♪ alisa: i'm alisa parenti in washington, and you are watching "bloomberg technology." after a procedural vote that went down the wire the senate officially can begin debating an appeal for the affordable care act. vice president mike pence cast the deciding vote. majority leader mitch mcconnell says debates will continue over the next few days. the plan is to finish with health care at the end of the week. senator john mccain, who is battling brain cancer, made the trip to capitol hill. he voted to move ahead on debating repealing obamacare. it is his first trip back since his diagnosis. mccain delivered a speech on the senate floor after the vote. he said he couldn't support the

bill in its current form. in a joint news conference with the prime minister of lebanon, president trump thanked republican senators who voted to debate. president trump i'm very, very : happy with the result. i believe now we will, over the next week or two, have a plan that is going to be really, really wonderful for the american people. alisa: white house assistant press secretary michael short has resigned. he could be the first casualty of new communications director anthony scaramucci's push to clean house to stop information leaks. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. "bloomberg technology," is next. ♪

emily: i'm emily chang. this is "bloomberg technology." coming up, the debate over health reform is now officially a go after a senate bill that went down to the wire. the latest from washington. plus, a major rival capitalizes on the crises at uber. how business is booming at lyft. bookings soar over the second quarter. fighting words continue to fly between two tech billionaires over artificial intelligence. we will go into the beefs and barbs traded by elon musk and mark zuckerberg. first, to our lead. senate republicans issued a green light to bring the debate about health care to the floor of the senate. there's a lot of uncertainty about what plan senators will be asked to vote on. the final vote was 50-51, with vice president pence serving as a tiebreaker. senator john mccain, who helped the motion progress, return to the senate after being diagnosed with an aggressive brain tumor days ago.

take a listen to his feelings on the repeal efforts, going forward. senator mccain: i will not vote for this bill as it is today. it is a shell of a bill right now. we all know that. i have the changes are urged that will have to be included in my support for final passage of any bill. emily: president trump praised senate republicans, calling it a giant step to begin dismantling obamacare. joining us live from the white house is our washington reporter. what's the reaction? reporter: the white house is trying to make this a victory. it is one step toward a victory for them in getting a repeal and replacement of obamacare, but of course, there is a really long road ahead. at this point, there is no road that exists that could get the 50 plus mike pence tie-breaker vote needed to pass. that does not exist now. they have been working on it for weeks.

they have not been able to thread the needle. now, they are in this sort of lightning round of trying to get it done. as you just heard that clip from mccain saying he will not vote , for any bill that exists right now. he has changes he wants. we will see what those changes are when he introduces an -- introduces them as amendments. right now, the needle they are trying to thread is so fine that anything mccain wants introduce -- to introduce could also lose people on the other side. while it looks like a victory now if they are not able to get it will lookssed, even worse than if they never even started down this path. emily: there have been so many twists and turns. do you think today will be seen as a turning point or not? reporter: despite all the pessimism and seemingly impossible need to be able to get this bill through -- it seemed impossible in the house at one point, they had to pull the bill from the floor the , members went back, there was

also the angst about the republican party, but the house pulled it together and got something through. part of that is because they had the senate at the check, saying whatever we pass, the senate will change. now we have the senate. for all the no votes, people who did not want to proceed to debate, they were able to squeak it through to get it open to debates and amendment. once again, reviving something everyone thought was dead. do not count the bill out. do not count mitch mcconnell out. it's not over until it's over. they keep proving that things we think are dead, they can resuscitate for one more step of the process and drag members along with it, despite all the criticism that comes with it. emily: president trump also continued his public berating of attorney general jeff sessions. bloomberg news was in the white house press room today and asked the president. take a listen to what he has to say. president trump i don't think i

