alisa: i'm alisa parenti, and you are watching "bloomberg technology." acting homeland security commissioner elaine duke says 90% of puerto rico is now accessible. >> we have generators. everything has been prioritized. hospitals first, now gas stations. it is a conscious effort to make sure we don't have loss of life. alisa: duke says the most difficult challenge is the distribution of aid. health and human services secretary tom price says u.s. taxpayers will not pay a dime for his use of private charter planes. that is after the president criticized him for the usage. price said he will write a check

to the treasury department to cover all of the expenses. house majority whip steve scalise reported to congress today, his first day at work since he was shot at a congressional baseball practice more than three months ago. the louisiana representative was welcomed back to the house with a standing ovation. a big three of former u.s. presidents showed up at the opening ceremony of the presidents cup, the first time three u.s. presidents have attended the matches together since the golf event teed off in 1994. the pga preparing for a visit by trump on sunday. 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, and this is "bloomberg technology." coming up, toshiba seals the deal. an $18 billion agreement to sell its chip unit to a bain-led consortium looks set to close. roku's shares took off, despite being priced at the high end of the projected range. my wide-ranging interview with the ceo of microsoft on his new book and building upon the legacy of steve ballmer and bill gates. first, to our lede, the largest tech deal of the year is one step closer to being finalized. toshiba has finalized an agreement to sell its chip unit to a group led by bain capital. the deal is worth nearly $18 billion. toshiba needs to raise cash to pay for billions in losses in its u.s. nuclear business or risk being delisted from the stock exchange. -- the tokyo stock exchange. it includes tech heavyweights like apple, dell, and others.

even after months of contentious negotiations, the deal could still be in jeopardy, thanks to toshiba's partner in the chip business, western digital. joining me, ian king and alex webb. ian, i will start with you. we are not close to a done deal yet, are we? ian: we are as close as we have been over these months. we've had a signed deal almost several times. western does not like this deal at all. emily: why not? ian: it's very bad for them. they've said all along, the last thing we want is competitors in their annex. emily: why does apple want to do this deal? alex: it seems like some sort of widget in the iphone, but the reality is memory drives a lot of profit for apple. when you buy an iphone, you've got the base price. to get more memory, you pay $100 or more.

apple might be paying less than $20 for that chip. it's a big way of boosting the money they get from every single iphone. that is important right now as we see demand for smartphones flattening. emily: could western digital really hold up this deal? what's happening right now? ian: they say they can. they are part of the joint venture agreement. they have invoked their right in california. in theory, that arbitration could decide what's going on right now is counter to the terms of their agreement and try to overturn it. emily: if indeed this does happen, is it enough to prevent toshiba from being delisted from the tokyo stock exchange? ian: they have gained a lot of interim loans which are contingent on this deal being closed, that this money comes in. they also have some contingent liabilities regarding the nuclear business, which they have to cover. this money is enough, if they can get it done ahead of time. emily: we've been talking a lot about supply chain issues for apple with the iphone x.

how would this impact their supply issues? alex: having this doesn't affect any of the recent supply issues, but ensures there are still a multiplicity of suppliers bringing these chips to the table. the reason they don't want to risk the memory chips, if there are fewer players in this place, if western digital was to get their paws on the business, apple is probably scared that the price would rise. ian: the biggest monster in the background is samsung, which has 40% of the market for these type of chips. you can imagine the type of deal they will be putting apple in, given that they are a direct competitor. apple really needs to keep lots of healthy suppliers to counterbalance samsung. emily: put this in the bigger picture for us. if it happens, how does this affect the broader chip sector, where we've seen a lot of consolidation over the last year? ian: this helps things continue as they were. this isn't really a consolidation.

if western digital had been able to succeed with what it was trying to do, this would be more consolidation, fewer suppliers. this would be not in the interest of apple and other big customers. emily: what are you hearing from the apple side of the equation? alex: they have confirmed that they are investing in this. apple's stake is going to be about $1.47 billion. american companies are not allowed to have any input into the operations of the companies, so they will be a silent partner, but they are trying to help it get over the finish line. ian: to get this deal done in time, you need to go through antitrust approval in japan. if a foreign company has a bigger stake, that becomes harder. they've tried to divide it up between several companies so nobody has a controlling stake and there are no worries about japan losing its last great chipmaker. emily: any more clarity on what we discussed yesterday, the

