'Bloomberg Technology' Full Show (6/21/2019)



I'm only checking San Francisco in this technology coming up next hour as Apple urges the Trump administration to not proceed with a next round of tariffs on trying to import the founder of the company's largest supplier urges the iPhone maker to consider Taiwan plus slack day two shares fell at the close but so far the direct listing is being hailed as a success all round will it become more of the norm and three Oracle women are looking to bust the glass ceiling they claim the company pays men more than women for the same work and want their lawsuit to be granted class-action status but first to our top story well billionaire Terry agua may no longer be the chair of Apple's largest supplier but that isn't stopping him from trying to keep that relationship going for years to come woz stepped down from that role at Foxconn to focus on his campaign to become president of Taiwan and he seems to want to make sure that tensions between the US and China don't force Apple to leave the country speaking from the perspective of the Republic of China I will plead to Apple to come to Taiwan this news comes after a Nikkei report that Apple asked his largest suppliers to think about shifting production from China to Southeast Asia to discuss in Minneapolis we've got Luke ventures partner gene Munster and in LA Bloomberg Tech's resident Apple watcher Mark Kerman so there's some confusion about what Thierry gua actually said here he made some remarks an assistant later clarified them mark what exactly did he say and what did he mean right so I think the context here is very important right I think this might be getting a little blown out of proportion because this is the guy who is in charge of Foxconn helps create Foxconn for many years and of course Foxconn is where Apple produces pretty much all of its iPhones outside of India right now out of China and now he stepped down to run for president of Taiwan won't it benefit him greatly if Apple moved some of production from China to Taiwan once you look really good as president wouldn't it be a really good campaign slogan for him to say he's trying to get the iPhone to move from Foxconn to Taiwan so I think people have to understand what's going on here there's the political side for him there's a political side for Apple so he has a lot to gain by making this happen Jeanne bigger picture all of this is based on a report from the Nikkei a couple of days ago that Apple asked many of its China based suppliers and Foxconn is a Taiwanese company but manufacturers iPhones in China asked these China based suppliers to consider moving production outside of China perhaps to Southeast Asia do you think that would ever happen and what are your broader thoughts on the implications of Apple even considering this at this point I'm aware I think that that very well will happen in time and I point back to four years ago when Apple started to consider doing production with Foxconn outside actually in Brazil because of some of the tax laws the import laws in Brazil and so I think that this motivation for Apple to essentially de-risk themselves with China I think is nothing new the timing on it is suspicious and probably the truth is several layers beneath the surface about why Apple is talking about that now but I do believe that outside of all the things that are going on with trade Apple has a long-standing interest in diversifying outside of China for the manufacturing now mark without getting too deep into Taiwanese politics terry gua has pitched himself as a china first candidate this doesn't sound very china first but you know what are the sort of Prader political implications here of Apple moving considering moving its its its factories outside of China anywhere and and perhaps even to Taiwan yeah you know this could be seen a little bit as a lose-lose situation for Apple I mean you've seen the struggles that Apple's competitors such as Google and others have had in China Apple is the rare major US or non Chinese tech company to actually be mostly freedom in China most of their services work there they have dozens of retail stores across the region they've had a lot of success their revenue wise in the last you know five to seven years or so as well that can't be said for Google and others so if Apple starts stripping out parts of production from China that's gonna cost a lot of jobs Apple's responsible for about three and a half million supply chain jobs in China alone if those jobs start going the way it's gonna hurt the Chinese economy in China is going to have less of a will to want to work with Apple to keep them in their stature in the region right now meantime gene you've got a new note just out on Apple's reputation in China what have you found so Emily we've been monitoring this closely since really may 5th when the trade dispute with China started to flare up and then with Huawei – and what we wanted to get a sense was with what the typical Chinese consumer if they would be boycotting Apple products and try to get a read – on what the government is thinking and as we've gone back over the past month and looked at social media within China and also the broader China News media outlets the reddit of China all of those have a surprisingly supportive tone relative to Apple and the reason why I think that this is important is that the tone in the media is directed from the top it comes from the government there is no question about that and I think that there