Fortune magazine summit in aspen colorado. This at two hours. Thank you. Moving on to our opening interview. This at one of our themes in our next story and conversation. I want to welcome the ceo to post mates. So far you appraise a court of billion dollars. Facing challenges in introducing us to a new friend. Please welcome bastion lehman. [applause]. Bastian hello. Welcome. Your Business Model at Pretty Simple. There are a few other business out there in the same area thats doing pretty well. Can you explain a little bit about how you approach innovation. Bastian good morning first of all thank you for having me i am excited for being here. We would like to compete not dollar for all dollar but at its innovation. I think in many cases at the smarter way to compete. Money at one angle and i think an important one but if they are not the most wellcapitalized player, i think you have to find alternatives. Thats what we do as a company at estimate. One of the innovations that we have here today, we believe that there at a piece called seraph. This would be a cooking show, we would tell you to prepare a little bit. Maybe we can show this. It drives itself and hopefully not off of the stage. [laughter] it understands that there are objects so it moves around it and we call it social aware navigation. It navigates on the sidewalk so it needs to a little bit differently than in the street. Its all built in house. Its distracting. [laughter] we can move over. We can have a look. It worked. We have a little bit here from paradise bakery. [laughter] so this at for your. Amy [laughter]. Bastian this at it. This at our little ipod. Amy lets sit down and while i eat dayold yogurt, im going to ask you some questions. Why bring it inhouse. There are a few companies doing this already. They are not offended if i dont eat this ru. Bastian no. Amy why bring it inhouse. Bastian so we looked at the landscape to have years ago. We tried to pick out Different Companies that we could acquire that would help us build. It turns out that sometimes in Silicon Valley as you move, the evaluation of these companies go extremely high. We think we can do it inhouse and do it faster because the only thing we need to do in house at to be our own customer. We do millions of deliveries every month. We have all of the date of the many other counties need in order to build the atomic mass vehicles to perfection. We decided to bring it inhouse. Amy what at a roadmap and what at this launching and where and how difficult at it to roll out in cities. Bastian the really beautiful thing about this at it operates on the sidewalk, we dont have to wait until it has achieved and until we have permission to deploy a ptolemy. It means we can use it in a multi vehicle semi autonomous. We have an operator can look at it and intervene its it. In situations where we try to figure out quite yet itself what to do. Amy at there an operator sitting in a war room. Bastian actual leave arc its veteran organizations across the company and help them veterans find jobs after they are back from certain countries. I think at the beautiful part of it. Obviously and selfishly it helps us deploy serve and we are testing it right now and la. Amy we might get two more questions but lets get serious for a minute. Are you going public. Bastian i think the official line at that i can comment on this that i would love to take this public and i have said it before and i think its actually one of the Great American consumer rounds that we have. In the millennial Customer Group it at well loved. Our plan at to take it public. Amy the rumor reports youve had your several other Players Companies like uber for example, where those rumors come from and are they or can you substantiate them. [laughter]. Bastian if i knew where they were coming from, i wouldve already addressed that. Its a small industry. Post mates have tremendous traction this year and we are going twice as fast as uber and others. People notice that. If you take the necessary steps to prepare your company to go public, you will get ml his and we do its him bounds request, the same thing we have always done. We look at it may make a smart decision. Thats what we do. Amy there at quite a bit of overlap its Customers Using multiple brands in the space. Does in some locations at least, at there a lack of brand loyalty. Does that kind of naturally lead into other factors. To more consolidation in the space. At that inevitable. Bastian there at a lot of overlap. You will see that the least overlap at in post mates and any other app. Thats because we are very focused on the millennial customer and 60 percent of our customers are female. We put a lot of effort into the brand and its the comedy stands. We a lot of exclusive merchants and we have cuffed out a Customer Base that we like and that is very unique. Amy what at the reason for the popularity and la. You seem to have a very large market share there specifically. Bastian people think post mates at cool. Its difficult to understand because in Silicon Valley nothing while this anymore. Im a friend who works for High Companies and i work for door dash and you almost have this kind of four players that have the Peoples Market fair share. We were the first and la. It gave people a superpower. People who have very limited time musicians and entertainers discover this almost five or six years ago. They started talking about it. Creative people started writing it in their music. I think thats what helped. Im afraid to say it wasnt me that made it cool but it really has an iconic status. If you want to have something delivered, usa regardless of what service you use. Bastian. Amy you become a verb. Speaking of california, how many of you are familiar its ab socket. The bill at coming up. There at one. This would reclassify independent and contractors as employees. How many contractors do you have currently. Bastian around 400 thoughts a and. Amy what at the do for your Business Model. Bastian i think the right way to look at this at to understand what it does to the people that