emily: i'm emily chang, and this is "best of bloomberg technology," where we bring you all our top interviews from this week in tech. coming up in the next hour, we go inside facebook's selection war room where they are running interference on attempts to undermine the vote, but will it be enough? and we have a conversation with microsoft ceo satya nadella. and a tesla tear down.

we talk to the company that tore down the model three. what flaws they say the car has and how they can hurt the company. first, to our top story -- netflix shares rallied this week after they crushed third-quarter results. all eyes were on subscriber growth and results recently topped that easily topped forecast. netflix predicted 5 million additions and reported seven million globally. a record for the third quarter, up 31% from last year. it appears the record-setting level of new programming is paying off. the company released 676 hours of new tv shows, movies and specials in the latest quarter helping to attract the new subscribers. we spoke with a tru optic representative. they work across the over-the-top ecosystem. this was right after netflix reported results. guest: the thing with netflix is the investors always look at the subscriber number. it doesn't seem to matter what

is happening with revenue. the revenue story has been pretty positive. because they are boosting the amount of revenue they get per subscriber which means each subscriber they sign-up should be a net positive for them but the takeaway as always is the subscriber number. they are on pace to add 29 million customers this year. i went into the quarter believing it was possible they would report a decline. instead, they will post their biggest year ever by about five million. at a certain point you run out of superlatives to talk about their growth. emily: when you look at the data, what do you believe is driving this? is it these new netflix original shows? guest: i don't believe it is the original content at all. i think there is a certain part of their success can be attributed to a rising tide floats all boats. the growth we are seeing over

the top, not just domestically in the u.s. but pretty much every broadband internet connected market in the world is phenomenal. i think at some point, the street has to stop looking at netflix from the standpoint of did they hit or miss their own estimates in terms of what growth will be and just look at it as a normal company. there are three things i would be really worried about in terms of the future if i were netflix regardless of what the story was this quarter. that would be at&t, disney, and then free ott solutions. the value and the demand for the content that hbo and warner media will have when they launch their solution. disney content. then the massive growth of free ad-supported otc is more significant than what we have seen from netflix in the last two quarters.

emily: given that netflix is so far ahead of any other streaming providers at this point, do you share those concerns it is about at&t, disney and other competitors? >> the free one is not really a concern for netflix. they have competed for the last few years with youtube and both companies have done just fine. the competition from disney and from at&t is very real. two companies have huge troves of libraries. they are very popular and they will be taking movies away from netflix. the netflix counter would be that they have been building a studio in the past few years. they spoke about it in a letter to shareholders. "stranger things" is something they made themselves. it is not something they got from another studio. and to andre's point to a rising tide, i've think you can see at&t and disney grow without necessarily hurting netflix. there will be a lot of competition in the developed

western markets. but i think overseas in particular, netflix is going to be really far ahead of those companies and i do not know how much of a threat they will be in a place like brazil. emily: i am looking at a chart right now where we are following netflix results. this is a chart of netflix margins, which appear to be very strong. that said, if it is not a result of the original content investments, are those investments in original content worth it? because netflix is warning about its negative cash flow. they have a note in the results today to investors that they recognize they are making huge investments in content, but they believe this investment is worth it and will pay off in the long-term, but will it? andre: the team at netflix is very intelligent. they saw the economies of scale changing three to four years ago when they began to change their investment. netflix knows they have no

technological barriers to entry. ofh the proliferation providers of content that they rely on would eventually bring that in-house and that is why they have been preparing the original content strategy for quite some time. what i will disagree on though, is when looking at youtube, where the overwhelming majority of the content is user generated, the competition is not viable. now what you are seeing across solutions,ported pluto tv or others, is high quality content and that is where domestically in the u.s., the majority of the unique household growth has been in the last 20 months. then in international markets, it is not so much having to worry about the disney's or the at&t's, it is the global tv in brazil that owns all of the popular tele-novella rights. and netflix has had problems competing in these markets. my concern is in order to

compete on 100 different fronts at once and having original content in the native languages and different genres, the amount of money that netflix will have to spend on content over the next few years is so unprecedented that i would be concerned if i were netflix. emily: still ahead, the problem of misinformation in elections. social media remains inundated by it around election time, and facebook hopes it has a solution, but is it too little, too late. we will take you into the election war room, next. and if you like bloomberg news, listen to us on the radio. you can listen to us in the u.s. on sirius xm. this is bloomberg. ♪

emily: facebook has been under intense scrutiny when it comes to policing content on its platforms.