: am doing that, but i am disappointed in the attorney general. he should not have recused himself almost immediately after he took office. if he was going to recuse himself, he should have told me prior to taking office, and i would have, quite simply picked , someone else. i think it's a bad thing not for the president, but for the presidency. emily: what is the very latest in terms of the trump administration's plans for attorney general sessions or whether sessions himself might resign? reporter: based on all the twitter attacks on sessions over the past 24 hours, it really seems like trump wanted him out of the job. it's been going on for a week that he has been frustrated with sessions since he said he would recuse himself from any matters having to do with the russia investigation. but trump, obviously that feeling has been festering. that disappointment over that decision. he has really ramped up attacks. it looked like he was going to

either fire him or for some to resign. if sessions was going to resign, he would have done it already. sessions appears to be staying in place, and trump appears he does not want to go far enough to fire him. part of the rally around sessions moved by the conservatives on the hill and even on talk radio this morning coming to his defense could be part of sending a signal that it would be going too far. right now, you have an attorney general who does not appear to have the confidence or support of the president, but the president is unwilling to do anything about it. emily: in the meantime, a new report in "the wall street journal," quoting an interview with president, saying the apple ceo tim cook has promised him three new manufacturing plants in the u.s. what is your take on this? reporter: we have heard a number

of these jobs announcements. trump said there has been something promised that would be done. some of them come through, some of them don't, some of them aren't necessarily what they seem to be on the surface. it doesn't look like apple has commented on this at all yet, so i will look what -- for what they have to say. but this is good turf to get back to for the president. this is where he is strongest. jobs, the economy, manufacturing. that's the message they want to hear. he will kind of get back on the message for a day or a few hours. he is in ohio later tonight. but they always get derailed on to something else, onto russia, onto attacking the media, onto attacking the attorney general, and they lose focus on jobs and the economy, which is one of the areas that got him elected. if he can stand this message, it's good for him, but he will probably be attacking jeff sessions in ohio more than talking about manufacturing. that's a concern among people who support him. emily: apple hasn't commented in -- on this story to the wall

street journal. we will bring you our own comments from apple if we get that. shannon pettypiece, thank you. the company reported second-quarter earnings that beat analyst estimates. it posted a surprise wireless subscriber gain rebounding from , a loss earlier this year. it showed it could fend for itself in a cutthroat price for. -- war. also in the report, at&t expects a time warner deal closing by the end of the year. coming up, venture capital funds keep getting bigger. we chat with the general partner at canaan partners at their record-setting latest fund. "bloomberg technology," is live streaming on twitter. this is bloomberg. ♪ emily: online tv growth is into

-- is not quick enough to make up for cord cutting. about 6 million subscribers have shut down cable or satellite service since 2010. research shows that within the next decade, 31 million homes will cancel or cut back traditional tv services, while just 17 million will go to live online options. according to people familiar with the matter, sling leads the online tv market with 1.7 million users. in funding news, canaan partners closed its latest find at $800 million. it is the firm's 11th fund and the largest in its third year -- 30 year history. venture funding has been ballooning this year to highs not seen since the dotcom bubble. the surplus of cash helped. here with us is maha ibrahim, general partner at canaan partners.

$800 million, enthusiasm is high. you actually capped the fund. >> that's right. we were well oversubscribed and fortunate. emily: is there enough places to put all the money being raised? >> our firm is a diversified fund. 40% as health care and 60% is tech. on the health care side we've had an incredible run, largely due to the fact that we have been disciplined. the same goes for tech. emily: you have been at canaan for more than a decade. your memory goes back. what do you think of these comparatives to the dotcom era? >> there are so many companies still amassing an incredible amount of revenue traction. i don't see that ending. i don't see a clip like we saw -- cliff like we saw in the 2000 to 2001 period.

