>> We're here, about to go live, here in a selfie on the pre Silicon Valley Friday Show, about to go live for our show, for some live Friday. We've got a great lineup, it's on my Twitter. Donald Trump and all his viral tweets and now there's an algorithm out there that creates a shorting stock called Trump and Dump, we're going to be talking to the inventor of that new app. Bunch of other great stuff, controversy around Silicon Valley and Intel, controversy on Google, and we'll be watching a great show, well, hopefully you'll be watching. >> Male Announcer: Live, from Cube headquarters in Palo Alto, California it's the Silicon Valley Friday Show, with John Furrier. (serene techno music) >> Hello, everyone, and welcome to the Silicon Valley Friday Show, I'm John Furrier, we are here live in Palo Alto, California for the Silicon Valley Friday Show every Friday morning we broadcast what's going on in Silicon Valley, what's going on in the streets, we call up people and find out what's going on, this show we've got a great lineup. We're going to talk about, I'll say, the news, Twitter, but we've got this fun segment where we have an algorithm, a bot, an AI bot that goes out there and takes all of Donald Trump's tweets and creates a shorting of the stock and creates making money, apparently, Donald Trump's tweets do move the market. We're going to talk about Snapchat, Snap Inc's IPO, and a refiling and some controversy going around that. Also, controversy around Intel Corporation that just announced a fab plant in Arizona and the CEO is in the White House making the announcement, giving the impression that Donald Trump was all behind this, turns out the CEO is a Republican and supports Donald Trump, when apparently this has been in the works for multiple years, so, not sure that's going to be a game changer for Trump but certainly Intel's taking advantage of the schmooze factor and the PR stunt that has people in Silicon Valley up in arms. Obviously, Intel is pro-immigration, bringing people in, obviously, Andy Grove was an immigrant, legend of Intel. And we have also tons of stuff going on, we're going to preview Mobile World Congress the big show in Barcelona at the end of the month. We're doing a two day special here, live in Pal Alto, we're going to do a special, new Silicon Valley version of Mobile World Congress. We'll give you a preview, we're going to talk to some analysts. And also, the fake news, fake accuracy, and all the stuff that's going on, what is fake news? What is inaccurate news? Is there a difference? Does it matter? It certainly does, we have an opinion on that so, great show lineup. First, is actually Twitter earnings are out and they kind of missed and hit their up on the monthly active uniques by two million people. A total of I think 300 million people are using the number here, just on my notes here says, that there are up to 319 million active, monthly active users. And of course, Trump has been taking advantage of Twitter and the Trump bump did not happen for Twitter, although some say Trump kept it alive. But Trump is using Twitter. And he's been actively on Twitter and is causing a lot of people, we've talked about it many times on the show, but the funniest thing that we've seen, and probably the coolest thing that's interesting is that there's an entrepreneur out there, an agency guy named Brian, Ben Gaddis, I'm sorry, president of T3. He's a branding guy, created viral videos on NPR, all over the news, went viral, he created an AI chatbot that essentially takes Donald Trump's tweets, analyzes any company mentioned and then instantly shorts the stock of that company. And apparently it's working, so we're going to take a look at that. We're also going to talk to him and find out what's going on. We're going to have Ben Rosenbaum on, we're going to have someone from Intel on, we have a lot of great guests, so let's take a look at this clip of the Trump and Dump and then we're going to talk to Ben right after. >> Announcer: T3 noticed something interesting about Twitter lately, particularly when this guy gets hold of it. Anytime a company mentions moving to Mexico or overseas or just doing something bad, he's on it, he tweets, the stock tanks. Tweet, tank. Tweet, tank. Tweet, tank. Everyone's talking about how to make sense of all this. T3 thought the unpredictability of it created a real opportunity. Meet the Trump and Dump automated trading platform. Trump and Dump is a bot powered by a complex algorithm that helps us short stocks ahead of the market. Here's how. Every time he tweets, the bot analyzes the tweet to see if a publicly traded company is mentioned. Then, the algorithm runs an instant sentiment analysis of the tweet in less than 20 milliseconds. It figures, positive or negative. A negative tweet triggers the bot to short the stock. Like earlier this month, his Toyota tweet immediately tanked the stock. But the Trump and Dump bot was out ahead of the market. It shorted the second after his tweet. As the stock tanked, we closed our short and we made a profit, huge profit. Oh, and we donated our profits here. So now, when President Trump tweets, we save a puppy. It's the Trump and Dump automated trading platform. Twitter monitoring, sentiment analysis, complex algorithms, real time stock trades. All fully automated, all in milliseconds. And all for a good cause. From your friends at T3. >> Okay, we're back here in Silicon Valley Friday Show, I'm John Furrier and you just saw the Trump and Dump, Trump and Dump video and the creator, that is Ben Gaddis on the phone, president of T3, a privately owned think tank focused on branding. Ben, thanks for joining us today. >> Thanks for having me, John. Excited to talk with you. >> So, big news NPR had on their page, which had the embed on there and it went viral. Great video, but first talk about the motivation, what's going on behind this video? This is very cool, explain to the folks out there what this Trump and Dump video is about, why did you create it, and how does it work? >> So, we had just like, I think, almost everyone in the United States, we were having a conversation about what do you do with the fact that President Trump is tweeting and tweeting about these companies, and in many cases negatively. So we saw articles talking about it and actually one day a guy in our New York office came up with this idea that we ought to follow those tweets in real time and if he mentions a publicly traded company negatively, short the stock. And so, we kicked that idea around over slack and in about 30 minutes we had an idea for the platform. And about two days later one of our engineers had actually built it. And so what the platform does is it's really actually simple yet complex. It listens to every tweet that the president puts out and then it does two things: it determines if there's a publicly traded company mentioned and if there is, and it actually does sentiment analysis in real time, so, in about 20 milliseconds, it can tell if the tweet is positive or negative. If it's negative, we've seen the stocks typically go down and we short sell that stock. And so, the profit that we develop from that, then we donate it to the ASPCA and then hopefully we save a puppy or two in the process. >> Yeah, and that's key, I think that's one thing I liked about