♪ emily: i am emily chang and this the "best of bloomberg technology." where we bring you all of our top stories from the week in technology. coming up, amazon's revenue. what the second quarter means for the online retailers bottom line and founder jeff bezos. will we see a preview of a bigger move? samsung is unscathed despite the crises within the first half of the year. business is booming for the south korean conglomerate.

it has come within striking distance of apples top spot. amazon shares dipped thursday after they reported disappointing financial guidance, especially a potential loss in the third quarter. the second order earnings per share missed the low analyst estimates. amazon is preparing to step up competition with walmart and cloud computing challengers. we broke down the numbers. >> this is a company that is investing. there is a cost to all that free video that amazon is lavishing on its prime customers. emily: where are the expenses? >> they don't specify. it's video. they are building fulfillment centers closer to cities.

they are making all these great shows like "transparent" and "man in the high castle," that costs money. the stock is down 2%. this is an unflappable shareholder base. there is a halo over the company. emily: shares are down 3%. >> this is why bezos is number one or now he isn't. the point is, they are able to take long-term investments in infrastructure and turn that into profits. aws was the first example. as they build up these warehouses, technologies for stores without the people in them, they will be able to license these things. they will be able to turn them into products. that is a smart long-term perspective. that's what people are buying into. emily: what about whole foods? are we getting any more clarity on how this acquisition will play out? how will this be integrated into the empire? >> the answer is no.

the deal has not closed yet. they were asked about it on the media call. the cfo declined to comment on it. it has not gotten past antitrust regulatory review. we are not even sure if there will be regulatory scrutiny. they are not talking about that. we can see that grocery has been a major avenue for amazon, not just the whole foods purchase but they just entered singapore with prime now. amazon fresh they are expanding. hopefully in the coming weeks and months we will no more. emily: i'm interested in how the dynamics between brands are changing. nike and sears selling directly to amazon. >> what you're seeing is them building this infrastructure capability to deliver goods in another way. they are becoming a logistics company as well. they are building the logistics they need to do groceries.

nobody has really solve yet. bezos loves solving problems. they are building the infrastructure to deliver other kinds of products. they are going to take that ability and take those skills, license them, and figure out ways to make money for themselves and for other people as well. emily: we will see how investors respond. is the confidence in jeff bezos deserved? >> yeah. you look at a 20 year history of a public company. he called his shot at how he was going to run the company. investing for the long-term. they have periodically signaled they are entering into investment cycles were they will spend a lot of money on things like fulfillment centers. they operate the company with a lot of discipline. they give you these broad estimates, but they always hit those estimates. if you do that enough times, investors trust you. he has earned the trust. emily: will this deal accrue any anti-trust scrutiny? how big is too big? >> that's a fair question. they have a larger influence than even what they are selling themselves. in the current environment with his ownership of "the washington post" and the way donald trump

views that, there is an incentive to say maybe we should look a little that direction. emily: they sat next to each other at that meeting at the white house. they are not best friends. >> no. look at the president's tweets. by any rational measure, this should pass scrutiny. whole foods is a small player. amazon has no presence in grocery. we are in a topsy-turvy political environment. this could get scrutiny just because jeff bezos is not the most popular guy in washington.

emily: there is speculation about amazon's next big bet. any ideas? >> let's not forget what they are doing with alexa and voice-based computing. small for now, but a very interesting play when we look at they were never able to do something from an operating perspective. they wanted to compete against google and apple. now they are coming in from the side with this voice-based computing thing. this opens up lots of different avenues. by the way, the beauty of it is, across all of those platforms. that is the one to watch. emily: they are the leader on the cloud. we some progress at google, microsoft. the pie is getting bigger. do they have to worry about the competitive threat? >> the pie is getting so much larger. it is lifting all boats. the challenge is when they enter into the price wars and it

