♪ emily: i'm emily chang, and this is "the best of bloomberg technology," where we bring you all of our top interviews of this week in tech. coming up, facebook crushes on to add new continues users. we will put the earnings report in focus after a challenging quarter of the world's biggest social media platform. plus, alphabet embarks on a new spending spree to chase its biggest rival. we will break down its earnings report. and tim cook's face to face with president trump. details on the apple's ceo trip

to the white house and the potential impact on the u.s. trade relations with china. first to our lead. facebook shook off any whiffs of the cambridge analytica scandal wednesday when it reported first-quarter results. analysts were impressed with the financial results, the stock rallied. wall street seems to believe that management has addressed privacy issues that has an impact on earnings so far, but we could see more of a dent in quarters ahead. the social giant's ad sales are near record in users keep flocking to the social network. with our contributing editor, david kirkpatrick, and deborah williamson on wednesday right after facebook reported. revelations happened so late in the quarter, any impact will likely happen in q2, if it does it all. -- does at all. this quarter's earnings look strong, the revenue looked strong, user growth looks strong.

there are a lot of positive things that happened in the quarter that we are finding it hard to find much negative at this point. emily: it remains to be seen, but there are analysts who told us they think this is a blip. today, it was said facebook should continue to have long runway. david, would you agree? david: you know, it is a tough thing to answer in the same language mark mahaney would use. have nosee advertisers choice but to use facebook for the most exact targeting they can get anywhere on a global basis. that is a huge asset for the company. on the other hand, this company is in an absolutely unique, new position where its very legitimacy is being questioned by society and governments around the world. i don't think it's really a possibility to protect -- predict how the company ends up having to adapt to that and what its profit and revenue

implications could be, and advertising applications. i think we are entering a very new phase for this company, which impressively continues to hit on all cylinders financially, but it is by no means out of the woods. this company is in a position no company has ever been in before, and it might get bad. emily: i sat down with sheryl sandberg a couple of weeks ago to talk about the controversy. she apologized for it and she also said they never have run the company for short-term profitability, and yet we are seeing these numbers. debra, what do you think the impact will be on the current quarter? how are you building your models? debra: we're watching user engagements really closely. it seems like facebook has always been able to increase the total monthly user base, but we are watching for any sign that there is reduced engagement in terms of time spent on facebook or the activity that people do

there. we are also watching for any signs that advertisers will have less access to targeting capabilities. we have seen facebook rolling back certain things that advertisers used to be able to do in terms of targeting. it remains to be seen whether advertisers will continue to use facebook in other ways and establish new ways of using it. those the kinds of things we are paying attention to. i think david is exactly right, this is a time where there is a lot of question about facebook. q2 is probably going to give us a lot more information about exactly how facebook is addressing these issues. -- these issues than we saw today in the earnings from q1. emily: mark zuckerberg is speaking on a call now. he started off addressing the controversy off the top, it is clear we didn't do enough. also, promising to get things in order in time for the u.s. midterm elections. until now, he has really sort of couched it, saying it's an arms race but that he would try to.

he is saying they will be ready for the u.s. midterm elections, in the hopes that something like this won't happen again. talk a little bit about impending regulation and how all of that could impact facebook over the much longer term. david: well, every government pretty much in the world is considering whether or how they should regulate facebook. since they operate in somewhere around 190 countries, that's a huge overhead of management for them. they are going to have to deal with it. i also think there's a bigger trend which debra might have some thoughts on. i think it is possible that consumer attitudes about targeting to them could be changing, at least in the developed countries. i don't think there's a lot of inns that that is a concern countries where facebook's growth is greatest in the developing world, but if that were to happen, there are so many variables that are so hard

to predict. it's lucky for facebook in the sense that they are so phenomenally profitable, but they are a company in a position like no other has ever been. their profitability is like no other company's has ever been. they have slightly under $12 billion in revenue and about $5 billion of that is net profit. that's a phenomenal profitability. they have so many things about them that could not be said about any company before. their scale, their global footprint, their profitability, the degree to which one person controls it, their impact on politics, their impact on the public square in every country, their impact on media. you know, this is a very unprecedented position for a commercial company to be in, and the world is finally realizing it, which means a lot of weird things could happen going forward, and regulation is one of them. emily: zuckerberg on the call saying we have a responsibility to keep moving forward and keep building tools that bring people

together in new ways. he's reemphasizing the new focus on meaningful interaction, not just interaction. debra, do you think that change in focus will impact engagement? you know, as they essentially make this shift back toward more of a focus on personal updates rather than news updates, and have to make some potentially tough compromises. debra: yeah, absolutely. i think the focus on engagement is a really strong one and a really appropriate one for facebook right now. i really believe that consumers do have some concerns that have been alluded to about ad targeting, about how their information is being used, about how facebook is targeting them, and if it is sharing data about them with other people or other entities. those are all questions consumers have, and it could have an impact on their engagement.