is an insight in terms of how China wants to operate and work with Apple potentially or potentially do some tariffs against them and I think if you take in this very clear view that in fact the government is putting a positive narrative out related to Apple I think that's a sign that the government wants to continue to work exactly like Mark said three and a half million supply chain jobs they don't want to disrupt that so I think that that is a positive for Apple I just want to briefly mention – is that with the typical consumer even though on social media they're speaking relatively positive or overwhelmingly positive about Apple that doesn't mean that the typical consumer feels that way there could still be an impact of a negative I phone number in China based on some of the things that are going on in the geopolitical world meantime mark want to get your thoughts on another story Google announcing that it's getting out of the tablet business this after it just released a new pixel tablet what do you make of this announcement not entirely surprising I mean what you've seen since Google really entered the Harper business in a big way in 2016 is that from a market standpoint from a revenue standpoint their hardware has been a flop across the board the pixel phones are some of the best Android phones in the market some of the best high-end phones on the market but they just do not sell anywhere near the quantity of Samsung or Apple to a point where it's hard to believe that they're even close to profitable on this hardware business so what you're seeing is one sign now of them sort of winding down their hardware business now I'm not saying that's gonna happen completely but tablets if you look at the categories of major consumer electronics devices you have smartwatches you have TV devices you have tablets you have smartphones and you know taking one of those products off of the shelf is a considerable deal and I think it's a sign of more things to come if they don't turn that business up a notch pretty soon interesting I know you'll continue to follow that one for us all right Bloomberg's mark gurmann thank you so much Gene Munster of loupe ventures you're sticking with me we're going to be talking about slack later now speaking of us-china tensions five more Chinese companies are joining Huawei in being banned from buying US products the US Commerce Department raised national security concerns over the company's role in China's efforts to develop supercomputers among those added to this blacklist the Chinese joint venture partner of the chip maker AMD meantime later Friday Huawei filed a lawsuit against the US Department of Commerce the caption of the court docket indicates the company is also suing the Bureau of Industry and security and the office of export enforcement Huawei doesn't seek damages and is looking to recover equipment seized by the United States coming up is the party still going for slack we'll look at the second day in the public eye for Stewart Butterfield and that is next this is Bloomberg slack's been a public company for two whole days now and since its direct listing Thursday shares jump well above their reference price but close slightly below their opening price today it wasn't the flashiest debut but that's what slack CEO Stewart Butterfield's that he wanted to minimize volatility so is the idea of forgoing an IPO in favor of a direct listing going to catch on Colin Stewart of Morgan Stanley thinks next year there could be as many as five direct offerings and for them that could be a good thing since only Morgan Stanley Goldman Sachs and Allen & Co have had lead roles on high-profile Silicon Valley direct listings like flack and Spotify that means fewer banks to share the pot with to discuss slack day to in the future of tech companies going public still with us Gene Munster of loot ventures and in-studio who else but Bloomberg texts ellen hewitt who's been covering five for us and to be clear there wasn't a pop on the first day the opening price was the opening price the right yes that's totally right everyone is looking at the $26 reference price and calculating the closing day and looking at a you know 48 percent pop that's not right it opened at 38 50 that's really the price we should be looking at and comparing performance to 28 the reference price no one was buying or selling at that price no one was agreeing ahead of time to buy at that price that was just something the New York Stock Exchange put out as a guide yet folks are still looking at this as positive momentum for slack gene how optimistic are you about slacks future growth I mean I'm most optimistic and partisan is this concept of future of work and they're they've been zeroing in on this communication piece and really that's the substance of why they've gone public but they have an opportunity to extend that beyond communication into work flow in terms of kind of using AI to give recommendations to people about how to use their day nudges humans instinctively become distracted and get off task and they can really evolve their platform to helping some of the efficiencies of work and so the point is simple is that there is growth opportunities new markets that slack can pursue and I think that will be good for the stock longer-term now in a way there's an irony about slack where it's called the email killer but in a way you're also more connected to work if you use slack and you use slack religiously Allen who wants more nudges as as Jeanne