emily: i'm chang commang in san francisco. this is "bloomberg technology." coming up, amazon, we are at the opening of theecommerce giant's new four-star store in new york. plus big vision for tech funding is getting bigger. we'll hear what lies ahead for the $100 billion fund. and what has reporters clashing with mark zuckerberg.

what is going on inside the social media giants? amazon opened a new store in new york city thursday featuring top selling and highly rated products. this is their first effort at physical stores where most consumer spending still occurs. the store will feature device, toys, books and games. all products that customers have rated four stars or above. we're joined by amazon's physical retail vice president, cameron james. only interested in going into brick and mortar if this store can differentiate itself. what is unique and different about this store? >> thank you for having me. what is different is we have really built this store around our customers. it is a direct reflection of our commerce. not just what they are buying but really what they are

loving. everything in the store is our four or five stars by customers. our goal is that customers can walk into this store and basically pick up anything and know that it is going to be a great product because customers online have our customers. already said so. emily: i've been into the bookstore. there is not that many books. certainly not as many as you can get online. why would people go to these stores when they can just order them on amazon.com? >> when you're working offline, you really have to curate. that's what amazon four start is all about. have a highly curated products. we have electronics. kitchen, toys, home. four stars by our commerce. top selling or newer trending. we have a team of people whose job it is to pick those

products from across amazon.com. you want to be able to brouse the aisles and pick out good products. emily: how do you see the bookstore, amazon go all tying together? is it about creating a deeper relationship with the customers? >> here with four star we're trying to create an experience where customers can come in, brouse and have fun shopping. we're trying to find more ways to connect with our customers. of course customers like to shop online but a lot of customers like to shop offline as well. it will create new types of shopping experiences and they will discover new products. another thing is customers can come in and touch the products themselves. they can come into the store and play with a fire or read on

the kindl. here in the store you can literally try product in first person and make a more confident buying purchase. emily: the idea as i understand it, is some of these physical stores could help maintain rapid revenue growth. does that mean if you didn't open up the stores do you think revenue growth would suffer or are these purchases made here still going to be a drop in the bucket? >> i'm sorry. you broke up there on that one. emily: talk to me about how much you think these stores will actually drive revenue growth because the goal is to aintain rapid revenue.

these are really high quality products that our customers love. emily: how do you maintain the integrity of the review system? you smow case these products in a physical store. there is a choice that amazon is making there when there are

plenty of other products that could certainly make the cuts. >> the integrity of our online review system is very important to amazon overall. we have teams ensuring that integrity. they ensure the products that we bring in here and their ratings are legitimate. we stand behind the ratings at amazon.com. emily: there are some 70 voice act vate device. they could see the devices at a best buy, for example. >> we love the fact that with a physical store customers can interact directly with our device. try them out in person. we think that is a great way to try out the products.

many of them have great reviews. the products with most customer reviews is the fire with the voice remote. i believe it is rated 4.4 stars. those are also great products that fans online and we're i excited to have it in stores as well. emily: thanks so much. coming up, plans for a vision fund investing in tech start-ups. we have all the details next. check us out on the radio. listen on the bloomberg app, iriusxm. u.s. on this is bloomberg. ♪

emily: whenson's went out to invest, he set the target of $100 million. they have made substantial investments in companies like uber, g.m.'s cruz. now the japanese filmmaker says he is going to do it again and again. every two to three years. in fact, he plans to raise nother $100 billion. we spoke to masayoshi. what was the conversation like? >> it was fascinating because

prior to this interview, we had done dozens and dozens of interviews with people close to him and they said this man has so much conviction. he is bolder than anybody else i know. speaking to him, you get that sense. when he was coming up with the idea of this fund, he thought $30 billion but on the plane ride over he changed that $30 billion to $100 billion. when i asked him about this, he said 1 shoon a simpler number. we need that much capital. emily: he hasn't hit the target yet. how does he plan to do this every couple of years? >> he hasn't hit the target yet. they are very close to close. they are almost at $100 billion. they have had a vast array of funds. he believes the invest lors want to continue to deploy their capital.