they might change their privacy settings, they might decide to share less information, they might think twice about the kinds of things that they do on facebook. these are all things that could happen. we have not seen it yet. surveys in the course of q1 that were done after cambridge analytica that said, hey, consumers, we are more serious, we are thinking more about privacy than we used to. but the proof will be if people actually do make any changes. in situations in the past, we have not necessarily seen a lot of people leaving facebook due to other concerns that the company has faced. ♪ another stock we are watching, box shares, surged the most in over three years after investors interested in tapping into ai should go long on the stock. speaking at the conference, the ceo said box is incredibly cheap and undervalued. this is their biggest intraday increase since january, 2015.

-- january 2015. we speak to twitter ceo ned siegal after earnings. he opens up about everything from regulation to the president's twitter habits. and if you like bloomberg news, check us out on the radio. listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪

♪ emily: the earnings roundup continues. qualcomm reporting its second-quarter with adjusted revenue of $5.32 billion, beating analyst estimates. its results seem to indicate that the chinese smartphone market is improving. meanwhile, ebay rakes in $2.5 billion in net revenue, earnings per share of $.53. their former subsidiary paypal beat estimates, getting $3.7 of $.37.nd an evs and twitter estimates for first

quarter sales and profit as its questions about video and personalized content pays off. revenue jumped and monthly active users rose to 336 million. we caught up with twitter chief financial officer ned siegal yesterday about the results. ned: we had a great quarter. we accelerated our revenue andth, we grew revenue 27%, we are thrilled with the outcome of the quarter. it gives us an opportunity to go back to the areas where we have been investing, the health of the platform, audience and engagement growth. of the revenue products the advertisers use and sales, we will be investing all of those over this year. a calla head count them between 10% and 15% this year focused on those priorities. emily: despite this, shares are down. why do you think that is? ned: i try hard not to look at the stock from one day to another.

we are trying to build a twitter everyone can benefit from, and that requires a long-term approach. we know that over time the market will reflect that. emily: you did say it will be difficult to grow at the same rate in the second half of the year. why are the expectations more muted? ned: you know, we gave margin guidance for the second year and -- second quarter and tried to help people think about the full year, reminding them that it is harder in the active half of the year. -- second half of the year. we start to lack the business recovery that started in the third quarter of last year. we will talk about it when we get there. we feel good about the momentum and the business, the pace and feeling on the floor at twitter feels so much better than when i started eight months ago. we feel really good about things right now. emily: everybody's wondering how these increased concerns around data privacy and regulation impact you. gdp are, for example, tighter privacy restrictions -- how will that impact your bottom line? ned: it is too early to predict

how it affects us from a revenue perspective. that does not come in until late may, so we will be watching closely. one of the great things about our business is it tends to be very brand focused, and brand advertising may be less impacted than other types. we just rolled out our new privacy policy around the world yesterday. we view privacy as a right that we all have, and it's important for us to communicate clearly with our users about how their data will be used on twitter. just to remind you, everything that happens on twitter is public. that is one of the great things about the platform. the apis begin people access to is helping people organize the data in a different way than other people might. there is nothing in there that you cannot find on twitter yourself. emily: are advertisers leaving facebook and spending more time on twitter? ned: i don't know what's happening. i can tell you that what's happening at twitter is it feels like it is directly tied to the hard work we are putting into

the platform and to our relationship with advertisers. emily: mark zuckerberg has expressed support for your regulation. is that something twitter supports? if so, what kind? ned: we are definitely open to regulations. a lot of the things people are talking about from a regulatory perspective are making sure users know how their data is used, about making sure that we are clear with people. those are things we definitely believe in at twitter. hearings more potentially in congress. will twitter testify again if invited? ned: we are always open to conversations that further the dialogue and figure out the best way to help users understand how the data is. emily: let's talk about the data around the world. the growth was strong domestically, but not internationally. how long will the balance continue? ned: these things about how our business started in the united states and grew from there. we have a larger base of business in the u.s. than internationally, so there are more that's new opportunities