said and it if the goal is to sort of minimize Naja is minimize your you know sort of improve or change your connectedness to work but you're only then working more it's like really doing its job I think that might end up being a central question that we ask ourselves about slack for the next few years you know I asked a question on Twitter the other day about how people relate to slack and how it compares to email and I got a lot of interesting responses where people are just sharing how you know it's it's tough it's like the more people use slack the more it becomes the place where everyone is just asking you to do stuff and people were saying you know it's like email and and in some ways it's better but in some ways it's worse because the barrier to entry to writing a slack message is a lot lower than it would be to writing an email and so and it is this expectation of being in something you should respond to instantly and so people are having I think an evolving relationship with whether slack is actually helping them be more productive or less my sense is honestly people who use slack in a smart way are probably getting more done people who are just using it to chat or maybe not and so I feel like it falls on slack to make sure that it's easy for users to understand how to use it in a really effective way and that would probably require a lot more education on their part or really smart design so that someone who just starts using slack isn't gonna get caught up in instant messages in seven different channels and and feel overwhelmed interesting so Jeanne do you think direct listings are going to become more of the norm because to be fair they didn't actually have a pop but they did get to take home any difference between 26 and 38 50 because they didn't open at 26 they opened at 38 50 yeah undoubtedly I think this is the future I come from a background in investment banking and and can think of that as an area that is is is right for disruption there has been a decade of talk around direct listings and that has never played out the last big one was Spotify almost two years ago so what's the the message here is that this is a better instrument a better vehicle for becoming public because it achieves two things one is better price transparency which investors want and separately is lower fees which companies want because of that I think that this is an undeniable trend there are such large forces in place around the IPO process that it will take in my opinion a decade before we see half of the companies doing direct listings but this is only going to increase right you know it's hard to say this is a trend we saw one last year one so far this year we spoke with byron dieter partner at Bessemer Venture Partners who thinks that like Eugene this should become more of a trend take a listen to what he told us very few companies have attempted this and it's a small class of companies that can pull it off in the current construct but I think it suggests very good things for trying to do more of a market match for these IPOs as opposed to the pops that have happened for the other companies that one public this course Alan how are banks adapting to this what could become a trend but isn't quite a trend yet they're preparing they're definitely looking at this idea and the way that it's cashing on in the way we roll talking about it and thinking okay if we're not gonna be getting the same underwriting fees how can we set ourselves in a good position to be advising these hot companies before during and after a direct listing and so that you know you're seeing them be more involved ahead of time and after maybe trying to advise these companies on M&A and other credit facilities but most importantly during the direct listing they're coming up with new ways to get fees so Morgan Stanley for example is now the adviser to the direct market maker Citadel securities that's not really a role that Morgan Stanley was focused on playing in the past but I think they're looking at that as an important role for a bank to play if direct listings become more common gene how do you imagine this changing you know the amount of let's say M&A that happens changing the dynamic between the banks changing you know potentially the balance of power between banks and the companies they work with yeah I think unfortunately for the banks they will slowly again it will take a decade but they're gonna slowly lose some at least the the economic interest in this and well they can come up with new vehicles and they are to help continuing to get some fees from this if you look at as a whole kind of that 7% which was the golden number as the percentage of an IPO that would go to the investment banks that that pool is going to be declining over time I suspect that it will be a slow decline but undoubtedly it will decline and so how I see this played out on M&A in particular probably doesn't have as much of an impact on MA but definitely on the listing side this is going to cause a lot for investment banks to think about this is not new to investment banks of course because they've already gone through this exercise when it comes to their trading platforms having decimalisation and also automated trading which is impacted some of those fees all right Gene Munster loop Ventures always good to have you here on the show Ellen Hewitt thank you for your tireless and continuing coverage of slack just a reminder Bloomberg beta of the venture capital arm of Bloomberg LP is an investor