particularly as the u.s. midterm elections draw near. the company has been investing heavily in cybersecurity and ai to diffuse threats before they spiral out of control, but is it too little, too late. we went to facebook's newly created war room to see for ourselves. this is facebook's election war room. the nerve center of the social network's election interference operations where teams of engineers, cyber, policy, and data specialists are patrolling for fake news. misinformation, and meddling. what is happening right here, right now? >> we have experts from across the company, data scientists are looking at dashboards and seeing if there is any kind of spike and content that could be related to voter suppression to prevent any of it from going viral. emily: the war room did not exist in 2016. in fact, facebook executives seemed to be in denial that the social network could have influenced the u.s. presidential election at all. >> personally, i think the idea

that fake news on facebook, of which it is a very small amount of the content, influenced the election in any way i think is a pretty crazy idea. emily: but in the last two years, it has been made abundantly clear that russia expertly weaponize facebook with the express purpose of sending the elections into turmoil. facebook has apologized for not catching it has committed massive resources to combat it but the behavior has continued. not just from russia, but iran. with midterm elections weeks away, facebook says activity is wrapping up, and the majority of it is coming from inside the united states. >> in order to manipulate public debate, first you have to understand the culture and there will always be more people inside the country that will understand that than outside. we are talking volume. the interference coming from

outside the united states can be particularly pernicious. emily: how? >> because there you have a foreign state looking to meddle in another country's public debate. emily: when do you step in? >> part of what we have tried to do particularly -- we push as much of the decision-making to the teams as possible. there is an escalation chain in process so if we need to move something up and we can very quickly. emily: this effort expands a 24 teams around the world. now including former law alsocement, government, monitoring other platforms. not just ahead of u.s. elections, but a presidential election in brazil. these mere mortals are not alone. >> we can block bank accounts usually at the moment of creation. emily: there is an indefinite amount of nuance when it comes to what kind of activity could breach facebook policies. this week, the company said it would take down misinformation about how people can vote and

whether their vote will count , but other kinds of voters suppression like whether polling places are closed or under threat by an active shooter, would be outsourced to third parties and downranked and flagged if false. and lawmakers are watching. >> i think facebook and the other platforms were slow to react to this. they were woefully unprepared during the last election as the russians weaponize social media. they are slowly coming to realize just what a threat this is and what an attack this is on the democratic process. i welcome the reforms as they come. in the final analysis it will be up to the american people to recognize this threat and beware of anything like the posts they have seen before which are divisive or seem very unrealistic. emily: but expecting users to make that call may be equally unrealistic. the real problem others say may be the way that facebook itself operates. keeping users in their own

social silos that only further divide. >> we cannot fix 2016 and that is not my goal. my goal in this whole thing is i believe that the advertising creates the wrong incentives for facebook. and that essentially it forces them to use highly addictive technology and to basically push people to increasingly extreme positions. so, polarization is good for facebook. anger and fear are good for their business. emily: does it concern you at all that facebook could be hurting democracy more than it's helping? >> i think our goal and our responsibility is to make sure that we are helping democracy. we are ready. that does not mean that there will not be challenges. when you have malicious actors like this there are always unexpected threats and challenges. emily: the question remains, will 2018 be different? coming up, microsoft is looking to make the workplace inclusive

for all. that includes the more than one billion people in the world with disabilities. we will talk to the microsoft ceo, next. check us out at technology. and follow us on tictoc on twitter. this is bloomberg. ♪

emily: this month is national disability employment awareness month, and this year's theme is "empowering all." microsoft is trying to do just that. empower the one billion plus people in the world with disabilities. earlier this year, microsoft announced a five-year, $25 million ai accessibility program with rapid developments in ai and machine learning. microsoft plans to create accessible technology enabling all workers to be productive in

the workplace. we broadcast live from san francisco where we spoke with microsoft ceo satya nadella and the chief accessibility officer. jenny has been deaf most of her life. her interpreter belinda joined us as well. you have for many years championed the potential for tech to be used as an equalizer for people with disabilities, and you're nominating jenny as the next generation of tech leaders to watch. why? >> i came across an jenny and met her three or four years before i became ceo and she was already leading the accessibility efforts at microsoft. and in her, i found someone who not only had the patience to teach me why accessibility mattered, but quite frankly, bring about the sense of purpose and energy across the company on what a difference technology can make. think about ai.