supply chain issues facing the iphone x in this moment? alex: the waters are still as muddy as ever. i am afraid we might have to wait until november 3. and see people getting disappointed. we are still trying to get to the bottom of it. it's very difficult to get behind that very hard, shiny, aluminum curtain. emily: alex webb and ian king, thank you so much. we will keep watching for this deal. well, twitter has disclosed details about suspicious activity on the social media site during the 2016 presidential election. in a blog post, twitter announced it disabled 22 accounts after reviewing information from facebook showing connections to bogus 450 accounts on the company's social network. twitter revealed an additional 179 related or linked accounts. twitter executives visited capitol hill as part of the house and senate investigation into russian interference in the 2016 election. democratic senator mark warner commented on the meeting, saying

the briefing was quote, "deeply disappointing." and that twitter's response was inadequate on almost every level. coming up, gopro unveils its most powerful camera yet. could this be the key to the company's turnaround? we will hear from the ceo, next. we are live streaming on twitter. check us out at 5:00 p.m. in new york. this is bloomberg. ♪ emily: taskrabbit has agreed to

be acquired by swedish furniture and home goods supplier ikea. , the san francisco-based startup said it was exploring a sale after receiving interest from a potential unnamed buyer. find the gig economy and will taskrabbit helped define the gig economy and will remain an independent entity within ikea. the ceo, philpott, will continue to run the deal. terms of the deal were not disclosed. gopro has unveiled the hero6, calling it the most powerful and convenient gopro yet. it is a product the company is betting big on. it also announced a consumer 360 degree camera will hit the market. bloomberg's selina wang spoke gopro ceo nick woodman and asked what investors can expect will drive the long-term sustainability of growth. nick: we have to keep innovating and coming out with new and exciting products that excite consumers.

i think we did that today with hero6 black and fusion. hero6 black is the most capable and easy-to-use gopro we have ever made. fusion pushes gopro into a totally new market with 360 spherical cameras. we think this is going to play an important role in the future of how people capture and share themselves. we also made important advancements with karma. it now has new features that allows it to film what's above it, which is unique in drones. gopro is continuing to innovate and excite consumers. selina: how else are we going to see it evolve beyond the traditional action cameras?

nick: well, a big part of gopro's future is we now see a gopro as an untethered lens for your phone. what we mean by that is a gopro now automatically copies any new photos and videos you capture over to your phone and the gopro app creates a video for you. when you use a gopro, it's like using a separate, untethered lens that offloads all of its footage to your phone. really, a gopro is the ultimate capture complement to a phone. as we think of ourselves in that way and we think about new types of gopros, new types of untethered lenses, we think we can dramatically expand our market. selina: action cameras are maturing. smartphones are getting even more durable and waterproof. what's your pitch to those consumers who say we don't need another camera, my smartphone is good enough? nick: well, i think that a phone is a phenomenal camera. it's often in your pocket. it's right there reactively when you want to film somebody or something else happening.

but there's a lot of activities where you don't want to pull out your phone. you want to be more in the moment, and you also don't want to film somebody else. you want to film yourself. and so, gopro, with its untethered lens strategy, we think that we can make lenses that complement somebody's use of a phone, but not required them to pull the phone out or have the phone on them. selina: the hero6 is using a custom-designed processor. this is the first time. why go this route? what types of challenges are associated with making this yourself? nick: designing and developing a processor with a partner, as we did, there's always risks involved, but there's also a risk that when you are reliant on others' innovation and ingenuity that they put into their own work, into their own processors -- we found that what we wanted to do with the hero6 black, we couldn't do with any other processor on the market. we had to develop our own. it allowed us to hit cost margins.

we were able to hit performance levels that would otherwise have been impossible. selina: last year was a challenge. nick: we are taking our destiny into our own hands from a technology standpoint. selina: last year was challenging from a technical standpoint. there were some delays. what have you learned from those experiences to make sure this year's products are seamless? nick: we are doing fewer things better. in previous years, we had other businesses we were running, like our media business. we had many programs going on and products that consumers never saw that were more targeted towards professionals.

we cut all of that, and focused gopro on what it does best and what our whole vision and mission is, to help people capture and share their lives so that they can celebrate the moment in a way that they just can't with any other camera. selina: being a hardware company is very difficult. in the public market gopro , shares have fallen quite dramatically since the ipo, so what are investors missing? nick: we are growing again. the previous comp of 2016 -- people think unit sales are way down, volumes were higher in previous years. but what they need to look at volumes of our premium products , $299 and above are growing. we are selling more of the products that matter -- better margin for gopro and make us more profit. gopro is healthy and growing. i think investors are starting to take notice. selina: let's talk about growth. -- drones. many say that the market leader has superior features and a similar price point. given the market effect, how much of a revenue driver do you see drones becoming for gopro? nick: we are really excited about drones. karma is doing well.