you deliver on the post mate platform. I think this at true for many of the platforms in the delivery space, you have almost 90 percent of the post mates on the platform, they work in the platform less than five hours a week. It truly at about supplemental cut income. At four to five or 600 a month. Its funny that it at that number because at the same number that most americans can say they have for medical expenses. We believe the post mates fills a gap when it comes to income and it at an important gap and this is what we obviously believe that living these people as independent contractors and at matter of fact, not leaving them but making sure that any bill that passes, we solidified their status as a intimate contractor. Thats the right thing to do. Amy you think that you have a good chance of doing that that they can remain independent contractors. Bastian we work its labor unions and government offices and we have an Advisory Board for almost two years. It helps us do the right things for the people. I think we have put forward a proposal that makes it very clear that we care deep deeply about the workers in the platform. We are wheeling to put a benefit fund together. More voices on the platform. His we are doing the right thing. Amy questions from the audience. Placing her hand. Lets talk more about innovation. If you have a question, raise your hand. This at obviously very innovative. What are ways, its a Pretty SimpleValue Proposition here. One of the ways are you looking at not only offering more to your customers but also optimizing the way that you operate. Bastian a few examples. When the company was two years old, we unveiled our delivery as a service. The first in space. That does at it basically allows us to act more like fedex. If you are one of our customers, like walmart or 711, you can have access to the post mates. You can do things that were previously not possible. You can deliver the goods extremely fast in three thoughts and and 400 something cities in the United States. Almost 200 percent yearoveryear growth on the api side. Post mates unlimited in the hopes that we have some subscribers here. Over a third of our orders comes from subscribers today. You pay a monthly or annual fee. We launched a party last month. It at done a lot more already. Im sure my daughter will get there and be able to do as much stuff and its fascinating to see that. But mostly party allows to have free delivery because what were doing at we are missing a place where someone else just placed an order its your location so we do open the app and you see this, you can just take on two. You are trying a few minutes of your time for free delivery. Amy and from your and it at helping to increase efficiency. Bastian we do these things all very selfishly that many times they have a great event to the customer as well. It allows us to be be more efficient. If we launched it two months ago and at now 15 percent of total volume. Amy does anybody here use post mate party. [laughter] llama . Here. I just want to ask about the delivery vehicle. You said they are testing it in la. I am curious what kind of interactions you see that if its moving down the sidewalk and people randomly come upon it. How they react. Do you have a whole range of reactions like do they stop and look at it or kick it away bit or whatever. And that she have any programmed responses and when encountering people. Bastian that is a great question. We have a team that is focused on just the interactions part. In a few interaction elements. You have the eyes, elimination around the ring you have a display. People are very curious. People want to interact its it to the extent that we will have a more sophisticated program that allows her to give back. We are thinking about where you could ask her for help, or you can ask for help. There is a delivery robot in a hotel. Dont move which hotel but the delivery robot delivers food its room service. One thing it cant do at press the button to move the elevator to a floor. So it will ask you to press the button for the robot. Its a great interaction because actually shows how we can complement each other. We started testing this. Amy what if no one at in the elevator. Bastian we have got that far yet. We actually started testing in a community its elderly people. We thought if we could figure out a way that it at nonthreatening to not just the millennial his that are used to technology around them, but to a group of our society that is a little bit less used to it. We will achieve great learning. It was fascinating to see the interactions there. Basically when wanted to make it as easy to use and interact its as possible. Thank you for being here. Two quick questions. Does she collect data also she at going around. She has two pretty fearsome cameras there. I am curious how you are approaching privacy as to what she sees. Does post maids operate outside of the United States and if so, where and if not, do you want to. Bastian we do in mexico and we are in mexico city. We may expand further. That is for the medium future. The data that it collects and we will do the same thing, we will sell it to the highest bidder. [laughter] and we think it at really a unique data asset that based facial recognition. No one will be safe. [laughter] [laughter] given that i was born in germany, thats maybe part of my evil plan. [laughter]. Amy you did make a joke. About at how some. It could shoot lasers. [laughter]. Amy most of the questions are around the robot but it at so interesting. I wonder if you could talk a little bit about at not the actual space inside at huge. How efficient at it and cost efficient in terms of replacing humans at some. Bastian i think its important to really understand that when it comes to innovation that whatever you have seen in any moment in time at not how it really needs to be. Forever. First imac wasnt slow computer and i had a model minute but it looks great. It captivated people. It had a handle on it so you thought you could carry around. Which of course no one does. We wanted to take