♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." coming up in the next hour, apple rolls out software upgrades from the iphone to the mac, tv and watch at the worldwide developers conference and fires a shot across the bow at facebook. we'll bring you highlights and reaction. plus, microsoft returns to its developer roots with its 7.5 billion dollar purchase of github but not all developers are happy. i speak with microsoft's c.e.o. up ahead. and facebook is denying a "new

york times" report of deep access to not just users but their friends. what are the next moves for the tech giant and is your data at risk? first, to our top story. apple holding the annual worldwide developers conference in san jose, california, where tim cook took the stage. tim: i am happy to announce that we have over 20 million apple developers around the world. that's more than ever before. [applause] emily: while no new gadgets were announced, apple is giving the software that runs iphones and ipads a much-needed overhaul. craig federighi announced i.o.s. 12. this coming in addition to enhanced augmented reality apps and new tools to monitor and moderate tech addiction. the focus overall improving speed, efficiency and making us even more connected to our

devices and those devices more connected to each other. joining us now with more is mark gurman, our "bloomberg technology" senior executive editor and those that cover apple outside the conference. both were watching this announcement. mark, i do want to start with you. all the things apple announced the most?at stands out to you mark: definitely what stands out the most to me is this i.o.s. app and mac app merger we first wrote about all the way back in december since we wrote about that. there was a lot of criticism for that story. saying it wasn't true. but i against guest, you know, that's what happens. this would allow you to run ios versa. your mac and vice a significant sea change

with the way apps work. apps are more important to apple than ever before because it is a core part of the company's services business which the comp most important going forward and fastest growing segment. $50 billion per year business by 2021. emily: well, i told you so there from mark gurman. craig federighi also talked about how the focus is improving performance. this after years of complaints that sometimes the software just doesn't work. take a listen. craig: for ios 12 we are doubling down on performance. [applause] craig: we're working top to bottom making improvements to make your device faster and more responsive. emily: it's interesting, brad, there that he says we are not going to give you a dramatically different experience we are just going to make what you have better. brad: yeah. let's be clear, they tout performance improvements every

year. the president makes more news in his early morning tweets than apple made in its whole announcement today. emily: right. brad: last year they introduced the home pod and didn't launch it in calendar 2017. this was an event that was for developers. the news mark talked about, apps for both platforms combining. the most monumental thing we got today. the speed performance is important. they control the software, emily: and they are making their own. brad: all their users gets the new o.s. updates. on my android, i am probably using two generations ago o.s. so they did make a point saying there are iphone users with the older model phones use those performance. our reaction to the dustup earlier in the year where they were accused of slowing down phones. emily: we got a reaction to accusations that apple isn't doing enough to prevent tech addiction. take a listen to what craig had to say about that. craig: we know there are people who would like a little extra help in managing their use of apps and for them we created app limits. in your activity report you see an app where you might want to

spend less time, look, you can set your own limit. emily: mark, the irony was rich here because at the same time they are giving us these tools to monitor how much time we're spending, they're also working on things like that new emojis and group facetime that make us more addicted to our phones, correct? mark: it's absolutely right, emily. on the surface it's quite ironic they would give tools that, you know, over time could inspire people to use their phones less which in turn would make less money for apple.

to be honest here, no one's going to stop buying iphones or any phones. no one will stop using their phones. it will become a competitive advantage, i think, because what i think is they have the best type of tools. everyone's going to have them. we might have a use case for consumers in some years saying, hey, i want to buy the phone that does the best job limiting how much i use this phone. no one will not buy a phone but they want the phone that does a best job limiting that and that's what apple is doing with this o.s. update. emily: brad. brad: they are very well-intentioned. the parental controls i find fascinating. i look forward to fighting with my kids incessantly about them. the tools like the animojis. the group facetime, my kids will love that that do facetime with all their classmates at once. it's like selling candy flavored sneaker ads but they are putting the warning labels on it. these will be compelling to kids but will be challenging but perhaps a little easier for these parents to limit the use. emily: now, they also laid out more incremental development to the developers tools they're giving for augmented reality development and, mark, tim cook has said that a.r., he believes, could be the next big thing. you know, is this a bigger deal than it may sound? mark: yeah.