we are at a stage where ai and especially speech and vision and language are making amazing advances. when you couple that with universal design, it can help the billion people that have one disability or another to fully participate in society. that is thanks to the leadership of jenny and the entire company for rallying around her vision for what that means. emily: you have lived with deafness almost your entire life and yet you majored in music and you are the chief accessibility officer of microsoft. what potential do you see for people with disabilities to use technology as a doorway to opportunity? >> i think technology can just be an incredible enabler. and i think if you look at the demographics, you have an unemployment rate that is double for people with disabilities versus people without. i think that technology can be one of those incredible areas that can get people to achieve

whatever they want to achieve, whether that is in education, employment, enjoyment, and life. and we are beginning to see that. some of the technologies that we have been able to put out through the lens of ai -- we have an app that allows people with blindness to auditorily describe what they cannot see. just have that spoken out loud. for me, captioning. reallyplicity of having high quality captioning that is instantaneously provided through ai. it will never replace the need for me to have an interpreter as someone who is deaf, but it will mean that i am more able to be independent in my communications and in my meetings and in my relationships with people and friends. so i think there are just amazing opportunities and there is a lot more to be tapped. emily: this has always been very

personal for you. son born with special needs. i am curious if other tech leaders have that personal understanding, how could tech be different? would google and facebook today be different if they had the benefit of that kind of understanding? >> i think all of us have that empathy for people around us, across all companies. i do not think of these in terms of competition. i think it is something that all of us have innately as human beings and as leaders of companies and institutions. we in the tech industry i think have an amazing opportunity and the responsibility to be able to take some of these advances and create increasing opportunities for people that to date have not had it. accessibility is one such thing, but one of the things are also trying to make sure that we take ai in other places where perhaps markets don't work that well. even on the environmental side. we recently did ai for

humanitarian actions. another area where i think technology can play a fundamental difference. i think all of us in the tech industry can do this. and we all have had personal experiences that inspire us. one of the fun things that microsoft is we do a one-week hackathon each year. a lot of the projects whether it is seeing ai or learning tools, they all came out of not because i said so or jenny said so, it was the employees of the company rallying around their passion and really innovating. forink that will be true all. emily: and if i understand it, microsoft has considerably practices toiring attract people with disabilities. specific programs designed to hire people with autism. i am curious if this has unlocked a lot of talent and potential that you may not have attracted otherwise. how did you do that? what can other companies learn from? >> i think if you really think

about creating technology or any product whether you are in the tech industry or not, creating a product for humans. disability is a part of that so you have to have people with disabilities in the fabric of your company to represent that expertise and bring that into whatever you are creating. for us, it was not a nice thing to do, it was a business imperative that we have that skill base. so we have been pushing the frontiers of how we can bring in some of these additional areas of expertise and talent into the company. when you look upon disability as a talent, i personally think that is cool as well. you think about it in a different way. autism is the one area we continue to unpack and learn. we have learned that we were screening people out in our interviewing process. so we ditched the interview. we bring people in through an academy.

we have amazing talent that falls into 12 different sectors in our company through that small program. it is still a learning journey. we have a lot more to learn. emily: what does "inclusive design" actually mean? give me an example of a design that was not inclusive that you perhaps have changed or realized after the fact that it needed to be different. >> i think you see it honestly all around you. even if you just go back to the non-tech principle of the door handle. the door handle used to be this round knob we all had to turn to open a door. when you started thinking about that through the lens of someone with an involvement in physical therapy, they suggested we could make it an actual handle you could hit with your elbow or different parts. embedding people into the process. people with disability whether it is blindness, speech, mental health, autism -- whatever it

may be, into the process. and ultimately you will create products that work better for everyone. and you do that from the beginning. you do not try to retrofit at the end. that was the biggest thing for us. often it becomes, oh crikey, we missed it. you have to do it at the beginning. >> you can do this every day. >>== if you are building a powerpoint presentation -- if you are building a powerpoint presentation, that is an example of having that ethos in your organization. emily: ai is a huge part of that. i would not be me if i did not ask you a couple of questions about the stories of the day. you have some employees who penned a letter protesting your bid for a big pentagon cloud contract. which you have already bid for. what do you plan to do as a result of that?

