captioning funded by cbs and ford. we go further, so you can. >> our work is in being able to make testing more accessible. >> elizabeth holmes was a charismatic stanford dropout, who promised to revolutionize blood testing, by using this small box, supposedly filled with dazzling technology. the invention was backed by hundreds of millions of dollars from a-list investors, until the theranos story unraveled. >> this is one of the most epic failures in corporate governance in the annals of american capitalism. ( ticking ) >> dr. ann mckee has spent 14 years looking at the brains of hundreds of athletes who suffered concussions. earlier this year, she said

former patriots tight end aaron hernandez was the most severe case of the degenerative brain disease c.t.e. she had ever seen in someone under 30. tonight we hear that it's not only athletes who are at risk, but also the 300,000 soldiers who have returned home from war with brain injuries. >> before he was deployed, he said, "you know mom, i could come back with no legs, or no arms," but nobody ever said that he could lose his mind one day at a time. ( ticking ) ( dolphin sounds ) >> welcome to the future: m.i.t.'s media lab, a place that follows crazy ideas wherever they may lead. >> we get to think about the future. what does the world look like ten years, 20 years, 30 years? what should it look like? >> time to go to sleep. >> how about dream control? robotic prosthetics? what's the largest city in bulgaria and what is the

population? or connecting the human brain to the internet? >> sofia, 1.21 million. >> that is correct! >> you know, the best way to predict the future is to invent it. ( ticking ) >> i'm steve kroft. >> i'm lesley stahl. >> i'm scott pelley. >> i'm sharyn alfonsi. >> i'm norah o'donnell. >> i'm bill whitaker. those stories, tonight on "60 minutes." (john foley) i was there in chicago when bob barnett made the first commercial yes, this is wirelesbob barnett in chicago. (john) we were both working on that first network that would eventually become verizon's. back then, the idea of a nationwide wireless network was completely unreasonable. but think about how important that first call was to our lives. it opened the door to the billions of mobile calls that we've all made in the last 34 years. sometimes being first means being unreasonable.

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university with a dream of creating a company that would revolutionize blood testing. as we first reported last may, holmes founded the start-up theranos, and boasted her technology could take a pin- prick worth of blood from the finger and perform hundreds of laboratory tests. it was, she claimed, "the most important thing humanity has ever built." at its zenith, theranos was worth nearly $10 billion, and elizabeth holmes became the youngest self-made, female billionaire in the world. today, she and her company's one-time president stand criminally charged by the u.s. government of perpetrating a multimillion dollar scheme to defraud investors, doctors and patients. you're about to hear from insiders how the theranos deception worked. >> elizabeth holmes: our work is in being able to make testing more accessible. >> o'donnell: elizabeth holmes

built her company theranos on this invention she named the edison-- a miniaturized blood analyzer that would disrupt the $60 billion lab testing industry dominated by giants labcorp and quest diagnostics. holmes called her invention the ipod of healthcare, and it made her a celebrity. she graced magazine covers and was praised by politicians and the press alike. >> bill clinton: you founded this company 12 years ago, right? tell them how old you were. >> holmes: i was 19. ( applause ) >> reporter: the woman who i will be interviewing needs no introduction... >> o'donnell: she sold her vision with grandiose claims that her blood tests would cost a fraction of current prices. >> holmes: what we're doing in just pricing is saving medicare and medicaid hundreds of billions of dollars on an annual basis. >>'d: hobi startup was backed by an illustrious board packed with national security heavyweights like henry kissinger and james

mattis, the current defense secretary. the board was filled with friends of george p. shultz, the former secretary of state who helped end the cold war. he introduced his grandson tyler to holmes. dazzled, tyler shultz became a believer, and joined the company soon after getting his degree in biology from stanford university. when you met her, and you heard about elizabeth holmes' vision, what did you think? >> tyler shultz: i was totally sold on it. >> o'donnell: tyler shultz began working at theranos in september 2013. it was a pivotal moment, as the company announced a partnership with walgreens. the deal would put an edison machine in every store. elizabeth holmes claimed the edison performed all the tests big lab machines like these could-- from cholesterol to cancer-- all from a painless finger-prick. but tyler shultz says the edison he saw just didn't work. was it a sophisticated piece of machinery?