he doesn't see his fund as a traditional venture fund. he believes through the investments he is accelerating through artificial intelligence which is similar to the revolution that happened 20 years ago with the internet. emily: capital firms breaking up in part because of the new competition. splitting the growth fund off from the rest of the fund and you have other funds trying keep up. we have interviews plenty of venture capitalists on the show that say the landscape has changed. there is so much money out there. what does he have to say about some of the criticism? >> he is pretty unruffled by the criticisms. he says they can say whatever they want to say. when you speak to venture capitalists they are not shy at all about complaining about softbanks. some of them call them a bully that they are stuffing wads of cash into entrepreneurs and

raising valuations. this is not the first time that venture capitalists have to deal with an influx of money at the later stages. they have had hedge funds and foreign money. the sheer size and scale of what soft bapping is doing is rather frightening. emily: is it good to be driven by one person or one fund or one set of views? >> absolutely. this fund is only a year old. they have already deployed $65 billion in capital. he hired managers under him. it is worth mentioning they are all men. they say they are trying to find women to add to it but yes, it is all men. they have not traditional technology or venture capital back grounds. a lot of them made their name in the banking world. one made his name at boyfrienda -- at deutschea at u.b.s.

emily: it sounded like he changed his mind. who is in position to succeed him if anyone? >> intent some time pressing him. we mentioned you're good friends with jack ma. he made the decision to retire a little bit early. he said i'm great friends with jack ma. he has his own style and i have my own style. he said he wants to stay until he is 69 years old and at that time, he used the metaphor passing the baton and said when he passes the baton they are going to be accelerating and it will be so seamless and you won't notice the rate has stopped. emily: he is how old? >> he is 61 years old. when he retires, he is still going to be chairman of the board. he is not going anywhere. he is going to have his hands full for a very long time. emily: how are investors in silicon valley going adapt to

this? how much will this just change he -- the territory that start-ups and investors are operating in? >> for a long time it was where all great start-up goes. now they are not the only option. now all roads eventually lead to softbank. they are, if there is any company looking to raise in the billions, hundreds of millions of range, they all need to look at softbank. as you mentioned before, at funds like sequoia, they are having to raise bigger washington, d.c. of money to be able to compete and have an equity stake in their company as they get larger and larger. emily: just back from tokyo. thank you so much for sharing that interview with us. you can check out her story in this week's edition of bloomberg "businessweek." definitely worth the read. coming up, the first

cybersecurity company born in a.i. but as attackers get stealthier, will they begin using a.i. too? we'll discuss next. you can czech us out at technology and follow our breaking global news network tictoc on twitter. this is bloomberg. ♪

emily: a cybersecurity start up refers to its technology as an immune system. learning the intelligence of the human body and identifying threateneds to a company's network. ow with increasing scrutiny on cybersecurity, it has expanded d raised $60 million

inefunding. we have the c.e.o. here. thank you so much for being here. you founders are former british intelligence agents. there are so many cybersecurity start-ups. what sets yours apart? >> i think what makes us really unique is we can install in mere minutes and actually start providing value right away. in fact our artificial intelligence not only detects the threats inside networks but we do this really unique thing which is actually have the machine fight back and contain he attack in mere seconds. emily: how is that different? >> a lot of people have what i call lego tool kits where you have to take your experts and build things yourself. in our case, we have prebuilt o it is an easily deployed

product. emily: where are they coming from? use a.i. too? >> now what you hear about are nation states pairing up with criminal rings. e start to see now early signs that building arsenal s of file attacks. this whole industry could change overnight and the legacy tools that companies have been use could become obsolete. emily: these attraction plaguing everyone from businesses to individuals. we heard christine blasey ford talk about her email being hack and rewritten to make it look as if she were recanting her testimony. >> i think we're starting to see now everything is being

connected to the internet. everything from autonomous vehicles to amazon and the microoven. this is everywhere. it is in our businesses and in our homes. these type of attacks can hit through anyone's email box. emily: so you -- why are they so hard to fight? what makes your ability to fight this any better than their ability to thwart systems like yours? >> that is a great question. this is fast becoming a war of algorithms. it is going to be medicine learning against medicine learning. we have been deployed now over five years in thousand of networks. we have learned what is normal in those companies. that built up a strong defense similar to the human body's immune system. could your technology,

