>> Announcer: From Milpitas, California, at the edge of Silicon Valley, it's The Cube. Covering autonomous vehicles. Brought to you by Western Digital. >> Hey, welcome back everybody, Jeff Frick here with the Cube. We're at Western Digital in Milpitas, California at the Auto Tech Council, Autonomous vehicle meetup, get-together, I'm exactly sure. There's 300 people, they get together every year around a lot of topics. Today is all about autonomous vehicles, and really, this whole ecosystem of startups and large companies trying to solve, as I was just corrected, not the thousands of problems but the millions and billions of problems that are going to have to be solved to really get autonomous vehicles to their ultimate destination, which is, what we're all hoping for, is just going to save a lot of lives, and that's really serious business. We're excited to have the guy that's kind of running the whole thing, Derek Curtain. He's the chairman of the Auto Tech Council. Derek, saw you last year, great to be back, thanks for having us. >> Well, thanks for having me back here to chat. >> So, what's really changed in the last year, kind of contextually, since we were here before? I think last year it was just about, like, mapping for autonomous vehicles. >> Yes. >> Which is an amazing little subset. >> There's been a tremendous amount of change in one year. One thing I can say right off the top that's critically important is, we've had fatalities. And that really shifts the conversation and refocuses everybody on the issue of safety. So, there's real vehicles out there driving real miles and we've had some problems crop up that the industry now has to re-double down in their efforts and really focus on stopping those, and reducing those. What's been really amazing about those fatalities is, everybody in the industry anticipated, 'oh' when somebody dies from these cars, there's going to be the governments, the people, there's going to be a backlash with pitchforks, and they'll throw the breaks on the whole effort. And so we're kind of hoping nobody goes out there and trips up to mess it up for the whole industry because we believe, as a whole, this'll actually bring safety to the market. But a few missteps can create a backlash. What's surprising is, we've had those fatalities, there's absolutely some issues revealed there that are critically important to address. But the backlash hasn't happened, so that's been a very interesting social aspect for the industry to try and digest and say, 'wow, we're pretty lucky.' and 'Why did that happen?' and 'Great!' to a certain extent. >> And, obviously, horrible for the poor people that passed away, but a little bit of a silver lining is that these are giant data collection machines. And so the ability to go back after the fact, to do a postmortem, you know, we've all seen the video of the poor gal going across the street in the dark and they got the data off the one, 101 87. So luckily, you know, we can learn from it, we can see what happened and try to move forward. >> Yeah, it is, obviously, a learning moment, which is absolutely not worth the price we pay. So, essentially, these learning moments have to happen without the human fatalities and the human cost. They have to happen in software and simulations in a variety of ways that don't put people in the public at risk. People outside the vehicle, who haven't even chosen to adopt those risks. So it's a terrible cost and one too high to pay. And that's the sad reality of the whole situation. On the other hand, if you want to say silver lining, well, there is no fatalities in a silver lining but the upside about a fatality in the self-driving world is that in the human world we're used to, when somebody crashes a car they learn a valuable lesson, and maybe the people around them learned a valuable lesson. 'I'm going to be more careful, I'm not going to have that drink.' When an autonomous car gets involved in any kind of an accident, a tremendous number of cars learn the lesson. So it's a fleet learning and that lesson is not just shared among one car, it might be all Teslas or all Ubers. But something this serious and this magnitude, those lessons are shared throughout the industry. And so this extremely terrible event is something that actually will drive an improvement in performance throughout the industry. >> That's a really good, that's a super good point. Because it is not a good thing. But again, it's nice that we can at least see the video, we could call kind of make our judgment, we could see what the real conditions were, and it was a tough situation. What's striking to me, and it came up in one of the other keynotes is, on one hand is this whole trust issue of autonomous vehicles and Uber's a great example. Would you trust an autonomous vehicle? Or will you trust some guy you don't know to drive your daughter to the prom? I mean, it's a really interesting question. But now we're seeing, at least in the Tesla cases that have been highlighted, people are all in. They got a 100% trust. >> A little too much trust. >> They think level five, we're not even close to level five and they're reading or, you know, doing all sorts of interesting things in the car rather than using it as a driver assist technology. >> What you see there is that there's a wide range of customers, a wide range users and some of them are cautious, some of them will avoid the technology completely and some of them will abuse it and be over confident in the technology. In the case of Tesla, they've been able to point out in almost every one of their accidents where their autopilot is involved, they've been able to go through the logs and they've been able to exonerate themselves and say, 'listen, this was customer misbehavior. Not our problem. This was customer misbehavior.' And I'm a big fan, so I go, 'great!' They're right. But the problem is after a certain point, it doesn't matter who's fault it is if your tool can be used in a bad way that causes fatalities to the person in the car and, once again, to people outside the car who are innocent bystanders in this, if your car is a tool in that, you have reconsider the design of that tool and you have to reconsider how you can make this idiot proof or fail safe. And whether you can exonerate yourself by saying, 'the driver was doing something bad, the pedestrian was doing something bad,' is largely irrelevant. People should be able to make mistakes and the systems need to correct those mistakes. >> But, not to make excuses, but it's just ridiculous that people think they're driving a level five car. It's like, oh my goodness! Really. >> Yeah when growing up there was that story or the joke of somebody that had cruise control in the R.V. so they went in the back to fry up some bacon. And it was a running joke when I was a kid but you see now that people with level two autonomous cars are kind of taking that joke a little too far and making it real and we're not ready for that. >> They're not ready. One thing that did strike that is here today that