welcome to the program. it is the end of summer and as we prepare for the next season we bring you some of our favorite conversations here on charlie rose. chnology with oftions on youtube and investor reid virtu. >> so there have been many cycles where people describe virtual reality and we're another one of them. each time virtual reality is better. if you haven't checked out virtual reality, you should. the science fiction of maybe we'll take our classes for kids maybe at that time will be virtual reality. maybe discussions and conference. maybe the charlie rose show will be in virtual reality, you know. so i think there's a lot of prospect.

i think before we really see those science fiction, we'll begin to see more mass awion of movie thing or entertainment thing. >> rose: technology and entrepreneurship for the hour, next. >> rose: funding for "charlie rose" has been provided by the following: >> and by bloomberg, a provider of multimedia news and information services worldwide. captioning sponsored by rose communications from our studios in new york city, this is charlie rose. >> rose: jeff bezos founded amazon in 994 out of his barrage as a on-line book seller.

it is as monk the world's most valuable company, the most richest person second only to bill gates. amazon's ambition is to sell everybody to everybody. amazon reached fans well beyond its roots. the web services is leading company in the cloud. in january, amazon became the first digital streaming service who won a golden globe for best tv series. jeff bezos had many passions. he founded the aerospace company blue origin to lower the cost of space travel and increase the safety. in 2013 he purchased "the washington post." i met with him earlier today at the economic club here in new york. here is that conversation. what is it that amazon wants to be? >> well, a couple answers to tt is. the single way to answer that question the thing that connects everything amazon does the number one conviction and idea

and philosophy and principle which is customer obsession as opposed to competitor obsession. and so we're always focused on the customer working backwards from the customer's needs, developing new skills internally so that we can satisfy wh w perceive to be future customer needs. we have a whole working backwards process that starts with the customer needs and works backwards. so that is really, if you look at, it seems like we're in a bunch of different bezos so we have amazon register, which is completely different from our amazon prime business or amazon marketplace or amazon studios and so on. but really, the way that those businesses are run is very very similar. and it all starts with it's just not customer obsession, that's the number one one but we have a

very invincive culture so we like to pioneer events. there are other business strategies. pioneering is not the only effective business strategy and in fact some people would argue it's not the most effective one. close following can be a very good business strategy and worked many times if you look at the history. it just isn't who we are. willingness to think long term. i think that's another common thread that runs through every single thing we do. we are very happy to invest in new initiatives that are very risky for five to seven years which in most companies won't do that. companies will invest for very long periods of time and they should in those cases where the outcomes are more certain. it's the combination of the risk taking and the long term outlook that makes amazon not unique but special in a smaller crowd. then finally, taking real pride

in operational excellence. so just doing things well. finding defects and working backwards. that's all the incremental improvements that most successful companies are good at this one. if you're not good at finding the root cause of the defects, fixing that root cause, every one of those defects flows down stream. that's a key part of doing a good job in any business in my opinion. >> rose: you have said three pillows, the mush place, amazon prime and amazon web services. >> that's right. >> rose: let's go in reverse order. amazon web services is the largest business in revenue. >> not revenue, it's a big contributor to process. our retail business by the way is in our established countries. it's also very profitable. we keep investing in video, original content with amazon

studios and so o but amazon web services is, it follows all those principles i laid out at the beginning. one of the unusual thing that happened with amazon web services is the amount of runway we got as a gift before we faced like-minded competition. we had, it appears to me just empirically that it's a new way of doing something. typically if you're lucky, you get about two years of runway before competitors copy your idea. two years is actually a pretty long time in the industry so that's a big head start. for whatever reason and i have a hypotheses is what the reason is. for whatever reason, amazon web services got seven years of runway before we faced like-minded competition. there were other people doing similar kinds of things but not

the same way and not with the same approach and the same mind set. in my experience that's unheard of to get so much runway. i think the reason that happened is because the incumbents in for enterprises, technology for enter prices thought what we were doing was so damn weird that it could never work. so we just kept very quiet about it and we knew it was working and we would read news stories that would say things like do you really think anybody's going to buy mission critical enterprise infrastructure from an on-line book seller and we would look at that and certain people were opining on that and we would read those articles and we would look at our business statement.