it prevent russians from meddling in the u.s. election? >> we can extract valuable information. it can be used not only for security. this could be used for everything from compliance to understanding how the help companies get more productivity out of employees. emily: when you say it is like an immune system, what does that mean? >> human bodies, we have skin. that skin keeps us quite safe but sometimes there is a bacteria virus that gets inside. the immune system does is vs has a fast pons. that's what a.i. does. we can quickly tell when something is not normal. maybe a hacker who took over someone's identity or maybe an employee who has gone a little bit rogue or maybe made an error that exposed the network. our software will detect that and respond to contain the

attack. emily: where is the biggest threat coming from? is it russia? iran? north korea? >> definitely a combination of the state sponsored attacks. that combination. it is around the world. i think what is worrying is there is a lot of countries investing a lot in artificial intelligence and while most of that a.i. can be for good, there is also an element where it can be for harm. emily: have you seen an uptick in attacks with the trump administration, the america first mentality and potentially alienating some allies? >> i think we will start to see for example with an america first agenda, with china bringing manufacturing back to the united states, all of a sudden we start to seeing an uptick. some of those systems are older. they are proprietary. they have been around a long time. they are hard to guard against.

we're seeing need to protect manufacturing plants, transit systems, water supply. things we haven't always thought about protecting. emily: have you seen an increase in threats from china? >> we're seeing it across the board. i don't know that one particular country stands out. i think we always have to to guard against intellectual property against everyone. emily: let's look at the next year. we have an election. we have a trade war. what do you expect to happen in terms of the kinds of attack, the severity of attacks over the next 12 months? >> i think we will start to see them get more low and slow. it makes it harder for a human security team to defend against those. we'll see an uptick in companies starting to employee artificial intelligence. emily: what kind of companies are using your technology? >> it really is across the

board. across all different sectors. it started very strong in financial services. about 20% of our customers are in financial services. it could be a 12-person hedge fund as well as a global bank. we're seeing industrial control systems, communications, retail,ecommerce. no one is immune from these attacks. emily: thanks so much for joining us. coming up next, trouble for facebook. are these high profile executive exits a sign of berg's or will zucker bet -- is amazon next in line to join them? this is bloomberg. ♪ xfinity mobile is a new wireless network

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emily: this is "bloomberg technology." before the founders of instagram's surprise resignation monday, there was brian acting, founder of the popular messaging company whatsapp, which facebook acquired. later the other founder of whatsapp also left. acton was not quiet. te tried to start a #dele facebook movement. he spoke about disagreements he has zuckerberg and sheryl sandberg, saying they are

business people. they are good businesspeople, they just represent a series of ethics i don't agree with." that did not sit well with a facebook executive who wrote "i find attacking the people who made you a billionaire and went to shield and accommodate you four years low class. it is a whole new standard of low class." this begs the question, what is going on with high-profile creators leaving facebook? we have david kirkpatrick with us in chicago. put this into context, david marcus had been running facebook messenger for a long time, which has been an inhouse competitor to whatsapp. withinly interactions zuckerberg and attempting to

turn whatsapp into a business. what do you make of this happening in public? david: it is significant david marcus spoke out. he is one of the most senior people, one of the most respected people there. i find it pretty sorted, to be honest. -- sordid, to be honest. the history of what happened with instagram founders will, over time. ton spoke sosting ac bluntly, saying he refused to sign a nda as part of his exit agreement, which allows them to say these things. criticalarly very of the way they conduct business. that is not appealing. for founders of companies that are required to leave, that is not unusual. that should not raise huge alarms in my opinion. emily: to leave the company that

bought them and say delete facebook, that is a big deal. when we saw the instrument cofounders -- instagram cofounders leave facebook, no kind words. reading between the lines, it seems like something is not right between them. our reporting also tells us that they want happy -- weren't happy. that all seems right. in the forms interview -- says ifinterview, acton it makes them money, they will do it. that is damning criticism i think there is evidence for. if you look at the problems facebook has today, many of them i think probably flow from a culture, which whatever reason, they can to prioritize making

profit over and a lot of other values that now they are belatedly recognizing they should have prioritized. emily: you wonder if these internal dynamics are why whatsapp has slowed to turn into a revenue trading business. it really does. it delays monetization, creates execution risks. if you look at the core facebook platform, instagram needs to step up. execution risk put the near-term growth at risk. if you actually look at the opportunities instagram has based on where they are now, in e-commerce, it is a critical platform for facebook. given they are "his with core content -- are being cautious