Patty talked about, Patty Rob from Intel, is just with the lane detection and the forward-looking, what's the technical term? >> There's forward-looking radar for braking. >> For braking, the forward-looking radar. And the crazy high positive impact on fatalities just those two technologies are having today. >> Yeah and you see the Insurance Institute for Highway Safety and the entire insurance industry, is willing to lower your rates if you have some of these technologies built into your car because these forward-looking radars and lidars that are able to apply brakes in emergency situations, not only can they completely avoid an accident and save the insurer a lot of money and the driver's life and limb, but even if they don't prevent the accident, if they apply a brake where a human driver might not have or they put the break on one second before you, it could have a tremendous affect on the velocity of the impact and since the energy that's imparted in a collision is a function of the square of the velocity, if you have a small reduction of velocity, you could have a measurable impact on the energy that's delivered in that collision. And so just making it a little slower can really deliver a lot of safety improvements. >> Right, so want to give you a chance to give a little plug in terms of, kind of, what the Auto Tech Council does. 'Cause I think what's great with the automotive industry right, is clearly, you know, is born in the U.S. and in Detroit and obviously Japan and Europe those are big automotive presences. But there's so much innovation here and we're seeing them all set up these kind of innovation centers here in the Bay area, where there's Volkswagen or Ford and the list goes on and on. How is the, kind of, your mission of bringing those two worlds together? Working, what are some of the big hurdles you still have to go over? Any surprises, either positive or negative as this race towards autonomous vehicles seems to be just rolling down the track? >> Yeah, I think, you know, Silicone Valley historically a source of great innovation for technologies. And what's happened is that the technologies that Silicone Valley is famous for inventing, cloud-based technology and network technology, processing, artificial intelligence, which is machine learning, this all Silicone Valley stuff. Not to say that it isn't done anywhere else in the world, but we're really strong in it. And, historically, those may not have been important to a car maker in Detroit. And say, 'well that's great, but we had to worry about our transmission, and make these ratios better. And it's a softer transmission shift is what we're working on right now.' Well that era is still with us but they've layered on this extremely important software-based and technology-based innovation that now is extremely important. The car makers are looking at self-driving technologies, you know, the evolution of aid as technologies as extremely disruptive to their world. They're going to need to adopt like other competitors will. It'll shift the way people buy cars, the number of cars they buy and the way those cars are used. So they don't want to be laggards. No car maker in the world wants to come late to that party. So they want to either be extremely fast followers or be the leaders in this space. So to that they feel like well, 'we need to get a shoulder to shoulder with a lot of these innovation companies. Some of them are pre-existing, so you mentioned Patti Smith from Intel. Okay we want to get side by side with Intel who's based here in Silicone Valley. The ones that are just startups, you know? Outside I see a car right now from a company called Iris, they make driver monitoring software that monitors the state of the driver. This stuff's pretty important if your car is trading off control between the automated system and the driver, you need to know what the driver's state is. So that's startup is here in Silicone Valley, they want to be side by side and interacting with startups like that all the time. So as a result, the car companies, as you said, set up here in Silicone Valley. And we've basically formed a club around them and said, 'listen, that's great! We're going to be a club where the innovators can come and show their stuff and the car makers can come and kind of shop those wares. >> It's such crazy times because the innovation is on so many axis for this thing. Somebody used in the keynote care, or Case. So they're connected, they're autonomous, so the operation of them is changing, the ownership now, they're all shared, that's all changing. And then the propulsion in the motors are all going to electric and hybrid, that's all changing. So all of those factors are kind of flipping at the same time. >> Yeah, we just had a panel today and the subject was the changes in supply chain that Case is essentially going to bring. We said autonomy but electrification is a big part of that as well. And we have these historic supply chains that have been very, you know, everyone's going as far GM now, so GM will have these premier suppliers that give them their parts. Brake stores, motors that drive up and down the windows and stuff, and engine parts and such. And they stick year after year with the same suppliers 'cause they have good relationships and reliability and they meet their standards, their factories are co-located in the right places. But because of this Case notion and these new kinds of cars, new range of suppliers are coming into play. So that's great, we have suppliers for our piston rods, for example. Hey, they built a factory outside Detroit and in Lancing real near where we are. But we don't want piston rods anymore we want electric motors. We need rare earth magnets to put in our electric motors and that's a whole new range of suppliers. That supply either motors or the rare earth magnets or different kind of, you know, a switch that can transmit right amperage from your battery to your motor. So new suppliers but one of the things that panel turned up that was really interesting is, specifically, was, it's not just suppliers in these kind of brick and mortar, or mechanical spaces that car makers usually had. It's increasing the partners and suppliers in the technology space. So cloud, we need a cloud vendor or we got to build the cloud data center ourselves. We need a processing partner to sell us powerful processors. We can't use these small dedicated chips anymore, we need to have a central computer. So you see companies like Invidia and Intel going, 'oh, that's an opportunity for us we're keen to provide.' >> Right, exciting times. It looks like you're in the right place at the right time. >> It is exciting. >> Alright Derek, we got to leave it there. Congratulations, again, on another event and inserting yourself in a very disruptive and opportunistic filled industry. >> Yup, thanks a lot. >> He's Derek, I'm Jeff, you're watching The Cube from Western Digital Auto Tech Council event in Milpitas, California. Thanks for watching and see you next time. (electronic music)