>> shultz: no. there were components that would kind of fall off in the middle of testing, that you would have to then fish out. they had doors that wouldn't close. they would get too hot, and then they would get too cold. >> doug matje: when i was there, we could not complete any test accurately on the devices that we were manufacturing. >> o'donnell: doug matje joined theranos in 2012, after getting his doctorate in biochemistry. his job was to adapt blood tests for the edison-- tests, which holmes told investors, were ready to use on patients. but elizabeth holmes had told walgreens in 2010 that it had developed this device that was capable of running any blood test from a few drops pricked from a finger, in real time, and less than half the cost of traditional labs. was that true? >> matje: no. certainly not. >> o'donnell: do you think she was lying to walgreens? >> matje: i do, yeah. >> o'donnell: are you a clinical lab specialist? >> erika cheung: no. >> o'donnell: erika cheung was fresh out of berkeley with a degree in molecular and cell biology when she went to work at

theranos. she was just 22, but even the novice lab tech suspected something was very wrong when she saw faulty test results sent to walgreen's patients. when did you think, "i probably shouldn't be doing this?" >> cheung: pretty-- ( laughs ) pretty soon in the process, especially when we started to pick up more patient samples. >> o'donnell: and when those samples were re-tested, she says, there were often contradictory results. did you ever alert the patient? >> cheung: no. we didn't let them know, "hey, we re-ran your patient sample and we're not actually positive about what the diagnosis is." >> o'donnell: this is someone's health information. >> cheung: exactly. this isn't an app crashing. this isn't, you know, someone's food delivery coming late. it's just a different ballgame. >> o'donnell: its not the only game elizabeth holmes was playing. theranos employees told us they were instructed to stage fake demonstrations for investors who visited company headquarters. >> cheung: it was kind of a

show. all they would see was their blood getting collected. they didn't see what was going on behind closed doors, about how it was processed. >> matje: they would get their finger pricked, with a small amount of blood. then they'd be led out of the room. they'd go have a meeting, go have lunch, whatever, and at which point an engineer would run in the room, grab the cartridge, bring it out into the lab. >> o'donnell: so was the edison doing the testing? >> matje: no. absolutely not. >> o'donnell: who was doing the testing? >> matje: it was scientists at the bench. >> o'donnell: by hand. >> matje: by hand, yeah. >> o'donnell: it was a bait and switch for investors that kept the money rolling in. theranos raised nearly $900 million from those investors, who now say they were swindled by elizabeth holmes and company president ramesh "sunny" balwani. the pair claimed, in investor documents obtained by "60 minutes," that theranos technology was validated by the f.d.a., pharmaceutical companies, and was deployed on the battlefield by the u.s. military in afghanistan.

those claims were fabricated. and in one public appearance after another, holmes' pitch became even more fantastic and reckless. >> holmes: we've done some work with people at hopkins, who have developed and demonstrated that, in blood, you can see the onset of pancreatic cancer 17 years before a tumor forms. >> o'donnell: we called johns hopkins medicine. they told us they never collaborated with theranos. and doug matje says, test data he compiled for the food and drug administration was falsified. >> matje: there was so much pressure from above to get good- looking results that are going to be able to pass the f.d.a. guidelines, that people were pressured into making things disappear. >> o'donnell: the bad results. >> matje: the bad results. >> o'donnell: that's deceptive. >> matje: yeah. for sure. >> o'donnell: did you ever go to your boss and say, "this isn't right"?

>> matje: absolutely. all the time. but, you know, he was under a lot of pressure from the people above him. and he was trying to do his best to make, to make everyone happy. >> sunny balwani: this invention is going to be way up there, with-- with the discovery of antibiotics. >> o'donnell: day-to-day operations were run by company president sunny balwani. balwani is a millionaire software engineer with no training in the biological sciences, but he did have a powerful connection to elizabeth holmes. sunny balwani was her secret boyfriend. >> balwani: some people are here because of the mission, the cause. some people are both here for the science. >> o'donnell: balwani was also holmes' enforcer, firing employees on the spot and berating scientists for failed tests. after a year and a half, matje quit. >> matje: i saw that there was, you know, potentially fraud taking place. there was far too much illegitimate things going on there. i talked to sunny, decided i