depresses the profitability. that goes on and off. right now, we are not seeing that and the businesses looking healthy. they are hiring a lot of people. this is a very hotly contested space. emily: amazon shares, good for your portfolio? >> in the long run, i think so. emily: in other earnings news, twitter failed to attract more users in the second quarter. they had been looking for evidence they are on a path of sustainable long-term growth. revenue fell 4.7% and the net loss widened, affected by a $55 million write-down in the music streaming service soundcloud. facebook churned out cashes in expected growth fueled by strengthen mobile video ads. the social network now has over 2 billion monthly active users and is steadily driving revenue at a faster pace than other tech giants. they are investing in original content. the first shows will come online in august. >> we are seeing a lot of content engagement shifting to mobile. our goal is to be a platform for content providers to find their audience and monetize. we are doing some early investing. we are kickstarting the

ecosystem. we are giving more episodic viewing on facebook. we have a lot of video views on facebook, but not that kind. we think that is important. we are making that investment. we have content providers creating that content and finding their audience. emily: alphabet was out with earnings this week. revenue for the search giant came in at $26 billion, up 21% year over year. aggregate costs per click dropped 23%. it includes a fine from the european competition commission. i spoke with the cfo about this. she told me it is so early in our analysis that it's an ongoing legal matter. they have not decided if they will appeal. we discussed this with an analyst and cory johnson. >> i think the reason the stock is down is because of the traffic acquisition costs. the company has been warning us that as they shift away from the

advertisements on a website to the mobile device and programs and ads on youtube, they are not youtube, the programmatic and mobile, on an apple iphone and we see ads within an app, those may be served through apple by google. they are making sales calls, bringing in those ads. they are selling them to apple. it is more expensive to acquire that traffic. traffic acquisition costs for google have been rising. emily: this is more about traffic acquisition costs? >> i think that's what it is. they warned this is a big change in their business. they are going to be more mobile and programmatic. it's going to cost more. emily: what is your take? you really singled out the

strength in mobile search as well as youtube in terms of driving momentum. >> mobile is the big driver here. that's the headline. that's why you see increases in clicks and decreases in costs per click. that's been a big driver in the big storyline for google for some time. emily: what about what's going on with youtube? we talked about adpocalypse. the times did an investigation into extremist content. that was shown next to prominent advertisement. a lot of advertisers pulled their campaigns. it seems like those advertisers have returned. they reiterated that across the site, that benefited mobile search and youtube are in it they take seriously the issue and we are protecting ecosystem. >> a lot of this has been a lot of noise.

they like the advertising. they like the traffic google is giving them in terms of clicks. the google ad is like nothing else in the history of advertising. you can actually see the result as it runs. advertisers like that. to the extent that advertisers actually pulled ads a year ago, nine months ago, it was good news for google because they have fixed the problems that may have been there. i don't know how big these advertisement problems really were. it looks like they are back. none of them stayed away for good. it might make them look better for google. emily: the ongoing investigations in the eu, we had this big fine. google is trying to decide if they are going to appeal. how concerned are you about future investigations?

>> from an advertiser perspective, there is a lot of concern. obviously the youtube scandal earlier in the year and now the ruling from the eu from the competitive commission does not help an advertiser's stomach when going to investing on google. how do you know that you're in ad is not going to get played someplace you don't want to be seen? how is that not being skewed against you? there are some issues. i agree with corey that this is a good thing for google in the long run. google has been able to identify what they need to do going forward and what they need to work on to build trust with our advertising partners. emily: later on, the war of words between two tech billionaires.