it is a phenomenal accessory for the gopro community. it is very versatile, with a detachable gimble. our customers have spoken. they really like that flexibility, versatility. karma continues to get better. in a week -- today, we announced followme features as well as a look up feature, unique to drones. we will continue to innovate and advance our drone offering into what comes after karma. emily: that was gopro ceo nick woodman. famed investor jim chanos said in june that he would give up his short bet against tesla once -- begins making money. if so far, they are burning up cash, not profitable. investors keep pushing back expectations for when the company will be profitable. take a look at this chart, g #btv 6411. bloomberg's "what'd you miss?" spoke to chanos who said the

-- that while elon musk made electric cars "sexy," the profits are not there. jim: this company is supposed to be making money now. it is supposed to be making money now by 2020. i'm guessing by 2019, we will hear, by 2025. this company is structurally unprofitable. its capital structure is way too leveraged. emily: chanos also discussed bitcoin, saying the allure of the cryptocurrency is to use it in the black market. more on that on friday. we look at how wall street greeted roku, next. if you like bloomberg news, check us out on the radio. listen on the radio app, bloomberg.com, and, in the u.s., sirius xm. this is bloomberg. ♪ roku: let's talk about

now, which went public today. it was a good day for roku. what happened? billion insed $219 their ipo. a good tech deal after a couple of flops this year. it was good timing for them. you know roku as the device seller. they sell the boxes where you can stream video from things like netflix and things like that. outside of the device, they are making a lot more money and what they call platform. i asked the ceo why this is a bigger thing for him. take a listen. >> the fastest-growing content is ad-supported content.

one of the top terms that consumers search for is "free." we are transitioning from mainstream tv viewing via linear to over-the-top. as consumers move their viewing more to over-the-top, they want a few xbox services, netflix, amazon, but they won a lot of free, ad-supported content as well. alex: those advertisements are where roku is making more money. they are pushing for selling ads within the videos online, not just taking a cut of the subscriptions from the likes of netflix or hbo. emily: how does roku plan on competing with the likes of apple and amazon? alex: i asked the ceo this question. he told me while they are number one right now and they will continue pushing that position, they don't rely on marketing. they like customer reviews.

they are relying on their current status and also the fact that their platform is basically the switzerland of streaming. any channel can get on them. amazon prime, users can queue up their videos via roku. same with netflix. if you want espn live, you can do it on roku. the likes of apple and amazon do not let everybody on to their platform. you get it all if you come through roku. emily: if they are switzerland, who are the competitors? is it apple, amazon, someone else? alex: it is apple and amazon and watching on other devices. roku doesn't have a tablet or mobile offering right now. a lot of cord cutters are watching more video content on those devices where they don't have a play. their bet is still the people like to watch longform video on the tv.

whether or not that plays out, i know their new public investors will be watching that battle closely as well. emily: day one of this ipo, successful so far. others have not been so successful this year. how are investors watching this, with regard to the broader public market? alex: it's been slow. i'm here, talking to my sources on the ground in san francisco. people are talking about 2018 as being a big year, which is disheartening for the ipo reporter and the likes of the folks in this round. we broke news on quantergy. you have some smaller names that are preparing, but these are not the big, blockbuster deals that you want. the number one one that i will be looking for, the big one, is still going to be dropbox. emily: is that happening this year? alex: we have said they could file as soon as this year, so that's where the situation stands. that will probably be the next biggest ipo. we are also watching spotify and that potential direct listing. emily: alex barinka, great to have you here. the story we tried to tell you earlier, e.u.'s commissioner for justice has said facebook has become a, quote, "highway for hatred."

she deleted her official facebook account because she was tired of being trolled. she then announced new e.u. guidelines, urging companies to do more to tackle terrorist content and hate speech. speaking with me last week, she explained what the e.u. did not want social media space to become. >> we want in the european union to have internet which will be hate-free and which will not open the space, i would even say, highway for hatred and inciting violence. emily: coming up, my wide-ranging conversation with ceo satya nadella. we turned back to 2014 when he first took over the tech giant. a feature i want to bring to your attention, our interactive tv function. watch us live. if you miss an interview, you can go back to it. this is for bloomberg subscribers only. check it out. this is bloomberg. ♪

so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver.