didn't want to be there any more, and i left. >> o'donnell: tyler shultz was also becoming disillusioned. >> shultz: i had a personal relationship with elizabeth. she was close to my family. and i felt like she was deceiving my family, and the public. >> o'donnell: and almost every media outlet, including us here at cbs, bought into the theranos myth. a health care pioneer is being compared to visionaries like bill gates and steve jobs. do you think she wanted to be the next steve jobs? >> shultz: yeah. i think she just really idolized him, so, she wore the black turtleneck. i think she created a world where she was steve jobs for a little bit. >> o'donnell: as her wealth and reputation soared, elizabeth holmes took on the trappings of power. she bragged bulletof win were insta iitll time security detail. theranos employees told us they were closely watched and required to sign non-disclosure agreements, all reinforced, they said, by a threatening team of lawyers and private

investigators. that's why, when tyler shultz alerted authorities in the spring of 2014, he used a fake name. >> o'donnell: why did you come up with an alias? >> shultz: i knew how seriously theranos protected their trade secrets. i knew they would not take it well if they knew that i was talking to regulators. >> o'donnell: in his email to new york state department of health regulators, shultz outlined questionable lab practices and said he believed test results were being switched. >> shultz: i just said, "this happened in my laboratory, and i just want to know if this is okay." and they responded and said, "no, this is cheating. this is not how it's supposed to be done." >> o'donnell: tyler shultz was ready to resign, but first he sent elizabeth holmes an email about his concerns. he got a response from sunny balwani. >> shultz: that i was arrogant, ignorant, patronizing, reckless, and i was lacking the basic understanding of math, science, and statistics.

that if i had any other last name, that i would have already been held accountable to the strongest extent. >> o'donnell: tyler shultz quit in april 2014, and soon after, erika cheung did too. by february 2015, the theranos fairy tale was about to unravel publicly. at the "wall street journal," pulitzer prize-winning reporter john carreyrou, who has written a book about the theranos saga, got a call. it was a tipster casting doubt about the edison, theranos and its charismatic founder, elizabeth holmes. >> john carreyrou: she is a pathological liar. she wanted to be a celebrated tech entrepreneur. she wanted to be rich and famous. and she wouldn't let anything get in the way of that. >> o'donnell: what kind of job did the board do in holding holmes accountable? >> carreyrou: this is one of the most epic failures in corporate governance in the annals of american capitalism. they did nothing to verify that

her scientific claims were true. >> o'donnell: carreyrou's first article appeared in october 2015, and revealed "theranos did less than 10% of its tests on edison machines." >> jim cramer: what do you think is going on here? >> o'donnell: holmes struck back. >> holmes: this is what happens when you work to change things. and first they think you're crazy, then they fight you, and then all of a sudden, you change the world. >> o'donnell: but skeptics were no longer buying the theranos deception. >> holmes: what i am showing you now is the result of hundreds of engineers' and scientists' work. >> o'donnell: holmes repeatedly insisted she would present proof at a major industry conference that her technology worked. >> holmes: you can see the tray dropping into the detection module there... >> o'donnell: it was proof that never came. >> panelist: and the evidence you presented fell far short of that. >> o'donnell: in 2016, after a series of surprise inspections, federal regulators shut down the company's laboratory, saying it posed "immediate jeopardy to patient health and safety."

nearly one million theranos test results were invalidated. >> carreyrou: when she started using this technology on the blood samples taken from consumers in walgreens stores, that was an unauthorized medical experiment. there's no other way to put it. >> o'donnell: theranos was on the brink of collapse. big name investors found their stock was worthless. education secretary betsey devos and her family, and media mogul rupert murdoch each lost more than $100 million. walgreens sued theranos, and settled for less than a quarter of their $140 million investment. why do you think this was outright fraud, as opposed to any other silicon valley startup that just wasn't able to deliver on lofty goals? >> carreyrou: well, because she raised money, hundreds of millions of dollars, on the basis of this technology not only being ready and working,

but being commercially rolled out. you're also lying to the public. you're lying to patients. you're lying to doctors. you're lying to regulators. most people would call that fraud, as well. >> o'donnell: the securities and exchange commission called it "massive fraud" when they charged elizabeth holmes and sunny balwani in march. holmes settled the s.e.c. case without admitting guilt and paid a half a million dollar fine. balwani, who left theranos two years ago, calls the s.e.c. charges "unwarranted" and is fighting them. at its height, how much was theranos worth? >> carreyrou: $10 billion. there was a period of several months where it was more valuable than uber, more valuable than airbnb, more valuable than spotify. >> o'donnell: and how much is it worth now? >> carreyrou: zero. >> o'donnell: theranos told investors this month, the company had run out of money and is closing its doors. ( ticking )

>> why the elizabeth holmes story proved irresistible to so many reporters. go to 60minutesovertime.com.