will it change the decision you have made? >> we have made it clear that we have served our federal customers, whether it is the department of defense or the labor department or veterans affairs and so on, and we will continue to do so. more importantly, we also welcome all views from our employees and have an open dialogue. the core for us is we have a set of principles that guide what we do and what we build and how we engage. that will be the case even going forward. emily: the other big business and political story of the day is what is going on in saudi arabia. the government has been accused of being tied to the murder of a prominent dissident answerable business leaders have either cut ties or are suspending involvement in various saudi government initiatives. microsoft has some big customers in saudi arabia. some linked to the government. are you going to reconsider doing business there, or what

will you do as a result of these allegations? >> first, what has happened there is it is really sad and our heart goes out to the family. i think it is a real step back. because i was very hopeful for saudi arabia in terms of the opportunity for the citizens there. the women in saudi arabia and the small businesses as the reforms were being put in place. this is clearly a step back. we continue to monitor and see what this all means but at the same time, i think it is clearly a step back in at least what my hope was for a saudi arabia that creates more opportunity for all of its people. emily: that was microsoft ceo satya nadella and microsoft chief of accessibility jenny. coming up, from cultural anthropologist to a leading voice on ai. we speak to genevieve bell on the future relationship between humans and machines looks like. and on that topic, stan altman

thinks we have a chance to reset world a quality thanks to ai. he will explain how. this is bloomberg. ♪

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emily: welcome back to "best of bloomberg technology." i am emily chang. more now from our special coverage of the wire 25 conference in san francisco. one of the biggest themes is artificial intelligence. professor genevieve bell is vice president and senior president at -- vice president at intel a , cultural anthropologist and at the center of ai development. she took the stage at the summit on how to manage human relationships in the fourth industrial age and how we build a new cyber physical world that doesn't reproduce existing social inequities. i spoke with bell and asked how a cultural anthropologist becomes a leading voice on ai. >> i think one of the things we have gotten obsessed about

around ai is something we need -- what is possible. something we need to pay more attention to is what will happen in government. emily: you are focused on real -- will robots share our values, not will they take our jobs? will they share our values? >> we know that artificial intelligence is going to go to scale. we know it will end up in a lot of different places. the question is how do we make sure that is something we are comfortable with, something we count good about? -- feel good about? that means asking questions beyond just what we can do technically but to ask questions about what are the values we want to project what to enshrine. emily: are these questions being asked as often as they should be? >> i am and anthropologist, so i think the answer is no. we ask them all the time. the good news is that they are starting to surface. the more you talk about ai and fx ai and public policy ai and governance, those are the

beginnings of the conversation about what is the world we want to build. emily: intel has done a fascinating study on gender differences in perceptions of technology. they found men are much more comfortable with emerging technologies than women. what are the implications of that? >> i thought this was one of the most interesting findings. we did this study looking at american consumers and about what they imagine technology would look like over the next 50 years. in one of the places around artificial intelligence, we found there was a really strong difference between what male parents thought and female parents thought. dad went, yeah, more of that. mas went i don't think so. ,-- moms went, i don't think so. it was a significant delta. it points to something. i think there is a place where we have a lot more questions to go and ask why is it that some parents were incredibly excited and other parents were going i , don't know about that. emily: women are more concerned about their data. what does that mean in an

industry where we know the vast majority of tech is produced by men and yet attempting to serve both male and female consumers? >> the population of people making the technology and the decisions about the technology does affect the population of people impacted by it. not just by gender but also by age, education and background. and i always think that the more voices you have in the room when you're making solutions and you are inventing the future, the more likely you are to find something that is compelling. for me, the fact that study after study finds that men and women have completely different attitudes towards privacy and security means that unless you have all of the voices in the room, you develop things that don't work for everyone. emily: do think facebook would have been different if they had been created by a more diverse group? >> they were tapping into various aspirations, then yes. with the technology