in slack coming up Oracle is being accused of under paying thousands of women we will give you the latest in a gender pay suit seeking class-action status next AM bloomer technology is live streaming on Twitter you can check us out at technology and follow our global breaking news network tick-tock on Twitter this is Bloomberg you women at Oracle are trying to break another kind of ceiling the class ceiling three female staffers are trying to obtain class-action status for their lawsuit against Oracle over pay discrimination the women want to represent more than four thousand employees on the basis that the database giant pays men more than women to do the same jobs which would violate the California Equal Pay Act but winning class-action status won't be easy in the last two years two similar gender pay suits against Microsoft and Twitter failed to advance as class actions joining us to discuss is the AL to sh Altschuler pers and partner Jim Feinberg who is representing the women in this case you were in court this morning what happened this morning the court continued our hearing on our motion for class certification until September 9th the motion is fully briefed but a lot of evidence has been submitted so the court wants more time to read the expert reports and the declarations so what makes you think that this suit has potentially more merit than the microsoft or the twitter lawsuits or has a better chance of getting class-action status than those this is a particularly strong case both on the facts and the law our expert from the University of California has done a report saying that looking at the women in the product development information technology and support job functions and controlling for the same job code and even controlling for education and experience on average those women receive $13,000 less in compensation per year the microsoft case and the twitter case our distinguished both factually and legally those cases both involved individual manager discretion in this case oracle had a policy and practice of using prior pay to set initial pay at oracle a professor Newmark statistical analysis shows that that gender gap from prior pay led to a gender gap in starting pay at oracle that continued throughout their careers at oracle right internally if that is how pay is determined that is now a big no-no that said Oracle we did reach out to them for a statement they say this meritless lawsuit is based on false allegations and a seriously flawed process within the OFCCP that relies on cherry-pick statistics rather than reality we fiercely disagree with the spurious claims and will continue in the process to prove them false we're in compliance with our regulatory obligations committed to equality and proud of our employees what's your response to that I'm glad that they're proud of their employees but they should pay their female employees equally to the men employees for the same work they highlight the fact that the US government the OFCCP has also brought a suit against them that case will be going to trial in December of this year our case is completely independent of the OFCCP case we received Oracle's payroll data we had an independent expert review that data our expert and the and the government's expert have reached very similar conclusions having reviewed the data these are not fake facts we'll find out more in September right as you mentioned the Department of Labor has a similar case that was brought during the Obama administration against Oracle about pay discrimination they filed a similar case against Google for gender pay discrimination they've since dropped that case and historically these cases are very hard to win in part because of a ruling that the Supreme Court made in 2011 involving one and a half million wal-mart female workers that ruling that the Supreme Court made in 2011 influenced the Microsoft and Twitter decision can you get around that that ruling or could that ruling also stand in the way of your case the Duc's versus wal-mart case that you're referring to was not brought under the Equal Pay Act it was brought under Title 7 and in that case which involved thousands of Walmart stores the Supreme Court said that the decisions were made by individual managers at an individual level and that because it was individual discretion you couldn't have a class action here in contrast we have the Equal Pay Act and standard under California equal pay out is that it's the employers obligation to pay women who are doing the same work as men the same compensation here Oracle isn't doing that the cause of that disparity doesn't matter Oracle had an obligation to ensure people doing the same work were paid the same and they didn't meet that obligation we have a second claim under the California business and Professions Code which is based on this disparate impact from using prior pay and that is a common pattern and practice and therefore class certification is appropriate in our case in contrast to Dukes interesting what will be following your progress you'll be back in court in September and we will be watching Jim Feinberg representing the plaintiffs in this case against Oracle thank you thank you all right coming up he's one of the biggest names in tech design we're gonna talk to John Maeda about why he's now leaving Silicon Valley behind that's next this is Bloomberg you this is Bloomberg technology I'm Emily Chang in San Francisco as one of the biggest names in tech design John Maeda was the president