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. three, two, one. welcome to the kcnn grill and welcome to south by southwest. you have interactive, you have film and you have music. so makes sense that at the cnn grill, check this out, we're in the interactive part, can you actually order, if we -- that was pretty good, fried click ensliders. you actually order it on the ipad. who would have thought? >> south by southwest is essentially spring break for in other words and also where a lot of in other words go to drink and party. and network. it's where that all kind of combines. ♪ >> you go to see a lot of

different sites, sounds, smells. you smell the barbecue. you feel the vibe, the energy. ♪ >> it's fun. i mean, you know, you see people kin of doing a little bit of walk of shame home. and everyone loses their voices. but it's part of the south by southwest culture. that's south by southwest. you get in other words drinking and craze dwlings happen. i'm sure they'll go home and create the next facebook or something. >> what does this do? >> it is a wearable body monitor. it tracks how many calories you burn. it is moderate and vigorous. >> so we're sitting here with tom, he is a ceo of vochler. it turns your iphone into a walkie-talkie. >> prepared to be interviewed. >> here's one of the first things somebody gave me yesterday when i got off the cnn express. it is called swivel.

you put an iphone into it. and this is what you do. i have lori here from money.com. you have seen lori before. lori's got something around her neck which is connected to this ipod through radio frequency and through blue tooth. watch what happens as lori moves. she can move around the room and this will follow her around the room. it's called swivel. you can put it on a tripod or table. let's say you're having a face time chat with somebody. it's a little creepy. it follows you everywhere you go. you can see it moving, right? >> so here we are outside of the austin convention center. this is the epicenter of south by southwest. inside, there are hundreds of vendors, start-up companies trying to create buzz about their new product. it is rainy day in austin. you need one of these. you have your phone. definitely no high heels here. let's go inside.

sorry. this is how everyone here at the circus that is south by southwest walks. everybody is staring at their phones. i tell you, we want to show you one thing and we get turned off into something else. it is like information, interactive overload on all these different hallways. there are different vendors trying to get the buzz out about the big next thing. it was 2007 where twitter took off. they started foursquare here. and so we are checking it out with everyone else from all around the world to see what the next hot thing is. >> it is an electric skate board. you lean forward to go and back to stop. get on the pad and lean forward. >> sweet jesus! and this is just one thing that jumped out at us. shows this may be the interactive portion of this festival. take a look at this.

there are all these sort of different columns around the austin convention center talking about politics. this is one of the films, music to go. check it out, you know, anonymous here or there are the little codes where can you use your phone and find out what this is, where you can go. and so finally, since i have a little something, sanjay gupta, that's for you. back here outside, take a look at this rain. this is basically the forecast for the next couple of days. but you know what? who cares? we're back here at the cnn grill. this is actually the inside of the cnn south by southwest beer garden. yep. this is the beer garden. you can see they have some hot apple cider. next you have the cnnal ale. thank you very much. i'll take. that i'll trade that out for my apple cider in just a minute. this is basically the end of one day, the beginning of the night.

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this is the secret to start-ups. the secret to success. it's the head. >> bald. bald. >> south by is where a lot of inowe vacations take you places, where companies are pushing their products. they're trying to get them into our hands. >> there's a range of reasons why they come. mostly they think they have this brilliant idea. they have a way to change the world. they look to the problem and developed a solution and now they want to go big. >> you want to come here and be the breakout technology. you want to be what everybody is going to go home, take back to their friends and family and say this is the next big thing. >> hi.

i'm josh bear. i'm here in austin. austin is the center of the world right now with south by southwest we have a ton of start-ups in this building and about 50 of them total all around austin. >> are new the business of vetting these people to know if they have viable ideas? or is this just a public marketplace? >> it's a little bit of both. you can see when somebody comes in and wants to be here. you have some sense this one is going to make it big versus you got to be kidding me? >> well, you know, everybody likes to think that they've got some sense of that. you know, hiss tore ukly, nobody's that good at it. some are better than others. but that's what makes it fun. >> so you're the other side of this equation. we're seeing people selling their wears and you're a buyer? >> yes. i look for companies to put seed money into. >> tell me how that works. what do you look for? >> well, we look for disruptive tech nonologie technologies. we look for entrepreneurs who bring something to the table that we think could have a great liquidity event in the future.

>> i work with a lot of technology companies. they're entrepreneurs and engineers, geeks. they get really excited about the technology, the solution and their idea. they're like wow, look at this great idea. isn't that amazing? they think that's the hard part. as i look at a lot of the young technology startups, i encourage them to think about it as they have to have something just as unique, just as innovative, just as amazing about how they're going to market it as the technology part that they think is so great. >> america is really built by entrepreneurs. they started pumping the entire industries. that's how we became the leading economy in the world. >> i feel here at south by is step into a conversation because everyone wants to join in and talk. it's like ted and these things like at night where you have the little short bursts of content that generate a lot of ideas, all grouped into one. >> this is how we create the future. the world is changing at a

faster pace. being able to adapt is critical. >> we have a lot of things going for us. we're optimistic about america entrepreneurship like this week at this festival. but other nations are getting -- recognizing the secret sauce that has driven america's economy and it is entrepreneurship and they're putting policies in place to make it friendly for entrepreneurs. >> so if you think the world is changing, globalization, increasing competition and industries are being disrupted, you never get the finished product. you're always like how do i invest myself and play the next curve? >> the men you're about to meet, you have seen him before. remember this. you will know his name for decades to come. i have tweeted out that i think he's one of the smartest men in the world. he just wrote a book called "abundance" which last i checked was number two on "the new york times" best seller list. peter is trained as an engineer, as a medical doctor. he is the founder of the x prize, you know the x prize.