we got very lucky. that was a gift. what that allowed us to do was build a gigantic advantage in terms of the feature set and the service offering and the cost structure and everything else that you just can't wave a magic wand and do that quickly. it takes years and years. now we're not stopping so that team is, you know, every year, 500, 600, 700, 800 new features and services. they keep pushing on that. that team is just doing an amazing job. >> rose: the other thing, amazon prime, the second pillar, amazon prime, 65 million members of amazon prime. >> i don't reveal that. >> rose: why is that, why is it so crucial for your future

prime. >> well, prime is, what we want prime to be, what we've developed it into over time is it's the best of amazon. so you can get, basically if you join prime, we want to have our core service be outstanding and anybody who wants to use amazon and not be a prime member should have a great experience. and people who are not prime members for example can still get free shipping. it has to buy a certain number of products or you have to get above a certain shipping or certain products kind of ordered basket i think it's $49. if you get above that $49 hurdle, then they can get free shipping. and so what we did with prime is say, look, you know, you can get free shipping without joining prme but if you want fast free shipping, our best service, then you need to join prime. >> rose: it's $99 a year.

>> $99 a year. we started adding other benefits to it that we know people like. so we added prime video which has been a very successful new benefit for prime. years ago we added this ten or 10,000 shows and they were all licensed and they were all reruns. things like gilligan's island. you're a prime member. here's the went fit. we know it's not the most important tv show in the world but it also isn't costing you anything extra. so it grew. and now we're doing, you know, emmy award winning and golden globe winning content. you get access to at no additional charge just being a prime member. >> rose: getting into the creative part of the entertainment business what was the motivation behind that. >> there are two different ways to think about that. we always start with the

customer centric point of view. if we're going to make original content which amazon feels it's do how can it be better or different from so much content that's on the there that you could license already and not have to make yourself. and the fact of the matter is that the over the top stream of services with a subscription model can have, can in fact make different kinds of conten. so a show like transparent which is golden globes and emmys, it's not a show that could be successfully done on broadcast tv because broadcast tv, it's much bigger audience for that. transparent -- we want to make shows that are somebody's favorite show. on broadcast tv, you can be very happy if you have a big show that is, you know, 20 million people's third favorite show. and you can actually think about the creative process a little

differently. you can attract different story tellers. you can go for stories that are narrower but incredibly powerful and well told. mozart in the jungle, and these other, i don't see how it could be successful on broadcast tv either. you can get, we attract a different kind of storyteller telling a different kind of story. also there are tail winds in this business that are happening because of hbo and netflix and others that ten years ago you couldn't get an a list talent to do tv. they perceived it as stigmatizing. today it's completely different. today they want to do serialized tv because the quality of storytelling is so high it's completely flipped on its end. >> rose: i've listed three pillars. what might be the fourth pillar.

>> we don't know yet is the real answer. i think it's very hard to identify. we do a lot of different things and the fourth will rise and extinguish itself. i'm optimistic about things like amazon studios, the original contact could become a fourth pillar. i think what we're doing with natural language understanding and echo and alexa. >> rose: everybody talks about artificial intelligence, everybody. >> yes and rightly so. >> rose: what does it add -- >> this is the real thing. >> rose: enlarge on that and also on the idea what echo is and how it may very well be the beginning and the edge, the wedge into artificial intelligence that benefits everybody. >> echo is a small black cylinder. it has seven microphones on the top and it has a speaker inside and a digital processor and some

other computes inside and it's wi-fi connected to the cloud. and alexa, the agent, the artificial agent that lives in the cloud talks to you through alexa, i mean through echo. one of the interesting things about echo the device is it uses those seven microphones to do something called bean forming. so basically it can hear you very well even in a very loud kitchen environment, for example. the dishwasher running and you have the sink and somebody is make the television in another room but awe little awe can still hear you because of that digital processing. you can say alexa what time is it, what is the weather today, alexa. in natural language. alexa, play a certain song, etcetera etcetera. and people, this has been a big hit, we launched it a few years

