how does google overcome those kinds of challenges? >> google is not laying pipe here. they already have fiber to the home here. they don't have to do all of the work. they have been selective about the things they're working with. kansas city had to give up a lot to do this. dedicated workers and staff, salaried employees. they had an expedited process to use city infrastructure to get these things out. google is selecting places where they can get this rolled out in the most simple way. the customer service numbers for google have been strong. time warner cable is the only company worsen comcast when studies have been done on customer service. i think they will be selective in the markets they go into, places where they can make a difference but also get it done quickly. if they do 34 cities you will look at a substantial business where they have nearly as many customers potentially as a comcast. >> i was reading yelp reviews on fiber in kansas city and they are mostly positive. what about the regulatory issues? the fcc could make a ruling and change everything, chang

. >> it's not just google. it's facebook, it's the whole internet, which is changing the nature of news distribution med medi media distribution. >> this is a story going back four years to when the european parliament began to make noise business google. the e.u. has a bundle of concerns about google and the other tech giants. it is talking about unbundling. >> google and the e.u. have been at ads for a long time. you can go back to the street view incident where google was gathering data without telling anyone. it stems from different conceptions of privacy in the e.u. and the united states. the united states generally try to underregulate. whereas the e.u. tend to be a little more focussed on very specific regulations. >> the second subject is about tax avoidance. it's not unusual, but many american companies and the digital environment aggressively using these systems, and finally, and one of the major subjects is the antitrust. there's a big antitrust inquiry made by brussels for the past four years, and t

not just google that's a search giant. youtube, the second largest search engine in the world and an advertising powerhouse, but, boy, has it come a long way since it launche 2005. julia boorstin joins us, as reports surface, youtube launch as premium music service, julia? >> absolutely right. youtube's music videos are already one of the biggest sources for online free music in the world. android reporting the company will launch youtube music key for a moshgs it's working on a premium music service to make it easier to listen on mobile devices and off-line. using it to cash in on music show, how far it's gone since buying the company in 2006. plagued by questions thousand would make money back then. advertisers wears of homemade videos many of which violated copyrights. viacom sued them for a billion dollars in a case eventually settled out of court. now youtube is a cash cow generating an estimated $7.2 billion in ad revenue with $1 billion monthly view, 40% on mobile devices. a turnaround from when it was media's compa

he cofounded google x, google's innovation laboratory. he helped launch broadband balloons to connect to the internet through the stratosphere. now, sebastian thrun is on to his greatest ambition yet, democratizing a higher education, by sharing knowledge with people that can't afford it, via the internet. joining me on "studio 1.0," inventor, professor, and founder, sebastian thrun. i thought we could start our interview wearing google glass because you have been a big part of it. how often do you wear these? >> mostly outdoors, out and about. with my kids. when i go bicycling and hiking. >> what is the most surprising thing you have done wearing google glass? >> you know, i had this ambition to make a device that you can wear all day. in every situation. and, it is, for me, it is awkward in a personal conversation. this is something that excites me much more when i'm out and about. >> there is a stigma against wearing google glass. there is a word for it called "glass hole." >> i think it is a new technology, and i remember there used t

we're going to do google past, google present and google future. i have three people who helped build google into the tech giant it is today. one of them developed google's maps and the google map cocreator. and the former group product manager joins us. operatingrmer chief officer from google europe and the ad knowledge ceo. you were the one who was not there at the time of the ipo. in the advertising business, what did people think of google 10 years ago when it emerged on the scene? >> 10 years ago, google was really misunderstood. selling things based on clicks and pricing per click and understanding the economics of digital advertising was something people were not used to doing. google did not just had to invent an ad unit, they had to think differently in terms of our ally and digital. >> you were there at the time of the ipo. we're always talking about products and ipos and the stock market and stuff. was a fairly amazing moment but what do you think the world lot of google let that time? >> hombres went public a little bit earlier with les

i google, we massively encrypted are google servers for the technical which is 2048 long which is much larger than the original 1024. it is many times bigger. it is generally thought it is to be unbreakable by human beings in a lifetime. i believe that if you have important information, the safest place to keep it is google. the safest place to keep it -- to not keep it is anywhere else. the levels of the chinese attack and whatever you want to call it. it has affected our relations and in particular conversations in europe. it also caused us to tighten every procedure in our system. we are just a lot safer. >> assuming there is a financial cost or immoral cost, would you blame for that? the u.s. government or edward snowden? >> i would like to offer a rule of surveillance life. just because you can do something doesn't mean you should do something. the fact of the matter is that all of the technologies we are describing that are massive in the wrong of the right person. everybody here has a mobile phone. everyone is on a mobile data network. your phone knows where it is. there are eno