there's a ton of momentum and money flowing into the system. emily: on the one hand, companies are staying private longer. on the other hand, you had thirtysomething exits in the last three years, three times the average. how is that possible? >> in addition to that, what we have seen is some companies have been exiting a lot faster than normally. our average time to exit is about less than four years. this is in both tech and health care. we think it's because there's a franchise approach. there are areas we go very deep in and we mine them in terms of networking and thesis. emily: if you get the sense that a company would take 10 years to go public or exit, would you stay away from them? >> no, we believe we are building companies for the long-term, but because we are taking a thesis driven approach, we are thinking about what companies want.

there are some that take 15 years, and that is fine. emily: what areas are hot where you think there are big opportunities? where are you going to put the money to work? >> financial technology investments. we spent a lot of time in real estate and insurance. a lot of time in cloud. you will see us do a few gaming deals and e-commerce. on the health care side, immuno anti-infections immuno-oncology, but we are very , disciplined in our approach as opposed to taking an index fund. emily: canaan is celebrating 30 years. as a vc, you have three general -- three female general partners, which is much more compared to usual venture capitalists of firms. i'm curious about how that changes the culture inside the firm and the investments you make. >> i am incredibly fortunate to be at the table with my eight

general partners and three of them being women. the conversations we feel are a lot more inclusive. as a fund, we feel like we are reflective of what the true entrepreneurial pool looks like. if a woman or immigrant comes in the door, they are surrounded by people who have had similar experiences, and are much more comfortable. emily: i know you have been following the sexual harassment stories. some vc's have resigned or lost jobs. there was a sexual harassment investigation at uber. are you surprised by this? >> unfortunately, i'm not surprised. i'm surprised at the horrific nature of it, but i'm not surprised it's happening. the problem is -- if there is a positive spin on this, it is this sexual harassment has , happened. i'm sure there are more cards to fall, unfortunately. but it has woken people up to the need for diversity inclusion. both at the venture and senior investing table, but also from the entrepreneurial prospective. -- perspective. we need to be bringing up women entrepreneurs, people of diverse

backgrounds, into investing roles so that all entrepreneurs , feel welcome. emily: when you say more cards to fall, i know everybody is calling everybody. what calls are you getting? >> i'm getting a lot of calls. i'm spending about one hour or day talking with entrepreneurs. the nbci is taking a serious look at what's going on, and thinking about how to approach this in a holistic way. i'm talking with limited partners. it is certainly top of mind. emily: talking about what? >> the fact that it is happening, talking about what we can do, can we put notions into term sheets? can we have a more diverse pool of investing professionals around the table? there are many things like hotlines. there are many notions being talked about. i hope we can come together and make it a more diverse and inclusive environment for venture and spelling into the entrepreneurial pool.

emily: i know women come to you and you have been an advocate. have you found yourself in a position where you are a co-investor, where there is bad behavior alleged against that person, before or after the fact? >> i have been very fortunate for that not to be the case. but i see female entrepreneurs on a daily basis, and each one of them has told me a bad story. this has been happening for 17 years in my career. by no means is this a new thing. but we have to put effort into making it stop. emily: what are the efforts? signing a decency pledge is great in theory, but shouldn't everyone just be decent? [laughter] >> is an incredibly low bar, we shouldn't need to sign something. i firmly believe that a huge part of this bad behavior stops when you have females and minorities at the investing table, and senior investing roles. stuff like that would not have

-- will not happen. their behavior will be checked. from a social psychology standpoint, i'm going to want to invest in people that look like me. and my firm, we have three investing professionals at the gp role that are female. 40% are female, 20% of the company was founded by women. it is not an accident. nor something we did purposely. it just happened. emily: the average is more like 6%. >> exactly. we have reached a tipping point. emily: maha ibrahim, always good to have you here from canaan partners. thank you for stopping by. coming up, a game of catch-up in the ride hailing world. this time, lyft is in the driver's seat. we'll check it out, coming up. this is bloomberg. ♪ emily: tech billionaires bill