ago. it has exceeded our expectation in terms of volume. we have literally thousands of people working on it. >> rose: and google wants to be in that business and everybody else wants to be in that business. >> everybody wants to be in that business. so here we've got the kind of standard, you know, two, two and-a-half year head start. >> rose: let me talk about "the washington post." >> yes. >> rose: you bought the washington post without any due diligence. you were so impress ode -- >> i didn't do due diligence because i knew don graham for 1 5 years. if any of you know don graham he's possibly the most honest person in the world. he laid out all the warts for me and all of the gray things -- great things for it and i don't think it could have gotten more clarity than talking to don for several hours. >> rose: why did you buy it. >> i 3w5u9 it because it's

important. i would never buy an upside down salty food snack company. that doesn't make any sense to me but "the washington post" is important so it makes sense to me to take something like that. al, so i'm optimistic and i thought there were some ways to make it, i want it to be a self sustaining profitable enterprise. that would be healthy for the most and i think it could be done. our approach is actually very very simple. it's hard to execute on and it's going to take time but approach is simple. we need to go from making relatively large amount of money per reader on a relatively small number of readers. that's the historic model of the post. two the model will make a relatively small amount of money per reader on a very large number of readers. that's the new model. >> rose: that's your business model to isn't it. >> that's a better business model for the entertain era and

the post is unusual and this is one of the things from a business point of view why i'm so optimistic about the post, it's been a local paper, a very good local paper but it happens to be a local paper situated in the capital city of the united states of america. and so it has, it's kind of geographic location is superb for converting it from a local paper to a national even global pup case. that's the gift the internet brings. to do national and global publication in the days of print, super expensive. you have to figure out to have printing presses and physical distribution which are very challenging, today that piece is easy. to get global distribution in digital form -- >> rose: because it's an important newspaper the nation's capitol the most powerful country in the world, did you want it also because it would give you political influence. >> no.

and i think one of the reasons that don graham liked me as an owner is because he didn't think i would politicize it. and so you know i think because it's in the capitol city of the united states of america, it should not be, you know, you take the british model of newspapers, you know or kind of left wing paper or right wing paper. and there are certain people who if they had bought "the washington post" would have converted it in one of those directions. i don't the that would be healthy for the post or healthy for the country. and plus i'm also, in that respect i'm also a good owner because i'm so damn busy. >> rose: you and i sat last night with a former at not. >> this was fun, scott kelly. >> rose: scott kelly who was there at the international space station for i don't know how

many days. what is it that you hope to accomplish in space. >> well, this is first of all let's back up. this is a childhood dream. i fell in love with the idea of space and space exploration and space travel when i was five years old when i watched neil armstrong step on to the moon. you don't choose your passions, your passions chose you. so i'm infected with this idea. i couldn't ever stop thinking about space. thinking about it ever since then. and so again, you know, i did not, when i started blue origin which is the name of this space company, i did not make a list of all the businesses in the world where i thought i might get the highest return on investment capital. and it was driven by passion and curiosity and the need to explore the things that i care

about. and so we have over time still a brilliant team now over 800 people at blue origin. we have several little tourism vehicle called blue shepherd that like a regular rocket that launches and lands on its tail like a buck rogers rocket. we used the same vehicle five times. >> rose: that's key to the business of going into space. >> that's the absolute key. if you look at, if you ask the question why is space travel so expensive, there is one reason and it's because we throw the hardware away ever time after using it, all expendable. even in the past when we've done things through a sort of semi usable, there wasn't an operable reusability because they were disassembled and put back together. you imagine air travel after your hawaii vacation you get to hawaii and well they throw the

747 away it's going to be really expensive it's going to be super expensive when you get to hawaii they disassemble the whole thing, inspect every part and do it all together before you're allowed to fly again. that was the problem with the space shuttle. and so it's really important that you design the vehicle from the beginning for highly operable use usability. people don't know this about rockets but a big rocket, let's say has a million mounds of propellent on board, two thirds of that may be liquid oxygen weighing 6,000 pounds over so of liquid oxygen. do you know how much that costs, $60 a pound. that's $60,000 worth. you're still talking about a few hundred thousand dollars of propellent cost. in the launch costs on the order of 60, 70, $150.