[indiscernible] because you might next -- might have had a different starting point. emily: what do governments and companies need to do given ai become more powerful and yet inequities exist? >> i think there are some things that companies are already doing. implementing existing laws, everything from data security to ideas about privacy. you have got regulations coming on in europe now about data protection and data rights. there are clearly some questions to consider about how we treat data, about how we deal with the data. we are going to see more and more companies developing intel policies. i think you will see more companies around the world developing their own standards also. we are early days, but i remain cautiously optimistic about the conversations that are happening. emily: also at wired, we caught up with sam altman, president at y combinator.

they include airbnb and stripes. he is also the cochair of open ai, a research firm with a stated mission to make sure that humans and ai can safely coexist. who better to ask about the coming of the ai wave than sam altman? here is what he told us monday. >> i think it is a question of time frames. i view this next important technical logical milestone -- technological milestone as just around the corner. the debate as to whether it is 10 years or 100 years, i don't think it matters much given the magnitude of what is happening. it is coming soon enough, and it is a big enough deal that we need to think right now about how we want this deployed, and how everyone gets the benefit from it. how we will govern it. emily: do you think ai will share our values? sam: we have a team working on that right now. how we impart human values which sohow we impart human values are difficult to encode in math. how do we teach a system elective values? -- collective values? i will say that i am more

optimistic than i was before that we will be able to accomplish that goal. emily: do we even want ai to share our values? there are many inequities in society that we may not want to be replicated in ai. >> one of my hopes for ai is that it will take, it will help us be our best. it will help us amplify our best and stop our worst impulses. so i think we have a lot of known psychological flaws. there are deep inequities in the world. and i think that ai is going to be a way that we can decide what is good and make sure that ai runners that and keeps that and that fundamental because there that honors that and keeps and that fundamental because there is a lot of good in us as well. the injustices, we will be able to address. emily: elon musk as you have known is concerned about this. how realistic is the apocalypse? >> i think it is always hard to say. when you have any incredibly powerful technology, to know exactly how it is going to do. i am personally optimistic that we are going to get to the good

future, but that will require incredibly hard work from talented people and starting now. emily: you still spend half of your time at y combinator. what trends are you seeing when it comes to, you know the values , of startups being created? the valuations of the startups that are being created and whether it is worth it? sam: i made this public bet three or four years ago when everyone was saying there was a bubble. i just looked at it recently and it is looking pretty good. at the time, everyone was like, this is ridiculous. you are going to lose the bet. everyone said there was a bubble so i suspected there was not. now most everyone is not saying there is a bubble and so now i am nervous. everyone is back to operating mode where everything is great and will keep going up. i am much more nervous than when i made that post. it was like 3.5 years ago. i try not to get too focused on bubbles because i try to keep a multi-decade view. and you know, i want to invest

in shares that are going to hold through multiple bubbles over the decades of compounding it takes to create a valuable company. when you look around the moment, plenty of stuff seems out of whack. on the timeframe that i think about, i don't, i don't care that much. in terms of trends, one trend that we are seeing that is i think affecting all startups now at least in the bay area is the competition for talent with the tech hyper caps is very difficult. so you know when you have , google, facebook, finding the best engineers, and putting these incredibly large competition packages in front of them, how you at the start up attract enough talent, concentrate talent to win becomes a very hard question. in fact it has become one of the first question i ask startups. what is your approach this? is the mission so important they will join? it is astonishing how many

people do not have an answer to that question. emily: how do they compete? sam: it is always different. like any of those things i just said are approach. one the problem is that many people seem to have not thought about it at all. emily: to put a fine point on it, you try to think we are not in a bubble, but we could be in a bubble now? sam: i think we are -- i think some valuations are too high and some are too low. i think that if interest rates go up, i think there will be a ripple effect on their valuations. but i think it is like not that binary of a question. it feels more likely to be true than in 2015. but there is still a lot of startups that put money into current valuation. i try not to -- i am not trying to figure that out. emily: speaking of values, you recently suspended your role on the board of saudi future city. why did you decide that? sam: i don't have a lot more to

say about it than i did before but i feel way out of my expertise from what i can see. i have a lot of questions. i would like to wait for them to be answered. hopefully very soon before i decide on my commitment to the board. in general, i believe you should always wait for the data before you make any decision or comment, but this case seemed to be exceptional. emily: our interview with sam and open y combinator ai. speaking of the exceptional saudi situation as he put it, saudi arabia has pulled out a planned deal with virgin hyperloop one. it seems to be in retaliation for the hyperloop chair, richard branson, freezing ties with the kingdom until more details are known about the alleged murder of the journalist, jamal khashoggi. officials in riyadh have denied that the prominent critic was murdered in telling -- entering a consulate in his stumble october 2 -- in istanbul coming october 2. up, it is a tech teardown.

