♪ this is bloomberg technology, bringing you all the major stories in tech around the globe. coming up, an exclusive interview with one of the most legendary venture capitalists in silicon valley. the white house says it is taking a hands-off approach to white house regulation.

amazon has taken on streaming, hardware and the cloud in recent years. why they are still falling behind on diversity. but first, from self driving driving tractors, artificial intelligence is taking over. with the new technology comes new questions about its impact and ethics. joining us, principal researcher at microsoft. he also recently wrote a book, radical market. the lay of theus land when it comes to technology.

how much further will he go? bridgeink we have to product activity and technology. , therewe recently saw are lots of fun gadgets that we are all playing with. we have not seen on the productivity side improving the workplace, so think that is a lady bridge that has to be reached if we are going to make a difference. house sayinghite they will be hands-off, is that a good thing? >> i don't think that is going to actually make the economy more productive. if you think about the

regulations, those will be potentially important which might potentially improve the productivity of the economy by giving get more rewards for creating better data. >> you mentioned the google assistance. speaking.soundbite reserve a like to table for four people. >> there were some folks out there who called that horrifying, but also an example of how far it has come.

gethey were not demoing this week's of people contested. caught google is flat-footed about the response. you're going to identify it is google assistant:. just emulating the voice well in the far distance from being able to do secretarial work, scheduling or some the things that will search engine the economy and that sort of productivity would really make a difference.

amazon alexa has captured the fascination of the world. as glenn has said it is not just about force assistance, it is much more. >> you could argue microsoft and isgle are leaders and amazon lagging behind. that is one way to measure it. ofhave not seen a lot clarity.

aboutelon musk has warmed -- warned about an apocalyptic teacher -- feature with ai. >> i think there are some many regulatory issues and i don't think we can think about any of the stuff on the china side of the story and the potential they will have on this space. -- -- is ai going to create more jobs or destroyed more jobs. how do we robot proof our

children. if we start, then actually that is an opportunity, but right now we are not being paid. directiong more inept they will try to move the ownership back. many ethical questions. >> they are talking about how they are thinking about responsibility that is said when they are required -- acquired by

google. we need to have safeguards in aboutgiven very limited what that looks like him i think .oogle is traveling with that a lot of employees are of set about that. thanks a much for giving us a glimpse of the future. all speak to john doerr. news, like bloomberg check us out on the radio. this is bloomberg.

the ceo game over for of gamestop. the stuff down for personal reasons. struggling to adapt for more software is being delivered online. -- it is the 11th time qualcomm has extended the offer. been 13% of shares have given so far.

taking a stance on hate conduct. musicay it will remove from -- on coming up we speak with john doerr. that is coming up next. this is bloomberg.

>> it was a rough start for 2018 and tech.

one thing all three have in common, they have early interest from longtime investors. the venture seems to have backed hundreds of thousands of jobs -- have become it is called measure what matters and have a rock the world. they join me now in the studio. welcome. this is a slideshow presentation. companies talk about it all the time like it is their religion. it is about setting objectives. >> what is so radical about this? not practice in almost

every company and when amine is .ake one feature that is one thing that will set us apart. topveryone transparently, to bottom. the truth is we don't have any better way to manage the company's. every googler has written down her results. bonuses orcount for

promotions. they serve a higher purpose. >> you presented this to google. you have just waste your biggest that of all time in 1999. percent ofon for a the company. he called it a gift. -- they arer grappling with self-driving car's. it is a lot of change. been and thiss quarter, sundar will stand up our objectivesre are minen my -- here personally.

one of the things you say is they are not a silver bullet. >> the book is called measure what matters. how do you measure something intangible? questions answers the why. objectives answer the questions what, results measure how. you draw a definition of what pullculture is in you support organization to say we are not living up to these values or aggressiveness or accountability. i have seen this. there is no one right culture. every organization has their own. aboutant to ask you

facebook. we have seen facebook go through election meddling, also fake what was -- what would you recommend that facebook do in this situation? >> it is a little hard being outside the organization to be prescriptive about that. incrediblys is an well-run company. i would expect that there internal goals have no way of knowing to achieve a certain measure together with or paired with a measure of trust and user satisfaction. the book talks about the .mportance of parent goals

he had goals to make the least expensive car that he could. when someone ran into the back, the gas tank exploded. goals thet let your one-dimensional, you are going to miss the mark. >> you met with president trump. what are your biggest concerns about the consequences of this? red-blooded capitalist who believes in free markets, but also putting a safety net. i believe technology advantages