this was you weren't arbitraging, you weren't like a real time seller like these finance guys on Wall Street, which by the way, have all these complex trading algorithms. Yours is very specific, the variables are basically Donald Trump, public company, and he tends to be kind of a negative Tweeter so, mostly to do with moving to Mexico or some sort of you know, slam or bullying kind of Tweet he does. And which moves the market, and this is interesting though, because you're teasing out something clever and cool on the AI kind of side of life and you know, some sort of semantic bot that essentially looks at some context and looks at the impact. But this is kind of the real world we're living in now, these kinds of statements from a president of the United States, or anyone who's in a position of authority, literally moves the market, so you're not doing it to make money you're doing it to prove a point which is that the responsibility here is all about getting exposed in the sense that you got to be careful of what you say on Twitter when you're the president of the United States. I mean, if it was me saying it, I mean, I'm not going to move the market but certainly, you know, the press who impact large groups of people and certainly the president does that so, did you guys have that in mind when you were thinking about this? >> Well, we did. I mean, I think, you know, our goal was, this is what we do for a living, we help big brands monitor all their digital presences and build digital strategy. So, we're already monitoring sentiment around Twitter and around social platforms so, it's pretty core to what we do. But we're also looking at things that are happening in pop culture and societally, what kind of impact social might have on business. And so, the fact that we're able to take an action and deliver a social action, and deliver a real business outcome is pretty core to what we do. What's different here and what's so unique is the fact that we've never really seen things like, policy, whether it's monetary policy, or just general policy be distributed through one platform like Twitter and have such a big impact. So, we think it's kind of a societal shift that is sort of the new norm. That, I don't know that if everyone has figured out what to do with yet and so our goal is to experiment and decide one, can we consume the information fast enough to take an action? And then how do we build through AI platforms that allow us to be smarter in the world that we're living in today that is very, very unpredictable. >> We have Ben Gaddis, as president of T3 also part of the group that did the Trump and Dump video but he brings out a great point about using data and looking at the collective impact of information in real time. And this interesting, I was looking at some of the impact last night in this and Nordstrom's had a tweet about Ivanka Trump and apparently Nordstrom's stock is up so, is there a flaw in the algorithm here? What's the take on that? Because in a way, that's the reverse of the bullying, he's defensive on that one so, is there a sentiment of him being more offensive or defensive? >> It's pretty standard. So, we're starting to see a pattern. So, what happens is that actually, the Nordstrom stock actually did go down right after the tweet. And so, we saw that that's a pattern that's typical when the president tweets negatively. When he tweets positively, we don't see that much of a bump. When he tweets negatively, typically the stock drops anywhere between one and four percent, sometimes even greater than that. But it rebounds very quickly. So, a big part of what we're trying to do with the bot and the algorithm is understand how long do we hold, and what is that timeframe before people actually come back to more of a rational state and start to buy back a stock that's valuable. Now what's really interesting, you mentioned, you know, the algorithm and whether there's a flaw in it, we learned something very interesting yesterday about Nordstrom's. So, the president tweeted and in that tweet he talked negatively about Nordstrom's, but he also talked very positively about his daughter, Ivanka. And so, the algorithm actually picked up that tweet and registered it as 61.5% positive. So, it didn't trade. So, we actually got kind of lucky on that one. >> You bring up a good point, and this is something that I want to get your thoughts on. You know, we live in an era of fake news, and it's just Snapchat just filed IPO filing to make a change in their filing to show that Amazon is going to be a billion dollar partner as well, which wasn't in the filing. So, there's a line between pure, fake news, which is essentially just made up stuff, and inaccurate news, so what you're kind of pointing out is a new mechanism to take advantage of the collective intelligence of real time information. And so this is kind of a new concept in the media business. And brands, who used to advertise with big media companies, are now involved in this so, as someone who's, you know, an architect for brand and understanding data, how are brands becoming more data driven? >> Well, I think what brands are realizing is that they live in this world that is more real time, that's such a buzzword. But more real time than I think they even thought would ever be possible, the fact that someone like the president can tweet and have literally cut off billions of dollars in market cap value in a moment's time is something that they have to figure out. So, I think the first thing is having the tools in place to actually monitor and understand, and then having a plan in place to react to things that are really quite unpredictable. So, not only, I don't think that you can have a plan for everything but you have to at least have a plan for understanding how you get legal approval on a response. Who would be responsible for that. You know, who do you work with, either through partners or inside of your organization to, you know, to be able to respond to something when you need to get back in promoting, you know, minutes versus hours. The thing that we don't hear people talk near as much about is, our goal was to see how close we can get to the information so we can zoom the data from Twitter's fire hose, so we get it hopefully when everyone else does. And then our goal is to take an action on that quicker than anybody else, and that delta is where we'll make a profit. What's really interesting to me is that the only person closer to that information than the president is Twitter. >> Ben, great to have you on, appreciate it, love to get you back on as a guest. We love to talk about is our model here, it's looking angle, it's extracting the signal from the noise. And certainly the game is changing, you're working with brands and the old model of ad agencies, this is a topic we love to cover here, the old ad agency model's certainly becoming much more platform oriented with data, these real time tools really super valuable, having a listening engine, having some actionable mechanisms to go out there and be part of and influence the conversation with information. Seems to be a good trend that you guys are really riding. Love to have you back on. >> We'd love to be back on, and thanks for the time, we enjoyed it. >> That was Ben Gaddis, who's the president of T3, the firm behind the Trump and Dump, but more importantly highlighting a really big megatrend which is the use of data, understanding its impact, having some analysis, and trying to figure out what that means for people. Be right back with more after this short break. >> [Female Announcer] Why wait for the future? The next evolution in IT infrastructure is happening now. 