a team of engineers in detroit are pointing out major flaws of tesla model how badly can this three. hurt the company? we will discuss, next. this is bloomberg. ♪

emily: tesla's model three has some of the most impressive technology and one of the best motors of any electric car, but a team of engineers in detroit say there is a major flaw in the car's design, hurting profit margins. our reporter from detroit. >> detroit, a city you'd associate with building cars on a massive scale. in an engineering warehouse north of the city, we found a man who to some apart -- who tears them apart piece by piece. his latest project, tesla's model three.

>> munro and associates does quite a bit of engineering work, mostly in reverse engineering and benchmarking the vehicle. reporter: the manufacturing guru and his engineers tore down two model threes. they compared it to a bmw and chevy. the conclusion, tesla is ahead of the game in all areas but one. too complex,y is expensive, and heavy, difficult to build. >> this car has a lot of good features and a few bad ones, and i am standing in front of the worst one right now. this is the reason that i feel tesla has problems. the body and weight and the closures that go along with it are not designed for manufacturability. they do not do a good job at part count, the weights are too high. the body is much too stiff. the wheel wells for instance

have nine parts, which would be one part in a conventional car. they use so many different fastening methods, it is incredible. it just goes on and on. in many cases the design is so poor, i am surprised that no one caught it long before it got into production. reporter: the model has a three sticker price of about $50,000 according to munro. he estimates the car would cost about $34,700 to build. that means a gross profit margin of 30%, but there is a catch. munro leaves it would cost that much to build if it was built at a conventional car factory. the model three was built at a tesla's factory where they employ 10,000 people and robotics. the cost of labor and estimation is high. >> 35% or 40% of the people would disappear from the factory. based on what i know about car plants, and that would have to happen after they strip out a lot of the robots. had this product been built in a

conventional ford, toyota, or whoever kind of plant, this thing would have had a brilliant design. it would've entered the marketplace in an unbelievable fashion. they could have clobbered everybody. no one would have been able to get a job. reporter: they are excited by the model three factory developed through panasonic which gives more range than anything in the market. >> what they have put together for making the battery module is a brilliant piece of engineering, and i do not think there are many people that could help them make it better. their battery management system is one of the best i have seen. this is probably going to be a very long-lasting battery pack. reporter: all cars need a motor and according to munro, the model three's electric motor is one of the best. and in the world automotive, every dollar and every kilo

counts. this analysis was tested out at $754. a weight of 46 kilos. the bmw i-30 has a more expensive motor and weighs slightly more. the chevy bolt motor is also more expensive at $836 and kilos.the most at 51.9 that means tesla also outshines in performance. >> this is wicked fast. this is a much more agile more , exciting motor to have been bmw were chevy i-30. reporter: they are still not sure what type of motor the model three has pending further analysis. but they discovered a unique magnet design which they think gives the model three its impressive performance. >> these are actually four magnets, and they are literally glued together. this gives us something that is entirely different. it is called the held back effect. it gives you different

performance characteristics. this is one of the things we think is what gives tesla a little bit of extra oomph. reporter: tesla the clyde and to comment on -- declined to comment, but these models were built in 2017, and elon musk has said tesla's processes have gotten or efficient since then. -- more efficient since then. and body shops can still be more efficient. they believe he should go back and benchmark his car. at stake, potentially faster production and higher margins, something investors are watching closely. ed ludlow. emily: that was bloomberg's ed ludlow. speaking with tesla, the company will pay $140 million for the land where it will build a factory in china. this will be its first outside the united states and the first time china has allowed a foreign automaker to fully own a factory there. the facility will allow tesla to sidestep tariffs sparked by the trump administration's trade war.