.he rich, not the poor said i believe now that we should invest more in research and development across the board. we should take data that has been bottled up, especially in the health care system and this administration is moving smartly on that front. i don't believe we are in free trade with the administration on that. >> this is a really good time for entrepreneurs to start and to be working in the field of technology. >> you cannot really compete in the connected world without

understanding what machine learning can mean to the product services you offer. >> elon musk has says -- said it is apocalyptic. >> that is one of you. could it get that dark? >> i don't so. i want to put it in context. it seems there is a transformation starting in 1980. that takes us forward to about one dozen years. the next big wave was the web browser. all those internet companies including google and then 2006, steve jobs introduced the iphone and at the same time, the cloud came.

i think this field has been overhyped in that field is artificial intelligence and it is programs that learn as they go along. it is deep reinforcement wayning that mimics the humans think. we can't have self-driving car for the artificial intelligence. what we can do with health care is incredibly exciting. right now, you could take an and predictetina andlikelihood of diabetes apply artificial intelligence today to all kinds of imaging and health care and give better diagnosis when humans can get. >> do you worry about tech

addiction or the negative impact ? believes they split to the destroying the very fabric of our society. >> before we income, i want to talk about that. my result was to get home from p.m. and to be fully present. router. the plug on the nobody could get to anything on the internet. i got it done maybe 70% of the time. >> so you're not worried about the negative potential? >> no.

think we want to be concerned about families and kids is not the case. >> he's obviously going through production issues. .e has another company what would you recommend in that position? >> this is the same thing i recommend to others. make sure you have a strategic rochus. bring to a proprietary and outstanding management team, raise an original -- a whichable amount of money

allows tesla to move for faster and i recommend you use objectives and key results. >> we're going to continue this doerr,ation with john including his talks on the best opportunities in vc right now. later, not wear, but who when it comes to hq to. as amazon prepares, can it build a workforce that is more diverse?

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>> this is "bloomberg technology." i am emily chang in san francisco. his career,rse of john doerr has seen at all, making early investments in google, amazon, and facebook. john doerr is with me here now. i want to mention, you say this is much more than a book. say it's ae to handbook. it's not a business book. it's full of dozens of stories of entrepreneurs and business leaders struggling and succeeding to set goals that matter.

my hope is that this isn't just for businesses. tohink we can take okr's our nonprofits, families, schools, and governments. we are at a critical point in time in which many of our leaders and greatest institutions have failed us. okr's what should trump's be? john: that is a very good question. they would be, grow the economy, half the country be respected in and around the world. his objective would probably be "make america great again," right? the objectives are very important to get. so too are the key results. let me say this. sylvia mathews burwell used okr to manage the ebola crisis. government is to be transparent

and accountable. why not have a city council adopt this system of goal setting? i think we can and must measure what really matters. emily: let's talk about diversity in silicon valley. we are holding silicon valley to toount when it comes diversity, and i know you are aware of this problem. as you are advising young companies, how do you tell them how to approach setting goals and results for something that is so important but so easily is lost sight of? john: first answer the question why. why we do this work, why we do this is all important, and it will be expressed in both our values and the mission statement. you ought to have a powerful, inspiring mission. that will help you get the people together to do it. something like connect everybody

in the world. you've got to get a mission right. i think of those as transparent vessels. the what and how into which we pour these values. thatvery clear transformational teams have managed to combine passion with theyse in a way that says clearly know how to answer the question why we do the work that matters the most. emily: i just wrote a story in "business week" challenging amazon to build its new headquarters -- they are starting from scratch -- to shoot for 50/50. john: that is a great goal, not equality orsocial

social progress, but because we know diverse groups make better business decisions. the data shows it. tech industry and kleiner perkins, get to a 50/50 world that reflects the customers we are trying to serve, we are making less good decisions. emily: i have to ask you about your reflections on ellen powell etooight of the #m movement. but public court, opinion had mixed feelings. in this new world as we have this conversation, what are your reflections on that? john: it's hard to add much to what has been said or written. you and i have discussed before about ellen powell. i'm human. the whole situation made me really sad. i really do wish her well.

i think the other dimension to we should have zero tolerance for a workplace that makes anyone in that workplace uncomfortable, and on the particular question of diversity, i think you know we've been a leader in this field, and we don't think we have gone far enough. in our own people, our partnership, our portfolio, and the third is the pipeline. in our own partnership, 21% of our investing professionals are female. 9%.average is pathetic, within our portfolio, 9% of our ceos and founders are female. the average in the industry is 2.7%. that is outrageous. in respect to the pipeline, i

guess it was in 2015, 10% of the participants can decline are fellows program, which is harder to get into than it is to get into harvard, were female. this year, it is 50/50, and a 11% are african-american. i'm not satisfied with where we are. i think we have to do more, but i think we have to put women and minorities in positions of power if we are to right this wrong. emily: you brought in some new blood. john: ilya push men. emily: we have heard he is your heir apparent. talk to us about the transition that is to come and how you expected the firm to change. john: kleiner is in very good shape. i'm really excited about it. one of my key results when i took on this new role is to help the team attract and grow more