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>> alfonsi: until a few years ago, n.f.l. players who struggled with severe depression, bouts of rage and memory loss in their retirement were often told they were just having a hard time adjusting to life away from the game. doctors have since learned these changes can be symptoms of the degenerative brain disease c.t.e., chronic traumatic encephalopathy, caused by blows to the head. as we first reported in january, c.t.e. isn't just affecting athletes, but also showing up in our nation's heroes. since 9/11, over 300,000 soldiers have returned home with

brain injuries. researchers fear the impact of c.t.e. could cripple a generation of warriors. ♪ ♪ >> present arms! ( gunfire ) >> alfonsi: when joy kieffer buried her 34-year-old son this past summer, it was the end of a long goodbye. kieffer's son, sergeant kevin ash, enlisted in the army reserves at the age of 18. over three deployments, he was exposed to 12 combat blasts, many of them roadside bombs. he returned home in 2012 ama >> joy kieffer: his whole personality had changed. i thought it was exposure to all of the things that he had seen, and he had just become harder,

you know, but-- ( sighs ) he was-- he was not happy. >> alfonsi: so at this point, you're thinking "this decline, this change in my child is just that he's been in war and he's seen too much." >> kieffer: right. >> alfonsi: did he tell you about blasts that he experienced during that time? >> kieffer: uh-huh. >> alfonsi: what did he tell you? >> kieffer: that they shook him. and he was having blackouts. and-- it frightened him. >> alfonsi: ash withdrew from family and friends. he was angry, depressed. doctors prescribed therapy and medication, but his health began to decline quickly. by his 34th birthday, sergeant kevin ash was unable to speak, walk or eat on his own. looking back on it now, was there anything you feel like he could've done? >> kieffer: unh-uh. >> alfonsi: because? >> kieffer: because it was, it-- it was his brain. e i di knos thatntuing to die. i mean, before he went into the service, he said, "you know, i could come back with no legs, or

no arms, or even blind, or i could be shot, i could die," but nobody ever said that he could lose his mind one day at a time. >> alfonsi: his final wish was to serve his country one last time by donating his brain to science, a gesture he thought would bring better understanding to the invisible wounds of war. joy reached out to the v.a.- boston university-concussion legacy foundation brain bank where neuropathologi dr.di char. mckee has spent 14 years looking at the post-mortem brains of hundreds of athletes who suffered concussions while playing their sport. last summer, her findings shook the football world, when she discovered c.t.e. in the brains of 110 out of 111 deceased

n.f.l. players-- raising serious concerns for those in the game today. and when dr. mckee autopsied patriots tight-end aaron hernandez, who killed himself after being convicted of murder, she found the most severe case of c.t.e. ever in someone under 30. now, she's seeing similar patterns in deceased veterans who experienced a different kind of head trauma-- combat blasts. ( explosions ) of the 125 veterans brains dr. mckee's examined, 74 had c.t.e. i can understand a football player who keeps, you know, hitting his head, and having impact and concussions. but how is it that a combat veteran, who maybe just experienced a blast, has the same type of injury? >> dr. ann mckee: this blast injury causes a tremendous sort of ricochet, or-- or-- a whiplash injury to the brain inside the skull, and that's what gives rise to the same changes that we see in football

players, as in military veterans. >> alfonsi: blast trauma was first recognized back in world war one. known as "shell shock," poorly protected soldiers often died immediately or went on to suffer physical and psychological symptoms. today, sophisticated armor allows more soldiers to walk away from an explosion, but exposure can still damage the brain-- an injury that can worsen over time. >> mckee: it's not a new injury. but what's been really stumping us, i think, as-- as physicians is, it's not easily detectable, right? it's-- you've got a lot of psychiatric symptoms-- and you can't see it very well on images of the brain. and so, it didn't occur to us. and i think that's been the gap, really, that this has been what everyone calls an invisible injury. this is the world's largest c.t.e. brain bank. >> alfonsi: the only fool-proof way to diagnose c.t.e. is by