so how do you get from a hundred million dollars to $300,000 of propellent. it's simple, you're throwing the hardware away. so the engineering challenge involved in building the highly operable reusable vehicle is gigantic but if you can do that, it's a game changer. you change everything. now why, to your original question, i believe it's incredibly important that we humans go out into space and the primary reason we need to preserve the earth. i'm not one of the plan b guys. there's kind of a conventional wisdom that's quite common that one of the reasons we need to go into space and settle another planet as a kind of back up for humanity. if earth gets destroyed at least we have this other place.

and i don't like that approach, that's not motivating for me. but what, i'll tell you what we know for sure. we have now sent robotic probes to every planet in this solar system. we have taken close looks at the mall and believe me, this is the best planet. it is not even close. so what you need to do, and if you look at, if you want a thriving growing civilization, you want population growth to continue, you want a whole bunch of things to continue. and i believe that in the next few hundred years what will happen is we'll move all heavy industry into space for a whole bunch of practical reasons, easier access to resources of all kinds, material resources as well as energy. you think about scholar e nergy -- solar energy on earth it's problematic because it's

available half the time. in space solar energy is available 24/7. but the list of practical reasons why -- >> rose: but you also have to build an infrastructure up there. >> yes. that's why you need really low cost. you need to shrink the cost of lifting maps into space by earth. you reduce that cost by a hundred times. and then you can do these things. an then blue origin is not going to do this all by ourselves. what i want to do with blue origin is build heavy lifting infrastructure that lowers the cost of access to space so it's the next generation of entrepreneurs can have a dynamic entrepreneurial explosion in space. that's how we'll move all heavy industry in space and then ultimately earth can be you know effectively zoned residential and light industrial. >> rose: you and bill gates got together and started

something called gray -- >> the science of that is unbelievable and you can sequence, tumors shed limits bits of dna into your blood stream and you can use sequencing technology to amplify those things and then detect cancers at very very early stages. for a lot of cancers, early detection is a big deal. this is, the science is this. it's very promising, very real and it might not work. >> rose: the market -- >> but it might and i'm optimistic. >> rose: thank you jeff bezos. >> thank you, charlie. >> rose: susan wojcicki is here. she's the ceo of youtube the video platform 24569 has over a billion users in more than 88 countries. her system of google dates back to 1998 when she became employee number 16. since then she's made pivotal contributions to the company especially in advertising. magazine has called her a cons

mother google insider observing not many people and very few williams are chosen to be a member of larry pages inner circle. i'm please to do have her here at my table. welcome. you should have been here earlier and i'll take the blame. >> thank you so much for having me. >> rose: tell me. when they moved to alphabet, some of us thought that youtube might be under the google umbrella. >> yes. so i think the idea was to be able to give a scalable -- google and alphabet now has expanded into so many new areas from fiber to medical to cars and youtube might become an independent company because of the brand we have. we have over a billion users, the reach we have. but yet youtube is a really integral part of google.

our mission about enabling everyone to have a voice and to be able to is similar to google and we're grated in so many ways so in the end we decided to keep youtube a part of google. >> rose: it was acquired in 2006, somewhere around that. >> yes. >> rose: when did you realize this could be big or did you know that when you bought it and that's the reason google bought it. >> well you know there were i think early on we realized it could be really big. and that was because, you know, there were a few insights. so the first big insight was that people all over the world want to up load video and have that be shared. and so when we first started, we just had a basic link and we said up load video. and incredibly people d we didn't tell them what we were going to do with the video but still people all over the world uploaded video. that was the first insight. wow people want to share their

video with the world. but then the second insight which was even more surprising is that other people wanted to watch regular people video like themselves. and so i remember we had our first hit and our first hit was really the two students in their dorm room singing to the back street boys and they were so funny. they were so creative about it. and the numbers that we had were just, we just thought this is a hit, people want to watch all kinds of content. >> rose: you have said youtube has grown up. what did you mean? >> well youtube started out really with people just up loading -- >> rose: cats and more people. >> yes, cats and interesting things they saw along the way. what happened is people started to realize wow i'm getting a lot of users and a lot of viewers. a number of people became youtubeers. they became professional youth