and 12:29 p.m. in tokyo. i am tom mackenzie with first word news. in japan's latest economic data, industrial output grid -- a group more than expected in august, up 2.1 percent from july and 5.4% from last year. inflation moved higher. core consumer prices rising 0.7% on the year, the most in two years. retail sales fell 1.7% from july, the first drop in three. toshiba has signed a final agreement to sell its flash memory unit to a group led by bain capital for about $18 billion. apple,sortium includes

dell, and sk hynix. spain is said to be aiming to take the unit public in two or three years. toshiba's estranged partner western digital tried to buy the deal itself. the plight of muslim refugees in myanmar has become a human rights nightmare. more than half a million people have fled their homes in the northeast and are living in squalor in bangladesh. urged myanmares to end military operations, saying the crisis is a breeding ground for militarization, crime, and traffickers. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. bloomberg. i am sophie kamaruddin with a check on the markets. asian stocks have a slight gains after a six-day drop. shares in singapore and tokyo leading the decline in the region.

the nikkei 225 shrugging off the largely upbeat data we got for august. chinese consumer staples are leading the rise in shanghai as well as in hong kong. shanghai, -- the shanghai composition headed for its best quarter since 2013. a septemberting -- is putting a stop to the eight-month rally. stocks in jakarta are leading gains. they are trading at a strong discount compared to the rest of asia. these are among the best performers in the em fx space. a lot of the rupiah is gaining ground. is having its worst week since november. the yuan is taking a tumble today. it is extending its weekly loss, which is the biggest in asia. in the commodities space it is a mixed bag.

forer gaining ground, set the best quarter this year and longest run of monthly wins a since 2010. iron ore is on the up, first back-to-back quarterly loss in some time. gold is back 0.2%. ♪ this is "bloomberg technology." i'm emily chang. when satya nadella took over as ceo of microsoft, he had big shoes to fill. microsoft cofounder bill gates was leaving his role as chairman. his bigllmer, known for personality, was moving on. what is lesser-known is how nadella made it from india to microsoft, joining the company back in 1992. in his first book, "hit refresh," he sheds light on his life, his career at microsoft, and how artificial intelligence will shape the future. index -- in this week's show i , asked him about his transformation from being what he described as a not so ambitious student to ceo of one

of the biggest tech companies in the world. satya: i was not really planning on looking back at my life. i was mostly thinking about, hey, what's the transformation we are going through while we are going through it, because that was the real motivation. but with some encouragement, i went back and tried to sort of trace what are these "hit refresh" moments from my past. i think the thing i now recognize more so than when i was growing up is, the space i got. i think that the ability to think for yourself, the ability to follow your own passion vs. trying to fit a particular mold, in the long run has been more beneficial than any academic excellence in the short run could have. that, i think, is something that i now think is perhaps as important, as we think about all of what we say is needed in education. emily: the most powerful moments for me in the book are the family moments.

it's really a love story for your wife and your children, your son, who was born with severe cerebral palsy. how has he changed you as a person and as a leader? satya: when he was born, i was 29. if you had even asked me, just the night he was born, a few hours before, what was going through my head, i would have been more, when is my wife going to get back to work as an architect or is the nursery going to be ready, how are our weekends going to change? yet that night, everything changed, when he was born, because of his in utero asphyxiation, he had brain damage which led to cerebral palsy. for the first couple years, i must say i struggled with it. everything that i thought was my plan, in some sense, fell apart. it was all about me. why did this happen to me? why did this happen to us?

it was only watching my wife and what she did -- she immediately, just the very next day after her c-section, she stepped up and started caring for him. in some sense, over the years, without actually schooling me, she schooled me that nothing happened to me. something happened to him. and i needed to step up as father. that, to me, is perhaps that most tough lesson that one in -- that life teaches you, to be able to see life through other's eyes. that, to me, where a bit more of the need for empathy comes from. it definitely changed who i was as a person, whether it's at home or at work. emily: in working with bill gates and steve ballmer over 2 1/2 decades, what are the things you want to emulate and what are the things you want to do differently?