we will dig into the and barbs between mark zuckerberg and elon musk over artificial intelligence. meg whitman is off the board at hp ink. what that signals for tenure at hp enterprise next. this is bloomberg. ♪

emily: donald trump announced that foxconn will build a factory in the state of wisconsin. the $10 billion factory which is expected to produce lcd monitors will initially employ 3000 people. that could swell to 13,000. the move fulfilled a promised by the foxconn president to invest in the united states. >> why do it here? television was invented in

america. yet, america does not have an lcd plant to produce a complicated system. we are going to change that. it starts today with this investment in wisconsin. emily: meg whitman is stepping down from the board of hp ink. -- hp, inc. she will be replaced and remain the ceo of hp enterprise. the news comes on the heels of our report that she is on the shortlist of candidates to fill the ceo spot at uber. they will name a new ceo by september and has narrowed their search to fewer than six contenders. we discussed this with eric newcomer who covers uber. >> she has long been someone i thought was a possible candidate.

i have been asking about it all the time. she's been advising travis. she is close to ryan graves. emily: she's an early investor. >> she has been in the mix. she has the statesman reputation, the experience running a tech company. it's not a guarantee that she is going to become the ceo, she is in the mix. one of five or fewer candidates. the hope is to get it together before labor day. emily: david, what do you think of meg whitman? >> i was just thinking there is an interesting analogy between what she really did wonderfully well, which was run ebay and uber. they are both marketplaces.

they are both places where you bring buyers and sellers together. i think it is actually the kind of company she could run better than she has been able to run hp. you might say she is generationally too old for this sort of thing. she is a silicon valley veteran. she brings a lot of the right characteristics to the job. i am relatively optimistic that she would be a strong candidate at a minimum. emily: she is unlikely to take the job and may not be a top contender. what is your reaction? >> she is a top contender. the statement to us was that she is going to be here until the job is done, which is super vague. i don't know. we disagree on this one. emily: coming up, capital funds keep getting bigger. we will chat about the record-setting latest fund. the competition in the augmented reality space heats up. how they plan to carve out a

place of the increasingly crowded field. this is bloomberg. ♪

emily: in funding news, canaan partners closed their latest fund at $800 million. it's the largest in their 30 year history. the surplus of cash gives money that would otherwise be raised on the public market. we spoke with the general partner. maha: our firm is a diversified fund. about 40% of what we do is health care and 60% is tech. on the health care side, we have had an incredible run of exits because we have been disciplined in certain areas. the same goes for technology. we feel like there are a lot of areas. emily: you have been at canaan for more than a decade area what do you think of these comparisons to dotcom times?

maha: we are in heady times right now. there are so many companies amassing an incredible amount of revenue traction. i don't see that ending. i don't see a cliff like we saw in 2000. there is a ton of momentum and money flowing into the system. emily: on one hand you have companies staying private longer. on the other hand, you had 30 exits in the last three years, which is three times the average. how is that possible? maha: in addition to that, some of our companies have been exiting faster than normal. our average time to exit has been less than four years. we think it's because we pick a franchise and go toward investing. there are areas we go very deep in and we mine them in terms of networking. that is the secret sauce. emily: do you get the sense a

company would take 10 years to go public or exit, would you stay away from that? maha: no. we believe we are building companies for the long-term. because we are taking this thesis driven approach, we are on the pulse of what they want and are thinking about. that causes companies to exit faster than they otherwise would. some take 15 years and that's fine, too. emily: what areas are there big opportunities? maha: fintech is still very hot for us. we spend a lot of time there and real estate and insurance. we spend a lot of time in cloud. you will see us do a few gaming deals. it's very disciplined, our approach as opposed to taking and index funds. emily: canaan is celebrating 30 years as a vc. you have three female general partners. i'm curious how that changes the

environment inside the firm. and the investments you make. maha: it has been such an incredible, i am incredibly fortunate to be at the table. our eight general partners, three of them being women, the conversations we feel are a lot more inclusive. we feel 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 with similar experiences. they are much more comfortable. emily: i know you've been following the sexual harassment story. vc's have resigned, lost their jobs. there is an investigation at uber. are you surprised by this? maha: 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, the sexual harassment has happened.