of the Rhode Island School of Design became the design partner at the venture capital firm kleiner perkins and has authored several books on the subject but he's now decided to leave the world of Silicon Valley and instead compete with it head-on maite recently became the chief experience officer at the ad firm publicist sapient to help legacy companies compete with tech giants and he joins us now here in the studio so you're still working on some Silicon Valley oh I just feel that automatic leading design there but I'll transition in August to publish a sapient this is certainly a step out the door of all the jobs that you could have had why do you want to know legacy companies come with Silicon Valley I have I love startups but I also love end ups the companies that have ended up successful and they're losing to startups and I think as startups and big texts that have like controlled the world a little competition wouldn't hurt what's your take on the tech lash the sort of wave of anti tech companies I mean all the way up to the the US government happening right now I think it's completely natural because if you're here in Silicon Valley everyone understands computation the cloud the invisible world but people outside it they don't understand it so they're afraid of it here's looking rally we're afraid of it because we know what it can do outside of Silicon Valley people are afraid because it's not sure what it is so do you think that legacy companies stand a chance of competing with big tech at this point I mean it certainly seems like Apple Google Facebook Amazon they've consolidated so much power they've got a lot of money and they've got a lot of smart people even if they make some mistakes I think they can that's why I want to go this direction because the legacy companies established companies are all good at IRL they're all good at real life they're good at spaces and we're human beings we live in 3-space not just on our screens and this isn't enough there's something missing in it it's also a bit addictive and bad really so little bit so this world of the established companies working in real space there's a competency here that has to mix with the virtual so I want to see this competency get better inject computation so looking about we practices and maybe there's gonna be a way where Silicon Valley's can learn about kinetic startups can learn from end ups so particular things where you fed up with oh oh and I was fed up I'm more like there's so much knowledge here and capability here that the rest of the world hasn't caught up yet because here we speak machine outside people don't speak machine and they have biases against it without actually understanding it so that imbalance is the problem right now you're actually coming out with a book later this year called how to speak machine what do you mean by that I think here everyone understands like how code works what network works I call this kind of like Spanish for level competency but most people don't speak the Spanish of computation they don't code they don't sit around with Wi-Fi all the time so they can't actually speak machine so how to speak machine is like Spanish one for understanding the cloud so you know last time we had you on I believe was some Apple announcement and I don't love hearing your thoughts on on Apple design I know you follow the smartphone industry obviously there's a lot going on now with the us-china trade war qua way versus Apple Huawei is now being put at a disadvantage selling out to global markets outside of China Apple at a disadvantage selling into China do you think these macroeconomic issues will seriously change the hierarchy of the smartphone industry I think first of all we have to recognize that the car industry faced the same problem 1950s when cars were a commodity and they had to differentiate based upon experience so Apple took advantage of that same moment where smartphones became ubiquitous commoditized and they differentiate experience the Chinese are really good at design they're really good experience and they've built amazing systems since so I think the danger of this separation is to underestimate that the Chinese designers are actually quite good if not better in a lot of things that Apple does right now like they're most of the stuff comes from there so eventually gonna learn how to make it themselves does this mean you think like Apple could become the next Ford or GM I know those companies are working on being more tech savvy but it may be well it may be the Porsche if you think about it they're Apple's biggest challenger is Google I think because of the way they've combined hardware and software together with IB Ross leading Hardware she's the real Johnny I believe of the valley really okay now that's a controversial look out IV Ross IV Ross oh my gosh yes she's amazing okay but Google's phones and we were just talking about this earlier they've discontinued you're getting out of tablets the picture hasn't done that well I don't think but the pixels an amazing device I have both I have the X and the pixel and the pixel just has better software and so at some point it isn't about the hardware it's about the engine think about the Prius you're lucky because of the hybrid engine so that's a type of technology Apple's technology and software has lagged Google's the Google technology now that said there's an interesting wrinkle in the in the hallway story in that Google can't now update its Android operating system for