like the chinese export market, or the strength we saw in brazil. internationally, 53%. the u.s., when you back out of business, grew 9%. we feel really good about the momentum in the united states, growing up a larger base and it has definitely turned a little slower than the rest of the business has. emily: do you have a game plan if president trump, who is seriously unpredictable, suddenly stops tweeting? ned: we think of our platform is so much more than anyone user. -- any one user. there is so much great stuff happening on the platform. it is a place where people go to find out what's happening, where they go to be a part of the conversation. we are thrilled at the place where people go to break news, whether it is politics or sports. we see new people on twitter all the time and we are thrilled that the place were so much is -- where so much is happening. emily: but is there any way to quantify how much traffic trump is driving? whether it is him or people following him, the conversation around it? ned: at the same time as he has

been more active, so much has happened on the plot warm it is hard to impact -- on the platform it is hard to unpack any user. we have done so much to make the experience better, whether it is on boarding, the timeline experience that people have, the notifications that people get, the topic driven approach we have taken over the past couple of quarters. emily: we as journalists always hear chatter about twitter getting bought, whether it is real or rumor. how should we digest that? ned: we think about the opportunity we have in front of us, and we feel like there's so much we can do at twitter, on our own, to prosecute the opportunity in front of us. everyone in the world ought to benefit from what's happening on twitter, and right now we have 336 million monthly active users, so we have a lot of work to do. emily: so no plans on changing being an independent company? ned: we are a public company.

we have a board and it has a fiduciary right. we think about the opportunities of twitter as quickly as we can. emily: on the call, jack dorsey said we are not a social network. what did he mean by that? ned: we are in interest network. interest network. we are a place people go to find a think they care about. people often go because they want to find out what's happening. they want to find out what happened in the stock market. they want to find out what is happening around a particular thing that is important to them. that means although it is social in nature, it is not about the people to whom you are connected, it is about the topics and events you care about. ♪ myly: that was some of conversation with twitter ceo ned segal. produces arg lp global breaking news video network for twitter. still ahead, we break down amazon, and the president of the attacks, and whether it has any impact on its business. that story is next. this is bloomberg.

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♪ emily: amazon now wants in on your car. the online retailer can now unlock and deliver packages to your car if you own a chevrolet, buick, gmc, or cadillac. the vehicles must be a 2015 model year or newer and have an active service plan. in the new service is now available to all prime members through amazon key. meantime, citigroup warns if the u.s. social service raises rates, amazon's profits could be cut by $1.3 billion. of course, that's a little more than 1% of its annual earnings. it president trump claims the post office loses money in its contract with amazon, but the post office says it makes money on the amazon deal and is legally prohibited from charging shippers less than its delivery cost. speaking of amazon, the tech giant released first-quarter results thursday. we broke down the numbers with

brad stone. brad: first of all, i had the same feeling i did on tuesday with facebook, which is what was all the noise about? the environment around amazon was really captured by president trump's tweets, the post office, and none of that matters today. it is a bead on all dimensions. amazon is growing very quickly. iny added a 60% increase hiring year over year, and a $1.6 billion net profit. unheard of at amazon. one, the very profitable parts the business like aws and like aws andiness advertising are increasing, and that north american retail business is going up as well, probably because of those 100 million prime members, which jeff bezos emphasized. emily: so the tweets from president trump haven't had much of an impact, however shipping costs did rise 38%. lots of noise about the u.s. postal service and whether they might raise prices as a result

of some of the things that president trump had been dumping on. crawford, when you take a look at these numbers, do you see any red flags? any weakness? crawford: no, it is kind of the opposite right now. as brad was saying, you are seeing this massive multiplied scale that the company is experiencing right now. so yeah, you will see shipping costs rise because that is related to the top line, and related to the amount of business they are doing on the consumer and parts of the commercial side where they do business. to me, in the press release where jeff bezos talks about about the significant lead that aws has, and how they have very little competition for the past seven years, what they are doing ,ow is adding services to aws which translates not only into revenue, but significant profits . it is a subscription business on a subscription business.

we are seeing that multiplied scale in a huge increase, almost be 40% we saw for aws. emily: and i should mention that microsoft also reporting their sales are strong, in part due to the cloud business. aws is far in the lead. companiesies -- are like microsoft and google really a threat or -- >> the high is increasing. aws was in the 44% last quarter, so this is a wind that is propelling all these companies forward. you know, the companies that are suffering are the ones that were not as early in the cloud. what about some other businesses, the younger businesses like grocery delivery and whole foods, amazon echo and alexa? crawford: they can become quite large.