that's absolutely right. to get a product right you really have to test it in the field. apple, as we reported on the show many times, is working on an augmented reality headset, a pair of stand-alone glasses that can overlay images to your real-world environment with cameras and siri and all sorts of features. with google, they came out with google glass, a flop that wasn't great, very expensive. what apple is doing here, hey, how can we bring this technology to the masses without giving it away, without doing a prototype? we can use the cameras that we have in the already one billion iphones. they are reporting more of the a.r. features they are working on fhis heset to the phones, making the most out of that technology for the time being before they have the real hardware in a couple years' time. emily: how does this set apple up for the next few years, we are not upgrading as quickly and also services are even more important to the bottom line?

brad: well, i think this is an event for developers. and it's energizing the developer community. it's giving them new tools to write, say, a.r. applications, like usdv, an a.r. language they trotted out this year. you know, what mark talked about earlier, unifying mac o.s. and i.o.s. apps to make it easier for a developer to write one set of tools for all platforms. i think what this does, it doesn't give us much insight what's coming later this year or next year. i'll count on mark to tell me that. emily: as will i. brad and mark, thank you, both. now, to a story we're watching. del, the world's largest private tech company had an upbeat first quarter. the corporate spending environment has climbed to $24.4 billion in the period. michael dell will have a tie-up with v.m.ware or a possible i.p.o. coming up, microsoft is going back to its roots.

github, popular with many software developers. our interview with satya is next. listen on the bloomberg radio app, bloomberg.com and on sirius x.m. this is bloomberg. ♪

♪ emily: microsoft said they will buy github worth $7.5 billion. they will add programming tools. i spoke with microsoft c.e.o. satya nadella earlier and asked what github adds to microsoft now and in the long run.

satya: if you think what's happening in the world around us, computing is in everything. it's impacting our daily lives and economy from precision agriculture to precision medicine or personalized education, personalized banking and is driven by software and every company is becoming digital and that world is being in fact, a linkedistat,. developers in nontech companies like retail, energy, is growing by double digits. a 25% higher growth rate there than even in the tech companies. that shows we are in the very early innings of what is going to be a set of tools and staff services that are required to empower every developer out there. so that's the real strategic rationale. if you think about microsoft, we've always been a developer first company. that's how we got started with the developer tools.

now we're all in on open source. and so with thatbecomi together github and microsoft makes a lot of sense for us. we can contribute a lot and stay true to the original ethos of github and that's how we'll operate going forward which is being developer first. emil github has had issues finding a way to grow significantly, turning a profit. they raised $2 billion just a few years ago. what will microsoft do differently to justify this $7.5 billion price tag? satya: you know, we feel very, very good about the growth rates github has. but github first starts, whether you are a hobbyist, a student, or a small startup or a -- first working in a large company, to be able to use github as a free service and then they have done

a good job having a premium model going from that free service to paid versions of it for organizational use. we think we can scale that by first staying true to building that service up and making sure it's an open platform for all tools, all clouds, all platform targets as well. so we think we can bring a lot in terms of scale and reach to additional customers and additional channels but we feel very bullish what we can do for developers just on organically growing github. emily: there has been some consternation in the developer community about this acquisition and i'm sure you've seen some of this. some critics out there saying this is a sad end to github's independence and the list of reasons why is endless. how do you reassure them and bring them along? satya: it's a very critical element to this. we are very committed to keeping that developer-first ethos of github going forward and that's why we have really, you know, between chris, who is the c.e.o.

of github and me we decided to run this company independently, even postclose. operate it as an open platform and matt friedo came to us has a lot of open source credentials. he will be the c.e.o. postclose. he will be the new maintr, if you will, of github and will stay true what the gethub community github community really demands. we have to earn the trust, no question about that. our actions from the recent past should help assure every open source developer of what microsoft intends. of course, they should measure us by what we do going forward and hold us accountable. emily: speaking of trust, there are new revelations today about data facebook shared with its device partners. you know, these ensuing controversies could have an impact on microsoft. how concerned are you about

increasing tech regulation? satya: i mean, overall, i think each company is different here in terms of what their core products are and core business models are. in our case, our entire business model is all about being custodians of data and providing services to both consumers and organizational customers. and trust is everything. in other words, we have to secure the data and use the data to benefit our customers because that's really our buss model. without it there is no microsoft and no microsoft products. so to me, making sure that we live up to the high standards and expectations of our customers as well as the regulations that are already in place. take gdpr. in fact, we are taking the core tenants of gdpr and making it true for consumers and customers all over the world with our services. that's the approach we are going to take going forward.