testing a post-mortem brain. so t as of brains... >> mckee: hundreds of brains; thousands, really. >> alfonsi: researchers carefully dissect sections of the brain where they look for changes in the folds of the frontal lobes, an area responsible for memory, judgement, emotions, impulse control and personality. >> mckee: do you see there's a tiny little hole there? that is an abnormality. and it's a clear abnormality. >> alfonsi: and what would that affect? >> mckee: well, it's part of the memory circuit. you can see that clear hole there that shouldn't be there. it's connecting the important memory regions of the brain with other regions. so that is a sign of c.t.e. >> alfonsi: thin slivers of the affected areas are then stained and viewed microscopically. it's in these final stages where a diagnosis becomes clear, as in the case of sergeant kevin ash. so this is sergeant ash's brain? >> mckee: right. this is four sections of his brain. and what you can see is, these lesions. and those lesions are c.t.e. and

they're in very characteristic parts of the brain. they're at the bottom of the crevice. that's a unique feature of c.t.e. >> alfonsi: and in a healthy brain, you wouldn't see any of those kind of brown spots? >> mckee: no, no, it would be completely clear. and then when you look microscopically, you can see that the tau, which is staining brown and is inside nerve cells, is surrounding these little vessels. >> alfonsi: and explain, what is the tau? >> mckee: so, tau is a protein that's normally in the nerve cell. it helps with structure. and after trauma, it starts clumping up, as a toxin inside the nerve cell. and over time, and-- and even years, gradually, that nerve cell dies. >> alfonsi: dr. lee goldstein has been building on dr. mckee's work with testing on mice. >> dr. lee goldstein: we're in the neuro-tunnel laboratory. >> alfonsi: inside his boston university lab, dr. goldstein built this 27-foot blast tube where a mouse, and in this demonstration, a model, is exposed to an explosion equivalent to the i.e.d.s used

in iraq and afghanistan. >> goldstein: when it reaches about 25, this thing is going to go. ( explosion ) >> alfonsi: dr. goldstein's model shows what's going on inside the brain during a blast. the brightly-colored waves illustrate stress on the soft tissues of the brain as it ricochets back and forth within the skull. >> goldstein: what we see after these blast exposures, the animals actually look fine. which is shocking to us. so, they come out of what is a near-lethal blast exposure, just like our military service men and women do. and they appear to be fine. brain is not the same after that posure, as it wamicreconds before. and if there is a subsequent exposure, that change will be accelerated. and ultimately, this triggers a neuro-degenerative disease.

and, in fact, we can see that really after even one of these exposures. >> alfonsi: the department of defense estimates hundreds of thousands of soldiers have experienced a blast like this. what does that tell you? >> goldstein: this is a disease and a problem that we're going to be dealing with for decades. and it is a huge public health problem. it's a huge problem for the veterans administration. it's a huge moral responsibility for all of us. >> alfonsi: a responsibility owed to soldiers, like 34-year- old sergeant tom bates. >> sergeant tom bates: we were struck with a large i.e.d. it was a total devastation strike. >> alfonsi: bates miraculously walked away from this mangled humvee, one of four i.e.d. blasts he survived during deployments in iraq and afghanistan. do you remember feeling the impact in your body? >> tom bates: yes. >> alfonsi: what does that feel like? >> tom bates: just basically like getting hit by a train. >> alfonsi: and you were put back on the frontlines. >> tom bates: yes. >> alfonsi: and that was it? >> tom bates: uh-huh. >> alfonsi: when bates returned

home in 2009, his wife libby immediately saw a dramatic change. >> libby bates: i thought, "something is not absolutely right here. something's going on. for him to just lay there and to sob and be so sad. you know, what do you do for that? how do i-- how do i help him? he would look at me and say, "if it wasn't for you, i would end it all right now." you know, i mean, like, what do you-- what do you do-- and what do you say to somebody who says that? you know, i love this man so much, and-- >> alfonsi: you're going to the v.a., you're getting help, but did you feel like you weren't getting answers? >> tom bates: yes. >> alfonsi: and so you took it into your own hands and started researching? >> tom bates: i knew the way everything had gone and how quick a lot of my neurological issues had progressed, that something was wrong. and i just-- i wanted answers for it. >> alfonsi: that led him to new york's mount sinai hospital where neurologist dr. sam gandy is trying to move beyond diagnosing c.t.e. only in the

dead, by using scans that test for the disease in the living. >> dr. sam gandy: by having this during life, this now gives us for the first time the possibility of estimating the true prevalence of the disease. it's important to estimate prevalence so that people can have some sense of what the risk is. >> alfonsi: in the past year, 50 veterans and athletes have been tested for the disease here. tom bates asked to be a part of it. >> dr. ash: the injection i'm going to give you has a radioactive tracer element. >> alfonsi: that radioactive tracer, known as t807, clings to those dead clusters of protein known as tau, which are typical markers of the disease. through the course of a 20- minute pet scan, high resolution images are taken of the brain and then combined with m.r.i. resu get 360-degree picture of whether there are potential signs of c.t.e. scan results confirmed what tom and libby had long suspected.

