now on to the a.i. so imagine the a.i. is signature beside he human. the a.i. doesn't have its own eyes or ears so we give its own sensory inputs. camera, radar, around the car. imagine the ifs are coming in, the data is flowing in as your driving and every fraction of a second the a.i. is looking over and trying to predict what will the human driver do in the next second? and so in the beginning, the a.i. is not a very good predictor. they have big confidence -- they're not very accurate. and so they say i think she's going turn left, going to go straight, going to brake. and then something happens. either she turns lefts or doesn't turn left. and every time they make a prediction, and then they get to the a.i. observed what's human driver does, they were right, they double down on their model. they're wrong, they update their model. and then they make a different prediction potentially the next time. okay. so as they're driving in the beginning they a.i.'s confidence integrals are wide and making a lot of mistakes but as they drive and learn and correct mista

i was wondering, is a.i. like that? are there a small number of heroes that really do most of the work and everyone else sort of fills in thing? >> so, like i said, dr. foster, a.i. is a very nascent field. soven though it collecting a lot of enthusiasm worldwide societily. as a young science it starts with a few people. i ls trained as a physics major and i think about early days of newtonian physics. that was a smallish group of people as well. it would be too much to compare directly. but what i really do want to say is that we may be in the early, almost pre-newtonian days of a.i. so the number of people are still small. having said that, there are many, many people that have contributed to a.i. their names may not have made to it the news, to the blogs, to the sweets, b the tweets, but we remember them. and i want to say many of them are members of the underrepresented minority group. there are many women in the first generation of a.i. experts. >> yeah. two or three clicks down in the references cited by your test

a.i. can help with personnel management and purchasing practices and find insights and efficiencies that are difficult to find unless you can manipulate and analyze the department's massive amounts of data. artificial intelligence will have an enormous impact on our economy, and that is why it is essential that the united states make significant investments at a.i. development and that we lead the world in developing this capability. we know that our competitors are taking a.i. very seriously. china has developed a national strategy to develop its a.i. capabilities, and vladimir putin has said whoever leads in a.i. will rule the world. the united states must lead the way on artificial intelligence to best shape the future economy and our country, to strengthen our national security, and to address the moral and ethical questions that arise with any new technology. without question, the united states needs our own coordinated strategy on a.i. that is why i wrote a provision in the bill that

i was looking at research in relation to a.i., the number of founders that are ethnicically diverse is remarkable. they have the values and everyone th omp s and i as the mayor can give them a helping hand. emily: thank you for that onversation. b.y.o.m., bring your own march mallos. he will supply the flame. hundreds of people lined up to get their hands on the $500 flame throrse that the company sold to raise $10 million in funds. the flameoff took place and showed off a falcon 9 rocket and prototype tunnel. nasa's capacity recover has made its most significant discovery on the red planet and what it means for finding life on mars. ♪ >> chances of finding life there according to nasa, the chances just went up. i want to bring in jennifer from nasa and lead author of the study on these findings. so jennifer, is this the best evidence yet that life may have existed on mars? >> yes, i think it is. and essentially found organic matter from rocks on an old lake from mars. that was 3.5 billion years ago. the planet was a lot differen

so the ability to drop in a question and make this is a good use of a.i.ou're going to hear probably a lot about a.i., machine learning capabilities. in our experience, i think being able to have a work bench area where a bunch of operators are used to working and being able to drop in information and have machine learning algorithms kick back whatever it knows about that data set quickly in realtime has been a huge asset to our hunt teams and our operations teams. and i think it's a key component of thinking about the problem set as the usability factor and not forcing users to pivot to multiple tool sets but having a front-end workbench solution that allows them to easily access that information in a way that they're comfortable doing it. >> just on the automation piece, i think the automation piece is important for a few things. one is you need to be able to respond at machine speed. so anything that you can automate to remove the human from the loop will accelerate your ability to respond. but the second piece that we see is there's just a high turnove

i wonder what you'd tell policymakers and those responsible for a.i. development niche ties now, how to keep humans from screwing things up. i would say that there is a deus ex machina, there's a figure off the stage, the human who will control the ultimate decision making this epentagon emphasis is constantly is on, humans are making these decisions. i think it's overstated in in its significance. there are cistwhere it matters. i like the fact that we are adding situations. [inaudible] a second variable , in this case a human variable in addition to the machine. the machine is digital and the human is analog, it's a check on the system. the reality is midwest human decisionmakers are highly reliant on machine information, rhythmic data, on algo analysis that's led -- on gorithmic analysis of flight trajectories of ballistic missiles and the h, very little time, is typically inclined to go along with, or in some instances is as likely to add error of a different kind as the human is to be corrective. my view about this is we should stop putting so muc