talent. note thattant to kleiner has always been in transition. since i joined in 1980, we had partners who were in their 60's, 50's, 40's, and 30's. i had kind of an outsized , but this isrnally a very natural process that i think is going well. emily: where do you see the biggest opportunities in venture capital right now? crypto? warren buffett just called it "rat poison squared." john: i think charlie munger said he was "transferring turds." emily: do you think it is a good investment? john: i think blockchain is a powerful new technology. a deal ass big mobility, and i don't think it is as big as ai. we have used blockchain to facilitate international and

cross-border transactions. i would love to see blockchain applied in a powerful way to the health care system so you have fine-grained control over where your health information goes so you can automatically at any time have a longitudinal record of all of your health care experiences. emily: what else? john: we invested in ico. emily: but in tech more broadly, where do you see the opportunities over the next 10 years? john: i think they are in artificial intelligence. i remain convinced that selectively they are in the areas of innovations around energy and energy technologies. i am quite convinced we will see a lot more disruption in systems for enterprises. the big tech giants, especially those with strong positions in consumer markets, they are a lot more competitive than their predecessors were, so i think it

is harder to start a new consumer internet-based venture. emily: john doerr, chair of kleiner perkins, out with a new book called "measure what matters." john: a new handbook at whatmatters.com. emily: great to have you. generalpean union's data protection regulation goes into effect may 25, but how and doesoes gdpr work, it have a chance of inspiring similar laws in the u.s.? bloomberg's "quick take" gives you all you need to know. >> you may have seen a few of these pop up in your email. google, facebook, go daddy, tesco, h&m, and many more are updating the policies to give consumers more control over their personal data. those updates are thanks to a new law governing data privacy. gdpr only applies to people who

live in the european union, but its adoption is largely expected to have americans asking, why don't we have that? here is how data collection currently works. facebook,ign-up for you have to click a box agreeing to the company's terms. those terms give facebook the right to track your online activities even if you are not actively browsing facebook. facebook allows third parties to access this. >> consumers will have a right to copies of anything. up to entire archives of all the content they have generated on the service. >> on may toy five, companies with more than 250 employees and that whole data on european citizens will have to giet unambiguous consent from users before gathering their data. it will make it much easier to revoke consent users had previously given. for consumers that opt in, they have a right to know what is being done with their data.

>> for companies like google and facebook, they have been making data available for download and deletion for quite some time. >> consumers have the right to be forgotten, which lets companies toest delete their data. you may be able to trade something like a gift certificate from zara in exchange for your shopping crew.y from j. any failure to comply with this costly. penalty fines can be as high as 4% of the company's annual global revenue. >> europe expects companies to act within the spirit of the law and not just to follow it to the letter. this means there will be disputes and legal precedents to be set. >> while the u.s. is reeling over facebook and the cambridge analytica scandal, the eu is moving forward with new rules. many will ask, should the u.s. of being next? amazon'sming up 78% of

senior executive and manager positions are filled by men, but the company has a chance to shoot for 50/50 at its new headquarters. this is bloomberg. ♪

emily: amazon has turned the selection process for its and months -- into a month-long reality show. we are about to recommend three cities in particular, and it's not aware but who that may matter most. amazon faces a stunning lack of diversity. with men holding 72% a professional jobs and 78% of leadership roles, hq2 allows the company a unique opportunity to diversify its workforce.

my colleagues and i have a modest proposal in this week's edition of "bloomberg businessweek." when amazon crates 50,000 new jobs at hq2, why not shoot for 50/50 men and women and representing people of color in line with the local population? joining me to discuss, christie coulter, a former amazon employee, and "bloomberg businessweek"'s jeff green who covers corporate diversity and helped write this story. lay the land for us. where is amazon now? where could it be? jeff: if you look at where they are in terms of their attraction , men versus women, they have predominantly male employees, 75% to 25% in the upper echelons of the company. they trend male in their job listings. everything is positioned somewhat male, which is an impediment if you want to be gender-neutral. emily: christie, having worked at amazon, i am curious what you

think of this proposal? is it realistic? christie: i love the proposal. i think it is realistic insofar if anyone can get this done, it would be a company as old and not afraid to break the mold as amazon. it will be a matter of not just hiring 50/50 but retaining 50/50, and i think that is where amazon has cultural tweaks to get there. why not give it a shot? emily: talk to us about the culture as you experience of the good and bad and what might be working against a more diverse workforce. kristi: i was at amazon for 12 years. obviously, there was a lot of good in it for me. the good is that it is incredibly innovative. i don't think i was bored a day. you get to work on huge problems and do things people don't think are possible.