on the right, we see a normal brain scan with no signs of c.t.e., next to tom's brain, where tau deposits, possible markers of c.t.e., are bright orange. >> gandy: here, these could be responsible for some of the anxiety and depression he's suffered, and we're concerned it will progress. >> tom bates: my hope is that this study becomes more prominent, and gets to more veterans, and stuff like that, so we can actually get, like, a reflection of what population might actually have this. >> gandy: i want to just watch you walk. >> alfonsi: there is no cure for c.t.e. dr. gandy hopes his trial will lead to drug therapies, so he can offer some relief to patients like tom. dr. ann mckee believes some people may be at higher risk of getting the disease than others. while examining n.f.l. star aaron hernandez's brain, she identified a genetic bio-marker she believes may have predisposed him to c.t.e., a discovery that could have far- reaching implications on the

football field and battlefield. do you think you will ever be your old self again? >> tom bates: i don't ever see me being my old self again. i think it's just too far gone. >> alfonsi: so what's your hope then? >> tom bates: just to not become worse than i am now. >> alfonsi: since our story first aired, over 100 veterans have contacted dr. gandy to enroll in ongoing trials to identify whether they are living with c.t.e., and more than 300 have reached out to dr. mckee about donating their brains to research. ( ticking ) having moderate to severe plaque psoriasis is not always easy. it's a long-distance journey, and you have the determination to keep going. humira has a proven track record of being prescribed for over 10 years. humira works inside the body to target and help block a specific source of inflammation that contributes to symptoms. most adults taking humira

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>> pelley: back in the 1980s, a laboratory of misfits foresaw our future. touch screens, automated driving instructions, wearable technology and electronic ink were all developed at the massachusetts institute of technology, in a place they call the media lab. it's a research lab and graduate school program that long ago outgrew its name. this past spring, we first told you about how it's creating technologies to grow food in the desert, control our dreams, and connect the human brain to the internet. come have a look at what we found in a place you could call the "future factory." to arnav kapur, a graduate student in the media lab, the future is silent. he's developed a system to surf the internet with his mind. >> arnav kapur: what happens is, when you're reading or when you're talking to yourself, your brain transmits electrical signals to your vocal cords.

you can actually pick these signals up and you can get certain clues as to what the person intends to speak. >> pelley: so the brain is sending an electrical signal for a word that you would normally speak, but your device is intercepting that signal? >> kapur: it is. >> pelley: so instead of speaking the word, your device is sending it into a computer. >> kapur: that's correct. >> pelley: that's unbelievable. let's see how this works. so we tried him. what is 45,689 divided by 67? >> kapur: sure. >> pelley: he silently asked the computer, and then hears the answer through vibrations transmitted through his skull and into his inner ear. >> kapur: six-eight-one-point- nine-two-five. >> pelley: exactly right. one more. what's the largest city in

bulgaria and what is the population? the screen shows how long it takes the computer to read the words that he's saying to himself. >> kapur: sofia, 1.21 million. >> pelley: that is correct. you just googled that. >> kapur: i did. >> pelley: you could be an expert in any subject. you have the entire internet in your head. >> kapur: that's the idea. >> pelley: ideas are the currency of m.i.t.'s media lab. the lab is a six-story tower of babel where 230 graduate students speak dialects of art, engineering, biology, physics and coding, all translated into innovation. ( dolphin sounds ) >> hugh herr: the media lab is this glorious mixture, this renaissance, where we break down these formal disciplines and we mix it all up and we see what that's the magic, that intellectual diversity. >> pelley: hugh herr is a

professor who leads an advanced prosthetics lab. and what do you get from that? >> herr: you get this craziness. when you put, like, a toy designer next to a person that's thinking about what instruments will look like in the future, next to someone like me, that's interfacing machines to the nervous system, you get really weird technologies. you get things that no one could have conceived of. >> pelley: the media lab was conceived in a 1984 proposal. m.i.t.'s nicholas negroponte wrote, "computers are media" that will lead to "interactive systems." he predicted the rise of flat panel displays, hd tvs and news "whenever you want it." negroponte became cofounder of the lab, and its director for 20 years. >> nicholas negroponte: when we were demonstrating these things in, let's say, '85, '86, '87-- it was really considered new. >> pelley: it looked like magic. >> negroponte: indistinguishable from magic.