-- university -- youtube creatd they can make money up loading videos. these are people who have a global brand. a lot of times they have millions of subscribers. they're making a good living on youtube. and they are extremely well-known. they are extremely famous among their demographic end users. and so now we have youtube is a collection of a huge amount of video content. professional youtubeers. and of course tv also users youtube as a way of putting their content on it and promoting it and having it be part of of a site why there are a billion people coming every month to watch videos. >> rose: i didn't say this but google was born in your

garage. >> yes. >> rose: showed up and said i want to rent your garage. >> i was looking for someone to help me pay the mortgage and they were looking for a place to rent. it turned out to be a pretty good match. they moved in. it just looking for them to cover the market like i was looking for a hot start up or new search engine or anything. >> rose: or change your career. >> no. i was looking for them just to pay the rent. yes, they successfully paid the rent. d i decided to join.omethingwlot >> rose: everybody asks you this and i ask it of people all the type. what's the next big then. what's the new frontier, is it virtual reality, is it machine learning, is it artificial intelligence or is it all of those or something else? >> i think those are all really big questions and certainly all of them that you mentioned

whether it's vr or ai, artificial intelligence and machine learning, i mean all of them can play a really big part in our future. i think if we were to look today and we say well what is actually playing a big role in our life today. we see something like machine learning. machine learning is a way for us so we have 400 hours up loaded to youtube every minute. we need to match that to the end users they have coming to our site. how do we do that. we need to learn. we need to have systems to figure out what are the best recommendations, how do we figure out what you're interested in. >> rose: have you figured it out. >> well, the machines will teach the machines something. so we'll give them like an initial set of information for them to be able to learn something and then from there they can figure that out and they can make recommendations. because otherwise it's not scalable for us to be able to

recommend all these videos right to you or the next person over here and to have that be the right set for them. so machine learning i'll say right now had been incredibly powerful for us. >> someone said to me the other day that's the same thing most talk about these days is machine learning. >> i think we're using it today, it's very useful and powerful today. i think vr is an example of a technology that we think can be really powerful in the future but i won't say, i say it's still very early for vr. and so how can you have an experience of video where you're watching and you're fully immersive in that video experience. and so that's like a new art, that's a new experience. but it's hard to do. there's content, how do you figure out to build content for the platform when there's not that many platforms out there

yet. so the, we've actually tried to make this really accessible. we came up with something called cardboard which is this made out of cardboard and it's a way of ticking your known and putting it into a cardboard and have a vr experience. we focus on making this a really low cost easy experience for people all over to be able to experience that. >> rose: finding youtube stuff. >> somebody who has been on, creates youtube videos and has a large number of followers. either their videos have a large number of views or they have a large number of subscribers. ten million subscribers for example. that would be a very successful youtube star. if you talk to teens today, variety did a study where they went out and pulled teens and said who are the biggest celebrities. eight of the top ten were youtubers in 2015 when they did this study. so these are real stars so we looked at this and we said like these are real stars, how can we

help these youtubers take it to the next level. so we have been creating original programming. we've been focused mostly on with our youtube team, youtube creators and working with some traditional talent. for example doing a new medium. so they traditionally do blogging, maybe they'll do a movie with us, maybe they'll do a series, with other youtube stars, with some traditional media so we have cited over 30 original content pieces so far. and that's bart of our subscription service, and we are seeing that, you know, we're seeing some really good traction. >> rose: no one has been a stronger pro proponent and more active than the issue of gender conversation in silicon valley than you. tell me how it's changing. >> well i think it's a really important issue to address and maybe i can just spend one minute saying why and i hope it changes. i see that the change that we're

going through right now from a digital perspective is similar to a change that we went through with the printing press. suddenly there's an incredibly just unavailable beforehand to users and it's just using that's a massively different and new way. i'm concerned that the number of women who are getting degrees in computer science is only 20%. and if you look across the companies, there may be 30% or like a third of many silicon valley. i think there's a misunderstanding young women about what urate science is. they think of it a more geeky and less attractive field to go

into when in truth it's incredibly exciting so that's a challenge when you look at it from a societal standpoint. i think it's really important to be able to encourage women to be part of this big change. >> rose: is silicon valley waking up to this. >> there's a lot more discussion in silicon valley. people have always known the diversity numbers are not as strong as we would like them to be. i think there's been increased awareness of how can we do more to support women in the tech