satya: i think both bill and steve -- one of the things that is just pretty stunning to me is their intellectual honesty. what i mean by that is their ability to see things, good and bad, but, most importantly, things that need to be improved, with such clarity. and i've always felt that at microsoft there will be lots of people who would run around wanting to be like bill and steve, except that we would not have that same level of intellectual honesty. but that is just such a high standard. and, more importantly, such an inspiring standard they set for all of us. emily: so, you know, when you came in, you got the job and you said, look, there's a lot to fix at microsoft. the company is sick. the company has lost its soul. how do you come in and say, everything needs to be fixed, without offending them? satya: the courage to be able to

both look at what needs to be fixed and also recognize what is good -- there's smarts for that. it is something i learned from them. bill, in his forward, probably captures the logic of "hit refresh" the best. it's not about changing everything. it's about changing what needs to be changed. therein lies the trick. they were very clear. in fact steve's last piece of , advice to me was "be your own person." i'm a consummate insider. i grew up in the company that paul and bill founded and that steve and bill created. to me i was part of that same , journey. i'm proud of that journey. yet i have the outsider's perspective, as best as one can have having grown up there. to be able to say these are , things that we absolutely need to change. emily: when you and bill gates disagree, what happens? satya: today bill is very clear. i'm the ceo. bill can give me the most

critical feedback, but it's up to me to make sure that i'm leading the company, so there is no confusion on that, but i value, quite frankly -- if bill disagrees, it's probably something i should look at again. emily: much more of my conversation with satya nadella coming up. apple is being urged to activate an iphone feature that could save lives during a national disaster. mobile phones come equipped with an fm chip. they can help them keep up with emergency information. however, that feature is disabled in iphones, a move that lawmakers are saying could put lives in danger. florida senator bill nelson is toding pleased to -- pleas activate those. most of the pleas are directed at apple, who accounts for more than 40% of the u.s. smartphone market. coming up, more of my conversation with satya nadella, ceo of microsoft, including what he thought about his meeting with president trump. this is bloomberg. ♪ emily: now, back to my sitdown

with microsoft ceo satya nadella. the company has been very out front in opposing some of president trump's policies, from the travel ban to daca. i asked nadella how he decides when to push back. satya: it comes down to what are the timeless values that then have to translate into these principled stands we take. when it comes immigration, making sure we do everything to protect our employees who are contributing not only to microsoft, but to the american society. in the case of dreamers, taking a principled stand.

that's how we pick these issues. but at the same time, we are not elected officials. i don't have a mandate. we are clear that ultimately we are subject to laws, but we will fight for what we believe is the right of our people. emily: we've seen the nfl getting pushback for pushing back against president trump. starbucks has gotten pushback from shareholders. have you gotten any of that from customers or the board? satya: perhaps the biggest recognition, if i've learned one thing in my 3 1/2 years as ceo, is the true multi-constituent nature of the job. it's not as simple as making of it as just the shareholders, just the customers, just the employees, just the government. it's all of these simultaneously all the time.

for a large company like ours, a large, multinational company like ours, really balancing all of this is what is required. emily: you've met president trump twice now. what's your impression? satya: both times the conversations were all centered around -- my conversations were around immigration and why i think immigration and immigration reform can drive american competitiveness, making the case for it, as well as the need for american infrastructure, in particular digital infrastructure. those conversations were good. he was receptive to those ideas. now we need to keep working and making sure that there is action on it. emily: we are seeing drive to further regulate the tech industry, from google to facebook, from the u.s. to europe. are you concerned about the threat of increased regulation? satya: i think the most important thing for tech companies is not to worry about any impending regulation. you have to be able to look and say, like in our case, in any country, whether it's the u.k., germany, china, or the u.s., how

have small businesses become more productive? how have large businesses in those companies become more competitive? how does the public sector become more efficient? that, to me, is ultimately how i think we have to measure our success. that's what's going to cause governments to say, are these companies contributing or not. emily: do you think tech companies should do more self policing? satya: the pace of change is such that we absolutely are going to look at the unintended consequences of technology and make sure that we do not trade away some of these timeless values as there are advances in technology. long before even regulation, it's important for tech companies to, quote-unquote, "self police." or build of tools that create transparency make sure that , people's privacy is protected. emily: there has been a spate of sexual harassment allegations in tech, many revealed publicly, many more i'm sure happening

that we don't know about. what is the responsibility of the tech industry here? satya: first, let's start with recognizing how important it is for our business to have the diverse workforce that is then able to do their best work, but that means you have an inclusive culture so the you can create the products and services that can serve the world. at microsoft, we talk about our mission is empowering every person and every organization. it has to start with representing every person and every organization. if you recognize that importance, then you will go to work, like we are, in saying, ok, what's the representation? in our case, women's representation, which is low -- we've been pushing hard in the last couple of years. we've gone and improved it by a couple of points to 27.7%, which is nothing to write home about.