i'm sure there are more cards to fall. but it has woken people up to the need of diversity inclusion. both that the venture and senior investing table, and among entrepreneurs. we need to be bringing up women entrepreneurs, people with diverse backgrounds into the investing world so they feel welcome. emily: when you say more cards to fall. i know everybody is calling everybody. what kind of calls are you getting? maha: i'm getting a lot of calls and spending an hour or two a day either talking with entrepreneurs, i am on the board that is taking a very serious look at what's going on and thinking about how to approach the topic in a holistic way. we are talking with partners of ours. it is top of mind. emily: talking about what? maha: we are talking about the fact that it is happening, what we can do, can we put notions

into term sheets, can we get a more diverse pool of investing specials around the table? there are many notions being talked about right now. my hope is we can come together as groups and make this a more inclusive environment for venture and spilling over to the entrepreneurial pool. emily: i know that entrepreneurs come to you. have you ever found where you are a co-investor where there is bad behavior alleged against that person? maha: i have been very fortunate for that to not be the case. i see female entrepreneurs on a daily basis. to a person, each of them have told me a bad story. this is been happening for 17 years. by no means is this a new thing, but we've got to put effort into making it stop. emily: what are those efforts? signing a decency pledge is great in theory, but shouldn't

everyone just be decent? maha: that's an incredibly low bar. we shouldn't need to sign something. i have said this before, i believe that a huge part of this bad behavior stops when you have females and minorities at the investing table. and in senior investing roles. stuff like that will not happen. behavior will be checked. from a social psychology standpoint, i want to invest in people that look like me. at my firm, we have three investing professionals out of eight, i'm sorry, the gp role, 40% at my firm are female. that's not an accident. it is not something we did purposefully. it just happened. emily: the average is more like 6%. maha: we have reached a tipping point. as an industry, if we have reached a tipping point, we have won. emily: she is the general partner at canaan partners. we speak with tom and dive into the earnings report.

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♪ emiliy: welcome back to "best of bloomberg technology." i'm emily chang. a cloud delivery platform reported better than inspected second quarter revenue. the company boosted its top line by a 6% year-over-year increase. the forecasts missed estimates and the company's stock sank to its lowest level in at least a year. the ceo tom leighton joined us in studio for an exclusive interview. tom: the important thing to realize is traffic is growing at a rapid pace. we have lost some share to do-it-yourself efforts. outside of that, hour traffic growth is bigger than the internet as a whole. you can infer from that that we

are gaining share. i think the important thing to take away from the q2 result is our performance and security business, our web division customers, the majority of our revenue. a very profitable business growing at 16% year-over-year. our security business now almost half of a billion dollars. we expect that to be $1 billion over the next four or five years growing at 34%. emily: you mentioned security. revenue is still strong, but slowing down. is that because you past the early adopter stage? tom: growing at 34% is pretty good when you're the largest cloud security provider. there is strong growth ahead, but enough that we are confident we can make a $1 billion of business. we are launching our first to enterprise security products. we think in the long run they had even more runway than the existing web security business, which has been very successful. emily: when will we see new

products contributing to growth? tom: i think next year. we will see the enterprise products contributing. so far, they are on a track record that exceeds what we did in the first year with web security products. emily: you obviously see what is happening with streaming services, sling tv, youtube tv, some of these new fledgling services. can you give us any color on how quickly these services are being adopted? tom: that is a great question. we deliver for a lot of those companies. video now is the majority of traffic on our platform and growing at a good clip. that is what makes us optimistic about the future of our media business. the question really is, how fast will the adoption be? everybody in the industry thinks over a period of years a majority or large majority of video watching will be on the internet. emily: that was tom leighton. phone-based augmented reality is on track to become a major trend in coming years, but it is not