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Unify your data center with Cisco UCS. >> Male Announcer: You're listening to Cube Fridays, brought to you by Silicon Angle Media. Now, here's John Furrier. >> Okay, welcome back to the Silicon Valley Friday Show, I'm John Furrier, great show today. Our next guest is Dan Rosenbaum, who is the editor of Wearable Tech Insider, Media Probe, been around the industry for years, been a journalist, reporter, editor, variety through his career, knows the tech business certainly on the infrastructure level with the device. Okay, welcome to the show, great to have you, thanks for being available, he's in New York so, Palo Alto, New York connection here. >> Yeah, we got about maybe an hour or so of snow left. But you know, it's February, it does this in New York. >> Great to have you on, we were just talking on our earlier segment before the break about the guy who created the Trump and Dump video which is a chat bot that goes out, looks at Donald Trump's tweets, and then identifies if there's a public company, shorts the stock, and donates to save puppies. So, they're not doing it for profit but they're, you know, they have their intelligence and listening, and we were just riffing on the concept of that there's been fake news and inaccuracy and a new dynamic that's impacting the media business, which is real time information, data, and certainly the world that you're in with Wearables, this new internet of things, which is hard to understand for most common people but it's really the AI new connected network. It's really impacting things, certainly how people get information, how fast they create data, and it's changing the industry landscape certainly from a media standpoint. You get on TV and the mainstream... >> It really is. When the press secretary stood up and said that that the administration sees the media as the adversary, you know, everyone got sort of upset about it but you know, in a lot of ways it's true. That's a fitting way that the media and any administration, any power structure should be facing each other. There's been such a hop in the media to report the truth as best as it can determine and as accurately as it can. Now, there are differing impacts depending on which sphere you're in, and in politics there's always going to be sort of the tension, well, we think, we look at these facts and we think that and we look at those facts and think the other. >> I think ultimately this new formats that are developing really comes back down to I would add to that as trust. This is a collision course of a complete re-transformation of the media landscape and technology's at the heart of it and, you know, you're in the middle of it. With Wearables, you're seeing that at the edge of the network, these are new phenomenons. What's your take on this new trend of, you know, of computing? And I'm not saying singularity, as Ray Kurzweil would say, but you know, ultimately, it is going down to the point now where it's on your body, potentially in your body, but this is a new form of connection. What's your thoughts on this? >> 12 years ago, I was at the party where they launched MSNBC, and I ran into Andrew Lack, who's the CEO of MSNBC at the time, and asked him, why NBC was cutting this collaboration deal with Microsoft, because remember that's how it was started, when there wasn't any means for the news to go upwards. There was no way for citizen news gathering to be represented on this Microsoft-NBC co-venture. And Andrew actually looked down his nose at me, sneered, and goes, "Who in the world would want "people to be contributing to the news?" Well, now we're 10 or 12 years later and as you say, Snapchat and Skype, and all these mobile technologies have just transformed how people get their information, because they're now witnesses, and there are witnesses everywhere. One of the big transformations in, or about wearable technology is that computing infrastructure has moved from islands of stand-alone, massive computers, to networks of massive computers to stand-alone PCs, to networks to PCs, and now the model for computing and communication is the personal area network, the idea of sensor-based technologies is going to change, or already has changed the world of news, it's in the process of changing the world of medicine, it's in the process of changing the way we build houses, the construction business, with the smartphone, the way that we build and relate to cities. >> So, we're here with Dan Rosenbaum, he's the editor of Wearable Tech Insider, but more importantly he's been a tech insider in media going way back, he's seen the cycles of innovation. Love your point about the flowing conversations coming out of the MSNBC kind of executive in the old broadcast models. I mean, I have four kids, my oldest is 21, they don't use, they don't really care about cable TV anymore so, you know, this is now a new narrative so, those executives that are making those comments are either retired or will be dinosaurs. You now have Amazon, you have Netflix, you have, you know, folks, trying to look at this internet TV model where it's fully synchronous so, now you have collective intelligence of vertical markets that have real time ability to surface information up to bigger outlets. So, this collective media intelligence is happening, and it's all being driven by mobile technology. And with that being said, you know, you're in the business, we've got Mobile World Congress coming up, what is that show turning into? Because it's not about the mobile device anymore, the iPhone's 10 years old, that's a game changer. It's growing up. The impact of mobile is now beyond the device. >> Mobile World Congress is all about wireless infrastructure. It goes from everything from a one millimeter square sensor to the national grade wireless network. But what's really cool about Mobile World is that it's the place where communications or telecom ministers get together with infrastructure carriers, get together with the hardware manufacturers, and they hash out the problems that won't resolve five, 10, 15 years down the road in new products and new services. This is the place where everyone comes together. The back rooms at Mobile World Congress are the hottest place, and the back rooms are the places that you can't get into. >> We're here with Dan Rosenbaum, who's an industry veteran, also in the media frontlines in wireless technology, I mean, wearable technology and among other things, good view of the landscape. Final point, I want to just get a quick comment from ya, I was watching on Facebook, you had a great post around Facebook is feeding you an ad for a $19 million staid-in, let's feel Connecticut. And then you said, "One of us as the wrong idea, so you must be really loaded." This retargeting bullshit on Facebook is just ridiculous, I mean, come on, this bad, big data, isn't it? >> (laughing) Yeah, I mean, the boast of Google is that