we will see very significant growth in alexa, and that will be high double-digit growth for a long time, because they are trying to build up that platform for the foreseeable future and they have a significant lead over google and a very significant lead over microsoft and apple. what they want to do is start connecting these services together, so you will see a huge push toward combining the power of aws to alexa, platform to platform, to connect and intelligently control more devices in your life. whole foods, on the other hand, is just a fascinating acquisition. obviously, we are seeing the benefit of that acquisition now in terms of a year later, but i think we have just a gun to be able to see them unlock the -- just begun to be able to see them unlock the power in terms of how you can combine aws to the alexa platform to the whole foods experience. that party is just getting started. emily: let's talk about advertising, the other revenue

category for amazon, revenue almost doubled to $2 billion, in part because of amazon's advertising business, which some analysts are very excited about, thinking it could at one point surpassed facebook and rival google. what do you think? crawford: you don't want to get too far ahead on your expectations. i think that people are probably really, really excited right now, because they really haven't known what to make about this business and how fast to model it going forward. isarly, the statement today that this business is a real business and it is accelerating and it can accelerate based on the platforms amazon is building. emily: on the sidelines of this earnings call, they have also announced that the nfl is renewing its agreement with amazon prime video. crawford: right. and this is a cost center. this is the part of the business that doesn't visibly bring in any revenue. you say there's a connection to prime membership and retention,

but they are clearly concerned about netflix, which is on its own runaway growth streak, and they are investing heavily in new shows. thatw, multimillions to do "lord of the rings" series. they are renewing their more high profile shows. emily: and this is the part of amazon that has been in turmoil. they lost the head of the division -- brad: i would argue that they haven't quite figured it out, certainly not in the way that netflix has. it continues to be a work in progress. it is remarkable that this is a company that shows at $1.6 billion in net income, despite the fact that they are drunk sailor in hollywood right now. emily: thank you to brad stone and crawford del prete. still ahead, yet another big tech company out with earnings this week. alphabet reporting on monday, showing how much google is investing in the cloud and devices and hoping to catch up with amazon and apple. and a reminder, all episodes of "bloomberg technology" are live streaming on twitter.

check us out at technology weekdays, 5:00 p.m. in new york, 2:00 p.m. in san francisco. this is bloomberg. ♪ retail.

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♪ to "the beste back of bloomberg technology." i'm emily chang. google's parent company reported sales of $29.4 billion, topping by $600 million. earnings per share came in at $16.83, beating highest estimates. paid clicks jumping 55%. capital expenditures tripled from $2.4 billion to $7.7 billion. the results also came with a clear message to wall street. the company is embarking on a new spending binge to pace its biggest rival. we spoke to bob o'donnell and colin hoberman on monday for more. ♪ >> i think the real big takeaway here is that google looks pretty

professional compared to some of its competitors, namely facebook. i think that's been pretty apparent in the way that google has really not said anything recently since the cambridge analytica scandal with facebook, and just sat back and said well, this is all good news for us, i think, because we are the ones that look like the big guys, the more professional tech company in this instance. emily: i did just get off the phone call with outlook that's -- alphabet's cfo and we asked her about future privacy regulations, how this could impact the business. what she had to say about gdp r compliance for 18 months. they had a robust and strong privacy program, and we are building on it. we feel well-prepared to meet these requirements. i asked specifically how it would impact the business and

she didn't give me a straight answer. she said most of our ad business is surges, which relies on keywords. we have been committed to requirements. my interpretation of that is that she's indicating it will not impact business very much. what is your take? bob: i think it will impact the business, but to be fair, search ads are different than the kinds of ads drawn by facebook. so there is a difference. i will give them that much, but clearly we are going to see some impact here. emily: how much? bob: that's the big question mark, how much? and they are more adult like, but let's be honest, there was an interesting story in the wall street journal that google has more data on all of us than facebook. so yes, they have been conveniently ignoring these issues, but as if we start to see privacy regulations come out, in some ways we can see google even more impacted by those regulations. their business model is more