just tech giants making a play. london-based blippar claims it has more than 99% accuracy and can recognize 370,000 public figures. caroline hyde spoke with coo danny lopez and asked about the business applications of its latest features. danny: the facial recognition in our app, it is fun, social. we want people to play around with it. we want to learn from the experience. they key for us is the accuracy and the recognition. our facial recognition has a 99.67% accuracy rate. that is what we want to make sure is working. once you have that, you can take that from our app and use it in a whole host of sectors. think mobile banking with identity management and facial recognition is a way to be able to transact. building access when you're

trying to find your car and it recognizes you as an employee. so many different smart networking. we go to conferences with 5000 to 10,000 people trying to figure out who is who. you can just scan a photograph and get information. caroline: security? are there issues or worries to be able to scan a picture and know details about them. how does that scale? danny: security is a key area. i think like everything you have to embrace the technology. if you acknowledge facial recognition gives you the ability to find where the bad guys are, that's a very positive development. think about the person who is in a foreign city and has nothing on them.

the ability of somebody else to come and facial recognition, to find nationality, to find their closest embassy, the next of kin. that saves lives. there is so much value this can bring. caroline: what is blippar now? when it launched five years ago it was about branding and exciting ways of using it and getting access. what do you want to stand for now? danny: we are a technology company that specializes in augmented reality. a lot of people think of us as the app. the app is a showcase of the technology. we made a very clear decision to be able to scale, you need to be good at computer vision. when you have a perfect marriage with augmented reality and overlaying digital content onto something, and computer vision, true recognition of something, you have a perfect technology to

allow ai to scale. we are both. we allow people to get more from the world in front of them. if that happens within our app, the technology we have built can be taken outside the app so other companies can capitalize on what we have done a computer vision. caroline: you have been investing heavily. what does that mean in terms of money? are you looking towards profitability? how do you make sure this is a revenue driver as well? danny: we already generate significant revenue from the brands we work with. we take a long-term view, which is we are building something ambitious. we are indexing the entire world. you need the best engineers in the field. we have a lot of those here in london and on the west coast in the u.s. fundamentally, we want to become a profitable company the future.

we take a long-term view. we think it is important to spend money to then have technology. along the way, there are significant milestones. caroline: are you going to be fund-raising anytime soon? how have investors reacted thus far? danny: we have raised just over $100 million over the last five years. we have incredibly supportive shareholders who are comfortable with the progress we're making. who is to say what happens in the future. right now, feeling good about where we are going. caroline: there is talk in the press of burning through cash, etc. but it sounds like a heavily investing area you are in. danny: is your board comfortable with what you are spending the money on, comfortable with the progress you are making? if the answer is yes, that's

exactly what you want to be. emily: that was blippar coo danny lopez speaking with caroline hyde. coming up, samsung is closing in on apple's spot as the most profitable business in the world despite turmoil in the company. we will dive into what is boosting its ascent, next. all episodes of bloomberg technology are live streaming on twitter. check us out. this is bloomberg. ♪

emily: webmd the is selling itself to kkr for $2.8 billion with the medical website making itself private. webmd is used by 70 million consumers a month. con score has its monthly internet usage data. snapchat u.s. app visits reached

90 million. pinterest may struggle to broaden its appeal beyond women to sustain user growth. amazon and pandora and facebook continue to see visitor growth challenges in june. samsung has had a rough 12 months, from its exploding smartphones to its heir apparent on trial for corruption. the company has been making positive strides. in the most recent earnings report, it announced increases in sales and operating profits fueled mainly by the memory chip division. that growth has the company closing in on apple's spot is the most profitable business in the world. bloomberg's global head of tech coverage traveled to seoul to look in the south korean conglomerate and detail the turmoil at the company in the latest edition of bloomberg businessweek. >> first of all, samsung is great. they collaborated on the story,

brought us in. we probably talked to six or seven senior executives. we got a look at the new chip facility, which i would love to tell you about. it is poised to be most profitable company in the world, overtaking apple. we will see when apple reports. and the largest semiconductor maker in the world, overtaking intel. with this sort of crisis around the company, its chairman on trial for corruption, the note 7 debacle last year, they are executing well. emily: we had a question if they would ever be able to recover. here now today, talk to us about the trial and how that's impacting the company. brad: it's a consortium of 60 to 70 public and private companies. there is a founding family that hovers above it all, the coordinating group that has been disbanded.