emily: you made big buys, including linkedin. i was speaking with your chairman saying he was more supportive of big buys that are as successful as linkedin. will we see you make more buys like this? netflix, there's perennial explanation of microsoft's interest there given it's the only big tech giant without a huge foot hold in the streaming space. satya: our first focus is organic growth and investments. r&d andig spenders in that is the core. we are always going to look for secular growth markets whether it's mindcraft or linkedin or now github. we look for things where we can grow and going forward will be expansive. we need to be able to contribute something unique and that's soing very important to me. i don't want to get into businesses where microsoft contribute and execute superwell

with those customers and we need to be able to operate them with linkedin and mindcraft. we have stayed true what the ethos of those community were and that's the same sensibility we want to bring to github as well. and th's what will define what we do going forward. emily: my conversation earlier there with microsoft c.e.o. satya nadella. later in the show we'll speak to a github competitor that says developers are fleeing the platform. the c.e.o. of gitlab will join us to give uzz his reaction to the deal. coming up, facebook fighting back, disputing a report made by "the new york times" how it shares data with phone makers. we will discuss next. this is bloomberg. ♪

♪ emily: facebook is disputing a report about how it shares data with mobile phone makers. "the new york times" says facebook has struck deals with manufacturers that allows them full access to information on users and their friends. the social network says those deals were intended to help them to create their own version of facebook and data stays on the phones that access it. joining us now in new york henning schulzrinne, professor of columbia university. hanley formal federal commission her. walk us through how serious this is, sarah frier. sarah: this is potentially very serious because you remember mark zuckerberg told congress the loophole that allowed third-party developers to share people's friends of friends' information, that is -- has been closed by facebook in 2014. in this report, -- and this report says in fact there were other kinds of deals, maybe not with app developers but with device makers that did allow the

disclosure of information on people and their friends with a third party. emily: and they weren't loopholes at all. sarah: they were intentional. they were part of the contracts that allowed facebook apps. so that is concerning because of the idea of consent. now, remember, facebook has this 2011 decree with the federal trade commission whereby if they share any facebook user data, they need to have informed consent from those users. so is that in violation to this decree? did zuckerberg mislead congress? these are the ideas percolating around this new report. facebook says it's not like what happened with cambridge analytica. it's very different. emily: and the vice president of product partnership saying these partners signed agreements that prevented people's facebook

information being used for any other purpose than to recreate facebook-like experiences. we don't know of people's information being misused by these companies." professor, what do you make of that reaction from facebook? henning: i think there are two sides to that particular story. namely, risks of what actually happened and the kind of general way organizing how information is shared. so it may well be none of the information unlike in the cambridge analytica case got to the wrong people for the wrong purpose but by sharing information with 60-plus entities, some located in the united states, some located outside of the united states, becomes very difficult to track exactly what happens or if something were to go wrong to united states, some located fix it after the fact. emily: it's interesting, sarah, we saw facebook -- apple make a shot at facebook today saying they are going to do more to

prevent companies like facebook -- they didn't say facebook by name -- from being able to access user data without consent. at the same time apple along with samsung and other device makers got this access. i mean, are the manufacturers at all culpable here? sarah: well, apple was certainly one of these companies you mentioned, and i think that this jab that they're making at facebook, it's easy for them to say because they don't make money off of advertising. but this allows apple to just have more control over our data in a different way. it helps them personalize our experience just like it helps facebook personalize our experience on facebook. data is power for these companies, and whether or not it's used for advertising, it is the thing that makes them valuable in many ways. and so for apple to say we care so much about your privacy that we will make it impossible for other companies to track you on our websites, i mean, that's -- they are not making it easy for anyone else to play in the sandbox that they control. emily: meantime, facebook shares

did decline slightly today. but, professor, facebook recovered its losses that it saw over the weeks following the is this really going to eal. public trust in facebook? or is this something a few people in a bubble are concerned about? henning: i think it has all a little bit of both. namely, few people will be very concerned. given that so many of us depend on facebook for both our professional and certainly our personal lives, for organizing meetings to keeping in touch with family and friends, the hurdle of dropping facebook is so high so i doubt this will have a major repercussion. plus, many of these platforms are no longer actively being supported. so this is to some extent more

backward looking than forward looking but it does indicate a pattern of behavior that makes you wonder as to whether this is an issue of culture or just of decisions that look maybe not quite as wise today as they might have looked five or six years ago. emily: exactly. sarah, are there legal issues here? does this violate that 2011 consent decree? will this invite even more scrutiny from, you know, u.s. regulators as well as european regulators? sarah: it's pouring fuel on the fire for the discussions we had. we saw so many comments from lawmakers, regulators around the world today saying that this means that maybe in could be another chance to bring the companies in for testimony, that cap there is more to be done here. so the story is not over. emily: and you will keep uspost. sarah frier who covers facebook. henning schulzrinne, former

c.t.o. of the u.s. f.t.c., thank you both. all right. coming up, we return to the apple worldwide conference. and arianna huffington will join us. thisbloomberg. ♪