they want to make, you know, ads so relevant that they look like content. Well, in the process to getting there, there's going to be misses. You know, if this real estate agent decides that they want to hit everyone in my zip code, or everyone in my county, or whatever, and they wanted pay the five dollars so that I'd see that video, god bless 'em, let 'em do it, it's not going to make me, it's not going to overcome any kind of sales resistance. I don't know that I wanted to move up to Litchfield, Connecticut anyway, but if I did, sure, a $19 million house would be really nice. >> You could take a chopper into Manhattan, you know, just drop into Manhattan with a helicopter. >> They would want to take it. >> Alright, we can always take the helicopter in from Litchfield, you know, right at the top of your building. Dan, thanks so much for spending the time, really appreciate it, and we'll have to bring, circle back with you on our two day Mobile World Congress special in Palo Alto we'll be doing, so appreciate the time. Thanks a lot. >> Love to do it, thanks for having me. >> Okay, that was Dan Rosenbaum, really talking about, going down in the weeds a little bit but really more importantly, this Mobile World Congress, what's going on with this new trend, digital transformation really is about the impact to the consumer. And what's going on Silicon Valley right now is there's some hardcore tech that is changing the game from what we used to know as a device. The iPhone's only 10 years old, yet 10 years old, before the iPhone, essentially it was a phone, you made phone calls, maybe surf the Web through some bad browser and do text messages. That's now completely transforming, not just the device, it's the platform, so what we're going to see is new things that are happening and the tell signs are there. Self driving cars, autonomous vehicles, drones delivering packages from Amazon, a completely new, digitized world is coming. This is the real trend and we're going to have an executive from Intel on next to tell us kind of what's going on because Intel is at the ground zero of the innovation with Moore's Law and the integrated circuit. But they're bringing their entire Intel inside as a global platform, and this is really going to be driven through a ton of 5G, a new technology so, we're going to dig in on that, and we're going to have a call-in from her, she's going to be coming in from Oregon and again, we're going to get down to the engineers, the people making the chips under the hood and bringing that to you here on the Silicon Valley Friday Show, I'm John Furrier, we'll be right back after this short break. >> My name is Dave Vellante, and I'm a long-time industry analyst. So, when you're as old as I am you've seen a lot of transitions. Everybody talks about industry cycles and waves, I've seen many, many waves. I've seen a lot of industry executives and I'm a little bit of an industry historian. When you interview many thousands of people, probably five or six thousand people as I have over the last half of the decade, you get to interact with a lot of people's knowledge. And you begin to develop patterns so, that's sort of what I bring is an ability to catalyze a conversation and, you know, share that knowledge with others in the community. Our philosophy is everybody is an expert at something, everybody's passionate about something and has real deep knowledge about that something. Well, we want to focus in on that area and extract that knowledge and share with our communities. This is Dave Vellante, and thanks for watching the Cube. (serene techno music) >> Male Announcer: You're listening to the Silicon Valley Friday Show with John Furrier. >> Okay, welcome back to the Silicon Valley Friday Show, I'm John Furrier, we're here in Palo Alto for this Friday Show, we're going to go under the hood and get into some technology impact around what's going on in the industry, specifically kind of as a teaser for Mobile World Congress at the end of the month, it's a big show in Barcelona, Spain where the whole mobile and infrastructure industry comes together, it's kind of like CES, Consumer Electronics Show, in the mobile world but it's evolved in a big way and it's certainly impacting everyone in the industry and all consumers and businesses. This is Intel's Lynn Comp and this is Intel who, we know about Moore's Law, we know all about the chips that make everything happen, Intel has been the engine of innovation of the PC revolutions, it's been the engine of innovation now in the Cloud and as Intel looks at the next generation, they are the key player in this transformation that we are seeing with AI, wearable computers, internet of things, self driving cars, AI, this is all happening, new stuff's going on. Lynn, welcome to the program. >> Thank you so much, it's great to be here. >> So, you're up in Oregon, thanks for taking the time to allow us to talk via phone, appreciate it. Obviously, Intel, we've been following you guys, and I've been a big fan since 1987, when I almost worked there right out of college. Went to Hewlett Packard instead, but that's a different story but, great, great innovation over the years, Intel has been the bell weather in the tech industry, been a big part of the massive change. But now, as you look at the next generation, I mean, I have four kids and they don't watch cable TV, they don't like, they don't do the things that we used to do, they're on the mobile phone all the time. And the iPhone is now 10 years old as of this year, this early winter part of this, Steve Jobs announced it 10 years ago. And what a change has it been, it's moved from telephone calls to a computer that happens to have software that makes telephone calls. This is a game changer. But now it seems that Mobile World Congress has changed from being a telephone centric, voice centric, phone device centric show to a software show, it seems to be that software is eating the world just like CES is turning into an automotive show. What is Mobile World Congress turning into? What's the preview from Intel's perspective? >> You know, it's a really fascinating question because many years ago, you would only see a bunch of very, very intense base station design, you know, it was very, very oriented around wireless, wireless technology, and radios, and those are really important because they're an engine of fabric that you can build capabilities onto. But last year, just as a reference point for how much it's changed, we have Facebook giving one of the main keynotes. And they're known for their software, they're known for social media, and so you'll see Facebook and Google with an exhibitor there last year as well, so you're not just seeing suppliers into the traditional wireless industry for equipment and the operators who are the purchaser, you're seeing many, many different players show up very much like how you said CES has a lot of automotives there now. >> Yeah, we've seen a lot of revolutions in the computer industry, Intel created a revolution called the Computer Revolution, the PC Revolution, and then it became kind of an evolution, that seems to be the big trends you see, that cycle. But it seems now that we are, kind of been doing the evolution of mobile computing, and my phone gets better, 10 years down to the iPhone, 3G, 