balanced, so in that regard they may space -- face more sanctions and not have as big a financial hit as facebook might. asked interestingly, i her about the honest dad packed, the new legislation facebook and twitter said they would support transparency in digital advertising. google has been notably silent and some lawmakers have noticed this and called on google to state their position. i did ask her, why aren't you publicly supporting this yet and she said we are continuing to monitor new threats and put in safeguards. she talked about their transparency report, the repository of election ads, but what do you make of the fact that google hasn't stated their position on the honest ads act and that lawmakers are asking? collin: i think google has been quiet, and i think it goes back to what was saying. the majority of ad revenue is still from search advertising, which is quite different than a lot of the other advertising that has sort of been in the

headlines recently. social advertising is more of a display advertising type of ad format that targets people based on what they know explicitly about different customers. whereas search advertising is really revolving around keywords and terms people are putting into google. yes, google does make the search result different and will target advertising based on stuff they know about logged in consumers, but it is quite different. i think that's part of the reason google has been hesitant to say anything. i think it also goes back to, they are sort of waiting to see what comes of facebook and twitter for more of the social advertising scandal perspective. emily: we are listening into the alphabet earnings call right now. the q&a portion is starting. also on that call, what do you make of sort of the broader trends you are seeing here? she spoke to me about the big

bets, cloud, youtube, and hardware. that's where they are investing and where they believe it will pay off. bob: and i think they are right. there are a number of areas we can expect to see alphabet grow their business. obviously -- even waymo, it's not generating revenue now that -- now, but the way they are positioning waymo is interesting and could be very effective as people like tesla run into certain issues. emily: speaking of that, we just got a quote from her on waymo and we are going to play that and i want you to follow up. take a listen about what she just said on the call about waymo, the self driving car unit. >> at waymo, we have achieved 5 million miles of driving on city streets, adding the latest million in just three months. we also announced a long-term jaguar landwith rover for their fully electric

high paced vehicles. emily: now waymo is really comprising a bigger portion of the bets because they moved nets under the google lumber love. -- google umbrella. now you have waymo and that's where they all are at the moment. and it's a big one. -- is the revenue they are getting from fiber, but longer-term loamy think about actual bets, waymo is the most important. philosophically, they are not trying to do the semi autonomous driving. look, we knowg people get distracted and we know the kind of situations that occur are going to occur and we are going to wait until the technology can do that complete picture. that's an interesting philosophical difference from some of the other vendors. in the bottom line is that will be a good bet for them in the long run. the other thing we will see, on the compute side, they will be able to drive ai services like ibm does with watson. mrs. -- aided a i

services is yet another cloud service add-on that she referred to a little bit in the comments on the call earlier. emily: ruth told me that verily driving fiber, but only $150 million at this point but the operating loss is $571 million, which may bring google and waymo investments into account. you know, there has always been so much focus on these other bets since google started breaking them out, but i wonder if that will now be less and less if the pie is essentially getting smaller. i think google does do with a lot less on some of these bets, merely because it's so small compared to its main revenue driver. the advertising revenue is pretty high margin for them. they are the dominator there and it will be interesting to see. this quarter didn't reflect too much of the scandal, the cambridge analytica scandal with facebook, since there was only two weeks we were able to look at. it will be interesting to see next quarter.

are they growing the ad revenue pie even more as advertisers start to think, should i be placing my bets in facebook or should i go somewhere that looks a little bit better to me and more trustworthy in google? that will be interesting to look at in the next coming quarters. emily: google is in the lead, then facebook. amazon is a very -- collin: they are small. estimates are $2 billion last year that amazon captured in advertising revenue. but we have spoken with a number of cpg marketers listing their products on amazon and are increasing their spin on amazon as much as 60% year over year. they are also offering amazon advertising platform, which is their demand-side platform, their ability to provide display advertising on amazon and sites off amazon advertisers can use. basically a competitor to google double-click. as people start to look at that as an interesting way to say hey, we can use amazon's

behavioral and purchase data they have on consumers to target them in other places outside of just amazon. that is when you see people like bmw or bank of america, who on't even list products amazon today, start using amazon as an advertising platform. forrester researchers co llin coburn and technology president bob o'donnell there. this week, spotify introduced a free version that targets 1.5 billion youtube users. it rolls out ahead of youtube's new subscription music product. spotify operates the biggest is a downloader in the world, but it is expanding what it offers for free to reach a targeted one billion users. coming up, apple ceo tim cook meets one-on-one with donald trump after a state dinner. we tell you what we discussed behind closed doors. and we speak to the man behind the wheel by the chinese star but -- startup horizon robotics,