♪ emily: this is "bloomberg technology." i'm emily chang in san francisco. apple rolled out a new set of tools to monitor screen time and nice to have features like shortcuts which lets people have strings of tasks like siri and have iphone users put their phone down at least temporarily with the criticism that we are addicted to them. among the attendance is arianna huffington. we caught up with her just a few moments after the key note wrapped to discuss the tech giant's push to curb tech addiction. arianna: the features like have notifications, calendar,

geolocator and also clear visibility to how much time we're spending with different apps, games, etc., and all these new features are being integrated into the operating system. so you know how hard it is to change behavior and what is so exciting about this announcement today is that because they are so integrated, it will be much easier to use them. we all know we need to set boundaries in our relationship with technology but we are all having a hard time doing it because we are becoming increasingly addicted.

and even in the convention center here, with 5600 developers from 77 countries, when craig announced these changes, there was applause from the developers at the very moment when he talked about being able to set app limits, to decide how much time you spend on apps. these are people who are making their living from apps. so it shows how far it has changed. emily: well, the irony is rich, though, because at the same time apple is releasing features that make the technology even more addictive like the new emojis and facetime. shouldn't we just turn off our phones? it isn't on the company or is it up to us? area: --

arianna: ultimately, it's up to us, but with knowledge about how much time we're spending on our phones, because, emily, a lot of people don't even recognize how much time they're spending on their different social media, games, etc. and also apple announced very important parental controls. so with one touch, you can limit how much time your child is spending on certain apps. you can put downtime on the phone. when they go to sleep, they can't access their apps and social media. so going much deeper in this very important area because we know how difficult it has been for parents to navigate their children's relationship with technology. we know the data. increasing mental health problems for teenagers, depression, anxiety. this is really the moment when we urgently need to respond to what is happening. emily: at the same time apple

shot across the bow to facebook today announcing new alerts to protect users from freelgiving away their data to companies this as "the new york times" has a new report about how facebook's relationships with device partners goes further than we thought. it may give them more data than we thought was perhaps disclosed. how concerning is this to you this data controversy only continues? arianna: well, i think it's just begun, emily. i think this is going to be a very big issue. we are all coming to terms with just how much data we're giving away and how unprotected it has been. and apple has been kind of a leader in protecting users' data. and as you heard today, this is going to continue. they announced more features that make it easier to protect individual data. emily: some of my conversation there with arianna huffington, thrive global c.e.o. from apple's worldwide developers conference.

the falcon 9 rocket carried the satellite for a long time customer early monday. spacex has 30 missions in total this year the company's valuation has climbed to about $25 billion which new funding putting it on course to become the third most valuable venture startup after uber and airb&b. meantime, tesla's annual shareholder meeting is coming tuesday and the company is tackling a slew of issues that's to arrive from production delays to questions around driverless technology to the founder of elon musk. "bloomberg technology" digs tesla's board and who's on it. the annual shareholder meeting is coming. three directors. antonio gracais, kimbal musk, elon's brother, and james murdoch, c.e.o. of 21st century fox. these three directors are up for re-election as tesla's nine member board has staggered

terms. the largest proxy advisory company went a step further to push a separate proposal to split the role of chairman and chief executive officer. then, there's steve, he's been on leave from tesla's board for over six months. an unusually long time for the director of a public company to be in limbo. he parted ways with his own venture capital firm in november after allegations of misconduct. so why all the pressure on the board? two words -- production delays. tesla has struggled to mass manufacture its model three. delays have strained the company's balance sheet and the stock has suffered as a result. i.s.s. is also concerned that antonio gracias' firm valued management corps provided

services to tesla which it was reimbursed up to $30,000, a potential conflict of interest. tesla's board has long john flack for being comprised of some of tesla's closest confidence. their mission requires aboard willing to conform to long-term roles. it said it would take test on a drive through production hell with producing a model three. still, in tesla's favor, shares are up over 200% over the last five years and just got a boost over a brake fix helped tesla's model 3 win a coveted recommendation from consumer reports. emily: coming up, some developers say microsoft buying github is terrific. others say it's terrifying. gitlab who says developers are

flocking to them. this is bloomberg. ♪

♪ emily: the newrosoft is buying github for billion has sent shock waves to the software developer community. github, some are concerned what happens when someone buys it. competitor gitlab is saying on its homepage, migrate from github to gitlab with a link showing how to move your projects over. joining us is sid sijbrandij, c.e.o. of gitlab. when you heard this was happening, that microsoft was buying github, what did you think, was this an opportunity for you?