still ahead, silicon valley's reputation is taking a beating this year. we sit down with the always opinion of -- opinionated microsoft person steve ballmer. this is bloomberg. ♪

emily: julio has agreed to buy san grennan. this will allow users to now manage emails in the software developing program. the deal will merge san grant with julio and is expected to close in the of 2019. first halfsilicon valley's reputation is taking a beating this year from data security concerns to alleged election meddling. the public's love affair with big tech is over. former microsoft ceo steve ballmer sat down with us on wednesday to talk about the current environment for big tech

as well as a new clippers ai sports initiative. steve: day in and day out, the technology industry, like every other industry, has a key role in society, and some of it is all positive and goodness and innovation, and some of those things come with a downside. and you know as the downsides , get revealed, whether it was security issues in software a number of years ago, privacy, election manipulation, i don't think that the spirit of excellent innovation will be anything other than lauded, but the tech industry also has to take bumps and bruises and serious request from society to do better. so i would not call it a once-in-a-lifetime, but there will be excitement about tech, and there will be issues over which tech needs to show responsibility. emily: i know you're super pumped about this.

you are pitching this as a revolutionary way to watch clippers games, and that this puts a viewing experience in the hands of the viewer. how does it work? steve: well, what we have done with our partners, a very cool technology company here in l.a., is to apply artificial intelligence to watch, study the game and then draw in real-time automatically what is going on. if you would want to watch it as a player and see the probability that your teammates will be successful with a shot. if you want to see real-time diagramming of ways, we provide you that. -- plays, we argue that. if you want various camera angles coming you can get that. if you want live commentating, you can get that. computer-generated highlights that are available in near real-time. the availability of right from within the website or within the applications to tweet things out. we provide all of that.

that is in beta. the thing that is broadly available today which is very exciting for people here in the los angeles market is a set of augmented streams to do much of the things that i talked about which are available now on the fox sports app, and people can watch the game that way tonight. emily: this is about according -- courting the viewers of tomorrow. who are you trying to attract to this? steve: we are trying to take the fans first who are excited about the game and giving them away to get into the game even deeper. with every business, one of the first things you have to do is feed your enthusiasts. particularly since nba fans tend to skew younger, we think we will see great uptake by today's fan base. we are also building out interesting things to draw in people that know less about the game because this is a essentially a software service.

we will continue to feed new products, new ideas into this thing with great regularity. emily: so given that you are collecting all of this additional data, is this something that could also help the team win games? steve: yeah, this is actually built off of a set of technology that first came out in an analytics product. there are six cameras in the ceiling of every nba arena. the software we are talking about starts by looking at the floor, seeing every player, knowing the ball, the speed. then there is a layer of so-called machine learning software that can tell you exactly that was this kind of pick and roll, the success rate and likelihood to lead to a shot, a made shot is this way. it is being defended in this way. all of the core technology feeds the set of tools that the teams do use to improve how they game plan. a product named eagle -- the

clippers were one of the first users of that product, again, from this company second spectrum here in l.a. emily: where does the tech go from here? for example how could legalized sports betting be integrated into this platform? steve: well we have a platform , in which you can show additional data real-time during the game and in which you can interact. i think that makes it a great platform with which to legalize gaming, betting, sports when that comes on board. you may want to see fantasy points. you may want to see probabilities of certain things happening. there is a lot of things that may be legalized on which people can gamble. we can show those live on this screen. and with interactivity, there is a possibility for online gaming partners to work with us to augment the experience in that way. emily: it will be an interesting season. you have got lebron going to the lakers. how are the clippers going to up their game with that on the

other home team? steve: i kind of love our team, i will be honest. it is a very different team from last year. we have got guys back who were injured much of the season. we have a bunch of new players, we have some rookies. i love our team. i think it is very close knit. it is consistent with what i want out of our team, tough-minded gritty folks ready , who will dive in and get things done. i love our guys. i cannot comment on others, but nobody will want to play us night in and night out. that was former microsoft ceo and l.a. clippers owner steve ballmer. and that does it for this edition of "best of bloomberg technology." we will bring you all of the latest in tech through the week. be sure to tune in next week. big tech earnings, amazon, alphabet, microsoft. we will be across all of them. 2:00 in san francisco. and bloomberg technology is livestreaming on twitter. check us out @technology. and be sure to follow our global

breaking news network tictoc on twitter. this is bloomberg. ♪

alix: welcome to daybreak australiaalix: haidi:. -- haidi: welcome to daybreak australia. ramy: we are counting down to asia's major market opens. haidi: here are the top stories we are covering in the next hour. saudi accounts of the killing of the journalist spark widespread skepticism. pace will bee tested this week as the strength of the sass cap -- tax cut economy will