field. >> rose: and avoid issues. >> and avoid some issues we've had. i think it's really important. i put out a piece on vanity fair. i recommended three things. so first i think it needs to come from the top. i think it needs to be the leader of the company the tech company that said we want to make this a diverse environment we're excited and we're going to work on it as a management team. you need to give the team right resources but you need current diverse teams to be successful. the worst thing is we have some diversity in the company but they're not happy. how can you make sure you understand what their issues are, how can you help them be successful and don't ask them, don't ask like the one woman in the group to say we want you to organize a women's event that's not really fair to her. and then lastly, i think everyone can be a mentor and an advocate in some way. wife been really fortunate i've

had some really amazing mentors a the google behind the scenes have helped me in a number of ways. when i needed help or was concern board of director something or want someone to guide me or get me invited somewhere i know they reach out for me and i have them to thank. and actually always tell women like your mentors actually have to be men because the leaders in silicon valley are mostly men. and so they need to reach out and they need to find the next generation and support them and grow them. >> rose: at apple they have a meeting every monday morning of every week and they allowed me to come in and see the beginning which tim directs and all the key people there, i forget how many are there. i've heard there are similar meetings that larry page conducts on friday. true. >> we have a meeting on friday,

well it used to be on friday. >> rose: what day is it on now. >> it's on thursday. it's called or was called tgif. it was a company meeting. it was an opportunity for anyone to be able to ask. there are key updates of things that happen and we have different teams to present but also it's an opportunity for anyone in the company to ask a question. so we have that as a tradition. i do something similar at youtube. i actually do my own fridays because google moves their to thursday so that freed up fridays so i actually do my own fridays. i think it's really powerful. i'll say at youtube and google when i go and i see these different teams present sometimes you see an update on an existing product and that's cool but sometimes you see something and you say this is the future. i'm seeing it for the first time and the world is changing. >> rose: give me an example. >> let me go back in history and give an example. i'll just say like the first

time i saw maps. and the idea that you could actually have an image of every single place in the world. and it was stunning, it was stunning. you know. in today's world like kids don't know what the paper maps are. of course not, right, because they all have like the dingell maps. the first time you see that, that's breathtaking. so i think google has a device, google home. and the first time you see it on stage and you see wow, this is like almost like the star trek computer, right. like you can ask it a question and it can give you an answer to anything. you can ask it to play music. and it can give the weather, it can give you sports scores, it can give you a calendar. it's amazing. and you just think wow this is the beginning, what is it going to look like in five or ten years or next year is going to be a lot better than it currently is. but these are all really

exciting moments when you see those events and you start thinking. oh well today, you know, we got one at school that will get cheaper and cheaper and maybe you can have one in every room and maybe you can have these like very smart but amazing speakers and people like little, you know, little google home devices that can help you. >> rose: in a sense of our success as a nation has in part been beyond our values and our constitution and the foundation of this country has been our lead in technology. one of the questions you have to ask yourself how do we maintain that lead. >> i definitely agree our lead has come. i think the technology has been a big factor in that and that in order to maintain that, you know, there are many things we need to do so like you know one thing we could do as a nation is add more computer science training in our schools.

we all take biology, we all take chemistry but we'll not become doctors or chemists or farm sists. if you think about the next generation, how are they presented. if they're not afraid of technology expem brace technology and learn technology. you don't need to learn everything, you just need to learn enough that you are willing to learn more. i wish so much that we would be able to offer computer science in all the schools. that would handle the gender imis balances and differences with minor fee and it would solve so many issues. the next generation growing up with strong computer science skills that will be incredibly incredibly powerful. and you know, i'm very optimistic about the future. i'm optistic about all the opportunities that it's going to provide. all the way that we as humans will be smarter and better because of technology that will enable us to do our jobs better to make better decisions to enrich our lives in number of

ways. i'm excite. >> rose: pleasure to have you. >> thank you for having me so much. >> rose: reid hoffman is here. he's one of silicon valley's most respected and savviest investors. in 2002 he co-founded linkedin the social networking site for career-minded professionals. in june microsoft announced plans to acquire linkedin for more than $26 billion. the deal is expected to close later this year. hoffman's apartment greylock the venture capital firm has backed some of tech's biggest successes over the last decade including bets on facebook, drop box and airbnb. let me turn to your company linkedin. you sold it to microsoft or you planned a deal to sell it to microsoft for 26 billion i think is the figure. how long ago did you form this company. >> so almost 15 years. you know late 2002 is when we start working on it. it's been a labor of love. like all labor of love. >> rose: at what place was