4G, LT, okay, I want more bandwidth, of course, but is there a revolution? Where can you point to? Where is the revolution, versus just standard evolutionary kind of trends? Is there something coming out of this that we're going to see? >> That is such a great question because when you look at the first digital wireless technologies that came out and then you had 2G, and 3G, and 4G, those really were evolutionary. And what we're finding with 5G that I believe is going to be a huge theme at Mobile World Congress this year is it is a completely different ballgame, I would say it's more of an inflection point or very revolutionary. And there's a couple reasons for that, both tie up in how ITU is specifying the use cases, it's licensed and unlicensed spectrum which is kind of unusual for how it's been done if you will get 2, 3, and 4G. The other thing that's really interesting about 5G, that it's an inflection point is there's a lot more intelligence assumed in the network and it helps address some of the challenges I think that the industry is seeing a different industry with some of the IoT promise we'll roll out where some of the macro design networks that we'd seen in the past, the ability to have the right latency, the right bandwidth, and the right cost matched to the needs of a specific IoT use case was much more limited in the past and I think we'll see a lot more opportunities moving forward. >> Great, great stuff, we're with Lynn Comp with the Network Platforms Group at Intel. You know, you bring up some, I like the way you're going with this, there's so much like, impact to society going on with these big, big trends. But also I was just having a conversation with some young folks here in Palo Alto, high school kids and some college kids and they're all jazzed up about AI, you can almost see the... I don't want to say addiction but fascination and intoxication with technology. And there's some real hardcore good tech going on here, could you just share your thoughts on, you know, what are some of those things that are going to, 'cause I mean, 5G to wireless, I get that, but I mean, you know, these kids that we talked to and folks that are in the next generation, they love the autonomous vehicles. But sometimes I can't get a phone signal, how are cars going to talk to each other? I mean, how does this, I mean, you've got to pull this together. And these kids are like, and it's into these new careers. What's your thoughts on what are some of the game changing tech challenges that are coming out of this? >> Let's just start with something that was a great example this year 'cause I think I have kids a similar age. And I had been skeptical of things like even just virtual reality, a augmented or virtual reality. And then we had this phenomena last summer that really was just a hint, it wasn't really augmented reality, but it was a hint of the demand that could be met by it and it's Pokemon Go. And so, an example with that, I mean, it really wasn't asking a significantly higher amount of data off the network, but it did change the use profile for many of the coms service providers and many of the networks where they realized I actually have to change the architecture, not just of what's at the edge but in my core network, to be more responsive and flexible, you are going to see something even more so with autonomous driving, even if it's just driver assist. And similar to how the auto pilot evolution happened, you're still going to have these usage patterns where people have too many demands, too much information coming at them, they do want that assistance, or they do want that augmented experience to interact with a brand, and it's going to really stress the network and there's going to have to be a lot of innovation about where some of these capabilities are placed and how much intelligence is close to the user as opposed to just a radio, probably going to need a lot more analytics and a lot more machine learning capabilities there as well. >> We had a segment earlier in the show, it was the entrepreneur who created the Trump and Dump chat bot that would go out and read Donald Trump's tweets and then short all public companies that were mentioned because the trend is, they would do that, but this is an example of some of these chat bots and some of this automation that's going on and it kind of brings the question up to some of the technology challenges that we're looking out at the landscape that we're discussing is the role of data really is a big deal and software and data now have an interaction play where you got to move data around the networks, networks are now ubiquitous, networks are now on people, networks are now in cars, networks are now part of all this, I won't say unstructured networks, but omni-connected fabric. So, data can really change what looks like an optimal architecture to a failed one, if you don't think about it properly. So, how do you guys at Intel think about the role of data? I mean, how do you build the new chips and how do you look at the landscape? And it must be a big consideration, what's your thoughts about the role of data? Because it can happen at any time, a tsunami of data could hit anything. >> Right, the tsunami of data. So for us, it's any challenge, and this is just in Intel's DNA, historically, we'll get challenges as opportunities because we love to solve these really big problems. And so, when you're talking about data moving around a network you're talking about transformation of the network. We've been having a lot of discussions with operators where they see the data tsunami, they're already seeing it, and they realized, I have got to reconfigure the architecture of my network to leverage these technologies and these capabilities in a way that's relevant for the regulatory environment I'm in. But I still have to be flexible, I have to be agile, I have to be leveraging programmability instead of having to rewrite software every generation or every time a new app comes out. >> Lynn, thanks so much for coming on. Like we always say, you know, engine room more power, you can never have enough compute power available in network bandwidth, as far as I'm concerned. You know, we'd love to increase the power, Moore's Law's been just a great thing, keeps on chugging along. Thanks for your time and joining us on the Silicon Valley Friday Show, appreciate it. Thanks so much. >> Thank you. >> Alright, take care. Okay, this is Silicon Valley Friday Show, I'm John Furrier, thanks so much for listening. I had Ben Gaddis on, Dan Rosenbaum, and Lynn Comp from Intel really breaking it down and bringing you all the best stories of the week here on the Silicon Valley, thanks for watching. (techno music) (bright instrumental music)