and but also, to let you know that google is doing this without any strings. and this is really good and, they agree with us, that things can be done in a public, private partnership with the city, and that a lot of the things that we tried in the past will be complicated and we put off too much, and we asked and now we will do it at the portions where we can get things done and really set the example. and this is one of 32 sites in this city, that are getting free wi-fi with this partnership. and this is not just being the partnership and the google has been around for a long time and they are already have funded our low income youth and that is a tremendous help and you can see a lot of youth these days and some of them that don't even know, and so for free for google and sometimes i will remind them when they are getting off the muni and how is the google doing and we need to realize that these are relationships that we are building with the community and these are precious relationships and that is why we also have our technology department and our recreat

giant like google or some thing? >> small googles, that will be fine. that requires marketing reach. you bring people and they develop these startups. it used to be that if we sail at $100 million, they were wildly successful. now it can be a few billion dollars. i not sure there is a cure for that. i'm not going to legislate and tell them you cannot do that. it seems to be our lot to keep on producing these mushrooms. but if somebody else takes the mushrooms, that is ok. to develop our marketing reach eventually of big companies. it has happened with several of our companies. overall, israel is the laboratory of the world, i would say. the laboratory of innovation. >> is there a concern about currency issues as the acquisitions get bigger and bigger? do you think about that as former finance minister? >> yeah, you just make the gdp a lot bigger. >> you're well on your way to that. thank you very much. >> what was your biggest take away from that interview? >> you know, i think numbers of how big this tech scene is given the small size of the country an

so maybe two people at google would know about it. you look at it on its face, it looks like it relates to national security, so you comply. >> narrator: finally, in 2013, google did challenge 19 nsls. by that time, the fbi had withdrawn merrill's national security letter after an appeals court ruled it unconstitutional. >> i think that they were afraid that we would make it to the supreme court and they were not 100% certain that they would get the answer that they want. >> the fbi dropped its request, but what's interesting is that he's still not able to talk about exactly what they requested other than that it was information. and he says that if we knew what had been requested that we would be shocked. >> narrator: the big internet companies had different priorities. at the same time as the government was expanding its intelligence gathering, the companies were trying to find out as much as possible about their users, amassing huge data troves. the nsa was watching. >> these companies are in a very difficult spot because the types

why this and why now from google? >> google did a couple of these inventions last year. they had not spoken about the entity doing the investment. we knew he was leading the group came out of corporate development with google and has been running the group. this is formalizing it and talking about the money, $300 million this year from google and introducing the entity to the world. >> three different companies invested so far. at this stage, what kind of clues do you glean from that about the focus? >> the companies have an established business model and they know what they're doing. with theirn come in capital and a big check with strategic possibilities to help scale the business and help with marketing, basically using google's resources to make it work better. inst does this put google competition with private equity firms? >> it can. they will call it co-op addition, where they will be competing with deals but also investing together. google also has the relationship with the bp firm and google capital has that relationship. why would youy, want money from a google

what about google? google is experimenting with a lot of different businesses like this one. >> yes. it really aligns with a lot of their strengths. , they had atwork sense of their own internet act on for much of the country. once they own that, sending files around the town, sending e-mails back and forth, it essentially cost them nothing. to get to geek out, but essentially, google has an arrangement with the owners of networks,pieces of where they're buying capacity for biggest is ever. a lot of the time, because they're buying -- vying for the peak moment, they have unused capacity. this gives a chance to use the unused capacity with what they are ready buying for youtube and other things in a way that few of the companies could possibly do. maybe apple and maybe amazon and maybe that is the list. >> interesting. i wonder if apple and amazon will respond in any way given going into is uncharted territory here. book,er wrote a wonderful one up on wall street. he spoke about one of the reasons when h