we have a long way to go. again, from a much lower base. but the thing that all this conversation in the tech industry is, i believe, the best thing that can happen for this industry, because we are now going to tackle front-on, without having this be something that is not talked about. what about inclusion? it's not just the numbers. the numbers don't happen on their own. it only happens when people feel they can in fact bring their a game. emily: you made a much criticized remark at a conference in 2014 about women seeking pay raises. you said, "it's not really about asking for a raise, but knowing and having faith that the system will give you the right raise." you apologized, spent four pages of your book talking about why that was wrong. how has that experience informed your views about revealing your own implicit biases and others having the same sort of awakening? satya: to take a question at a women's conference and answer it literally based on one's own experience, especially sitting

in the seat i sit in, it's just nonsense. because what was behind the question is, what are you as the ceo of microsoft going to do to make the system be more fair, so that i get the opportunity to do my best work? that, to me, is the real awakening. and that's what i went back and said, wow, how could i not get that, the deeper sense behind the question? for me, i've used it as a learning opportunity. for our company, i think we are better off because of my real public messing up of that, because we take it seriously. i've had a chance to learn a lot from it. emily: that was microsoft ceo satya nadella. coming up, what he has to say about artificial intelligence and the importance of hardware to microsoft. this is bloomberg. ♪ emily: returning now to my

conversation with microsoft ceo satya nadella. the company famously struggled to make smartphones, but continues to push forward with other gadgets, such as the surface laptop to the xbox. i asked how important it is for microsoft to keep making its own hardware. satya: you know, to us, one of the key things, "if you're serious about your own software, you make your own hardware." i think there is some truth to it. we will always invest in hardware to create new categories. emily: would you ever make a phone again, and under what conditions? satya: one of the things we've

said multiple times is what is needed is for us to not be obsessed about categories that are well served. not at least on current rules. what is considered a phone today will be very different in the future. the question is, is it a mobile device? it is untethered, battery-powered. you wear it on your eyes. what is the future of those kinds of devices? for me, microsoft will always be in the end to end computing experiences business, but our goal is to invent categories and reinvent categories. emily: you talk about three big strategic bets for the future in your book, mixed reality, ai, and quantum computing. on the issue of ai, are you at all concerned that google, facebook, amazon, apple could outpace microsoft on ai then become dominant in this ai future that we keep hearing about?

satya: to me, what is microsoft's approach will be all around how do we take ai? today, everyone says, look at me, how cool i am because of the ai capability. that's not how microsoft approaches any problem. it's not about any parlor trick of ours. the most important thing to us is, are we democratizing so that every customer of ours can build their own ai? if we are going to have this industrial revolution, we better figure out a way to democratize it so that every company, whether it's a small nonprofit or a large multinational, can use ai in the context of their endeavor. that's kind of what we want to do. emily: is elon musk right to be warning about the dangers of ai, whether it's in military applications or otherwise? satya: with any new technology, there is a lot of good that

comes with it and we should first grab hold of it and then eyed about any unintended consequences. we've got to be able to use ai to first help empower humans, but, that said, wherever ai runs amok or we lose control, that could be dangerous. so, i think the first responsibility we have is, instead of thinking that's going to happen, let us enshrine a set of design principles. i think we should not abdicate our responsibility, like good user experience, there is such a thing called good ai. what is the need of the hour is for us to enshrine those principles. emily: robots could take over the world, but hopefully not. satya: it is up to us. emily: what is one product that the competition got to first that you wish microsoft could have invented? satya: there are many products. i wish we had gotten into the

relational database before oracle. if you think about one of the most amazing pieces of technology -- or before ibm. i don't worry as much about looking at the product or the technology somebody else got to. the question is, are we able to go back to that sense of purpose that we have, of what we can do with the technology. it has to be something that fits with our identity, even if somebody else gets to a quantum computer first, what are they going to do with it and what we are going to do with it is probably going to be very different. emily: you now build many of your products for several different operating systems. what is the future importance of windows to the microsoft future in general? satya: windows -- there are billions of users of windows. 300 million pcs got sold last year. it continues to be a very significant part of what we do,

but it's not the only part. i think that's the change for us, which is we now have a much more diverse, robust business. we have xbox and gaming, which spans pc gaming and console gaming. we have more than 55 million xbox live subscribers. we have windows. we have our office 365. we have linkedin. microsoft is a much more diversified portfolio. with linkages between them. that's how i think we are going to keep going forward. emily: my conversation there with microsoft ceo satya nadella. that does it for this edition of "bloomberg technology." this friday, we will be speaking with the ceo of hotel tonight as the site gets ready to beef up competition with expedia. check us out on twitter at 5:00 p.m. in new york. this is bloomberg. ♪

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