(uptempo techno music) >> Announcer: Live from Washington, D.C, it's CUBE Conversations with John Furrier. >> Hello there and welcome to this special CUBE Conversations here in Washington, D.C. We're getting all the stories, we're at the Halcyon House here with Kate Goodall who is the Co-Founder and CEO of Halcyon for a CUBE Conversation. Thanks for joining me today. >> My pleasure. >> So talk about Halcyon and your mission. You're doing something really important here in societal entrepreneurship. It's a non-profit, it's a really interesting mission. You're having an impact. Talk about what you guys are doing. >> Yeah, we believe in the power of human creativity and the power of compassion to change the world for the better. And by that I mean that we take some incredible change makers with really bold ideas about how they can affect societal change through business and art, and we give them a number of supports including a free place to live in this very expensive city, a fantastic mentor, an office, a community around them, money, and we don't take equity in their ventures. >> And this house that we're here is a mansion in Washington, D.C. Talk about the story about this house and this residence. >> Yeah, it's got very revolutionary roots. It was built by Benjamin Stoddert who was the first Secretary of the Navy during the Revolutionary War. And from then it exchanged hands several times. One of them was a relative of Mark Twain. And he is responsible for most of its 30,000 square feet. And then lastly, it was in the hands of the Dreyfus family before it was bought by Dr. Kuno who is my co-founder and the chair of Halcyon. >> And the Halcyon mission, you guys have a unique formula. Talk about how the fellowships, how do you guys select the ventures, what's the program? They live here. >> Yeah. >> It's a residence. >> Yeah. >> So it's interesting. >> Yeah, we give them three things, everything thing breaks down into three things. Space, community, and access. We believe that if you give people not only physical space, which is important because we have to remember that not everyone has a parents' basement they can live in and friends and family they can go get money from. So it democratizes the playing field to just be able to select people with the best ideas and the most talent and not the best drive. But also head space. What does it mean when you give someone with a brilliant idea five months to just work on their idea? Then community is very, very important. There's a lot of atrocious analogies for entrepreneurship. People compare it to staring into the abyss or chewing glass or... It creates a lot of emotions, lots of ups and downs. So having a built in community, which we have here is very important. Then lastly access, and by that I mean there are not only investors, but these days governments, philanthropists, others that are seeking solutions to some of these very hairy 21st century problems. They want access to these ideas. And if we do our job correctly, we're creating a bridge for these entrepreneurs to those people as well. >> Yeah entrepreneurship certainly is hard. And it's even harder when you're trying to crack the code on societal problems. >> Kate: Yes. >> And so this kind of brings up an interesting trend that we've been seeing emerging really rapidly in the past few years with cloud computing and other... Big data, internet of things technologies on a global scale, is the societal entrepreneurship model where you're accelerating opening up new ways to democratize, crowd source, fund, and change the game and reimagine philanthropy, policy, education, diversity, all in one. >> Yeah. >> You guys are kind of doing that here. It really is a ground zero here in Washington, D.C because of the access and the ecosystem of governments and everything's here. So you're seeing this building up in Washington, D.C. Talk about this new force, this new driving force of change called societal entrepreneurship. >> Yeah so it's, we believe it's definitely one way to really change the game. It's a way to use business principles to attack some of these enormous social problems. Many would argue that philanthropy and perhaps government have failed at some of this recently. Philanthropy was originally designed to solve problems, not to become a charity machine. And certainly, the government finds it hard to do some of those things today as well. And so figuring out how to really attack some of these enormous, hairy 21st century problems using these business principles so that their solutions can also be scaled effectively is absolutely what we're trying to approach. >> It's interesting, you see the old guard, the old ways of doing things, policy, people just checking boxes, philanthropy a big donor kind of model. And then now with cloud computing, new things are emerging. In your mind, what's changed the most now from just even 5, 10 years ago? What's the big difference in today's culture and today's environment in the world and Washington, D.C? >> Oh my gosh, so many things I could talk about. One of the reasons I think that social enterprise really came into being, partially is because there was recession and millennials didn't have jobs. So they had to create them and they created them in a new model. They created them in a way that gave them satisfaction beyond just getting a paycheck. The Jobs Act gave foundations the ability to invest in for profits and gave us crowd sourcing and crowd funding. And these things have really made some of this cross sectoral pollenization possible for the first time. I think people genuinely are frustrated that this amazing pace of change and Internet of Things and all of this stuff still hasn't solved some of these big problems. So there's so many forces at play. And I think one thing that I'll also point to because as I explained to you, I'm an archeologist and historian by training, and if you look over the course of human history, any time when you've had rapid change in technologies or you've had vast inequalities in terms of wealth, you end up with a depression or a war, or both. And I really believe that the power of social entrepreneurship can, for once, maybe let the gas out of the balloon a little bit more gently, and I think that's something really great to be optimistic about. >> How do you see that happening? I mean, we're a connected society now. >> Yeah. >> We have our mobile devices. >> Yeah, yeah. >> We have our things on our body, Internet of Things. It's all there, is that how you see it? How do you see the relief coming so we don't have a war or a depression? >> Yeah, I think that's the point, we have tremendous power now, right? To just in our hands, to be able solve some of these problems. Human ingenuity is a great thing. I think creativity and compassion are going to be the things that machines replicate last. And so we support that wholeheartedly. And I think maybe we can talk about some examples of some of our ventures, right, and what they're doing because I think that's the best way to paint. What does this mean, what is it? One of our current fellows, Ryan Soscia has created JDoe which is a way to anonymously unite victims of sexual assaults so that they can take legal action. It has a business model, but it's been proven that victims of assault are much more effective when they go as a group instead of alone. So it's a really brilliant way to use technology. Another one from our past cohort, Brandon Anderson is using a chat bot, Raheem AI to collect better data on policing. And then is working with police departments to use that data so that they can have better community relations. So these are both very relevant and timely issues that we're approaching in a non-partisan way using technology to solve. One more I'll give in our current cohort. Pilleve, which is a company that's thinking about the Internet of Things and