsoft. how long do they continue to support old products? and so, i feel a little bit

sorry for the vendor, but at the same time, this is an issue that has long been a security concern for most of us. and that is the ability of companies and consumers to be able to patch their system. back to your point, should we blame nsa? maybe they deserve a little bit of blame, but microsoft released the bad code that had the vulnerability. you can make the case that if it wasn't nsa, it could have easily been someone else who discovered it and exploited the vulnerability. emily: let's talk more about that caroline: let's -- caroline: let's talk more about tech being a weapon, because the u.s. clearly has some intelligence that laptops should not be carried on planes by people. they are banning them from the middle east and are looking to extend it to europe.

is that a legitimate concern? what good would it be to put it in the bottom of the plane rather than where the people are traveling? >> it is a legitimate concern. obviously there is something driving this conversation that we may not know. there is some intelligence somewhere that has highlighted the potential vulnerability of having laptops and electronic devices in the cabin of a plane. again, i don't understand it, because to me i am just as concerned about having something in the cargo hold as i am in the cabin, but perhaps there is a vulnerability that takes a manual intervention to make it actually -- i don't know. caroline: lastly, i want to ask

you, as a man who worked from 2011 to in the political 2013 turnings of capitol hill and the white house before likedent obama, at a time this, where we see in unraveling because of concerns about donald trump's affairs, how hard is it to do your job? do you think the leading team is going to be distracted? >> that was one of the bright spots in the incident this weekend. the crg convened on saturday, and i read they worked all weekend. i knew that we had to do that a couple of times, and you bring in experts from all of the different agencies to get together and figure out what should be the response. i think one of the biggest factors, perhaps not in the white house, but within some of the other agencies is, they have not appointed all of the people that are leading the organizations, especially around cybersecurity. emily: we wish you well.

that was mark weatherford. emily, i'm going to send things back to you. emily: all right. thanks so much. still ahead, it is all about artificial intelligence. and google's vice president of engineering on the company's new artificial intelligence supercomputer chip next. this is bloomberg. ♪

emily: let's get back to the google i/o's development conference in california. with a spotlight on hardware this year, a new artificial intelligence supercomputer chip looking to transform the search giant into an ai-first company and into a real cloud computing contender. caught up with the chief officer of engineering and asked what this means for google. >> we are really excited to be able to have the computing power

to be able to really harness all of the newer machine learning logarithms. -- algorithms. one of the things of that is exciting about these new algorithms is that they are highly parallelize-able. you can do lots of computing at once and process lots of data that way. the new chips are designed to do that. emily: digital assistants are all the rage now, but google home sales are still dwarfed by amazon echo. how is the google assistant different from syria, alexa -- cre -- siri, alexa? >> one thing we are really excited about with google assistant is the ability to go across all of the different contexts in your life. as you go from your house, to

your car, to your commute, to out and about on your day, we want the assistant to be able to help you in all of those different places. today we are excited to deploy that out to all of the iphones, make that available to iphone users. we are in the process of rolling it out across the android phones, android auto, android wear, really making that assistant always available to you to matter what you are doing. emily: what is it going to take for voice technology to actually improve? i have used all of these devices, and in my experience, it is still rather crude. scott: we think we are making a lot of progress, but one of the things we talked about today is really using broad scale data and neural algorithms to improve the technology. we have been pretty significantly overhauling all of our algorithms under the hood every couple of years to take advantage of the new computing power that we have and new, larger amounts of data.

every time we do that, we see a pretty big jump in improvement. one of the things we did in -- as we worked on bringing google home to the market is , because google home needs to work at a distance, i might be standing far away, there is a lot more noise in the microphone signal. and so, by adding artificial noise in our training data, we were able to have our neural network actually be able to recognize things at a far distance away. these kinds of algorithms are very powerful for shaping recognition and different environments. emily: where is one place that you see the assistant going that hasn't gone yet? >> we are enabling a voice function into a great functionality. users are doing sort of the obvious things on devices, but i don't think we have realized

the vision of having any kind of conversation you want, having it be understood, and having the assistant tap into all of the services in a seamless way. that is the vision. i think we have a long way to go. one example that we showed some beginnings of today that we are really excited about is something we call google lens. speaking out loud is great, but when i am talking with friends, a lot of times i point at something, and then we talk about that, what we see. and with google's advances in computer vision and image understanding, the assistant is actually going to begin to have that capability over the next few months. i will be able to open my camera and began to talk to the assistant about what i see. we are really excited about that. emily: scott huffman there, google's vice president of engineering. that does it for this edition of "bloomberg technology."

salesforce reporting tomorrow. we will have full coverage and analysis. this is bloomberg. ♪

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