the leaders have been charismatic figureheads dipping into make major decisions, acquisitions, major investments. in south korea, this is a political situation, to turn the tide of public opinion against these big companies like samsung. emily: which are the south korean conglomerates. what is the likelihood he will emerge from this unscathed? brad: they have not produced a smoking gun. the allegation is they persuaded the government to put pressure on the shareholder group pension fund to approve a samsung merger to shore up the family control of the conglomerate. if there was a quid pro quo, it was an unspoken one. they have not produced a smoking gun. i think he probably gets out of this ordeal. we will find out in the next couple of weeks. there is precedent for the heads of these companies to spend time in prison.

south korea has a very conflicted relationship between government, the people, and these large companies that fuel its economy. emily: for all the things they are doing well, there is this big thing they have not tackled which is software, which may be the primary reason people don't buy samsung phones. brad: let's do a contrast. in two years they have spawned a massive semiconductor fabrication facility. intel has a factory in arizona they have been working on for five plus years and trump has tried to put pressure on them to complete it. samsung deploys militaries of construction workers to get these things up and running. it is a different set of skills, the militaristic discipline. that is different from what you need for software. creativity. they are releasing this personal assistant around the world right now, their siri, and there has been criticism about how they presented it.

how it answers queries. this is something samsung has to master. there is some bright spots with samsung pay, a lot of failures. their operating system never caught on. it is their last frontier. emily: what was your impression from within the company having spoken to six or so executives? brad: they remarkably recovered from the note 7 debacle. it was a hard year for them last year. they had just rereleased the note 7 in south korea. what company would do that? the brand literally went up in flames. the note 8 is coming out soon. the galaxy s8 is out with good reviews. my impression is of relentlessness. they deploy so many resources. they are so disciplined and efficient that they are tough to beat. particularly on the manufacturing side, this area of strength that an apple or google cannot counter. emily: what does it mean for apple given iphone 8 expected release in september?

brad: they are frenemies. samsung displays are an apple product. samsung memory chips are an apple product. apple has a reliance on samsung, even at the high end of the smartphone market they compete. emily: they are trying to change that by designing their own chips? brad: right, but they don't make them. samsung makes the chips. it is a tremendously difficult competitor to unseat. the problem is apple can't get out of its reliance on samsung because samsung went and tortured all the competition. it is hard for apple to go and ween itself off samsung. as a result, samsung can rely on apple and its business to basically subsidize the smartphone business it competes with. emily: xiaomi is pushing into online lending and other p2p financial services. their head of consumer lending tells bloomberg that china's financial technology pie is big enough for them.

>> over the past few years we have noticed a lot of problems in this industry. this industry needs some regulation in place to enforce the activities and behaviors, and to make the industry to develop in a good way. >> is it important to innovate before those regulations stifle innovation? >> it is difficult, because sometimes innovation needs more space to innovate. at the same time, a lot of players in the market are not self-contained. >> self regulated. >> regulated. the government and regulation, there are rules that need to be in place to make sure everything is fine.

>> what is the biggest risk to you? >> risk management. many people, the debt to income ratio is so high. some of them may have trouble to pay back. the other side is the financing side. over the past few months, we have seen the costs increase so huge and squeezed our profits. those are two risks i have seen. >> your chairman has talked about the troubles xiaomi has had of late, losing market share and sales coming down. he talked about maybe the company grew a little too fast. in financial services, are you late to the game? >> i would not say it is late.