Huawei Huawei could now be forced essentially to build its own operating system how big a threat is that to Google and Apple and the two dominant mobile operating system oh I think like gigantic beyond belief because I think here in US or Europe we underestimate what's happening in China China is that Wakanda of payment tech right maybe like what are you still doing that we do everything Mobile's so if that happens the difference is going to only increase should we be concerned about national security issues I think we should always be considered answers to issues but we show us a bit concern that the experience quality in China is improving on all fronts and it'd be great to learn from them partner with them now if you think someone at Google is the real Johnny eyes does that mean you think Apple isn't innovating as much as it has in the past mean what is your if what what grade would you give the pace of innovation at Apple today I would give it a B and this is coming from an Apple fanboy I had the original Apple two original macintosh the first iphone i have all the devices but competing now isn't just about the hardware awesomeness it's about the software awesomeness you don't think apple software has an awesomeness I think it's awesome but I definitely I definitely can see that Google software is so much better because Google has master of the cloud so Apple is about to unveil in September we believe a new round of phones we have reported they'll be fairly incremental in terms of design changes what does that will need to do to to kick-start innovation or get back to an a from data well I would I would also say the apples an A in privacy and that people may say about Apple's design we're looking at the fancy graphics and aluminium whatever I'd argue that the new aluminium of the Apple phones is the privacy features so that's also another thing we shouldn't overlook so I think Apple might win the people who care about privacy Google may win those who care about convenience more so let's see what happens all right fascinating stuff John good to have you back here on the show John tomato now at pulusu safety sapient chief experience officer we'll see if you can help those legacy companies change up big tech thank you coming up the tech IPO phenomenon continues as tech cannabis company a current-i hits the Nasdaq well to see you had to say about legalization next this is work you this week New York lawmakers failed to agree on how to legalize marijuana dealing a set back to Governor Andrew Cuomo's progressive agenda advocates said Cuomo in the state's legislature didn't appreciate the laws criminal justice consequences and didn't push enough for legalization the news comes the same week as the cannabis tech company a Qurna hits the public market a Kearney is a regulatory compliance tech company in the cannabis space led by Jessica bings lis wings Li she is the first female CEO to bring a cannabis company to the Nasdaq I spoke with her earlier and asked what's unique about taking a company public when it's not working on things that are always legal take a listen I think the right way to think about us is actually as a technology company that happens to serve the cannabis industry so we're we are a software-as-a-service business whose client base is participates them arguably one of the fastest growing industries in the world so what is unique about taking a tech company that serves the cannabis industry public there's just a bit more scrutiny for any company that is working and interacting with something that still has a federal state conflict here in the United States and and we certainly spent more time walking through how we enable regulatory compliance and our role which is really to serve as the backbone to the cannabis industry enabling compliance enabling regulation and enabling taxation now you're one of the earliest investors in the cannabis industry your base in Colorado where marijuana has been legalized what do you think of how the cannabis industry is taking shape it's really exciting to be part of an industry that is that is being shaped with regulation from the ground up and if you look at this through the lens of seed to sale tracking which we invented and you think about the level of transparency and accountability that we have in cannabis that has applications to any agricultural product really to anything that we put on or in our so for instance if you remember the romaine lettuce scare that we had a couple months ago where nobody knew where the contaminated romaine lettuce was if that were cannabis we would have been able to tell you where every package of lettuce was and if it had been sold on what day at what location at what time and and if it was medical – what person so legalization recently stalled in New York in New Jersey do you expect other East Coast states to get involved in the debate I think it's a matter of time it's not really a matter of if it's a matter of when and we do believe that we'll see movement again in both New Jersey and New York I personally predict that that New Jersey will probably edge out New York in terms of being the the first to legalize here well not the first to legalize in the mid-atlantic but the first of this highly concentrated metropolitan area to legalize what about on the federal level do you expect the situation there to change I do at some point in time the federal state conflict needs to end in some way so currently 33 I think it's the number out of out of our states