facebook at that time. >> facebook in 2002 hadn't been started yet. >> rose: had not been founded. >> had not been founded yet. >> rose: he was not at harvard -- >> he either just got to harvard or just getting to harvard. >> rose: you started linkedin before facebook was a reality. >> yes. back at that time it was friendster which people probably don't remember. >> rose: oh, right. you decided what on-line needed was a place a lot of people of a similar sort of interest in terms of their professional lives could communicate with each other. >> yes. so the thought was is that part of what the internet changes we all have our identities on-line and having your professional identity on-line can make a difference for what kind of jobs find, what kind of economic and learning opportunities. the best way to improve a system is enable people to help each other. i'm connected to you and hey do you know this thing and that could be a great economic opportunity. that was the basic idea behind it. >> rose: how many people use

it now? >> over 430 million. >> rose: 430 million. >> yes. >> rose: facebook has 1.3 million or something like that. >> yes. it may even be bigger than that. >> rose: where can it go. what is the possibility of linkedin. >> so we hope to enable every professional. what we mean by professional is someone who will learn better skills at their jobs. it's not like lawyers and donchtz it's everyone. it could be a coffee store manager or anybody able to change their economic trajectory, to be able to make a better of themselves in terms of what kinds of economics to make, what kind of job. >> rose: connecting with other people who may have ideas or connections. >> ideas, information, connections for business, learning opportunities. anything that allows you to invest in yourself and have a better economic outcome. >> rose: so why did you sell it? >> well, both jeff and i, ceo, we both lead the same way in service commission. how do we enable our members to have the best possible, you

know, experience of investing in themselves. it was a long very thought out decision and we said well actually in fact combining with microsoft, microsoft's primary mission is making org's productive. our mix is making individuals production. microsoft cares about individuals and we think about organizations and individuals. one plus one here can be much greater than two. is it five, is it ten. and that way we can add in our mixes which are the missions are essentially friends. the missions are collaborators. and this can actually help us reach our mission. there are a ton of people who use microsoft products every day. maybe we can be underlie office or windows. there are things we can do to make it much or help f. >> rose: when you look around at the big 5 they seem like the best. >> yes. in order to get to for our mission help individuals with

their best possible economic opportunity, help them be more productive. those are the things we care about at linkedin. we're perfectly happy with people being entertained or perfectly happy with people kind of having a public discourse on funny cat pictures or anything else that's great. that should be part of people lives it's awesome. that's not what we do. we help you to get to the best possible ways of doing your job or the best possible out comes. >> rose: has there been an acceleration of growth the last several years or has it been study. >> been a light acceleration but a light acceleration of big numbers. but you know, it took us 468 days to get to our first million members and now we're over 430. >> rose: talk about virtual reality. >> so there have been many cycles where people describe virtual reality as the next big thing. we're another one of them and each time virtual reality is

better and if people haven't checked out virtual reality, they should. it's now beginning to the point where the science fiction of well maybe we'll take our classes for our kids. maybe that will be in virtual reality. maybe all discussions and conference maybe the charlie rose show will be in virtual reality. there are a lot of process specifics. i think before we really see those kind of science fiction features we'll begin to see more mass market adoption of a movie thing or entertainment thing. the technology is definitely good enough for it. are we there yet? >> rose: film the movie inform virtual reality. >> to show up to make the movie. >> rose: i'm sure you would demonstrate on this program and people know about it but if you are watch ag movie that's been made with virtual reality it would be like you're on the set. >> you would be a character in the movie. that would be the way you experience that and i think we

are certainly going to see it and the only question is when. is it three years five years seven years, is it ten years. >> rose: artificial intelligence. >> yes. >> rose: enormously interested in. give us the lay of the land. give us a sense of why everybody whether it's facebook or whether it's google or whether it's anybody. >> most of the techniques that are being used for these amazing results whether it's becoming the world champion which was alphago which is deep mind in google and these great results in radiology and being able to read cancer charts better than the vast majority of doctors. whether it's the ability to do self driving cars. all these things the techniques are actually they evolved some but there actually hasn't been a game changing new algorithm. what is in fact then the cloud and a lot of cpus and a lot of data and technologies and use them over a big scale.