gates and jeff bezos are backing a local trucking logistics startup that can be used directly with uber. it matches triggers to local shipping jobs. on tuesday, convoy said it raised a new round of funding from bill gates and other backers. the latest financing total $62 million. their existing investors include marc benioff and barry diller. it is a good time to be lyft. the ride hailing business has been booming while their biggest rival, uber, faces an executive exit this in a string of self-inflicted scandals. booking crew about 25% to more than $1 billion in the second quarter. the growth rate is also factored -- faster than uber. tells investors it expects growth only in the mid teens. joining us is eric newcomer, who

covers both companies. we have been looking for the hard data about how lyft fares in this time of uber scandals. reporter: yes, it seems like it's doing pretty well. 25% growth quarter over quarter seems great. we don't know what the bottom line looks like. ridesharing businesses love to spend money on subsidies for growth. uber has been narrowing. lyft had something like $130 million of losses in q1. this is included with everything the driver makes, everything uber takes in. for lyft, they take about 20%. emily: talk to us about how much this has changed. where was lyft a year ago? reporter: two years ago, uber

uber takes in. for lyft, they take about 20%. was on the march to be the only player. for a while uber wanted to be , this single ridesharing player in the u.s. that doesn't look to be the case. lyft is growing its market share. it is hard to get perfect visibility into that, but uber has not been able to block lyft from establishing itself. emily: what can you tell us about how much bigger uber's business is, in absolute terms? reporter: uber has not shared q2, but we think bookings will be around 2.5 billion. that's more than eight times on a gross booking business dan lyft. but uber is a global business. even though it has are treated from china and russia it still , owns major stakes. it sees upside even when it's not getting major revenue itself. uber is at least eight times as big, but lyft is growing.

emily: how is lyft capitalizing on the uncertainty at uber? reporter: they have been playing it pretty smart. they are not trying to take too much credit. there was delete uber, and travis was on the advisory board, lyft donated $1 million to the aclu. but for the most part, they are keeping it low-key. everyone is all smiles over there. they know it's going well, but they are not trying to do any public gloating. emily: i have to ask you every time where are we on the ceo , search? reporter: [laughter] i'm going on vacation for two weeks in august. i am praying nothing happens then. i don't know. it doesn't seem like they have landed on a candidate. there is a huge vacuum over there. every major leadership position is empty. the search continues. no real update from us or anyone

else recently. emily: i don't know what i'm going to do without you for two weeks. [laughter] thank you for joining us. we will try not to bother you on your vacation. eric newcomer, "bloomberg technology." coming up, financial firms like deutsche bank are pulling out of the u.k. because of brexit concerns, while some tech giants are expending. details from london, next. if you like bloomberg news, listen on sirius xm. this is bloomberg. ♪ >> it is a 11:20 9 a.m. in

singapore and 12:29 p.m. in tokyo. here is the first word news. the pboc scares. the bank will have a coordinated that fell to the china banking regulatory commission. the news confirms what bloomberg reported earlier this month. the bank said it would pursue prudent and monetary policy and keep supply growing at an appropriate pace. u.s. regulatorsthe bank said itf the hottest new areas of finance, initial offerings of digital currencies.

the fcc said users must register deals through the government. and those that raise money through digital must register. they have raised money this year in additional coin offerings or ico's. australia rejecting criticism from the regulator, who said that they misled customers. it accc has reopened cars hades about -- undergone multiple repairs that did not fix faults. for denied the allegations and said it would challenge them. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> i am sophie kamaruddin with a check on the markets. -- ina mixed day on asia

the markets. bonds are falling, as are most asian markets. the aussie dollar losing about 1/3 of 1%, after dovish comments from the aussie governor. miners rally on the back of the commodities drop. copper extending its search from a two-year high. japanese stocks are getting 1/2 a percent, continuing to drive. chinese markets are deepening the big losses, down 8/10 of 1%. shanghai, consumer stocks falling the most in the market. car markets and auto-related players falling. great wall motor falling for a second day. in seoul, tech shares under pressure. the samsung ses stock dropping over 8%.