have legalized so that it's overwhelmingly a majority they've legalized cannabis in some capacity and we do have a couple pending bills that could substantially change the the federal-state conflict in particular at the states Act which President Trump has publicly said that he would support if we were to see that pass that would give the states the ability to legalize and regulate cannabis and we think that's that's likely sometime in the next year that was a courtesy oh Jessica Billingsley well autonomous cars are only as good as the human drivers they learn from so the people who teach these systems need to be excellent drivers themselves bloomer techs Aki Ito recently joined two vehicle operators who work for self-driving car startup Aurora on a test drive in the chaos of downtown San Francisco every year more than a million people in the world die in road traffic accidents and many of those fatalities are caused by us by the mistakes we make as drivers but there's a solution and it's to relinquish control of the wheel to a computer we've dreamed about it for decades and now we finally have the technology to get us very close the rest is up to these two they're teaching autonomous cars how to drive my name is Anita Landy my name is Steven Lin and where autonomous vehicle operators Daniella and Steven work for start-up called Aurora and they're part of a team of about two dozen specialists who drive the company's fleet of self-driving cars on the roads of Pittsburg Palo Alto and here in San Francisco Aurora software learns from their expert example so to get this job they had to be excellent drivers to start with I went to go see Daniella and Steven at their office in San Francisco founded in 2017 by engineers from the early autonomous vehicle projects at Google Tesla and uber Aurora is developing technology to power self-driving cars and so far it's signed deals with automakers including Volkswagen and Hyundai Daniela and Steven have invited me here to be the very first reporter to sit in the back of one of their self-driving cars is ready up here we are ready okay we're engaging now we're in Auto back in the car ahead stopping so the car right now is stopping on its own it's stopping on its own a spanking is making decisions this is really cool getting to see what the car sees yeah what are these yellow boxes the yellow boxes right there is that as a bicyclist so it's so the car recognizes that this is a bicyclist and if you see these kind of blue boxes that means the vehicle recognizes it as a vehicle and the red boxes are pedestrians exactly you're hired Aurora's operators take turns as pilots and co-pilots of the cars today Daniela is a pilot I'm looking at everything I'm thinking about everything planning for everything the car decides to bail out in the middle of the intersection what am I gonna do see how her hands are ever so slightly touching the wheel her foot hovering just above the brake she's ready to take over in a fraction of a second whenever she or the car senses she needs to oh and I took over the car saw something that was not accurate and it gives me control as Daniela's copilot today Stephens job is to keep an eye on his laptop that shows what the car sees getting a false positive on the left flickering he alerts Daniela to the things she might not see with the naked eye and prepares her for what the self-driving system is about to do next it's gonna want a left lane change as the copilot Stephen is also taking notes on when Daniela needs to intervene later on the engineers will pour over the Stata so they can figure out what went wrong this is all part of the painstaking process of teaching a computer how to drive is it brain it's a little baby brain that learns that you have a drink older than my baby robots [Laughter] because we're teaching them that was Bloomberg Tech's Aki Ito still ahead Silicon Valley you may have some new competition how one company is bringing tech to California cities like Fresno and Bakersfield you in 2013 bitwise industries launched with the mission of bringing tech to the agricultural city of Fresno California since then the startup has launched a coding school repurposed 250,000 square feet of real estate for tech tenants and produced more than 1,000 new software developers now it wants to support other underdog cities the company announced its raised 27 million dollars in its first big funding round with plans to expand to Bakersfield and other cities where opportunities in tech are lacking joining us to discuss bitwise industry CEO and co-founder firma Oakland Junior Irma thank you so much for joining us so to be honest I had no idea that you were doing this kind of work in Fresno when we talk of you know underdog cities we talked about Austin we talked about Detroit but really there are so many cities out there that that could have something to gain from this you do a lot of different things you've got a coding school geek wise Academy you're doing commercial real estate talk to me about how this all fits together yeah sure so we think that the solution for innovation and really staffing the next generation of the technology workforce is going to be found in places like Fresno and Bakersfield their underdog cities and they're all over the United States so sure we teach people to code but with an emphasis on how do you reach the people who haven't previously been invited to this segment of the economy so entering into the technology industry then we give them a sense of place