with core content, hopefully users do not get annoyed. emily: we need to talk about the whatsapp brand, the facebook brand, which is not necessarily holding up to scrutiny and trust. david: it is a great question. the facebook brand itself is quite sullied at the moment. highlytagram profile is burnished. they have strong customers and not a feeling of having erred or causing problems for their users or society. it is incumbent on facebook, regardless of who runs instagram going forward, that they keep it in the similar spirit to what it has had up until now. emily: i want to talk about another company facebook bought,

oculus. those founders of also left facebook. they announced a new oculus product. is ar and vr going to be the bright future zuckerberg hoped in spite of these personnel issues? >> longer-term, yes. there are a lot of hard challenges technology-wise they have to solve. i think it is a promising product if they can get behind content. $399 price point. it doesn't need systems to run it. this is an evolutionary product you will see a couple years down the line. vr stands at the 10 year horizon because of that. emily: 10 years vr will be mainstream? feel until some of these challenges are resolved, mainstream adoption is going to be lagging. if they get behind the content,

similar to how xbox had halo. if they can target education, gaming, longer-term they are building a good foundation. it will be expenses for the next couple years as opposed to revenue. i think it will pay off in the long run. the timeline -- you cannot expect it to work wonders in the near-term. emily: thanks to much for joining us. the woman who is one of the people big tech fears the most wants to make sure amazon is not stifling competition. take a listen to what the european union's competition commissioner said in an interview at the bloomberg global business forum wednesday. >> they are also a big guy themselves.

bookstore, everything, groceries, movies -- the works. they get all the data from the little guy. we want to understand how the state is being used. -- this data is being used. emily: telling us more about plans.r's which way are the winds blowing? is amazon going to have to pay a big fine like google did? >> it is too early to say. amazon is a platform. amazon offers a place for these smaller sellers. we had more detail in a story we put out today, saying how they will look at products amazon sells itself, how those work against small sellers. how they compete online on on amazon's platform.

are they being fair or not? emily: what are the chances amazon could be forced to change its business practices in the eu, given google has been ordered to do the same as well? >> we are waiting to see if there are big problems the eu thinks it needs to jump on. if so, the risks become higher. if they feel there is something they need to investigate, at that point we are on the fine track. it is hard to assess any potential fine right now. with the google fine, they picked a small market. the fines really rolled up. we were looking at 6.7 euros. -- 6.7 billion euros. these things can become quite big, but we are not on the track with amazon. emily: president trump has not

been shy about his feeling about amazon ceo jeff basis. chances scrutiny in europe could spread to the united states? >> that is a question for the u.s. the market shares some of these companies have in europe is much higher. in some ways, some of these issues are specific to europe. i can definitely see a lot of interest in what the eu is doing. it is interesting to see how these cases are going on separate tracks. the eu has jumped on, the u.s. so far hasn't. it is interesting to see what your neighbor's argument. why are they don't that path? she is trying to explain why she is taking these cases. emily: she does an awful lot of interviews with u.s. media. thank you so much for joining

us. coming up, the sustainable benefits of vertical farming are undeniable. what does the new tech mean for farm laborers? we look at how sustainable tech is changing tomorrow's jobs. this is bloomberg. ♪

2050, the global population is expected to grow to 9.8 billion. two thirds will live in cities. sustainable food production is needed more than ever. that is where vertical farming comes in. less watere and pesticides. while the technology is environmentally friendly, what does it mean for farm laborers?

>> it might look like we are inside a spaceship, but this is actually a farm. the crops are grown mostly by machines with the help of just a few humans, like this woman. her life offers a peek at a new kind of farming. a promising twist to an agent career, but -- an ancient career, but only if the robots do not replace her. >> i am a vertical farmer. >> katie works 43-year-old startup. in this is here industrial park in new jersey. it is the last place you would expect to find any new sign of life. step inside, and you will see a cross between the factory and a lab.