google fiber in provo. attempt tor is an jumpstart internet service to unprecedented speeds. your typical cable modem, 10 megabits per second. who will fiber, 1000 megabits per second. fiber is faster than verizon's files -- fios. competitors google is leaving in the dust, centurylink and time warner cable. google fiber started in kansas city and 2012. now it is in provo and coming soon to austin. google wants to bring the service to 34 more cities. ting-edge modems cabled right into each customer's home. it will cost google as much as $900 per household. if google builds it, will customers come? 15 million atv customers will come, giving google fiber nearly as big a customer base as comcast's 24 million. >> google's expansion plan for fiber could threaten certain cable providers. let's talk about that. in austin, plans have been slowed down by at&t. they are saying, you cannot run your fiber of our telephone poles. we were here first. when were talking about this potential comcast-time warner -- just ase c

so here comes google. they've got the energy they've got the technology, they've got the money and they said: we will do it for you. free >> about 10 years ago, i got a visit from a vice president of google. and she walked into my office and described a project that google had in mind, which was to digitize all the books in the harvard library. my first thought was - to put it bluntly that maybe they were smoking something, because i didn't think it was possible. >> when you actually negotiate with google...umm.. and do so on their turf, you enter a strange world. a google office doesn't have chairs like this chair. the furniture consists of large inflated balls that are colored green or red or yellow and the young google engineers are sitting on these. it's a kind of never-never land feeling. >> google is a company that believes in its fundamental mission of empowering everyone in this world with all the information they need. from a farmer in africa to a mother in india to a business person in japan, eve

i would not be able to survive a google software engineer interview. >> if google would not hire you, who are they hiring? >> they have a fantastic number of applicants. over 2 million people are applying. they can pick and choose the very best. >> is this part of what inspired udacity? >> what inspired udacity is my history of learning. i want to learn by doing. i want to learn how to build a self driving car so i built one. i don't go to school to hear a professor talk about it. >> peter teal is encouraging people not to go to school at all. to start companies instead. >> i am not advising anyone to skip college. we think of learning as a lifelong project that we do. we have companies like google and facebook and many others sending instructors to us. >> all of the classes are online. >> everything is online. >> how much do they cost? >> they are free. you can go to each class and take it for free. if you care about a mentor and feedback and the certificate, you pay 150 bucks a month. we are launching a nano degree. >> will apple, google hire me? >> at&t has already earmarked jobs s

but apple and google do. apple through their software controls all of the applications and content that people see on their i-phones and google through its android software on tablets and phones and increasingly other devices controls all of the content and software that appears on those devices. it seemed akin to the way microsoft controlled the pc industry in the '80s and '90s that these companies would exercise similar control over the mobile eco systems that was one notch above what everybody else was doing. you know, in the 1990's many of us have forgotten but microsoft controlled all of the software on the pc and especially controlled the desktop. and there were fights against aol and net scape to get prominent placement on the desktop home screen whernever yu turned on your computer. i remember the fights in the late 1990's, the fights that aol and microsoft had over where aol's icon would be when you turned on your computer that was controlled by microsoft. and aol was a big and powerful player at tha

as we look back at google, three men who played a key part in building google maps and google calendar. brent taylor, former group product manager and shadow puppet ceo, and a former coo, ben leg. i started by asking off how the world saw google as they prepared for their ipo 10 years ago. >> google was really misunderstood. selling things based on clips, prices percolate, understanding the economics of digital advertising was not something people were used to. they had to educate the market on how to think differently in terms of roi and digital. >> you are there at the time of the ipo. we always try to talk about products but it was a fairly amazing moment for the world. what do you think the world thought at that time? >> companies went public with less information known about them then because there was not a well-developed secondary market. how they are doing multibillion-dollar financing that was not available. when google went public it is the first time they saw the business. >> i was covering it for another network at the time and the numbers were just phenomenal. 170% year-ov

. >> i use google for everything. >> google docs. >> the drive and google documents. >> almost all the things are coming in google. >> have an apple phone, but i still use the google software because the maps are better. >> reporter: there are 3.5 billion searches every day but more to google than meets the eye. >> navigate to the golden gate bridge. >> reporter: if you have a smart phone, chances are you're using android. google's operating system. android will run on 80% of smart phones sold this year according to idc. been to youtube lately? google bought that company in 2006 and generates an estimated $5.6 billion in gross revenue per year and thanks to google, the days of paper maps and those gps units are long gone. so what is next for google? at the company's developer's conference in san francisco earlier this summer, google said it wants even using the operating system, whether at work, at home or in their cars. for "nightly business report", i'm josh lipton in mountain view, california. >> paul meeks has been a big believer of google and its stock. he's portfolio manager and