the chinese market of driverless cars in 2030. this is bloomberg. ♪

♪ emily: more headlines from amazon this week. the company is working on yet another big bet, robots for the home. amazon has embarked on a top-secret plan to build a domestic robot. they hope to be putting the robot in employee homes by the end of the year. a rollout for consumers in 2019 could follow. and the e-commerce giant is promising to entertain bored children. it's releasing a new focus skills for alexa digital assistant, plus there will be an echo design for children. a magic word feature will make its say please when asking alexa -- kids say please when asking

alexa questions. apple ceo tim cook made his way to the oval office to meet with president trump. this comes between a brewing trade war between d.c. and beijing. trump has been vocal that he will get apple to "build their damn computers in this country instead of other countries." before the meeting, he tweeted, "looking forward to my meeting with tim cook of apple. we will he talking about many things, including how the u.s. has been treated unfairly for many years, by many countries, on trade." mike dorling shows us all the details. mike: we know the topics were discussed. it was about trade and of course, for apple it's important to have open trade especially with asia and president trump wants more limited fair trade. but the white house and apple haven't told us much about what was said. we know that cook met with the president in the oval office and we know he also met with the president's chief economic advisor, larry kudlow, and he also had a meeting and the

office of the u.s. trade representative. so clearly very focused on trade. emily: obviously the president has decided to pursue tariffs on chinese goods, which could disproportionately hurt apple , given how many of its products are manufactured in china. do you think there is any chance that tim cook could influence the president in the opposite direction? mike: i think there is a real chance that it has some influence on the president, maybe not enough to persuade him absent other things, but he does listen to and admire successful ceo's, maybe more so than academics or other politicians. so he does value those people's opinions and he had a conversation with cook before and in fact, after the tax break, which cook praised and which apple benefited enormously from.

apple talked about building more facilities in the u.s. and having a fourth headquarters here in a new location in the united states. trump was very happy with that and praised that. there is a rapport there, at least a working relationship, and the category person the high-powered ceo is someone trump admires. maybe not enough to stop him, though. emily: bloomberg's mike dorning there. chinese startup horizon is looking to dominate the market for driverless cars like 2030. they are about to close a new round of financing that will raise $700 million. in an interview, the founder and ceo told bloomberg the money will be spent on ramping up research capability. take a listen. >> we expect to raise several hundred million u.s. dollars. we are going to have some new strategy masters.

last year, we had intel as our strategy master. this year we are going to have another major player, a semiconductor global player which is not intel to be a part of our team. we are going to have some major leading oems, global and local, as our investors. so that's very exciting. david: how do you compete with the lights of nvidia or mobileye? what gives you the edge? yu: we actually targeted a totally new space, which is artificial intelligence for autonomous driving cars. so that means we need to develop the technology, facilitating the competition, very efficient, low power consumption all the way to decision-making, like trajectory planning.

so this is a totally open new space. in this new space, everyone has an opportunity. we have a global level of competence for technology and we have a really, really challenging traffic situation. and we have massive markets. i think putting all three sectors together, we have a very full confidence that we can deliver the cutting edge of technology. >> facebook, alibaba, they are also making moves into the chips sector. yu: right. >> how much of an impact is that likely to have? yu: that's extremely positive. that means people really push forward artificial intelligence. they need to think about to redefine and innovate the ai processors. i think that's great. that's great. i think alibaba and facebook, their primary focus is for the consumer to handle business.

right? like the small speakers to the customers. yu: so this -- >> so this stage is not a direct threat to you? yu: no, we are doing something like a moonshot, right? and i think they are not doing the same thing, that level. so we are not competing. >> whether or not the u.s. decision to erect barriers to its tech assets makes your business proposition more compelling. yu: i would say probably in reality, yes. because the trump administration's decisions probably will urge the china government to spend more money on the type of core technology oriented in business. >> do you see yourself as being a key part of china's made in china 2025 strategy? i think one thing important

for us is to be the leader by 2025. 30 million cars in china equipped with our processors. we are going to be the number one player in that space. just think about, by 2025, i think of most of the cars, 70% of the cars, will be equipped with these ai processors. and horizon robotics is going to be the only player in china, right? i don't see any reason we cannot achieve the goal to be the market leader. emily: horizon robotics founder and ceo yu kai speaking exclusively to tom mackenzie in beijing. coming up, uber is out with its second annual diversity report, but was there enough progress made to keep up with the other silicon valley giants? we talk about it next. in case you missed hbo's silicon

valley last sunday. bloomberg technology made a -- last sunday, bloomberg technology made a little cameo. here's a clip from episode five. >> welcome. today's a big day for you. one day before they announces their box three, you are coming out with a competing product. tell me what your new internet is and why gavin belton should be afraid of it? >> maneuver? emily: spoken like a true coo. don't miss the rest of silicon valley on hbo this season. this is bloomberg.