that's essentially the new current ai revolution. the way to think about it is decisions human beings can do in a second can now be through large data sets trained through this kind of massive server farms on the cloud can now be done by computers. so it can be classification of images, parsing of language and driving, you decide to go left or right stop brake and those are arm decisions under a second. all of that classification comes to essentially these deep learning networks which allow the program through integration of multiple human life times of data because that's part of how the computer does it is it inyes, sir so -- ingests data d can go from everything from self driving to medical to parsing language to i mean literally the

sky's the limit. >> rose: what it can do is figure out algorithms it has and development of the app, it can figure out how to analyze all this information. >> basically what happens is they are classified. is this an a or b or should i go left or right. it's kind of making kind of the classification decision. and there is what is known as supervised learning and unsupervised learning, right for teaching these. supervisor is a human goes in and says okay here are the cases where you should decide this is an a and this is when you decide it is not an a. unsupervised gives it this very broad kind of like for example simple example is you say a robot. i want you to move from this side of the warehouse to that side of the warehouse and i'm not going to teach you how to move, teach you how to walk or roll or how to hop i'm simply going to give you a score with a gps locator which is the gps locator moving towards the right thing so you move.

the robot, most of them learn to walk, some learn to roll, some learn to hop and you keep doing that and that's unsupervised learning where you're not actually teachg it the actual specifics other than giving it a very high score. >> rose: it teaches itself. >> yes. >> rose: it teaches itself by doing what, by trial and error? >> so what happens is these ai al greatals are smart snuff that they build self goaling classifiers. when i move think legs this way my score of getting closer to my end goal went better. so that's good so now i'm teaching myself how to walk. how do i learn to do that better so that now i can walk. right. that's the kind of thing that's the magic of what we're seek with these algorithms and modern artificial intelligence. >> rose: when you take all these kinds of things and is there anything about this that worries you. >> broadly like many of my folks in silicon valley i'm a utopian.

i think technology leads to progress. there can be a lot of pain sorting it you out. anything that's going to happen technologically is good is not the case. that's foolish those. our notion of privacy changes. if someone described to you facebook before it existed you would have thought that's like an awful invasion of privacy and yet billion of people every day uses this sharing pictures. what i think is key is to surface issues to pay attention to them and try to navigate the technology to get most of the benefit. it's like you know, people have always been worried and industrial revolution, manufacturing revolution, information relying. they are always worried about the down side and they should be. it's not wrong to be worried about this. but if we look back at our own history we go we're a lot better off when we deploy those revolutions and figure out how

to make humanity berd and we change things like we do with industrial revolution and put in child labor laws. there are things that are really important. let's make sure, i think we need to solve privacy and we need ofd medical data and that kind of thing. but if we can get all of the immediate call data -- medical data in some kind of computational way we can identify key diseases earlier, we can note therapeutics. though things are important and so to broad lay speaking i'm a utopian but that's not for example let's take one of the classic ones around which is are we going to have great application and the answer is yes. >> rose: in other words robots are doing jobs that people do today. >> exactly. by the way that's already happening with manufacturing. it happens. and the thing we need to do is as a society help the people who

are being shifted to find other ways of being good members of society. it's not welfare. my job here matters. i can do something that's fun and we should do that together. both as entrepreneurs and as government. we should all do that. so the big one will be self driving. >> r more about this really and early even scoadz visit on pbs.org and shors.com. charlierose.com. captioning sponsored by rose communications captioned by media access group at wgbh access.wgbh.org

>> rose: funding for "charlie rose" has been provided by: >> and by bloomberg, a provider of multimedia news and information services worldwide. >> you're watchin

hello and welcome to a special edition of kqed newsroom. khancakansaca canabis. they passed a vote legalizing canabis for recreational use. people over 21 years old will be able to carry up to an ounce of marijuana and can also grow as much. we visited the second oldest dispensary in california to see how they're preparing for the changes. here's more. >>