while a.i.ay be floating in space on orders -- on earth there have been more concerning uses of the technology. yes, it can be used for fun for is,ding out tweets and emoj but when it comes to using facial recognition, there is a problem. available software for microsoft misidentifying darker skinned females at a higher rate than any other group. according to an m.i.t. study, that group is misidentified 35% of the time. darker skinned men, 12% of the time. a huge problem. to discuss, we are by the ceo of the facial recognition company chyros. he joins us from miami. also with me in the studio we have a reporter writing about this for bloomberg. i want to start with you. you have a fascinating story. a soonish you are getting ready your own technology coming realized it would not work on your own face. >> imagine a child is not know who you are, that is how it felt, unsettling. emily: what did you do about it? >> so, i was there with another person i employ, pitching a large cruise line. we had h

a random page here. >> reporter: microsoft's app called "seeing a.i." reads printed text to sabry... >> department of housing. >> reporte ...and identifies objects in front of him. >> woman with blonde hair looking happy. >> reporter: sabry says in cases when he has to use a separate, specialized device, it draws >>tention he doesn't necessarily want. he conversation would be, "oh, let me see how different you are. i want to see how you do thingsi erently." you know, those are the kind of conversations that, you know, further exclusion, imy inion, because, you know, there's a difference between ceoubrating differences and, know, pointing them out. >> i love to talk about this voting booth. >> reporter: cara mccarty says this is a good example of nclusive design, a new vo machine created for los angeles county for the 2020 elections. >> today, if seone has a disability, often they vote separately. often they... they don't have the privacy because they verbalize how they want to vote, so other people can hear how they are voting. this has not only a priva

we are the a.i. capital of europe.o we have seen in relation to , tech investments, still going up post-brexit and look at apple, google, amazon, facebook continuing to invest in london. i think paris and berlin raising their game is good for us. i see them more as working in collaboration. i think it's really good where if you are a smart web designer in london, you now want to have a partner in paris and berlin. even more important post-brexit, the future is cities working close together, people working close together, rather than national governments, bureaucracy, slowing cumbersome. so i welcome paris and berlin raising their game. >> what about the regulatory environment and welcoming companies such as uber. we know their license is under discussion. do you think that is welcoming to tech companies and how does that conversation continue? i once london to be a place where you want to come if you are a tech startup. if you are an innovator. -- aer you are with an multinational or with a friend. but here are the rul

i am not sure we know in the a.i. construct where the human actually belongs.mber t, the paper waser good in stating that up until now we offered pattern recognition. we offered for a long time the ability to see something and identify it. much of what the five senses had been overtaken by other sensors that are more effective. i can see 30 miles out facial quality instead of my own eyes from an airplane the 83,000 or 4000 feet. so things have changed. i don't know that we know exactly where it is. i think that to think otherwise is to go against human nature in and of itself. if i ask anybody in this room to eate an automated pcess of putting your code on in the morning, we do it just like we do it today now. we try to write a program for that and over time the machines would do it differently because we find different ways of doing it. that is the most dangerous thing in the world. we should never even think aut going there because if it's not metal connected to model, i lost control. so what did we do? we told people that they were making the inputs. it was

i talk about a.i., block chain, analytics.ple to understand the higher level of analytics. everybody is focused on digital and the relentless focus on customer experience. maria: stay with us. maria: stay with us. we'll still a chance here. it's willingham, edge of the box, willingham shoots... goooooooaaaaaaaallllllll! that...was...magic. willingham tucks it in and puts the championship to bed. sweet dreams, nighty night. as long as soccer players celebrate with a slide, you can count on geico saving folks money. fifteen minutes could save you fifteen percent or more on car insurance. pressure, what pressure? the players on the... pressure, what pressure? maria: a look at some of the market events that could impact your money. we'll hear from the the nahb surveys. we get the latest data on housing. fedex and oracle could be a market mover. and we'll get earnings from winnebago. the federal reserve manufacturing survey will be out. initial jobless claims as well as the fhfa home pryc price imp. that pmi report is typically a m

but i'm not sure we know in the a.i. construct for the human actually belongs number one.number two i believe the paper was very good in stating that up until now we offered pattern recognition. we offeredme f ahe abity to seeomething and identify it in those types of things. much of what has been overtaken by other kinds of sensorthat are more effective. i can see 30 miles out at facial quality instead of own eyes from an airplane seen maybe 3000 or 4000 feet. so things have changed. i don't know that we know exactly where it is. to think otherwise is to go into human nature in and of itself. if i ask anybody in this room to create an automated process of putting your code on in t morning, we do it just like we do itod now. we try to write a program for that and over time the machines would do it differently because we find different ways of doing it. we experience this as an example. a classic empe mostangerous t i world. we should never think about going there because if it is not metal connected to metal, i've lost control. so what did we do? we told people they were m

i talk about a.i., block chain, analytics. understand the higher level of analytics. everybody is focused on digital and the relentless focus on customer experience. maria: stay with us. we'll it's just a burst pipe, i could fix it. (laugh) no. with claim rateguard your rates won't go up just beacuase of a claim. i totally could've... (wife) nope! switching to allstate is worth it. stay at la quinta. where we're changing with stylish make-overs. then at your next meeting, set your seat height to its maximum level. bravo, tall meeting man. start winning today. book now at lq.com same thing with any dent or dings on this truck. they all got a story about what happened to 'em. man 2: it was raining, there was only one way out. i could feel the barb wire was just digging into the paint. man: two bulls were fighting, (thud) bam hit the truck. try explaining that to your insurance company. woman: another ding, another scratch. it'll just be another chapter in the story. every scar tells a story, and you can tell a lot more stories w

the a.i.takes a different approach a year ago, they announced koerg ml it runs on device, not in the cloud. there's privacy benefits and speed benefits to that that's something else that app developers will be keenly listening for today. then that third piece, ar, this is a new way that people are going to experience communication between each other. we've gotten a glimpse of it with snapchat, but there is just endless opportunities. porsche, for example, now, is using ar for some of their development. so i think there are a lot of opportunities that even though it might not catch a headline after today, it leaves these 8,000 to 10,000 developers with some excitement to build cool and powerful applications in the future >> and david, a couple years back, apple shifted the way they handle subscriptions on the platform, giving a little more share to the app developer as apple talks more about services and more of its growth potential is in that arena, how important is it that we hear more about

they are making investments in nd, solar, battery powered a.i., additive manufacturing. they are moving and shaking around the globe. and we gave a $2.3 trillion tax cut, which we saw just last month, $200 billion of it went for stock buybacks, apple got it, put $100 billion into stock buybacks, who is investing in this country now? that's a.i., additive manufacturing. the main issue te talking about. yes, battery powered cars. yes, economic development administration. issues that the gentleman from georgia just talked about. college costs are going up. we need more stem people graduating from our colleges. we're not a healthy country. in this bill we're going to take kids off their health care, disinvest in economic development, and our country is getting left behind the global economy. you can talk about low unemployment all you want. the anxiety in our country has not gone down. you can talk about the stock market all you want. 66% of the people in this country make less than $40,000 a year. 50-some percent of the people in this country can't stand a $500 emergency. i

they are making investments in nd, solar, battery powered a.i., additive manufacturing. they are moving and shaking around the globe. and we gave a $2.3 trillion tax cut, which we saw just last month, $200 billion of it went for stock buybacks, apple got it, put $100 billion into stock buybacks, who is investing in this country now? that's a.i., additive manufacturing. the main issue te talking about. yes, battery powered cars. yes, economic development administration. issues that the gentleman from georgia just talked about. college costs are going up. we need more stem people graduating from our colleges. we're not a healthy country. in this bill we're going to take kids off their health care, disinvest in economic development, and our country is getting left behind the global economy. you can talk about low unemployment all you want. the anxiety in our country has not gone down. you can talk about the stock market all you want. 66% of the people in this country make less than $40,000 a year. 50-some percent of the people in this country can't stand a $500 emergency. i

people talk about super computers as fast, but when we say smart, think of the a.i.'s a paradigm that we're able to do both we were with researchers earlier this morning an experiment that might have taken 27 years to 13,000 years, they can do in a day so that unlocks, just as the secretary said you will have new compounds, new cures for cancer, look at new medicines, they're going to do research here on alzheimer's so this to me is one of our proudest moments, for this to be in the world, the fastest and the smartest ever in this purchase ordperiod of time and four years to build. >> jensen, the super computing concept really got accelerated with the addition of technology from companies like yours in the semiconductor space. so as we talk about the artificial intelligence applications and the other autonomous driving, everything else, all these buzz words we throw out there, how is nvidia kind of defining artificial intelligence, and what exactly does this accomplishment here mean for the world of a.i. >> yeah, summit is a new breed of computers this is the beginni

wisconsin valley will bring high-tech and a.i. together into one place. creating a community where the best talent in america will want o work and live. to silicon valley and boston, wisconsin valley is coming. [applause] i would like to give my thanks to speaker paul ryan for his support over the past year. i also want to express my thanks and appreciation to governor alker for having the foresight o see the positive impact of our investment on the wisconsin economy. he and his team have confirmed why we settled in wisconsin over many other states who want our investment. finally, i would like to thank you, president trump, for being with us today. i have said it before and i'll say it again, if it were not for your president, mr. trump, donald trump, i would not be here today. as a global businessman. [applause] as a global businessman, i have invested in many businesses around the world. president trump is one of the few leaders who has shown me such patience, attention and support. his commitment is truly one of the best. [applause] over the past year

her creator, a robotics and a.i.an tang is the vice president of clowe. >> everyone has their own take of what they think the reality should look like. 3-d gives you the extra step to p crease your creativity. >> reporter: while cgi is their model, he said they've been blurring the lines. >> there's a lot of 3-d going on that people don't know about. >> when people go online to shop for clothes, is it real? >> the model is but the clothing isn't. you see a guy with a goofy face and he's wearing multiple garments, that kind of answers the question. >> at what point does this cross over into lying? >> i don't think it's dishonest. it's become part of the supply chain everyone needs. think this is the year you'll start noticing people are utilizing more assets. >> so shudu and miquela are the first. >> i think so. >> and aza're not the last. >> they're not the last. >> reporter: she's here to stay. she modeled in dirchltd magazines. >> miquela is an interesting subject. how much of what's out there content wise is real.

we haven't even starting moving to a.i. and robots and all that. a lot of jobs are being lost, a lot of jobs that folks had for years making a good living are being lost. >> from bethlehem, pennsylvania, john, our independent line. >> caller: hi there. thanks for taking my call. i was just thinking that in this age of misinformation that we all find ourselves in, i think it's incredibly important just to get our information directly from the source. that being said, i've looked up the laws on asylum and it's very clear that no matter what location you cross the border at, anyone can claim asylum. how is it that no one has called president trump visibly on this policy and that it's a clear violation of the u.s. code? >> who wants to start? >> you can start. >> yeah. i think people are talking about that. there were front page stories in a lot of the major newspapers today about the president's suggestion that folks don't need to go before judges, that they should just be turned back, which would fly in the face of the current asylum protections. i t

currency prices, international indices initiatives between this market and doing patter recognition using a.ichnology to make those forecasts. as of right now, this was just updated last night. oliver forecast in the dow, nasdaq and s&p after having analyzed of the global market data is forecasting the overall trend is expected to go. we are showing some signs of some short-term weakness and volatility that we can expect to see. the overall trend of spec to distill the web. cheryl: that is good here. armando come with practice speeds up to e.u. the e.u., canada, mexico. what is the impact that those on the market? >> we see the impact of those in the market. a lot of people -- a lot of investors are not sure what is going to happen with nafta. we have yet to see what will come out of the trade talks. canada is not very happy with what is going on. these are allies, so we will continue to see volatility in the market. right now, the united states holds the better cards and has always held the better cards and any type of negotiation because we are the most powerful economy in this world. we do

thousands of google employees petitioned the company to stop working with the pentagon on a separate a.i, which would develop artial intelligence that wou quickly sort through data and images sent back from drone in the hunt forterrorists. google pulled out of the contract succumbing to engineers that warned about using science to take ofhe kill chain. shep? >> shepard: thanks, jennifer. using science to take humans out of the kill change. artificial intelligence far from perfect. for example, in one case last year, students at mit said they tricked a computer to report that it spotted a rifle. it was actually a turtle. the venue is set for president trump's meeting with kim jong-un and here it is. >> the white house announced the two leaders will meet at this luxury hotel on a resort island off of singapore's southern coast. the scheduled summit is one week from now. the planning continuedy. our secretary of state mike pompeo at the white house. what are you hearing about a possible deal with north korea? >> shep, the teams are negotiating right now. the team trying to come up with more

they are making investments in nd, solar, battery powered a.i., additive manufacturing. they are moving and shaking around the globe. and we gave a $2.3 trillion tax cut, which we saw just last month, $200 billion of it went for stock buybacks, apple got it, put $100 billion into stock buybacks, who is investing in this country now? that's a.i., additive manufacturing. the main issue te talking about. yes, battery powered cars. yes, economic development administration. issues that the gentleman from georgia just talked about. college costs are going up. we need more stem people graduating from our colleges. we're not a healthy country. in this bill we're going to take kids off their health care, disinvest in economic development, and our country is getting left behind the global economy. you can talk about low unemployment all you want. the anxiety in our country has not gone down. you can talk about the stock market all you want. 66% of the people in this country make less than $40,000 a year. 50-some percent of the people in this country can't stand a $500 emergency. i

it caps a debate within the company whether to use a.i. to itary.'s chances winning future contracts from the pentagon. it's lobbying for two d.o.d. contracts worth $18 billion. and that does it for this edition of "bloomberg technology." on tomorrow's show, we will be speaking with mandy ginsberg, c.e.o. of match group. that's all for now. this is bloomberg. ♪ . x this is bloomberg daybreak middle east. increasing optimism. the s&p 500 closes at an almost 12 week high. the nasdaq hits a record as investors set aside protectionist fears. commodities crumble as trade keyions weigh and with a opec meeting in focus. and limiting data gathering by the likes of facebook. >> we believe your private data should remain private. not because you have done something wrong or you have something to hide. but because there can be a lot of sensitive data on your devices and we think you should be in control of

it caps a debate within the company whether to use a.i. to help the military.limit google's chances winning future contracts from the pentagon. it's lobbying for two d.o.d. contracts worth $18 billion. and that does it for this edition of "bloomberg techlogy." on tomorrow's show, we will be speaking with mandy, c.e.o. of match group. that's all for now. this is bloomberg. ♪ u.s. stocks reach of their highs as the economy tops concerns about a trade war. last, as g7 may not leaders prepare to meet in quebec. others threatening tariff retaliation. bigpple takes a slap at data, saying privacy is important and offering and app to tackle screen addiction. >> and we know the wind, but not aware. the

they took google former a.i.ef that's going to report directly to tim cook that tells you these guys are serious about this i am sorry >> presumably the 10 billion requests on siri per month are successfully answered? >> reporter: no question there about whether they are successfully answered but just that they are completed. we get real stats and we got this 10 billion and we know it is used actively on 5500. whether they'll break down or get it cly, i will let you guys know. >> the senior ed contador wiit. i will start with you. >> it could get 10 billion requests a month this is sort of the hurdle perhaps in terms of apple getting into the home in a way that amazon has been able to get into the home. >> here is the thing, the more requests you get, the smarter it becomes. that's how these things are designed amazon's echo does the same thing. it is their acknowledgment and we need more of these requests to come in that's why this update to siri it allows developers to plug into siri better and allowing you to

future >> and if we talk about the big cap tech names we all talk about often, a lot of them have an a.istant of some form, whether it's ibm or alexa at amazon and so on and so forth, which of those stands out in your eyes as being the leader? >> well, wilfred, a great question in terms of both, you know, artificial intelligence computing as well as voice recognition because that's one of the key battle fronts there we'll start talking to and controlling a lot of things in our lives with virtual assistance, and actually, you know, between ibm, amazon, google, it is really hard to say right now which one is in the lead, you know, they have strength in different areas. amazon leads in consumer applicatio applications, but google has a huge advantage right now in self-driving cars and voice recognition technology is extremely good on the mobile devices as well. it's hard to say among those three, all really doing a lot of advanced work in those areas >> finally, dan, are the chinese competitors here, potentially going to be the ones leading the way in terms of ones with the best technology

summiti china technology brings leaders together to talk about a.i. over the next decade.lation numbers from the 19-country european union region for june. are also getting key data out of the united states. economists expect personal spending to have increased in may for a third month. i want to also point out that bloomberg surveillance is coming up next with francine lacqua. they have a special guest. he has a special place in my heart because he writes the powerful motorcycle -- rides a motorcycle. the greek finance minister will give an exclusive interview. if you go to tv , at the bo ttom, you will see a blue link. clik that -- click that to ask yanis a question! this is bloomberg. ♪ francine: europe closes its doors as eu leaders reach a deal to stem the flow of micro -- m icgrant -- migrants. they felt the friends -- effects of stress test. and ready for liftoff. elon musk's rocket is inspected to take off in the next hour. ♪ good morning, and welcome to

. -- a.i. together into one place. creating a community where the best talent in america will want o work and live. to silicon valley and boston, wisconsin valley is coming. [applause] i would like to give my thanks to speaker paul ryan for his support over the past year. i also want to express my thanks and appreciation to governor walker for having the foresight to see the positive impact of our investment on the wisconsin economy. he and his team have confirmed why we settled in wisconsin over many other states who want our investment. finally, i would like to thank you, president trump, for being with us today. i have said it before and i'll say it again, if it were not for your president, mr. trump, donald trump, i would not be here today. as a global businessman. [applause] as a global businessman, i have invested in many businesses around the world. president trump is one of the few leaders who has shown me such patience, attention and support. his commitment is truly one of the best. [applause] er the past year

the use of the a.i. technology they have means fewer americans are wounded, fewer americans are dead, fewer american families have to bury their child. it is despicable what these people in silicon valley are doing to the country that nurtured them, that protects them and made their success possible. i couldn't be more outraged. and you know what? this is just another, another example of silicon valley mindlessly turning america against them. silicon valley, you are running out of friends. liz: all right, colonel kurt schlichter. so sorry we get you upset for the weekend. i hope you have a good one. >> i'll go home. liz: give your dog bitey a hug for me. good to see you, colonel. >>> president trump asking nfl players to step up and send examples of people they think are unfairly treated by law enforcement. the media thinks that's outrageous. but first president trump defending the nation's farmers calling out justin trudeau's tariff and trade barriers. we wondered how american farmers feel about this so

a huge welcoming place and they they are trying to kick-start innovation through a.i., trying to diversifyhe work force. one of the biggest things he will talk about is how proud he is of his cabinet, which is more than half women. the first time that has happened anywhere in the world. it is an outward facing, internation message at a moment in time when the u.s. has become much more protectionist, which is something we talk about in the issue. jason: tell us more about debrief. you say it's a flagship interview. who are the types of people you have heard from? joel: sasha. melinda gates. we are really after people who are game changers. like bigger than life and have the capacity to really affect change and justin trudeau is obviously someone like that. taylor: we focus a lot on global trade this week. it was a big topic with the g-7 meetings going on. jason: that's right. in the politics session, deep dive into how the trade policies from the trump administration are having a destabilizing effect around the world. taylor: we spoke with editor matthew philips. matthew: things keep ratche

it is a.i., it is a.r. and obviously the cloud.is where he was pushing that's what they have become and they have really been focusing as woenl the services. but secondly the attractive valuation of the company by the way they have been buying back stock and in the last decade they have taken back 18% of the outstanding shares of their stock. so they are taking care of all the people willing to own the company. and by the way, the dividend has been very strong as well that is just a little bonus on top of that. valuation forward 24, all of what i'm looking at right now i think is really great. but the best one is free cash flow $33 billion a year that's incredible. when you look at this company you do see some debt on the books. that is because they have made some acquisitions so i'm not worried about that whatsoever because that is going to be part of the company itself and when you look at that cash flow it really is meaningless at this point in time. the cloud growth we talk about growth all the time you have got to have growth.

a.is is the main a >> this is ma >> we got another room. >> the living room. >> tell me where we're goingright. so, this is more of your traditiona coffee shop setup people come off base and have a private meeting. >> and let's mention the base is, what, 5 minutes away. >> yup, no th not even. it's very close. all of our roomsurrounded in us books so the idea is, you know, exchange of idege, ing new ideas,. >> what a beautifulpace. >> thank you. ell me about the best plant about living down here. you're a transpl from la plata. >> i never left. iove all the water, water activities and access thattherey diverse community between the people that have been here forever and the base bringing people from other communities and, yeah. >> i love your space and i ve your coffee. >> cheers. >> yes, thas you for joining me morning, getting up early. i guess you u don't getp early if you're serving>> coffee. no i've already been up. lookss today, weeke eat. we keep it dry right through the geek, that'sood for >> yes. >> but it's going to beex hot. t week. maybe iced coffee by sunday and monday. >> th

thinking about some of the cycles they've been in data center, some of the stuff they're trying to do, a.i. related, maybe it is just dead money for a while. maybe you got that move from the mid-30s to the mid-50s and now you need to digest a little bit. >> for me, listen, he was a great ceo but he's not a howard schultz or elon musk. he's not something central to the company. that's not to take away from what he's done. i think this is less about the ceo and more about the outlook for the industry. >> you're a shareholder? >> i'm a shareholder. it's a little disappointing. i think it traded pretty well considering the news and i agree he's also not the howard schultz/elon musk ceo. i think a company like intel with their resources can pay to find somebody really great. they will. i don't know how long it'll take, though. >> it has been a ridiculous -- last summer it was $35 and now it's 58. at what point, though, you're starting to see analysts that maybe -- amd is making up ground. they downgraded intel. great call by dan nathan saying, you've enjoyed -- he looked at me and said you've e

technologies like quantum computing and a.i., and i understand the concern that could have real security implications for the united states. i think we have to be very careful how we respond to that. first of all, i'll bet on american innovation anyway, particularly if we continue to fund basic research through the national science foundation the way we did back in the old days when a lot of universities were really putting innovation on the table that ultimately gave us the lead and kept the lead. i've been reading things about cfius getting more involved in decisions around investment. been reading about maybe not a low ouring chinese researchers in universities to research certain topics. let's not try to outchina china in responding to the chinese threat because we're going to lose that game and i think what we do is have an american response that goes back to american innovation. the question of national security in terms of globalization is an everlarger question than it's been in the past. >> yes, sir. >> thank you. i am the ambassador of colombia in the united states. i just want

it's not it's a.i., it's cloud. it's across the spectrum, and they're going now technology driven, and putting more money into r&d so that's why i still like it. it's a good place to be. not impervious to a drawdown >> competitors are amazon and google, and microsoft knows how this game is played. google's trying to get up there, but amazon is by far the leader in this space, but i don't think from our understanding is amazon doesn't have the ability to go where microsoft goes >> i let it get called away. so to joe's point, if you're in it, in a taxable account, do you want to sell it to buy it back 7% cheaper if it corrects like that of course not, but because it was tax deferred status, i decided to let it get called out. but what i really like about their model is the reoccurring revenue. the monthly reoccurring revenue. even though google sheets and everything that powerpoint and excel used to be for microsoft is not a freebie because google gives it away, these guys, nonetheless, have the enterprise stuff that

in a couple decades being second to china in technology. . >> exactly they want to be number one, in a.i stories of tomorrow for america, let me ask you this case there are a lot of skeptics out this morning on tariffs you know that markets down 200 points are you worried this is going to mean hire prices for consumers. >> that is also a a problem we have to think about the first thing is we have to accomplish we have to protect our technology. the second thing if you look at the algorithm the way we concocted this list, by the way, hearings thousands of pages of comments, we tried to pick things that minimize the effect on u.s. consumers, so there are a lot of user products american consumers can buy not only domestically not adjustment usgr but across the board commerce and others to make sure we minimize effect on u.s. customers. >> let me end where i began, that is the retaliation, what kind of retaliation are you expecting from china. >> i am hoping that they do this as an opportunity to move to next level, at some -- in some way they have to know that what they are doing is wrong,

and it'll be a great test bed for a.i. technology and new power grid technologies hardware and integrate them into a system. >> thank you for that. can you get the dates of that conference to argue staff here? >> i'll be happy to do that. >> yep. okay -- to our staff here? >> i'll be happy to do that. >> yep, thank you. >>> now mr. tak ano for five minutes. >> thank you, mr. chairman. they both -- the trump administration has proposed a 37% cut in fyi in 2019 for the office of electricity or o.e. which stewards the largest portion of our federal investments in grid research. within o.e., the budget proposes a number of steep cuts to important research, including a 74% cut to smart grid research, a 67% cut to clean energy transmission and reliability, and 81% cut to energy storage, research, and development. i just want to know from all of you, what role do you think energy storage and the development of battery storage can play when it comes to distributing wind and solar as well as grid resilience? >> well, i would say th

and apparently sharing their breakthroughs with a.i.s that and release 8 word ethical bottom line and bottom line is they want to manage a.i. and do not want to share it with pentagon if it is going to be used in weapons. >> lawrence jones fit to be tired. >> i have to mention this is how we got president trump right here. because this is an anti-american stance. it is our job as businesses and people that are in the private sector to contribute to this country and they can do this by saving lives and for the employees to be able to run companies at this point. i mean, i don't know where we're going. >> exasperating. google says don't do evil it is clear silicon valley doesn't see the evil in the world and their bubble world and you know, some other companies going to step in or china or russia will step in and do technology. >> i shall have a forceful editorial and it is in the 10:00 hour i can't wait. check the futures market where are we going on opening bell down about 70 point that's not a huge loss. president trump says he's consi

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china's efforts to protect its domestic interest these in -- domestic industries in 10 areas, like a.iobotics. it would be great if we could use our allies to put pressure on china to protect intellectual property, and to not basically have chinese companies command 40% of the market by 2045. i think trump is rapidly losing the support, or any ability to call on allies at this point. in addition to launching tariffs on china, he is doing the same onur allies. i don't think they look at him as somebody o n be trued. yvonne: we have been focusing so much on goods, but the u.s. has trade surpluses when it comes to its allies. licensingbout the m deals. why do you think the u.s. overlooks this faction of the trade dispute? elizabeth: i think it is the steel and aluminum and automobiles that speak to president trump's base. he is less interested in the services area. when he looks at the promises he madery aut ba ta, it sn't really about the service sector, it was about manufacturing and bring back the old traditional industries that used to be the basis of the american economy. yvonne: app

maria: before we go, you have a plan to train people for some these new industries, like a.i.nd block chain, some of the things you're looking for as far as growth stories for the u.s. economy, right? >> absolutely. congress provided funding to start apprenticeships and workforce education. we have 6.7 mil million open jo. maria: great to see you both. we'll take a short break. defiant in the face of tragedy, maryland journalists publish a paper this morning hours after a gunman opened fire they their offices, killing five people. how the newspaper staff rallied and what we know about the suspect. and toys r us says good-bye, the iconic retailer shuts its doors for good. back in a minute. ♪ it can detect a threat using ai, and respond 60 times faster. it lets you know where your data lives, down to the very server. it keeps your insights from prying eyes, so they're used by no one else but you. it is... the cloud. the ibm cloud. the cloud that's built for all your apps. ai ready. secure to the core. the ibm cloud is the cloud for smarter business. mariamaria: welcome back. the

train to china has made it clear they want to be the leader by 2030 and believe in a.i., but chain technology. us weekly reported china offered by $70 billion of agriculture and energy at the trump administration backed down under $50 billion in tariffs on chinese goods. talks in beijing over the weekend with commerce secretary wilbur ross. who cares? $70 billion or more does not to address the fact that china wants to beat us on some of the industries that tomorrow. >> to be blind, crushed the united states. we see the military threat that china is making the south china sea in other parts of the world. president trump is demanding to reduce the trade deficit with china by $200 billion. but at the $70 billion carrot from china. i bet you the trade deficit is very important to the president in terms of a big number he hangs his hat on. you'll see something somewhere between 200 billion in the 70 billion number. maria: he doesn't do anything for the real issues at hand. >> i've been following voter sentiment on how they feel about trade right now than i was concerned people were losing favor t

nothe case of a.i., the u.s.r has the advantage it did when it came to building aircraft carriers. robert: whole industries have moved to china .the united states for example has lost more employment in semi conductors and integrated incuits than we have even auto parts and industries like that. china is aggressively moving into tech sectors, and they are catching up with r&d. these are the 10 major industries that they have targeted. yvonne: isn't it hard to cultivate innovation in a controlled society like china? a lot of reforms like education is tough to bite for china. robert: i think that is an issue. there is a question whether they will have enough incentive in the economy for individuals to innovate. china does it in a different way. they will apply 10 or 100 engineers to solve a problem few could result by a engineers in the united states. they are using brute force, and they are acquiring a lot of skilled scientists and engineers through these r&d programs. yvonne: robert scott, economic policy institu

serious issue that transcends donald trump and in rest of his trade policies. .t is about the future of a.i and who is going to be leading the world in these fields. and it is of great strategic importance. david: something we could agree on what the europeans, and mexicans and canadians, if we were not fighting with them. marty: that is absolutely true. there are probably some democrats in congress who absolutely believe this is an important thing to do. alix: over the weekend, you wind up having china release reserves, really about 700 billion, so why? >> trying to keep the inflows coming, and stem the tide, but they say with a weakness in the want -- yuan -- alix: it is a trade issue. >> everybody in the market knows it is a trade issue. it is also an issue because it is another signal that this is something that will not be resolved. where are the negotiations right now? we know there are none on the u.s. side and there does not appear to be any on the chinese side, and what they did with the reserve ratio is a signal they are digging in their heels on this as well. david: goes back to

also, interesting to note that other hires a few months ago, apple announced they hired google's top a.i, back to you >> all right, josh, thank you, we'll see what they plan with that >> just under $4 billion a deal. so what has changed? am i saying it correctly yet kourtney reagan has more she's outside of whole foods at manhattan. >> reporter: hey, kelly, you got it amazon owns whole foods and lido is coming. everybody thought it is going to change the grocery chain it is taking amazon a while to make no changes. they did not have lower prices across the store it was just last month they started to offer prime members o f a 10% discount on hundreds of items. half of whole foods stores offer that and prime members are only available right now in 14 cities >> there seems to be some bumps in the supply chain or something that were regular on the shelves were not there anymore and quality was variable >> two months ago a lot of things are missing from the store. and very few items were inside the store. >> there were a few items that are cheaper, it is still pretty much the store that it w

also, the applications of the society where a height is -- a.i. is ubiquitous. someone said that it already is. the term was coined in the 90's. this has been applied to many day areas -- every day areas like alexa. it is called a.n.i for short. a machine that excels at play r could not parallel park a car. .i refers toa.g intelligence because a range of tasks. if you enjoyed science-fiction movies, this could conjure up scenes from blade runner, the matrix or the terminator. for many individuals, the term of robots up images and machines with human intelligence. we are decades away from such agi systems. discussions about agi in a future in which agi is commonplace leads to some interesting questions worthy of analysis. for example, elon musk has been quoted as saying that ai is a fundamental risk to the existence of human civilization. it poses more risk than north korea. does that mean that agi may evolve to a point where we will lose control over machines of our own creation russian mark as far-fetched as that sounds, scientists are discussing ch questions.

conferences, everyone was a china play, every company a china play now it's under the rug and it's a.is including starbucks longer term, it plays out and works, and i'm excited for right now, there's a lot of fog, of course >> lamar, when you said, you know, focussed on small caps and small caps rallied today, they are not the ones necessarily who are out there the last couple years saying this is our china, you know, china is basically bailing out the growth strategy, right? >> that's exactly right. the bulk of our portfolio is focused on the u.s while they have -- some lagged over the last couple years because they were not able to get out there and start, you know, going raw, raw, all about china, right now, they are looking to be positioned well in the event there is, you know, some further escalation. >> and, lamar, in the u.s., the only thing i wonder because you know small caps better than anybody, everybody trades them, look, they don't have the international exposure u.s. economy, again, goldman second quarter 4% gdp number looks great. too over simplified, though? we know the