sid: yeah, i think so. it's great validation for our space and every time there is a big change there are people that don't agree and move. there was an opportunity to -- we saw on twitter that people were tweeting, moving to gitlab. by now over 1,500 tweets. we thought we need to reach out. emily: you saw the spike in traffic. people going from there to your site. is there any way to quantify this? i wonder how much this is a threat. people saying they are angry but not actually walking. sid: no, we're seeing a lot of people. on gitlab.com we've seen over 50,000 people creating new repositories. but besides that, gitlab is open court so you can host it yourself and there's a lot of people downloading gitlab right now and setting up servers. emily: so i spoke with satya saying they will be people first. sid: i believe him.

i think microsoft has shown it's the new microsoft and they've done great and the new c.e.o. of github, matt friedman, really understands developers so i believe him when he says they will be maintainers of github. emily: what's so bad about github? sid: nothing. emily: what is better about gitlab? sid: it's open source. you can host it yourself. but second, and i think most importantly, it's not just code hosting. github you host your code. gitlab is the entire cycle. so all the way from planning something to rolling it out, continuing the registry, monitoring all in a single product and that allows you to get the whole organization on the same page and that's why people are flocking to it. emily: part of the reason github sold is because they tried for years to develop a sustainable business but they were having trouble driving significant revenue, turning a profit. is your business going to be any different? sid: i think we're seeing great

adoption. we closing seven-figure deals now and for the last five we dncrement.c.v. every year we're getting a lot -- emily: a.c.v.? sid: our revenues are close to tripling every year. emily: so does this deal at all make you think whether you can build a sustainable company or whether you will sell in the future or have to sell in the future to a bigger player? sid: yeah. so we took external investment so we have to have a liquidity event at some point. that means either being acquired or an i.p.o. we're driving towards an i.p.o. in 2020 and that hasn't changed. that's been the case since 2015. emily: has anybody made an offer for gitlab? have you received any interest? sid: not in the last week but to our life cycle as a company we

had different offers. emily: now, as i understand it, you use azure as your cloud service. is that going to continue? sid: no. we'll move to google compute platform. that was already in the works. we'll expedite that. emily: ok. and what is the emphasis for the move? sid: we really believe in being able to run your applications anywhere. the whole world is ming to created it. emily: overall, what do you think this deal means for the open source community? obviously there are other competitors like microsoft now buying github. atlassian. how does this reshape the landscape? sid: i think it's great for the community. i think microsoft and matt will be great maintainers of github so i don't think anything bad will happen there. there is more choice. we're excited. emily: all right.

sid sijbrandij, c.e.o. of gitlab, thank you so much for stopping by. coming up, apple announced the latest software updates at the worldwide developers conference in san jose. we will dig into all the details, next. this is bloomberg. ♪

♪ emily: apple's worldwide developers conference is an event for developers and most of the new features out will be relevant mostly to them like the coming unification of i.o.s. and mac i.o.s. apps. and group facetime calls are possible up to 32 users along with new tools to develop more realistic a.r. experiences. to talk about what it means for apple and the developer base i'm joined by shira ovide in new york. and here we have alistair barr. so wrapping up the highlights, where does this -- how does this set apple up for the future? >> it shows again what a powerful platform they are. they get to control things that are important to facebook. they are at the front end of the funnel when we reach for our phone. apple is basically in control and other companies have to follow along. that's probably the main takeaway. then i would say on the privacy front, apple has been doing a lot of privacy -- very strong privacy news for quite a few years now.