how it can solve for the opiate crisis. They've created a pill bottle that connects to your phone or your family's phone and can give data and control over medication so that you can really start to attack addiction. >> Kate, talk about the power of we capital, what you've been doing with women's networking in Washington DC. >> Yeah. >> Because it's not just the women in tech inclusion issue, there's a lot of disparity we've been covering certainly at Silicon Angle, but there's really a lot of powerful women and talented folks, whether it's creative or on the business side or technical side, where the societal problems, these are products that are used by the entire population and so there's an effort to have more women involved in not just designing products, but actually being part of these new re-imagined solutions and technologies. >> Yeah. >> How important do you see that here, and what are some of the hurdles and successes that you've had here? >> I agree with that analysis completely. And I'm biased, but I think that Washington is an amazing city for some incredibly smart women. And when we created Halcyon, we created a committee that was diverse and reflective of the diversity we wanted to see how cohorts. So diverse by any factor. Age, gender, race, sexual orientation and what's that resulted in happily is a housing community that has 52% of our ventures founded or co-founded by women, and 58% of our ventures founded by a person of color. But then when we looked around, the investor base didn't exactly reflect our fellows. So we started to think about how we could engender and cultivate investors that were also diverse. And one of the ways to do that was to create a group of women in D.C. that wanted to fund social impact, leaning women led ventures, and it's called the WE Capital. It's led by Dr. Kuno, who is my co-founder and chair at Halcyon, and Sheila Johnson who was one of the founders of BET and has now founded Salamander Resorts. And there's 13 other remarkable women in that contingent and they're all paying it back. But and a very smart way that gets them market rate returns. >> This is interesting, the community paying forward has been the ethos of very robust and successful communities Silicon Valley here in Washington, D.C. How do you scale that? How do you go global with this? Because now you have a global model. Silicon Valley D.C. and all around world where you now have different communities coming together, all the same mission potentially. How do you blend it all in? How do you take that to the next level? >> That's a good question. We're gradually building what I call a kind Army. Just this amazing community that has ripple effects. We don't feel that we have to own or control this in anyway. Just over 3 1/2 years, we've had 55 ventures come through here. They've raised nearly $40 million dollars. Impacted half a million people around the world in a positive way. They've created nearly 500 jobs. You start to see the exponential growth even just as we sit here in this building. But I do think that's a long way to go in terms of people understanding this social societal entrepreneurship. People have different definitions for it and it's a long way to go in term terms of government and philanthropy really being able to understand it. Because in some ways as I mentioned, they lost touch with who their customers are. >> Okay and I've always been saying in Silicon Valley and on my Facebook page and also on theCube that SiliconValley doesn't get D.C. They try to come in waves around. You don't get it and they're impatient, I would say if I categorize. They get D.C. but I don't think they have the patience for it. It's a new culture here. Also the pace of change is accelerating in D.C. but it's a formula for D.C. What is the secret to be successful in Washington, D.C if you're a tech entrepreneur or investor or someone from Silicon Valley or not from here? >> We do get the advantage of being able to see who does that well and who doesn't. And tech is obviously leading ahead of policy. Policy is trailing tech and I think that can understandably make policymakers nervous. They've got a lot of understanding to do to be able to make some policy decisions. And these tech solutions are very complicated so the people in tech that I see being successful around policy of those that will take the time to really sit down and pick through a problem with policy maker and help them to understand it. Policy makers are actually very smart but they're dealing with a lot. >> John: So education. >> Education, education absolutely. You can't come in here >> Patience. >> And be impatient that they're not getting it. But I think that's going to essential. We've got to figure out how to talk each other and how to talk across different languages, different domain, different sectors and creates some better intersectionality. >> So what's next for Halcyon? What's the vision? What's your vision of how this will go forward? Obviously you've got a great model, batches coming through cohorts, and you have demo days here. I noticed your set up downstairs for a demo day so it's very robust, classic incubator, accelerator model with the residences leading it there. What's next? Where do you go from here? >> We don't take equity in any of our ventures but we are thinking about creating a fund, because so many of our ventures are performing exceptionally well. And we're actually going to be launching a festival that really takes the power of creativity and compassion, and art and technology here in D.C. and that will be in June. And we're hoping it that way, we can reach a wide audience, and that's going to be very exciting. The long term vision really is how can we harness the power of compassionate and creativity to solve 21st century problems, and how can we do that at scale? >> The classic disruption model is gate keepers start being disrupted by the new guard as Andy Jassy would say in Amazon. These a new creative as well. I did a panel at Sundance a few weeks ago where we talked about this creative where democratization is happening at artist level, and the government maker level. And that seems to be happening across all industries. A new creative is developing. What's your view of the digital impact? Because artistry can be sculptures and painting and whatnot to classic artistry or film making but now tech's involved, digital. >> Yeah. >> It's coming together. Is the vision how you see art and science coming together? >> Yeah, artists are fantastic disrupters. Sometimes they don't even need to paint a picture. They just use their ability as an artist to do things other people can't. And that's why they're awfully fun to be round. I think that you're absolutely right. I point to Dee Rees as an great example, who didn't get her funding for her film Mudbound through the the Hollywood machine, instead she went straight to Netflix and now she's getting an Oscar. That's a new way of doing things. We have one of our fellows, DeShuna who created kweliTV which is Netflix for the African diaspora because Netflix just doesn't have the kind of black filmmaking that she wants to see. So yeah I absolutely see people using digital to do different kinds of disrupting including on the outside of things. We have another program, the Arts Lab. Very