of google voice. we'll talk to him about that, next. ♪ >> this is "bloomberg west." streaming on your phone and tablet. google offers businesses services like file storage, video conferencing and email, but it doesn't have a business phone service. enter the creator of google voice and switch communications offers cloud-based services using google apps. sort through a host of analytics. craig walker is here with me. you are saying my work can find me anywhere i am. i have no breaks? >> the way it works, it's not a place you go to from 9-5 but something you are doing 24 hours a day anywhere in the world on any device that you want to be using. so the idea of having a company phone system that's built around a phone sitting on a desk waiting for you to be there to answer it, just doesn't make sense in 2014. >> i have a voicemail on my desk phone that says don't leave a voice message. this is a hole in google's offering. how is it, though? >> the google enterprise apps are moving businesses to the clou

google revealed an updated operating system, android l. we are waiting for go pro to price its initial public offering at any moment. their best-known for making cameras that people wear doing anything from skiing to biking to kayaking. the range, the company has been marketing as not just a camera maker but a media company. paul kedrosky joins me. i went snowboarding this winter, and i was amazed at how many people were writing with these go pros. >> it is stunning. the thing that is changed over the last 2-3 years, the go pro phenomenon is not new. what's new is people having 2-3 at once. you will see someone have one board to their board, mounted to their chest him on top of their head. you have people who used to be an owner, suddenly have four or five of them for a single i david e. that is a remarkable shift. >> it is fairly amazing. i have been on so many shoots, we had go pros out in the water. i presume the ocean is littered with tens of thousands of lost go pros. while this is a startup, it is a profitable business with high gros

do these trends hurt google more than facebook? >> i think google is in a tough spot. they have a gigantic cash machine in search. they have really done well. investors believe in that strength. they have to keep that running and keep that printing money, and at the same time transition to an entirely new way of advertising and helping users buy and sell things. that is really hard for big, slower companies. younger startups are basically able to move much faster. google will be challenged in the next years to really continue the growth it has had. >> google has made a big acquisitions, facebook has also with oculus, and a drone company, google buying a drone company, a lot of robotics companies. paul, are the moon-shots and acquisitions hurting google's bottom line? >> when google became public, they said, listen, a certain percentage of our expenditures both and operating expenses will be for moon-shots. we will have speculative investments. larry, sergey brin have said that from the day one. some of these will pan out, some will not. google, it is part of their stra

you aboutto talk to how you became a guy who was wearing google glass who helped invent google glass. you were born in germany. tell me about your parents, how you grew up? >> i had a very happy family. my brother, my sister, i was youngest. i wasn't really planned. the result was that i ended up spending a lot of time in my own. i played alone a lot and i made my own rules. for example, when i was in the seventh grade, i made myself a challenge to never ever do homework again. i would copy from my fellow students and i made it all the way through high school diplomas. was was a challenge and i skeptical towards any sort of fixed set of rules. >> when did you learn how to code? >> when i was 14 or 13, i saved all of my money to buy a programmable calculator. i would sit there all afternoon. doeven though you did not your homework, you racked up right a few degrees for a guy who is trying to disrupt education. you have a degree, a master's degree, and a phd. >> i felt empowered to make my own decisions. >> you are considered a godfather of artificial intelligence. how did you gravitate

google or alibaba? channing smith ways in, he's portfolio manager at capital adviso advisors. i know you favor google. tell us why, make the case. >> well, i think one of the things you have to look at and kind of looking at germany and brazil today, i kind of like in google to germany. they are very controlled and play possession type of game. if you look at google search, they have 70% of the desktop market and 70% of the mobile market. this is bread and butter but they also are able to set up opportunities in other areas. if you look at mobile advertising, this is an $8 billion business growing. we think it can double or triple. they have youtube, which is an enormous franchise, if you look at views, page views over the last year, it's up 50%. we think that this could be, you know, a $5 billion business this year, probably triple. they have a number of google payments, they have all types of different businesses that can grow revenues and earnings going forward. >> there is bound to be tremendous exc

i came up with this man, google x. -- name, google x. they came up with this project. we got our very first prototype. >> it was a backpack. >> then we strapped cellphones to my glasses and my nose would get crushed. it took a whole bunch of iterations to make it something you can actually wear a normal life. >> some of the other projects, the effort to connect the world through balloons that are in the atmosphere. >> that is another one of these crazy moonshot that you have to be a believer to even attempt it. this idea came up that they could actually launch balloons. and detached sunlight like andpment to balloons -- attach sunlight like equipment to a balloons. the downside of this, they are exposed to wind. >> what is the potential? >> the internet is up in the air and they have the balloons over a set of very low cost that provide unprecedented bandwidth and coverage to places they would never get coverage today like the center of africa. or the ocean. this is to make a level playing field. >> facebook is trying to connect the world in different ways. who wins, g