so they don't feel inferior and the places in which they live actualize it actualizes the experience of being a technologist and then we prove it with the work that we do by shipping world-class software from these places what kind of students are these I mean are these college students are these mid-career yeah generally they are non mature non matriculating students so maybe retail workers some of them like myself have come from the fields of California and other cities so these are the folks who definitely have something to offer the technology industry when they're given the chance to do so but maybe haven't been given that chance tell me how you found this your story yeah I think I think that a lot of what bitwise does and is is is best understood through the lens of my life I sort of accidentally ended up as the CEO of a technology company that's raised a bunch of money no it's a lot of hard work to do but it's really a lot of things that had to line up just perfectly to make that work and so when you kind of reflect on that you think it doesn't have to be so accidental we can be more deliberate about the opportunities we put in front of young people that can change their lives so you're gonna use this money to expand what are the other cities that you would consider truly underdog cities yeah we've sort of loosely defined what we think and understood underdog City looks like Bakersfield is the first one that we have landed on to expand to sort of prove that out but there are other places you might think of throughout the United States places like El Paso Milwaukee Tucson places where you would find a density a person that would support the technology industry and where that opportunity would have a huge impact on the local economy so what's the success rate of the students that you have taught I mean where are they going to work are they you know a potential new source of talent for big tech companies and that's the goal yeah so 80% of the students who enter into enter into our career programs earned technology employment which it has a huge impact on the local economy ninety percent of those students want to stay where they live right where they want to stay home that doesn't mean that there isn't opportunity for big tech to start to swoop them up especially if you have this lens of diversity and inclusion that's where you're gonna find these people these people are gonna come out of underdog cities they're going to assist in sort of making the diverse and inclusive technology workforce that's sort of missing out in these other primary markets so how diverse is this crop of students we're talking about 50% female 50% minority 20% first-generation the demographics of our students that enter into the technology workforce match the demographics of our county as it should be so how quickly do you think you can expand I mean I imagine you're based in Fresno you got to come to Silicon Valley you got to go to New York to raise money that's not easy in a place where you know well this are days yeah don't look typical that's exactly right it was it was a long road but we did close the 27 million dollar series a which is a huge milestone for us for females for the technology industry as a whole that money is going to help us grow faster and then see what's next so how do you imagine let's say you know I think there is so much focus on metropolitan areas but how do you imagine the tech industry might or will look different and let's say a decade as a result of what you're doing as a result of this new sort of movement yeah I think what's important to recognize is that we have all of these currently unfilled jobs in the technology industry and we're not graduating enough CSMA majors to fill them so they're gonna have to come from somewhere else where are people looking right now we think we have the solution to that and we think we can change the face of that workforce in the next five to ten years all right really glad to hear about the work you're doing bit why CEO and co-founder OMA Oakland jr. thank you so much for joining us q and that does it for this edition of Bloomberg Technology we're live on Twitter check us out there at technology it's Friday have a wonderful weekend we will be back here on Monday you

6 Comments

  1. Mark Freeman said:

    I generally find these shows informative, but, ….Can we please focus on business and technology? Tired of the constant politcal narrative of equity and diversity being pushed.

    June 27, 2019
    Reply
  2. Mark Freeman said:

    I bet if you surveyed men within Oracle, they would all say they should be paid more and that the men at the top do not deserve more than them.

    June 27, 2019
    Reply
  3. Mark Freeman said:

    Understand: If Oracle could pay women less for the same job as men, then they would only employ women. Repeat, they would only employ women.

    June 27, 2019
    Reply
  4. Arturo A said:

    We don't want a trade deal with China, we want our jobs back!

    June 27, 2019
    Reply
  5. hotoun ton said:

    Bring Apple production back to America! MAGA!

    June 27, 2019
    Reply
  6. Mthwakazian Mthwakazian said:

    Amanda Chang should know that the viewers of Bloomberg Technology newscast aren’t happy. You post late. Let’s all show our disapproval by disliking (thumbs down πŸ‘ŽπŸΏ) no more likes (thumbs up πŸ‘πŸΎ)until our demands of timely posting of newscasts are met.

    June 27, 2019
    Reply

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