it is about timing to extend our business into this space. we have over 200 million phone users. over 60 million iot devices connected. that translates into a lot of customers. >> are you at a disadvantage because you don't have the nearly one billion users that we chat has, or the multi-platforms that alibaba has? you are limited how far you can go. >> chinese market is huge enough. as i see it, we have enough space to grow. even we have so huge monsters, competitors in the market. >> monsters? >> i take it back. i mean big players in the market. we still have space to grow. emily: that was xiaomi's head of consumer lending. the public battle between two technology titans, a war of

words between mark zuckerberg and elon musk about future of artificial intelligence. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app, sirius xm. this is bloomberg. ♪

emily: uber is at risk of losing another big chunk of the global market. grab in southeast asia raised $2 billion. the company says they expect another $500 million from new and existing backers. the move is just the latest hurdle for uber as the struggles to right the ship amid a series of scandals. it is the battle of the tech titans over the future of

artificial intelligence. in one corner, elon musk warning ai is a potentially existential threat to the human race. on the other side, mark zuckerberg says he is optimistic about the technology and thinks musk's doomsday scenario is "pretty irresponsible." mark zuckerberg: i'm really optimistic. i think people who are naysayers and try to drum up these doomsday scenarios -- i don't understand it. it's really negative and it's pretty irresponsible. in the next five to 10 years, ai ai is going to deliver so many improvements in the quality of our lives. emily: musk responded on twitter, saying zuckerberg's understanding of the subject is limited. we took a ringside seat. sarah: elon, for the last couple of years, has been beating the

drum about how afraid we should be about the eventual takeover of the human race by the robots. it sounds like science fiction. there was a couple of weeks ago where he spoke at a conference of governors and said we need to be very proactive about the regulation of artificial intelligence before it is too late. most regulation in the government is once something bad happens, and you react to it. he says by the time something bad happens in terms of ai taking over it will be too late. emily: zuckerberg says we are already on this path and i think ai can be helpful. the future does not look as dramatic to him as it does to elon. give us the other side. cory: when facebook looks at using machine learning, they are trying to within the realm of facebook come up with faster answers to the things people are

discussing. gets you closer and closer to services were people can spend money on facebook or use facebook messenger in particular as a forum for making decisions and doing a lot of things. i think when zuckerberg looks at this, because i am a nine and a kind person, you should respect technology to come from my company to be kind and benign. it's important that these are people that have all kinds of advisors and these are not two knuckleheads sitting on the couch on twitter. mark zuckerberg wants to put out an image of technology friendly, technology is your friend, i am your friend, facebook is your friend, love us. elon musk wants everyone to think i'm a visionary genius. i have imagined of future you cannot possibly imagine. loan me money so i can build electric cars and spaceships. emily: elon says i know more than the rest of you about this. cory: definitely saying i know more about this. emily: does he have a point?

there are a lot of unknowns. sarah: at the same time, zuckerberg doesn't want to stop progress in its tracks just out of fear. there are so many things to fear about facebook giving your data to this nebulous organization. you are right. mark is trying to humanize it. he is meeting people around the country and trying to be unthreatening and approachable. cory: mark zuckerberg's business model for his company is to get very intrusive information about people and put it out in a friendly way. it is not about sharing information. people provide information. facebook is trying to use it and put it out in a nice way. elon musk says i'm smarter than you, i can see the future and you can't. give me your money. emily: this is not the first time they have sparred in public. what do you make about the public nature of this? sarah: zuckerberg is the going out and doing his tour of the country, trying to relate to people.

it is so 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 a rocket that was supposed to take a satellite for facebook into space to spread internet access to under served populations. it was elon's rocket that blew up on the launchpad. zuckerberg was so disappointed that he wrote a public post saying he was disappointed in spacex specifically. emily: that was sarah frier and cory johnson. that does it for this edition of the "best of bloomberg technology." we will bring you the latest in tech throughout the week. tune in at 5:00 p.m. in new york and 2:00 p.m. in san francisco. all episodes are live streaming on twitter. check us out at bloomberg tech tv. that is all for now. this is bloomberg. ♪

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