produce coders are -- are vertically stacked to save space. each are given water and nutrients at the optimal humidity. why katie can grow faster with less water and no pesticides. >> it tastes like candy apple. >> whoa, so sour. >> i know. >> the majority of this facility is automated. the data is collected by sensors, and a computer controls growing conditions for the crop. for the things the machine can do yet, katie and her fellow farmers fill in. even those tasks are dictated by the software that runs this operation. >> it lets me know what to do, what time, and that is how i get

my day done. >> after a full day at the farm, katie likes to bring samples home to her husband. and her cat. frome menu are two items katie's farm. basil for pesto pasta, and mixed greens for a salad. >> i am terrified. everyone is judging. cheers, guys. >> katie fell in love with environmental science in college. but after graduating, she struggled to find a full-time career in the field. lote had to deal with me a coming on to me crying and trying to figure out if i am making the right decisions. online itomehow

popped up. >> she told me about this job, an indoor vertical farm. i was like, this sounds like total b.s. i took my work truck. let me swing around and see what this is about. i drove up. does not look like there is a form there -- a farm there at all. >>i pulled up and it was exactly as he described. i gave it a shot. joined,17, katie becoming employee number nine. it is backed by some of silicon valley's top investors. in may, katie got promoted to

lead a team of her own farmers. the world population is set to reach 18.3 billion people by 2050. we need all kinds of sustainable technology to feed everyone. the key to making that food affordable is to continue to make more with fewer farmers. but no matter how high tech on this gets, katie thinks there will still be a place for her. >> i think there is something about the human mind you can't replicate. it is nice to work with technology. it would be pretty lonely for the robots if they did not have anyone to talk to. [laughter] coming up, we look to the future of flight. silicon valley startup sky rise's founder is here to talk about an autonomous flying future. this is bloomberg.

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emily: there is a growing debate on when flying taxis will be coming to cities. some say it is round the corner, others believe regulation is far off. skyryse believes sky craft should become mainstream even before autonomous cars. the silicon valley startup intends to outfit software to incrementally allow for the capability of autonomous flight. the first step in their plan is a service that could eventually fly without pilots. that is just the beginning. here to discuss is skyryse's ceo

and founder. rather than building softline aircraft from scratch, you are trying to outfit already existing aircraft with technology to fly on its own. >> we are an air mobility company. taking a step back and looking at the broader problem for a moment, we have seen a lot of technical advances help us connect better virtually, but not has helped people connect in a physical sense for many decades. we think the future of being connected in a physical capacity does not require electrical takeoff and landing aircraft. emily: tell us what you have accomplished so far. mark: we launched skyryse ems service. it allows a helicopter to fly to an emergency much faster than ground-based transportation. emily: but a helicopter can't

pull up on a residential street. mark: that is true in most cases. there are a lot more rural areas where we can get close to the scene of emergency. there is high value in getting first responders over the scene so they can assess what is happening, so they can dispatch a fire engine or other services. emily: in your vision, do these autonomous aircraft still have pilots? mark: the analogy is the self-driving car space. it is an incremental aggression. you start off with the drive and the violen -- driver in the driver's seat. the technology starts doing more and more. then from a technical standpoint you are eventually able to pull the pilot from the aircraft. the public has to be comfortable with salt flying aircraft, and regulatory body has to be comfortable as well.

when we are talking about self-driving, a car with no driver inside of it, if we were to build a city from scratch today, we could have solved driving cars without drivers in them at this moment. we are integrating self-driving car's with existing infrastructure with cars that being driven by people on the road. that is a fundamental technical problem. is aas in the sk, it blank canvas. emily: you think so driving cars will create more problems than they selve. >> there are a lot of people working on wheel vehiclese the reality is they are all constricted to this infrastructure. infrastructure has fixed throughput. of maximizingob

the infrastructure, but ultimately it is saturated and does not do a good job of getting people further distances. . emily: what are the challenges of doing this in the air? mark: there is definitely a regulatory and perception component we have to nail. we have to prove the technology is safe to everyone and ourselves. we are building the blocks to make that possible, but we need the regulatory board and public to be on board as well. emily: what are the technological hurdles? mark: commercial payer transportation today is one of the safest modes of transportation. they say you could fly one billion hours before you experience any kind of incident. that kind of reliability is what we are aimed at. we want the most reliable form of transportation period.

it takes time and it takes proof. i believe our technology is better suited to do that than a modern technology for self-driving car's, but -- a lot of technology for self-driving cars, but it will take time. emily: thanks for stopping by, flying by. tomorrow on the shelf, blackberry ceo john chen. i am emily chang in san francisco and this is bloomberg. ♪

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