others sending the stocks higher. it is the best pick in the defense industry and another has a profit in the second quarter. ♪ emily: this is "bloomberg technology." i'm emily chang. back to the top story this hour. senate republicans voted to begin the floor debate on efforts to repeal the affordable care act. the final tally was 51-50, with vice president pence making the tie-breaking vote. president trump reacted to the vote during a press conference with the lebanese prime minister. president trump: i'm happy with the result. i believe over the next week or two we will come up with a plan that is going to be really really wonderful for the american people. emily: joining us from new york is our executive editor craig gordon. what do you make of all the twists and turns, and the

decision to at least continue debate today? reporter: it is an important step forward for the health care repeal effort that donald trump and the republicans are endeavoring to do, but let's be clear, this is a very small first step. now the hard work begins. you have moderates that think the bill is not generous enough, and the bill does not do enough to help medicaid subsidies and help people stay with health care. you have conservatives on the other side who think it is too generous and spends too much money. while they did manage to get onto the debate, the hard work begins of crafting a bill that all parts of the senate on the republican side can come together. mitch mcconnell has not been able to do that. we'll see if he can do it before recess. emily: how much do you think president trump's posturing on this and warnings to republicans are actually impacting the decisions? reporter: i think it helps around the margins some, but i wouldn't overstate it. all of these people ran for the

past seven years on, we will repeal obamacare if you put us in charge. republicans control the house, senate, and white house. it appears this week they were in great danger of not being able to fulfill that promise. when that reality began to sink in, it focused them, and they decided to take about. -- to take the vote. it is also a senate tradition. taking a vote to start debate is an easy vote. debating it is not a terribly hard vote. the real vote when it comes to saying yea or nay to repealing a bill that is not yet written. emily: meantime, the house voted on sanctions on russia, iran, and north korea. reporter: this is an interesting piece of legislation, mostly because it partly ties the hands of the president. usually there is a big fight between the executive branch and

congress over who gets to control things like sanctions. the white house guards that right very jealously. in this case, the white house wanted to bind trump from unilateral sanctions on russia over fears of the current investigation, that there was collusion between russia and the campaign. the white house would allow -- went along with it. they knew congress had the votes to pass. they had to roll along with the punches. the bill also imposes new sanctions on russia and prevents u.s. energy companies from getting involved. it really put the three hottest hotspots in foreign policy on notice that congress wants to crack down on what they are doing. emily: craig gordon, our executive editor, thank you for that update. meantime, out of the u.k., trade secretary liam fox travel to washington to secure a trade deal as soon as possible after

leaving the european union. he spoke to bloomberg tv to discuss the current state of play. >> ultimately, we are setting u.k. conditions and u.k. standards. we are neither going to be members of the e.u. nor are we bound to the u.s. that's what the negotiation is. we try to work out what is in our mutual interest. emily: president trump weighed in this morning on twitter writing, "working on major trade deal with the united kingdom. could be big and exciting. jobs. the e.u. is very protectionist with the u.s." potential disagreements over who could export more. let's go to caroline hyde in london who has an update on the negotiations. caroline: it is fascinating, the tussle was who was more

important than whom. and it is known that the u.s. could take the lead when it comes to hard cases at the negotiating table, because the u.k. is dependent on trying to get trade deals in and around themselves as they exit the e.u. this is big money and big jobs we are talking. notably, it is important to the u.s. 700,000 jobs are supported in the united states by trade with the u.k. that's what the u.k. government is saying. check out this function on bloomberg. . you can see who is the number two trading partner in the united kingdom. it is the united states. looking at trade done over the years, 2016. maybe that you for your coming from donald trump and his tweets signaling how it could be better. $50 billion better? that could be added between that trade in the two countries. it is not going to be easy to