similar to this but working with excellent artists who are thinking about social justice. One of the artist, Georgia Os-acs is doing a project called Two Future Women. And she's collecting letters that women are writing to other women 19 years from now. They're being archived by the museums in D.C. and will be displayed on the eve of the Women's March. Wouldn't it be great to know what the suffragette were thinking? And that all requires technology to be able to successfully collect those, disseminate them, archive them et cetera. >> So New channels to the market place breaking down the barriers for the gate keeper seems to be the trend. How is that happening in your world, in D.C and in philanthropy? You're now creating a new model of entrepreneurship. >> Yes, yes. >> Not just philanthropy, hey nice job or policy check box, it's real change. >> And arguably a new model for philanthropy because very rarely is philanthropy so immersive where we're literally taking these people and we're in the living with them for five months, and giving them all of these supports. And I think it's also a new model and that it's risk taking. It's not a safe and secured, metric based, proven solutions. It's some of these centers are going to fail and I think that that's okay. That's just testing and trying and finding the best and moving forward. I was going to make another point. >> You guys are changing the world obviously, I made a comment on Facebook, we're saving the world at the same time because you mentioned you can actually get ahead of some of these trends with this gap. Whether it's inequity, inequality or however these gaps are causing even war or depression as history points out. Now you have an opportunity to use, not just diagnostic capability but predictive and prescriptive mechanisms. What are some of those things that someone could see and connect the dots around an example of something that's prescriptive. Say wait, wow, time out. We've got something going on over there as a problem space we can solve with a solution. What are some examples that you see playing out where this model could work? >> I'm not sure I quite understand the question. >> If you had the ability to use technology to solve some societal problems, what are some examples that you're seeing here in your incubator that are pointing to this new trend? >> Yeah, I think that our fellows are fantastic examples of that. Many of them are tech enabled whether or not they're using apps or the cloud or just a new actual technology product. One of our fellows is using, he's created a new product that disrupts the vestibular system so that you don't feel motion sickness. Now this is actually a product that is obviously very valuable for just everyday people, who are going to be in driver-less cars trying to do their work. But it turns out very useful for the military and very useful for people who are trying to create virtual reality. 40% of people can not put a virtual reality headset on and not feel nauseous. So I do think that it is tech's job to solve some of the problems that we haven't been able to solve yet. In many ways, the internet and the Internet of Things is our biggest leap forward since fire. Now how are we going to use it to create the disruption that fire did? Fire allowed us to eat more things, grow bigger then start to farm and and I think that we haven't even hit the cusp of what the internet can do yet. It can do way more things and deliver products to our doorsteps. >> Next up at the wheel, you get fired-- >> Right, what's is the tech wheel? I think it's going to be really-- >> Personal question for you, what is the big learnings that you've had over the past few years? (mumbles) say well I didn't expect that to happen or wow, that was super awesome or a failure or a success? What was your big learnings that you've come out-- >> Oh my gosh, do you have an hour? We've learnt how not to do and how to do mentorship very well. You can't take mentorship lightly. This is human chemistry we're talking about and even if you think you've got the perfect match on paper, it may not work. We have certainly learned a lot about how it is really important to have investors that reflect entrepreneurs because to your very point, that work is going to take everyone to create technologies that work for everyone. It also creates and builds even investors who look like everyone because otherwise there is an inherent bias. Really good people have inherent bias and that needs to be solved for. Because I straddle both art and entrepreneurship in my role. These some really interesting things that I've noticed in terms of how entrepreneurs see the world as infinite resource and artist see it as very finite. And how some of our systemic problems are reflected almost identically in both fields. This is an interesting statistic. 5% of venture capital goes to women, we know that and 1% to African Americans, 0.01% to Black women. In the museum world, in museums in the western hemisphere, 5% of their art collection is women artists, 1% is African American artists. That's not a coincidence, that's a clear picture of how power structures have evolved to make certain types of decisions about who should get capital, who is worth collecting, and we're definitely solving for that. >> And certainly having a lens on that and exposing that-- >> Kate: Absolutely. >> Is the way to-- >> It's very important. >> Talk about artistry, one of the things we've been talking about in the software and in the tech business is the role of artistry and craft. And that we see that swinging back with cloud computing. I would say to the craft out a software development but you're seeing these integrated solutions where craftsmanship and art are coming together. We're seeing examples, certainly in Asia, in China we're seeing examples where the development world, the technical world has come together with artistry world to create these new solutions. So you've got creative and you've got technical coming together. That's what you're doing. >> Yeah, no absolutely. >> What's the success formula? Is there one? Is it right brain, left brain, what's the-- >> I don't know. We've just got this bubbly caldron of creativity and we're pulling stuff out of it as we go, but I think it's important for us not to forget about art. Art has been at the forefront of every social change, every movement. If it does its job, it's of the moment and it tells us a lot about ourselves. But there's also that important thing about art with technology, and with consumer products. The reason that the iPhone was so successful is because it's a thing of beauty, and everyone is in awe of it. So design is critical, it's absolutely critical when you're thinking about scale or consumer products or tech that works. >> And having a good taste for a good art is also a skill. >> Yeah. >> Knowing what's beautiful. >> Of course. >> Tech guys love to have that skill. >> You could argue that that's getting democratized and disrupted as well. >> Kate, thanks so much for spending some time here. >> My pleasure, this is fun. >> Cube Conversation, Kate Goodall, co-founder and CEO of Halcyon here in Washington, D.C. Changing the world, societal entrepreneurship. A lot of great actions. This is theCube coverage. Thanks for watching. (uptempo techno music)