aaron kessler, google, let's start with google first of all. we were looking to try to find that charge for, for their sale to lenovo of motorola mobility. have you seen that anywhere, aaron? we can't find it. >> i don't think the deal is finalized. we won't see the charge until the deal is finalized. david: was that is surprise, to you, aaron they did it so suddenly or appeared to be so suddenly? >> terms of the sale it was a little bit of a surprise. if you go back couple years everybody thought the real purchase was the paterson portfolio which they are keeping. -- patent portfolio. they don't want to compete against eom manufacturers versus provider of software which they are through the ecosystems. not a huge surprise. david: adam shapiro, are you able to find anywhere, any mention of the sale to lenovo? >> not yet. thing i'm looking at, david, some analysts going into the report were talking about the fact that 68% of the google revenue comes from google websites and related situations. one thing you have to remember, with the smartphone

we see in san francisco the google shopping vans and the google trucks in our streets. if you could make three or four stops in one neighborhood on your morning run, the math does work. >> made it is not going to happen in the suburbs of cleveland. i think there is a profound change in america. i was walking to church on sunday and i saw a mail truck. on a sunday. what is a truck doing? it was filled with these amazon boxes. >> i am jumping for joy every time i get a box from amazon on sunday. it is awesome. >> i wonder if google is just new lean around. >> they are trying to protect their core franchise which is search. they have moved to counter amazon. amazon has infiltrated a lot of google areas. >> the new york store looks like it will be a pickup center. the pop-up stores they have been doing for a couple of years in san francisco. they have a tablet and a phone. they want to be able to show them to customers. >> apple and facebook are going to start paying for their female employees to freeze their eggs. is this a move to encourage them to have children or to del

it doesn't mean google is getting out of hardware. the focus will be on two emerging markets, wearables and home automation. google glass the compute earized internet connected glasses. >> they remove friction between users and internet applications they want. >> page says another priority is home markets. google recently bought nest labs that build thermostats to create a customized temperature schedule. a dynamic company like google should invest in all kinds of industries to get a foothold in the next hot sector. there are all risks. >> when their core business slows down, if it starts growing below the 20% and the company is still layering expenses faster than revenue, you go from exceptional to more of an average company. as google's revenue has slowed down they have not tapered their expenses. they are growing faster than revenue. for a company that size, that's not a trend you like to see. >> analysts expect google to continue on its continue acquisition path in putting its $56 billion cash hoard into what the company sees the

>> you helped found google x, >> you helped found google x, the moonshot factory. how did that come about? >> i drank the kool-aid. i was at the point where i waved away all be skepticism and said just do it and see what happens. it turns out that the leadership, they are kind of the same personality. they said, absolutely yes. i came up with this name, google x. they came up with this project. we got our very first prototype. >> it was a backpack. >> then we strapped cellphones to my glasses and my nose would get crushed. it took a whole bunch of iterations to make it something you can actually wear a normal life. >> some of the other projects, the effort to connect the world through balloons that are in the atmosphere. >> that is another one of these crazy moonshots that you have to be a believer to even attempt it. this idea came up that they could actually launch balloons. the downside of this, they are exposed to wind. >> what is the potential? >> the internet is up in the air and they have the balloons over us at a fairy low cost that provide unprecedented ba

google has had a pretty big presence here. it's not just about google. it is about every american service around the world and product. if we're creating phones that have inherent insecurities, we're creating flaws in our standards and protocols that every interoperable system relies upon, we're weakening the basis of our modern economy, because america relies more on the internet for productivity, for trade, for economic gain and comparative advantage than any other nation on earth and, yes, it may give us some sort of comparative advantage in spying on china, once they discover it, they'll be able to use the same thing against us and even if not them, even if it's latin america, russia, france, and they begin to do the same thing, we quickly learn that being able to spy on other country, particularly based on how we restrict the uses of the product of intelligence, for example, the american government is very fond of saying recently that we don't give economic secrets to private companies, we find out that the benefit of having secrets on other countri