achieve. emily: interestingly, despite brexit contends that concerns, u.s. companies have been keen to show commitment to the u.k. caroline: totally right. today is a perfect example. amazon unveils its new headquarters in the u.k. they are literally just down the road from our studio here in london. we are seeing they are saying they have taken on more floors. why? because they want to increase the amount of people they are hiring even more. 450 more people than originally planned. these will be technical employees. they will have 900 of them, all about expanding prime video into europe. amazon had already said they would add 5000 jobs in the u.k. they are not alone. from google, they are said to add 3000 by 2020. we heard from facebook, snap, apple, all of them pledging allegiance to the u.k. when we heard of brexit. quite the reverse when you look at the banking where you have

worries, predictions of 10,000 jobs going in banking and 20,000 going in financials. amazon says they are very optimistic. they say brexit won't impede hiring talent. i have been on a rooftop near here with the so-called future 50, a celebration of the 50 fastest growing companies in the u.k. in the tech sector. speaking to those founders, they say that they are worried about getting talent. how can i persuade a developer in portugal or spain to come over to the u.k. when i don't have any certainty of what they will be offered in terms of the exit from the e.u.? i don't know any certainty of how they can be employed here. it is hitting smaller companies, if not the big tech giants. emily: also, there's cash going in opposite direction across the

pond from the u.k. to the u.s., right? caroline: this is an interesting deal. this is one of the biggest tech companies listed in the u.k. sage is splashing the cash. they are spending $850 million on a u.s.-based company, very near you on the west coast of the u.s. they are buying a company called intacct corporation. this is about expanding their presence in cloud. this is an enterprise software company, competing with salesforce or oracle. they are buying because they want to keep beefing up cloud offerings. $850 million is a lot of money, particularly when the great british pound is down 12% over the course of this year. emily: caroline hyde for us in london. thank you for breaking it down.

meantime, fintech startups are on pace to see a funding reach a record as block chain related companies attract new dollars. according to a new report, there have been 496 deals globally so far in 2017, raising a total of $8 billion, roughly $6 billion shy of the yearly record hit two years ago. in the past three months, five new startups hit valuations of over $1 billion. coming up, electronics giant xiaomi gearing up plans in the competitive fintech sector. this is bloomberg. ♪ emily: adobe will stop its

flash service at the end of 2020. flash is the separate plug-in tool bit improves video online. they've been criticized for cumbersome user experience and vulnerability to hacking. adobe made the change in collaboration with apple facebook and other companies, , and is encouraging developers that use the service to seek other options. despite increasing regulation of china's financial sector, chinese mobile phone makers xiaomi is pushing into online lender and other financial services. xiaomi's head of consumer lending told stephen engle that china's fintech pie is big enough. >> over the past few years, we noticed a lot of problems in the industry. this industry needs regulations

in place to enforce the activities and behaviors and to make the industry develop in a good way. reporter: is it important to in a fate -- innovate before those innovations stifle? >> it is difficult. innovation sometimes needs more space to innovate. at the same time, if enough players in the market are not self-contained -- reporter: self regulated? >> regulated. the government and regulation rules needs to be in place to make sure everything is fine. reporter: what is the biggest risk to you? >> first, it is risk management.

many people have a high debt to income ratio. some of them have trouble to pay back. the other side is financial ties over the past few months. we have seen the cost increase, and squeeze profits. reporter: your chairman has talked about the troubles that xiaomi has had of late, losing a little bit of market share and sales coming down. he said maybe the company grew a little too fast. but in financial services, are you a little bit late to the game? >> i wouldn't say it is late, it is just about timing to extend the business into this space. we have over 200 million phone users. we have over 60 million devices

connected. that translates into a lot of customers. reporter: but are you at a disadvantage because you don't have the nearly billion users that wechat has, and you don't have the multi platform that alibaba has. you are limited by how far you can go. >> the chinese market is huge enough. enough space to grow. we have huge monsters, competitors in the market. reporter: monsters? >> [laughter] i take that back, big players. we still have the space to grow. emily: that was bloomberg's stephen engle. the public battle between tech titans. the war of words between elon musk and mark zuckerberg about the future of artificial intelligence. a programming note coverings of , earnings season continues on bloomberg tv. wednesday we speak to ford ceo

bob shank. 7:30 a.m. in new york time. this is bloomberg. ♪

emily: it is the battle of tech titans over the future of artificial intelligence. in one corner, tesla's elon musk, warning that ai may be a potentially existential threat to the human race. on the other side, mark zuckerberg said he's very optimistic about the technology, and thinks elon musk's doomsday scenario is irresponsible. >> with ai especially, i'm really optimistic. i think people who are naysayers and try to drum up doomsday scenarios, i just don't understand it. it's really negative. in some ways, i think it is pretty irresponsible. in the next five to 10 years, ai

is going to deliver so many improvements in the quality of our lives. emily: musk responded on twitter tuesday, saying zuckerberg's they tuesday, saying zuckerberg's will "understanding" of the subject is limited. joining us for the debate is you sarah frier, covering facebook, and cory johnson. tell me, what is elon's argument? elon has been beating this drum about how afraid we should be about the eventual takeover of the human race by the robots. there was a couple -- a few weeks ago, he spoke to a conference of governors and said that we need to be very proactive about the regulation of artificial intelligence before it is too late. most regulation in the government, once something bad happens, you react. he said by the time something

bad happens in terms of ai taking over, it will be too late. emily: meantime, zuckerberg says we're already on this path ai , can be helpful in a number of ways, the future does not look as dramatic to him as it does to elon. give us the other side. cory: when facebook looks at how they are trying to use machine learning and ai, within the realm of facebook, they are trying to come up with faster answers to things people are discussing and get them to services were people can spend money on facebook, as a forum for making decisions and doing a lot of things. i think when mark zuckerberg looks at this, it is not unlike his view on privacy. that because i am a kind and benign person, the services coming from my company are kind and benign. these are people who have all kinds of advisors and advise it -- consultants.

they are not knuckleheads sitting on their couch. mark zuckerberg wants to be viewed as technology is your , friend, facebook is your friend. elon musk wants everyone to think i'm a visionary genius, i imagine a future you could not possibly imagine, loan me money so i can build electric cars and spaceships. reporter: and elon does say that i've seen things you haven't, i know more than you do. cory: he is definitely saying that. emily: is he being dramatic or does he have a point? there are a lot of unknowns. reporter: he does, but at the same time, zuckerberg doesn't want to stop progress out of fear. there are so many things to fear about facebook giving your data to a nebulous organization. but mark is trying to humanize it. he's meeting people around the country and trying to be unthreatening and approachable. cory: think about his business model. mark zuckerberg's business model is to get very intrusive

information about people and put it out there in a friendly way. people are providing information, facebook is using it. elon musk's business model is i'm smarter than you, i can see the future, give me your money. emily: this isn't the first time they have sparred in public. what do you think about the public nature of it? reporter: it is so rare. zuckerberg has been doing his tour of the country trying to , relate to people. it is rare he says something negative about somebody else publicly, let alone a mogul. the last time this happened was when a very expensive disaster occurred. there was this rocket that was supposed to take a satellite for facebook into space to spread internet access to underserved populations, and it was elon musk's rocket and it blew up on the launchpad. zuckerberg was so disappointed that he wrote a public post

saying he was disappointed in spacex specifically. this isn't the first time they sparred. cory: elon does cast a little shade on twitter. he blocked me on twitter. emily: you are on elon's blacklist? cory: he has blocked me. i do not get to see the shade he is casting on twitter. i will live. emily: we will leave it there. we'll see if anything develops on social media. cory johnson, our editor at large, sarah frier who covers facebook, thank you. that does it for this edition of "bloomberg technology." on wednesday, facebook earnings. full reaction and analysis. that is all for now. this is bloomberg. ♪

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