the downside is it's an think, to culture, i a fault. it encourages behaviors that men are typically rewarded for, like disagreeing openly, being very yourssive, being loud with opinions, and it is not necessarily an environment where women have been trained or raised in our culture to succeed by emulating those same behaviors. are behaviors that men tend to be rewarded for and women punished for. it's often the fact that you are the only woman in the room because of the numbers, and that can be a hard way to feel like you are being authentic. emily: i did talk to a senior woman at amazon who had only positive things to say about the culture. it's not for everyone.

it's an ownership culture, and you need to come to work every day and treat whatever business you are working on as if it were your own business. it is an amazing place. it is not an easy place. closewe spoke to people to the search process for hq2. they are doing some things like talking to cities about their representation of women programmers, talking about potential partnerships with schools and the stem pipeline, and you actually did some math. based on those things, you picked three cities where hq2 would have the best chance of getting to 50/50. talk to us about that. jeff: we kind of looked at what percentage of the local population were female programmers, what percentage were women, and we looked at the minority situation. toronto, chicago, and the greater washington, d.c. area all look great. the question is, which of those

do you choose? washington, d.c. has political overtones. maybe chicago ends up being the compromise location, but if you want to do what amazon needs to do, 50/50 isn't just 50%. you need to have 50% of all positions so women are represented in every pay position, too. important, and that is why those three cities look like good choices. emily: let's talk about that when it comes to amazon. jeff bezos has 10 people on his senior leadership team. all of them are white. one of them is a woman. amazon's board is 70% male, all white. there are three women on the board. the company just rejected -- the board recommended a vote against a shareholder proposal to use the rudy rule when interviewing new directors, which means

making sure there are women and people of color among the interview candidates. what do you make of that? kristi: i was really disappointed to hear that. is great.e rule my husband runs a much smaller company. he implemented the rooney rule for their hiring, and they have been thrilled with the results. i was happy to see in the "recode" article i read about this that amazon employees are speaking up. there was a culture for a long time where it felt like it was ok to not talk about diversity or acknowledged the company's lack of diversity, and it seems like that is changing. whether it is through the rooney rule or some other route, i am glad to see that employees who care about this are pushing for a change. kristi coulter, jeff

green, a provocative proposal. we will see how amazon response. coming up, it is smaller than a football end zone, and it makes as much leafy greens as an entire football field. farm in a box is next. this is bloomberg. ♪

emily: the vertical farming market in 2016 was valued at somewhere between $1.5 billion to $2 billion, and it has people growing food in places like skyscrapers, warehouses, and shipping containers, which is doing.eight farms is caroline hyde looks at what it is like to farm in a box. ♪ caroline: this might look like your typical burger, topped with all the fixings, including that leafy-green lettuce, cooked and washed in brooklyn, farm to

table greens, only it is a afferent kind of farm, 320-square-foot husk of a shipping container in the heart of downtown manhattan. it's called the leafy green machine, and it's the brainchild of boston-based freight farms. it is part of a new wave of vertical farming that is set to be a $6.5 billion industry by 2023. >> shipping containers were pretty much everywhere in the everything.cks and they are widely available, and the infrastructure is built to move them around. of refrigerated shipping containers off the secondary market, so they have installations built into the walls. to ben: designed eco-friendly, using only 120 kilowatt hours per day. according to freud farms, that is as much electricity as two family homes. what about the most precious of

resources? this farm only requires five gallons everyday. that is 98% less h2o than traditional farming, and you can operate it from your smart phone. currently, there are around 200 leafy green machines in 12 countries. is at al know space premium in new york. we produce the same amount of food as a 1.8 acres of farmland. caroline: the yields per week, 35 to 80 pounds of leafy greens, or 500 full heads of lettuce, and according to the united nations, in order to feed another 2 billion people by the time 2050 rolls around, we will need to produce 50% more to eat across the world. for people who live and harsh climate conditions that make growing produce impossible, an old shipping container might be

the delivery they need. emily: that was bloomberg's caroline hyde. all of next week, you will be able to see more of the technical innovations taking place in boston because that is where we will be broadcasting 14-18.y the show will be live from a different location every evening showcasing the innovation, diversity, and power of the regional tech economy. we will also be live with programming 4:00 until 6:00 p.m. eastern time. that doesn't for this edition of "bloomberg technology."have a wonderful weekend. this is bloomberg. ♪ bloomberg. ♪ mr. elliot, what's your wifi password?

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♪ david: if president trump called you and said i need you to come in and help your country, what would you say? condoleezza: i am happy to be doing what i am doing now. david: you negotiated with north korea. condoleezza: i thought, nothing else has worked, so why not? david: on the iranian agreement. condoleezza: i did not support that agreement. david: what are the qualities you think great leaders have? condoleezza: a sense of humility about what they can achieve. >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright.