Where to Store NSA Data?: Bloomberg West (01/17)

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Jan. 17 (Bloomberg) –- Full episode of “Bloomberg West.” Guests include Albright Stonebridge Group’s Ben Chang, Georgia Tech’s Thad Starner and Bloomberg’s Paul Kedrosky. (Source: Bloomberg)

Mammal look him to bloomberg, were recovered you global technology and media companies that are reshaping our world.

I am emily chang, our focus is on the future of business.

Here live from bloomberg headquarters in new york, we are talking about the president's week speech today about the nsa and potential changes to the surveillance policy.

He basically ordered his top legal and intelligence officials to think about how and where the data they are collecting about us.

These groups have 60 days to come up with a plan to handle ph one metadate, the records of calls between different parties.

The plan may well be to have that held by a third party, possibly by the phone carriers themselves, though they have been resistant.

It could get extensive, $60 billion to a carrier.

The government seems to be open to tech companies like facebook, google, being more open about the data requests they have received.

They can reveal to consumers what they are being asked for by the government.

That brings up the point, there are still -- there still remains a lot to be seen.

I do want to get to a quick quote from the president.

What i did not do is stop these programs wholesale.

Not only because i felt they made us more secure, but also because nothing in that initial review and nothing that i have learned since indicated that our intelligence community sought to violate the law or his camp earlier about the civil liberties -- or as camberley or -- or is cavalier about the civil liberties of our citizens.

You want to keep certain options on the table but you want to put some limitations on them.

I want to bring in our special guest.

Are bloomberg can chew beating editor paul kedrosky is with us.

-- our bloomberg contributing editor paul kedrosky is with us bit he worked as a senior adviser at the national security council.

What is your big take away from the president's speech today?

What is the headline?

I think the president took the opportunity to reset the dialogue about national security . that was really important.

It served as a reminder to everyone why these programs exist in the first place and what their evolution was.

From that point on, what partnerships we need to have the balance right between the values and the national security.

Are we any less safe today because of it am a because of what they are considering?

As someone who has served for 18 years in our government, i think we are increasingly safe.

The challenge is to get this right, make these trade-offs in a way that minimizes the risk we take.

On a sliding scale there will always be risks.

The key is to rely on the experts and the.

The indicated patriotic -- the very dedicated -- the experts and the very dedicated patriots.

Silicon valley was pretty cheesed when they learned how the an essay has become subverting security measures and getting into systems.

Did the president say anything that made you believe silicon valley will be better or worse, i think it will continue.

I thought his comments were a bit off.

I found them hedging over nuance.

We are getting into what the deposition of his stuff is.

It was almost as if they were worried more things would come out and it looks like there were more violations going on.

I think the valley is going to feel the same way.

The more positive upside is that from a start up sandpoint, this is whom time for security companies.

Think about what happened eight years ago when we started praying in the big solar subsidies.

You have an open playing field because the government is going to continue to be mischievous.

I think one thing that is clear is the president did not put any debates or issues.

Are you saying the president -- the government is not taking responsibility or should that discussion be behind us?

I think one of the pieces the president put out is the evolution of these programs, courts have been involved.

He made an initiative that -- those come -- those companies that we rely on -- how can we make sure that as a country we are able to keep this balance right?

Inviting in tech and business leaders and continuing to have them as partners in this conversation is essential.

I hope some of that trust and confidence can also be restored here in our own country.

Maybe this is getting a little bit more into the weeds here erie it phone data is going to have to be relinquished i the federal government and placed in the hand of some third-party groups, is that going to be a technological challenge?

Is that data always the same from different carriers.

Not all contractors are necessarily up to the cap -- up to the task.

Let's not hire cgi for the project.

I totally agree.

It is going to get extremely messy.

One of the things we have learned is the normal nine station of these data is pleased to all-time's of false positives and discoveries of correlations that do not exist.

I have no reason to believe this will be any different.

You get into issues of how long you should hang onto it.

We are hanging onto domestic data longer.

The real message is we have to hang onto the data longer than you expect.

There again you get into privacy and rights issues.

We learned that the government is potentially collecting our text messages.

What aren't they collecting?

I am not going to go into details other than to say that this is an era where we have to find this balance between everything that we are putting out into the ether and what the government is collecting.

I think it is important to remember that micah morale and the president himself has said it is not content that is being collected.

I think it was important that the president tried to divorce this from the sensational aspect of snowden and what he has been putting out and brought us to a real discussion of how we move forward and whether it is text messages or other items that will be a part of that discussion.

Thank you for joining us today.

You are going to stick around for us.

We are going to be talking about google's next wearable device.

Right off the eye.

Welcome back, i am emily chang.

We are talking about google's and next potential wearable device.

The idea here is that these contact lenses can measure the level of glucose in diabetics.

A wireless chip between two very thin pieces of glass.

Measuring the glucose content would be different and better than pricking your finger in this is constant so you are able to get data all the time, not just when you take a sample.

They met with the fda about this.

It's interesting to see google working on something like this.

This is certainly a bit more of an each audience.

You may start to their and figure that out.

That leads you to 10 new things i am so curious to hear what you think about this.

You and i have talked about google's focus.

Larry page came in to streamline things.

Now we are seeing these new ideas.

Are they trying to revolutionize manufacturing and supply chain, what about contact lenses?

I have two levels of reaction.

I love all these connected sensors.

We're tracking more data and it has a better outcome.

I think that is great and we will see a lot more of it.

This is like nest for the eyes.

Now they are no -- now they know what you're going to do in your house.

There is potential for a lot of data to flow back.

What this will precipitate is an overdue discussion about what fundamental rights we have in terms of data privacy area and you know you're going -- you know you're getting into health standards.

I think this is going to precipitate a great discussion and finally some lettuce -- finally some legislation.

That may turn out to be the most valuable part of all of this.

There is this utopian idea that sensors may be in or on our bodies and no will -- and will know when we are going to have a heart attack and then and angolans will pull up next was us on the street.

On one hand that is great -- then an ambulance will pull up next was on the street.

On one hand that is great.

On the other hand if united health has that data, are they going to jack up my rate?

It starts to get complicated.

It is crazy and creepy.

You have to have the legal regulatory structure.

It is and -- it is not what they slap an ekg on you and leave you alone.

There are so many oscillations over the course of a 24-hour day . you get all kinds of false positives.

The best thing for us is not continuous tracking of our data.

We could become cyber-cho ndriacs.

I think there's a risk in all of this.

They feel this compulsion to act on it.

I think that is equally dangerous.

I'm not sure how i feel about google or any company knowing my body chemistry.

We talked about calico, this company that google has started, very secretive, nobody knows the real things they're working on.

The broad idea is how do we cure things like aging?

We have been having a conversation all week long about google looking a lot more innovative than anybody else right now.

What you think about google?

Are they right to go down these different paths and trying to own the future even though we don't know what the future looks like deco does that leave other companies behind are not?

Them i think that is the right question.

Google is not innovating apple in nature mattock fashion.

The question is what are the implications for shareholders, this is an investment class discussion.

The reality is most everything they are mucking about with right now is -- has zero near term implications.

They get distracted and health care issues.

I think it is allowable, wonderful, and certainly innovative.

I think most of this is neutral at best.

I feel like if i was an investor out be asking the question, well that is all in good but how when people in your company are working on something like search?

There's this concern that you can beat ibm research but you also have to be a growing business.

These are the kinds of questions that investors are increasingly asking.

We saw it happen with microsoft when they went into spending mode.

We are a lot more suspicious.

What are the implications in terms of products over the next 12 quarters and people get very intemperate and start getting very true grouchy.

-- very grouchy.

I am an easy, i just love the innovation because it is cool.

Thank you.

Coming up, jack ryan is out today, we will speak behind them -- speak to the man behind the new movie.

Paramount pictures is bringing back the jack ryan series.

You may remember the series.

Our senior west coast correspondent jon erlichman sat down with the producer behind everyone of the jack ryan films.

What is it about this guy that makes people want to go to the movies?

He is an all-american hero.

Of he is also the kind of guy you would like to have living next store.

-- he is also the kind of guy you would like to have living next door.

There are multiple actors who have played this character, harrison ford, then affleck, chris pine, what is this transition like?

It would be like -- it would be nice to have someone eight with the character.

The transition wasn't difficult.

Alec baldwin did one and ran off to do a broadway show.

I offered harrison ford the hunt for red october and he turned it down.

He said he wanted to play this -- to play the russian submarine captain.

When i sent him the script, he immediately reacted.

We spent a long time trying to get some of those fears done and then affleck was interested in playing it.

We said he was very young, how do we do that?

We will pretend we never have done a jack ryan movie before.

This film is not specifically based on a tom clancy book.

I think you said how do you get the script together when you run out of books to walk them through that process?

When i made the original contract with clancy, before he was a full-time writer, before he had a major agent, we got the character rights to the characters in the books.

I said check the contracts,'s -- check the contracts.

I would love to see at least two more after this.

This one you wanted to get done for something like nine years?

It took nine years.

Maybe speed up the timeline.

If our box office results are good, i think we will immediately put another one into the works and hopefully get that one done in a year or a year and a half.

He is the producer behind the jack ryan movies.

Coming up, we are going to be talking with the guy who invented google glass before google glass came around.

He was wearing a glasses back in 1993. he wears a lot of other things as well.

That is coming up next.

? it is 26 minutes past the hour, which means bloomberg television is on the markets.

Here is where stocks are trading . it is a mixed picture.

Within the s&p, it really only has energy that is in positive territory.

Also we want to update you on the pharmaceutical companies.

We are back on the markets in 30 minutes.

You're watching bloomberg west.

I am emily chang with our top headlines.

The world's largest headline started selling the iphone after six years of negotiation.

Apple is working on great things but wants to keep them secret.

Facebook is becoming a site where more people discover news about the world, not just about their friends.

The feature will keep users updated on the hottest facebook topics nintendo's president says the video game company is considering a new business model after a sluggish demand for their we you product.

-- for their wii u product.

Nintendo is forecasting a $240 million loss for this year.

All week long we have had a very interesting series about artificial intelligence beyond robots.

I certainly learned a lot.

I am so excited about this next guest.

This is a guy who is basically wearing wireless glasses 20 years before google glass actually came out.

He is a georgia tech professor.

He is joining us now from our bureau san francisco.

Of you are wearing them.

This is a prescription pair of glasses but i brought my old stuff.

Tell us about how that first version of glasses came to be in 1993. we didn't have a name for it.

The name for personal computer was always taken test was already taken.

We came up with wearable computing.

This is something called reflection technology display.

This is actually the fashionable version of it back then.

It is a little mirror that scans across your eye and creates the illusion of an image.

Can you actually see when you are wearing those?

It blocks one i but the human that it blocks one -- it blocks one eye.

You have been doing a lot of work with google.

It is a fascinating story of how you ultimately ended up at google, because you ran into larry amsurg a in the 90s while you were wearing these glasses -- larry and sir j -- and sire rgei in the 90s while you are wearing those glasses.

I have a quote from an e-mail -- demo when you wear something like this and have a big shoulder bag on with a big computer in it and these old car cell phones that wade two pounds , you get some attention.

You have this device over your shoulder.

It was a little conference in san jose.

I was just waiting at the coffee line.

These two sanford students came up to me and said they would like to talk about my computer.

They told me about this new service they are talking about called google.

It is just grad students talking to each other.

About 2010, after it was clear, the smartphone thing was taking off.

I sent sir j -- i sent sergei an e-mail.

Next thing i knew i was out there working on glass.

They were going to do it wearable computer.

Family having worked on this -- having worked on this for 20 years, what has gotten so much better?

, processing power has gone up exponentially.

What are some of the next major breakthroughs that are going to facilitate the next generation of the things you are working on?

A lot of that is going to be the intelligence.

Already there are services out there that can predict the traffic from one appointment to the next.

Glass was telling me about photo spots nearby.

We actually suggest ideas and it's just -- that is where we are going with this.

The idea we can actually make a computer that lives your life with you, that observes what you are doing with your hands, they learn what it means to be human on human terms.

That is why i call it symbiosis.

I want to ask you one other question based on the point you were making.

The technology may be closer to do some of the things you are describing.

Are we ready for that kind of relationship between technology and ourselves?

I would argue we are ready for a long time.

They always have an assistant with them who helps makes their interviews and interactions -- if you have a good conversation going on the assistant will allow the ceo to have more time and rearrange the rest of the schedule.

It's kind of like having a really intelligent butler.

That assistant is himself being trained to be a ceo of another major company.

Wouldn't it be great if it could have those good english but will -- english learner experiences.

-- english butler experiences.

Do you wear google glass everyday?

I do.

This is my best prescription of glasses right now.

You are fascinated by this technology and have been for decades.

Not everybody is wet -- not everybody is ready to where google glass everyday.

Wearables are mainstream, look at the mp3 players.

Our member being offered $2 million in 1995 as part of a startup doing it wearable computer.

We predicted these mp3 players and now it is ubiquitous.

Most of the things we are talking about has been taken over by smartphones.

Smartphones are not as fluid.

They take too much time to interact with it.

I think people are already using wearable computers, bluetooth headsets, smart phones, mp3 players.

This is just an evolution in progress.

Not everybody is wearing them yet.

I one point are people going to get comfortable with wearing something like that everyday?

Is it going to be a risk, is it going to be us talking earlier about implantable devices?

Not everybody wants to wear those everyday.

It is just like smartphones.

Everybody was using mp3 players every day.

It takes time for these to reach critical mass.

In truth what we are going to see is a relationship of devices about the body from where the hands are in this -- are and the eyes.

You mentioned you have some examples of future applications for artificial intelligence.

We are going to talk about that more after this break.

He came up with wireless glasses to decade before google glass.

Will come back to our special series.

We are talking with the technical lead of google glass.

At georgia tech you were look -- you are working on a number of different areas.

You gave up some and shall rush some interesting attentional applications.

-- some interesting applications.

Talk about some of the areas you are focused on.

A lot of times we are doing stuff for five or 10 years ahead of industry.

We are making a lot of progress recently.

What i have been looking at is trying to have a machine that watches your life as you live it.

One of the things we were doing is watching your hands.

Can we walk -- can we learn around the world around you by watching how you interact with it.

That is what this helmet is for.

This is a system that you may have a picture of.

The idea is you put this on and you can do sign language.

The system automatically discovers the signs in the language.

Instead of trading them -- training them to learn one language after another, they automatically discover the individual signs and words of the language.

My colleague made a starting idea -- a startling idea.

If you are trying to recognize the objects around you, something like a book, it is hard to recognize books because each cover is different and it can be any image on the cover that you can think of.

It is hard to recognize a book just from one camera image.

If if you look at somebody -- if you look at somebody paging through a book, suddenly you can recognize a book by how it is being used.

That was a startling moment for me.

I can identify books, cups, shaking hands with somebody, i can learn about the world around me, how to use a doorknob, a car door, cartoonish and, how you shift the car, -- car door, ignition, how you shift the car.

My colleague went further.

He said if i put motion sensors on my wrists and elbows, maybe i can interact with things normally in my daily life and teach a humanoid robot how to move.

In other words we can use in everyday motion to train the motion equation of how to move and interact with the real world.

You are talking about putting sensors around and on the human body.

They have to be very small and lightweight for them to function successfully as wearable technology.

What i want to ask you about is about power and batteries.

That has always been something that has not moved quite at the same pace as other technologies.

How do you solve powering all these devices on your body?

It is the current technology holding you back?

A lot of things we are seeing is a revolution there as well.

There are a couple of ways you can go about this.

One is using the human body motion the power it.

If i'm putting an accelerometer or microphone on the wrist and tried to pick up the sounds and direct with the doorknob, the actual motion an actual sound itself may be powered by the circuits in a nothing you can do is use rfid.

A friend of mine is moving to the university of washington.

He has made a system by which you can get a megabit per second of ada off of passive rfid chips.

We just create a power field and then it sends the data back to our main system.

We're are talking very small amounts of field here.

Technology professor of computing and technical lead of google glass.

We will be watching you from afar.

Here's a look of at what is coming up on tuesday.

He just started a new company called jelly.

We will learn all about it right here on bloomberg west.

Up next we will play with cars.

We have been talking about artificial intelligence and robotics.

I got to play with a new toy car set that will blow your mind.

I can't wait.

Pamela comeback.

I feel like we have been talking about ai as something in the future.

It is actually here.

When you think about ai, it is not going to be some special day where we have it.

It is incremental.

We see it in things like toys.

I got a chance to play with this new toy, it is called onki drive.

Let's take a look at it.

Most of the time when we are talking about robots and artificial intelligence, we tend to think about robots in the workplace.

What we are not usually talking about our little toy cars.

That is exactly what a new toy is all about.

Developed by engineers out of carnegie mellon, it looks like one of those radio car sets you would play when the cosby show is coming on.

Sure your smart phone can work as a wireless steering wheel.

What is even more interesting is that same smartphone controls all the other cars on the track.

It they know where they are and where you are and are adapting to real time each race is different.

We have seen this artificial intelligence in videogames.

On d takes all of that and brings it into the physical world.

Not only can you outrun your opponents, you can hold on a button and fire and match very weapons at them.

All of this innovation is very impressive what it is not is cheap.

A startup kit will run you $200. you get a track and two cars.

More cars run $70 per pop.

M it only works that should it only works -- it only works on a ios devices right now.

Cars will use up their battery after 20 minutes of play.

But robotics, the future is here, the future is now, the future is kind of expensive.

I got to play that game.

It is super fun.

It definitely makes you want -- a supersmart group of founders behind his company.

I got a chance to talk with these guys a little bit.

They said there's a lot of people focusing on industry, focusing on commerce.

We wanted to find a place where there isn't as much attention and competition.

Toys was a way to be out there by themselves.

This whole discussion has made me think about -- we know there is engineers and programmers in the technology community that need to learn how to code to fill these jobs.

And if computers are going to become more and more sophisticated, they are going to be able to answer more compex questions than they do now.

Somewhere down the line, are these coders going to be out of work?

Computers coding for other computers and where does that leave -- will we be floating around, sucking on a big gulp?

The venture capitalist has been on a tweeting binge.

He tweeted about this, saying if you are worried about robots you should maybe stop programming students as if they are robots.

What you think he means?

, absolutely no idea.

It makes you think about down the line, the relationship between humans and computers, what is it ? it cannot be about science and technology and economics and math.

It has to be that deep creativity, that artistic or actually artistic impulse -- impulse that drives the implied sciences.

He talks about how his glassblowing -- i do want to get to what is coming up on tuesday.

Bill gates is going to be joining in the loop for a special conversation with mike bloomberg and betty liu.

This will be coming on a day that he releases his annual letter.

So great to be with you.

This text has been automatically generated. It may not be 100% accurate.

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