>> you are going east on main street. >> pelley: in 1979, m.i.t. developed "movie map," which predated google street view by decades. >> you are going north on aspen street. >> pelley: now, notice what's so common today that you didn't even notice it-- he's touching the screen. if you had seen that on "60 minutes" in the '80s, you would you have been amazed. and, you might have been dazzled by one of the earliest flat screens. >> negroponte: it was six inches by six inches, black and white. it was a $500,000 piece of glass. >> pelley: it cost a half a million dollars? >> negroponte: it cost half a million dollars, that piece of glass. i said, "that piece of glass will be six feet in diagonal with millions of pixels in full color." >> pelley: in 1997, the lab also gave birth to the grandfather of siri and alexa. >> nomadic, wake up. >> okay, i am listening. >> go to my email. >> where do you want to go?

>> pelley: and in 1989, it created turn-by-turn navigation that it called "back seat driver." >> bear right at the stop sign. >> negroponte: and the m.i.t. patent lawyers looked at it and said, "this will never happen, never be done, because the insurance companies won't allow it. so we're not going to patent it." >> pelley: look through the glass-walled labs today, and you will witness 400 projects in the making. the lab is developing pacemaker batteries recharged by the beating of the heart, self- driving taxi tricycles that you summon with your phone, phones that do retinal eye exams. and teaching robots. >> pattie maes: so we think that the devices of tomorrow have an opportunity to do so much more, and to fit better in our lives. >> pelley: professor pattie maes ran the graduate program's student admissions for more than a decade. >> maes: we really select for people who have a passion.

we don't have to tell them to work hard. we have to tell them to work less hard and to get sleep, occasionally. >> pelley: how often does a student come to you with an idea and you think, "we're not going to do that?" >> maes: actually, for us, the crazier the better. >> pelley: adam haar-horowitz's idea was so nutty, he was one of 50 new students admitted last year out of 1,300 applications. >> adam haar-horowitz: i was really interested in a state of sleep where you start to dream before you're fully unconscious. where you keep coming up with ideas right as you're about to go to sleep. >> time to go to sleep. >> pelley: haar-horowitz's system plants ideas for dreams... >> remember to think of a mountain. >> pelley: ...then records conversations with the dreamer during that semi-conscious moment before you fall asleep. >> tell me, what are you thinking? >> sleeper: i'm doing an origami pyramid. >> pelley: her origami pyramid

dream was influenced by the robot saying the word "mountain." it's long been believed that this is the moment when the mind is its most creative. haar-horowitz hopes to capture ideas that we often lose by the next morning. >> haar-horowitz: so, it's basically like a conversation. you can ask, "hey, jibo, i'd like to dream about a rabbit tonight." it would watch for that trigger of unconsciousness, and then right as you're hitting the lip, it triggers you with the audio. and it asks you, what is it that you're thinking about/ you record all that sleep talking. and then later, when you wake up fully, you can ask for those recordings. >> pelley: and when he brought this idea to you, what did you think, really? >> maes: crazy enough, yep. ( laughs ) >> herr: welcome to the world of bodies and motions. >> pelley: nearby, in hugh herr's lab, everett lawson's brain is connected to his prosthetic foot, a replacementt. >> everett lawson: the very definition of a leg, or a limb or ankle is going to

dramatically change with what they're doing. it isn't just whole, it's 150%. >> herr: you feel directly corrected? >> lawson: yeah, when i fire a muscle really fast, it makes its full sweep. >> pelley: herr's team has electronically connected the computers in the robotic foot with the muscles and nerves in lawson's leg. >> herr: he's not only able to control via his thoughts. he can actually feel the designed synthetic limb. he feels the joints moving as if the joints are made of skin and bone. >> pelley: for professor herr, necessity was the mother of invention. he lost his legs to frostbite at age 17, after he was stranded by a winter storm while mountain climbing. >> herr: through that recovery process, my limbs are amputated, i design my own limbs, i return to my sport of mountain climbing. i s clng better than i'd achieved with normal, biological limbs. that experience was so inspiring because i realized the power of