♪ showing hasto replaced the ceo with one of its own executives according to a report in recode. we'llhi will take the on the startup. he was the general manager and ran the luxury business.

taxis in bought 99 january, getting a foothold in latin america and broadened its global war with uber. uber has increased the number of women working integrals by 2.5% in the last year. but they still lack in silicon valley. the reported diversity was an account of sexual harassment written by former software engineer susan fowler rocked the industry and the company, in its second annual report, stood at 18% of the employees are women. eric newcomer joined us with more. think 2.5% isi not a lot, but the new ceo started in september. he has basically been ceo for seven months. it will probably take some time to really turn things around. interestingly, a lot of progress was made outside the u.s. and canada. the u.s. and canada actually backslid somewhat, becoming more mail while other regions became

significantly more female. emily: what about underrepresented minorities? eric: i think african-americans are about 8% of employees in the u.s., where they really track it. clearly there is more work to be done and i think the growth was similarly small in terms of improvement. emily: what are you hearing from inside the company about the cultural transformation? eric: i think people are more optimistic generally and think the company is taking steps. i think we haven't seen a close look at their diversity work org since the new ceo took over. he hired the chief of diversity inclusion, the reports into the old human resources had -- the company says it is working, but we will still have to see how it pans out. emily: now, what do we know about market shares? we know when we spoke with john zimmer, the president of lyft

, they had been getting significant market share on uber in certain markets. i wonder if the needle is turning back a little bit? eric: i don't think we've seen that yet. i think uber will be shouting that from the rooftops if there was a real shift backwards. lyft's been talking about 40-50% 40%, 50% in some markets. obviously, uber remains the dominant player in the united states and is a global player where lyft is focused in the u.s. and i think toronto. lyft has definitely gained ground and is holding on to it. emily: speaking of ride-hailing on the other side of the pond, the chinese service didi talks about what could happen this year. the wall street journal says didi could be valued at $80 billion, more than uber. according to the journal, they are considering other ways of raising capital, including selling convertible bonds. what do we know? eric: i mean -- a lot of these

onuations, as we learned paper, until something real happens, it has been a situation where companies, especially didi from softbank have raised a lot of money on the markets. uber says if they want to go public towards the end of next year, and we reported that they are sort of looking at a new chief financial officer, which would be a key piece as going public. so all these companies have gotten so big they are certainly talking about ipo's, so it's credible, but what the actual value is and whether didi actually goes this year, i don't know. we will see. emily: and they been upfront about uber targeting an ipo somewhere in the 2019 range. eric: right. emily: does it matter if didi gets to market first? eric: you know, there is always sort of the positioning story.

this was like the box/dropbox conversation. i think it will be relevant. they are very different target. going publicidi will be good for uber. uber owns a significant stake in didi and also the markets value ridesharing, that's good news for uber. they are largely competing in different markets. if anything, the question is, who is going to be the better marketer? in termse uber or didi of who should go first? but one doing well is probably good for the other. emily: bloomberg tax eric newcomer -- bloomberg tech's eric newcomer. and that does it for this edition of the best of bloomberg technology. be sure to tune in this coming week for a busy week. we will be a live from the 21st global conference to kick off the week with a fantastic guest lineup. in addition, we will hear from mark zuckerberg at facebook's developers conference tuesday and bring you for coverage of apple earnings and tesla on tuesday and wednesday. tune in every day, 5:00 p.m. new .m. san:00 p

francisco. remember, all episodes of bloomberg technology are now live streaming on twitter. that's all for now. this is bloomberg. ♪

♪ >> coming up on bloomberg best, the stories that shaped the week in business around the world. earnings season roars into high gear with big tech and big banks in the spotlight. >> wealth management people have been scratching their heads today wondering what is going wrong? is in apany position that no company has been in before, and it might get bad. >> interest goes from corporate mergers to political packs. >> this struck me as the ease that these men seems to be in each other's company. >