they award prizes for solving some of the world's biggest problems. he is co-founder of sing lart university. in recent weeks he has been at ted. he's been a speaker there. then we were at singularity last weekend in los angeles. and now he's here. i have to ask you, peter. while i'm walking around seeing people develop applications and programs and trying to find venture capitalists to fund them, you know, i sometimes think, boy, it's all a variation on some kind of location, location-based thing that lets you meet other people. for a guy like you who's involved in some of the biggest problems that the world solves, why you are here? >> i'm here because these entrepreneurs that are, if you would, the tinkers and working on all these have the potential to attack some of the world's biggest problems. they're now empowered with technologies, artificial intelligence, robotics, 3-did the printing to do what only governments in large corporations could do before. and i'm here to incentivize and

tell people to go out and use the technologies to solve these huge problems because they can take the risks that large companies and governments don't take anymore. >> why is that? >> well, you know, to do a real breakthrough means that you may fail. in fact, i speak about the fact that the day before something is truly a breakthrough, it's a crazy idea. and so a real breakthrough requires taking big risk that's could fail and large companies are worried about the stock prices plummeting. >> their reputation. they don't want to take that risk. >> they're willing to risk everything for their vision. a lot of them failed. when they succeed, it's a real breakthrough. ♪ >> so any excuse to get to this town, to me, i'm there. ask me, i'm in. >> you know, austin has a great entrepreneurial culture. it has a lot of smart, young, talented people. >> they're not silicon valley. they have an awesome laid back

way about themselves and really trying to solve real world problems. >> austin is this remarkably progressive environment that is doing very, very well. there are people that want to live here and people who come and live here from other places because the cost of living is lower than those other places. >> i lived in d.c. i lived in l.a. i love austin by far the most. i pay for my apartment the same amount i paid in l.a. for sharing a room in a piece of crap apartment with, you know, four people in the college ghetto of ucla. >> it's hard to say if south by could be anywhere else. there are lots of great cities. south by, by itself is a powerful brand and message. but it married so perfectly with austin. in particular, south by is not just about interactive. it's not just about technology. it's about music and film and gaming, all things that are austin's strengths. >> for a community that wants to keep austin weird, south by southwest certainly fits the

bill. it has also grown from just music to films and whole team media. so it has become this roll event almost like a sun dance or even the film festival. but it's different than all those three. it's so next generation. it's about the future more so than like the moment. so i don't know. it has an incredible reputation that it built up over the last five years outside. a lot of people have known south by southwest. but people outside the mainstre mainstream, like i remember when my mother learned about the sun dance film festival. that was like in '94. now my mother starts asking questions about like you are going to this south by southwest or something like that? so it's become culturally relevant. it's built itself nicely, man. and that's by not limiting it to one thing. yes, it started with music. then they branched out into film. now if you're involved in web design or multimedia of any sort, there is a place for you

here as well. it's kind of like the san diego film, music and online community. >> there are going to be a million bands descended upon austin in a very short period of time. and they are going to be playing in the streets. they're going to be playing at venues. they're going to be playing anywhere where they can get somebody to listen. [ woman ] my boyfriend and i were going on vacation, so i used my citi thank you card to pick up some accessories. a new belt. some nylons. and what girl wouldn't need new shoes?

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the interactive festival is all about your tech kmn, pitching your company, learning about other companies. very business driven. once you get to film and music, it really becomes about art, about fashion, about 17-year-olds trying to start a pop career. austin equals music. and i think that so many of these people want to be on the press hiss of the next big thing. >> i would describe our music as kind of authentic synthesized honesty. honesty. >> this is where you get the artsy crew. you got the people trying to sell their movies instead of

their tech companies. they're trying to sell their band, their deejay gear. the jeans get a lot skinnier here. >> i think you have some really, really huge groups coming to austin who want to see who is hot. so you want to see which apps are hot f you're an up and coming musician and singer, songwriter, you come through austin. if you've done south by southwest, you're kind of the bing of the making. ♪

♪ ♪ ♪ >> walk off the earth is a band out of canada that had a very

respectable following, a grassroots following. they decided they had great concept for a song. it is called "somebody i used to know." they loved the song. they covered the song. and they shot this video. once a person likes something and catches wind of it, it can go anywhere. somebody like russell crowe saw it. so he, of course, sweeted it out to everybody. all it takes is one person saying i really dig what they're doing. and with this band walk off the earth, i defy anybody to watch this individual yeen not share it with a friend. it's that cool. ♪

>> okay, everybody. welcome. i run cnn digital. i would like to personally welcome you to the second annual cnn grill. >> how has it impacted governing? >> politics is fun here. but if you're interested in governing and getting things done, a lot of things that happen in politics are really bad for this country. >> the united states has conducted an operation that killed osama bin laden. >> one of the stories that mattered most last year was not reported by journalist initially. it was reported by someone who we would describe as the accidental reporter. >> not going anywhere. so forget about that. and then there this what this is loud bang. >> sometimes it happens accidentally or without you wanting it to happen. we see that all the time. >> can you please tell me who it happens to accidentally? who is on top of the celebrity

chart that happens to accidentally? who is the person that oh, i can't believe this is happening to me? i have 12 million followers? >> i agree with you. it's not an descent. >> it is calculated. >> the kardashian family, i have never seen a family collectively who work harder. they work hard. >> why is that? >> thanks again, you guys. really great of you to come out. i hope this was interesting. thanks again. have fun at the grill. h's gravil and hurtle us all into space, which would render retirement planning unnecessary. but say the sun rises on december 22nd and you still need to retire, td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k).

so who's in control now, mayans?