technology to heal, to rehabilitate, and even extend human capability beyond natural, physiological levels. >> pelley: you developed the legs that you're wearing today? >> herr: each leg has three computers, actually, and 12 sensors. and they run these computations based on the sensory information that's coming in. and then what's controlled is a motor system, like muscle, that drives me as i walk; enable me to walk at different speeds. >> pelley: what will this mean for people with disabilities? >> herr: technology is freeing. it removes the shackles of disability from humans. and the vision of the media lab is that one day, through advances in technologies, we will eliminate all disability. >> joi ito: so, that was a big deal. >> pelley: the current director of the media lab is joi ito-- a four-time college drop out, and one of those misfits that the lab prefers. after success in high tech venture capital, he came here to

preside over the lab's 30 faculty and a $75 million annual budget. how do you pay for all this? >> ito: so, we have 90 companies that pay us a membership fee to join the consortium. and then, because it's all coming into one pot, i can distribute the funds to our faculty and students, and they don't have to write grant proposals, don't have to ask for permission. they just make things. >> pelley: do any of these companies lean on you from time to time, and say, "hey, we need some product here." >> ito: they do. i've fired companies for that. >> pelley: you fired them? >> ito: yeah, i've told companies, you're too bottom- line oriented. maybe we're not right for you. >> pelley: the sponsors, which include lego, the toy maker; toshiba; exxonmobil and general electric, get first crack at inventions. the lab holds 302 patents, and counting.>> caleb harper: we'ref the lab. >> pelley: caleb harper's idea is so big, it doesn't fit in the building.

so, m.i.t. donated the site of an abandoned particle accelerator for this trained architect, who is now building farms. >> welcome to the farm. >> pelley: he calls these "food computers"-- farms where conditions are perfect. >> harper: they're all capable of controlling climate. so they make a recipe. this much co2, this much o2, this temperature. so we create a world in a box. most people understand if you say, oh, the tomatoes in tuscany on the north slope taste so good, and you can't get them anywhere else. that's those genetics under those conditions that cause that beautiful tomato. so we study that inside of these boxes with sensors, and the ability to control climate. >> pelley: tuscany in a box. >> harper: tuscany in a box, box.box, borx >> pelley: now, these are plants you're growing in air. >> harper: yeah. >> pelley: these basil plants grow, not in soil, but in air... >> harper: the plant is super happy. >> pelley: no dirt. ...air saturated with a custom mix of moisture and nutrients. >> so each one of these are drops that drops down to the

reservoir. >> pelley: the food computers grow almost anything, anywhere. what have you learned about cotton farming? >> harper: so, cotton is actually a perennial plant, which mean it would grow, you know, the whole year long, but it's treated like an annual. we have a season. so in this environment, since it's perfect for cotton, we've had plants go 12 months. >> pelley: so how many crops can you get in a controlled environment like this one? >> harper: you can crop up to four or five seasons. we're growing, on average, three to four times faster than they can grow in the field. >> pelley: the uncommon growth of the media lab flows from its refusal to be bound to goals, contracts, or next quarter's profits. it is simply a ship of exploration going wherever a crazy idea may lead. >> herr: we get to think about the future. what does the world look like, ten years, 20 years, 30 years? what should it look like? you know, the best way to predict the future is to invent it. ( ticking )

>> this cbs sports update is brought to you by ford. i'm james brown with scores from the n.f.l. today. kansas city moved to 2-0 as patrick maholm ties a franchise record. four t.d. passes from ryan fitzpatrick leads the bucs to their first 2-0 start since 2010. the rams shut out the cardinals. the jags won the a.f.c. championship rematch game behind blake bortles. for more sports news and highlights, visit cbssports.com. doing the things we love. we the people are always stronger when we're together. the 2018 ford expedition the j.d. power highest ranked large suv in initial quality.

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( ticking ) >> pelley: i'm scott pelley. we'll be back next week with another edition of "60 minutes." tomorrow, be sure to watch "cbs

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captioning funded by cbs and ford. we go further, so you can. captioned by media access group at wgbh access.wgbh.org captioning funded by cbs >> previously on "big brother." with kaycee holding all the power -- >> kaycee, you win the power of veto for three times in a row. >> three times in a row, baby. >> i might as well keep it on. >> she had haleigh in her sights. >> i have decided not to use the power of veto. this is my original nomination and wouldn't make any sense for me to change it. >> with level six speculating a double eviction was coming -- >> i could be in trouble. >> okay. >> brett pitched an idea to