i will say only this year has it entered the national consciousness. that's causing them to push on. emily: very strong statement from apple today announcing new features that will alert users when other companies are trying totheir ta. take a listen to what craig federighi, senior vice president of software engineering, had to say. craig: we believe that your private data should remain private. not because you've done something wrong or you have something to hide but there can be a lot of sensitive data on your devices and we think you should be in control of who sees it. emily: tim cook himself has been personally out front saying he wouldn't be in this position that facebook is in. what do you make of apple making the strong statement today? >> look, i mean, some of it is ego, right, that apple wants to set itself apart from other tech companies that it thinks is

irresponsible, debatable. i was really struck, though, by some of th that fannounced today for safari, both for i.o.s. and for the mac that seemed, i mean, clearly targeted at facebook. basically saying that safari now, any website that has these kind of like or share tools that are on most websites, including bloomberg's own, that are data harvesting systems for facebook so facebook can collect users' web activity, web browsing activity, that it's now going to set a pop-up alert on safari anytime somebody encounters one of those like or share buttons that's sending data back to the home company. again, that's largely facebook. er will basically force more people to deny facebook access to that kind of data harvesting. emily: and yet it is a little bit ironic, alistair, since apple was one of the device

partners that the latest revolution from "the new york times" that facebook shared with one of the phone makers. >> yeah. that's why tim cook is outspo he's probablyed by that report, that development. it doesn't do well with the general message they want to send out, that they're pro-privacy. the facebook partnership program, facebook says they do that to help the device -- the device makers. bring the facebook experience to users. but yeah, it doesn't look good. emily: facebook has pushed back on this report. shira, you said facebook shares have recovered. and we talked about if this will put a dent in public trust. care.ors don't seem to what is the real fallout from this going to be? shira: i think it's going to be

haknow what the real fallout is. you're right, investors have decided they don't believe that facebook's string of privacy scandals is really hurting business or going to hurt business. but i think you can see that now politicians, regulators and the public and investors are more ertuned to facebook's information that it collects how it conducts itself in the world and anytime you have these reports,, these new there's the possibility that it does affect both facebook's usage, advertisers' interest in the platform, and the share price. and so i do think they're in a little bit of a penalty box permanently because of these series of data privacy scandals. emily: permanent penalty box. all right. i do want to talk a little bit about apple tv. obviously some enhancements to the platform and new announcement about distribution. take a listen. jen: up to 50 million homes will be able to choose apple tv to access all their live channels. and thousands ofdemand programs. and they will be able to use siri and the tv app to get access to their tv service, not

only on apple tv but on iphone and ipad as well. emily: apple's jen folds talking about this new deal with charter spectrum. explain the significance of >> apple, a few years ago, was rumored to come out with its own television and there were rumors about changing how television works and i think some of these people spoke about it. announcements like these show apple has to get in line and work with the existing app tv players out there. charter is a very traditional cable compy. so basical that apple has a lot of work if it's going to change tv. emily: this as youtube television is making a big advertising push here. they sponsored the nba finals and we're seeing youtube television ads over and over again throughout these basketball games. you know, beyond apple tv, there

were also enhancements to apple watch. but really, you know, nothing major today. no "one more thing." is that noteworthy, that there wasn't that sort of noteworthy ending that we usually see at the end of an apple event? shira: it felt to me that apple made a decision that rather than focus on how many wow features can we cram into a key note that it was really doubling down on kind of stability, security, lack of bugs. basically making its existing software and features more reliable which maybe addresses some of the questions that people have asked in the past couple of years about software bugs, about the fwue tilt of siri -- futility of siri and some of the apple products and it felt like apple was trying to address some of those critical questions about whether it had lost its way a little bit in creating software that just works to use apple's terms. emily: so let's talk about,

alistair, the hardware. mark gruman talked extensively what we will look to in the fall. what's next? where will the software be running? alistair: the announcement, this ishe software foundation for a new product that will come out, not only later this year but more importantly in two or three years. so all the a.r. stuff that they announced today will work on iphones and ipads but that's probably laying the foundation for the a.r. glasses that mark has been reporting on for quite a while that's maybe coming in two or three years. emily: all right, alistair barr, bloomberg tech. and shira ovide, bloomberg opinion. thank you both. google says it will not renew a contract with the defense department that will analyze drone footage. it caps a debate within the company whether to use a.i. to itary.

it could limit google's chances winning future contracts from the pentagon. it's lobbying for two d.o.d. contracts worth $18 billion. and that does it for this edition of "bloomberg technology." on tomorrow's show, we will be speaking with mandy ginsberg, c.e.o. of match group. that's all for now. this is bloomberg. ♪

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x this is bloomberg daybreak middle east. increasing optimism. the s&p 500 closes at an almost 12 week high. the nasdaq hits a record as investors set aside protectionist fears. commodities crumble as trade keyions weigh and with a opec meeting in focus. and limiting data gathering by the likes of facebook. >> we believe your private data should remain private. not because you have done something wrong or you have something to hide. but because there can be a lot of sensitive data on your devices and we think you should be in control of