those same approach. Nonthreatening that has a medium wow factor that at about the size of a kidman about 1210 to 12 usual. We walk in the street, thats the area where we locate and where we communicate. This at the first version of it. A child of about ten or 12 years old. Thats where we look. It doesnt have to do hundred percent of all of the moves. It can do very short deliveries. Time sensitive. Prescriptions from walgreens. There at a lot of cases where we believe that the forum factor that we have today at very sufficient. To be honest, most of the deliveries we do dont take up more space than was inside of her. Amy the questions about intimate contractors versus employees, mike uber and others. At it irrelevant because this is what does the deliveries. Doesnt ever ever get to that. Bastian i think at the same answer as its innovation. The idea that it will replace everything at as true as computers have replaced all of us to this. I think it will help and augment and make things possible they have not been possible before. And these also important to see the other side. Imagine we have deployed a few thoughts and of these. They are here to help us fulfill the dream of having an infrastructure that can deliver goods locally at zero cost or close to zero cost. When it allows local businesses to distribute their cost, extremely low cost. I believe thats important and it helps local economy. It helps the hundreds and thousands of retailers in the night as they compete its amazon because they will have a better and faster infrastructure than emma hunt amazon has. I think that is really the positive things to look at. Amy real quick you talk about the dream of coming to Silicon Valley and doing a start up and all of that. At that still attainable dream, has become harder for you or for others to come to Silicon Valley and to scale in San Francisco or elsewhere in the area. Bastian and my personal view what at happening at that there wasnt time we do could be a founder and entrepreneur and you had a year to tinker around. In a weird way that was very enjoyable because maybe your idea was very lift field. He was very unimportant to their companies. You challenge that everybody at facing now at that whatever you do, if it has the small chance of success, you will get copied and it will get attacked from all sides immediately. It at a lot harder. Maybe that just means the ideas that we need to work on and need to think about has to be more fundamental in general than just how can we get your pizza in 25 minutes. Amy we look forward to see what news unfolds its you in the next few months. Thank you so much. Bastian thank you. Amy before we move on, i want to give a huge thanks to our premier partners. Herman miller, intel, kc mg, oracle, Rbc Capital Markets are finance tracks sponsored. I also want to thank our other partners jen packs, ida garland, new york stock exchange, and trip actions. [applause] thank you last december our next guest was appointed as executive assistant director of criminal cyber service. Shes the fifth highest ranking at the fbi. Top ranking woman on the agenda. She oversees all in the eye criminal cyber investigations worldwide and works to protect critical digital infrastructure. Most of it controls and runs by private companies. Please welcome amy hess. Good morning everyone. I think we all had a little is it too much fun last night. Amy i am so happy they are here its us. Lets scare everyone shelley. Recent polls say americans are more afraid of malicious cyber activity than economic problems, nuclear weapons, and terrorism. Should we be afraid. Short answer. Yes. Amy i dont see those things as mutually exclusive. What, i mean, by that is cyber involves other things. All of those threats and stress over time, terrorism espionage, Mutual Properties crimes. Now it takes on a whole new path in the sense of the sub Cyber Capabilities and the exponential increase in technology be that we have seen. Before i ask you about anything else, tell me about your role and what it encompasses. For the upright fbi, we break ourselves down into the separate divisions. One of the divisions labors he at particularly overseas criminal investigations. Whitecollar Election Fraud in all of those things, Violent Crime as well as financial crimes, another division i ever see as our Cyber Division. Those are the folks who really are looking at the intrusions. What at out there, as far as what the box net or e skimming or at this email, my eyes. Does it manifest itself. Im also responsible for all of our Global Operations across the planet. So you have plenty of free time at what they are telling us. Pretty much. We learned a lot about china. People are very concerned about it in terms of Global Competitiveness for the United States. Tell me what they are staying what at actually coming out of china. Amy china at clearly dominant superpower in the world. To do that they are wheeling to steal information clearly, steal intellectual property and still military secrets government secrets academic secrets r d, and in the process of doing all of those things, they also are investing in companies in the us. Part of the supply chain and all of those things create for us a risk. We can see where they can get information that American Companies has developed and taken years they get it for free and get it quickly and positions them to achieve their goals. So what role do you play in pushing get it back against that. Amy for one thing the fbi meets its a whole bunch of other agencies. That would include public, Homeland Security and looking at how we defend our networks. Also, we work its the department of defense on how we may be able to see whats happening outside of the United States. How we might be able to take offensive actions potentially but the main fbi his main goal at really accountability. Trying to figure out the attribution and who at responsible for these things and how do we hold them accountable. Whether that is through indictments or criminal charges or whether its through sanctions, that is our role to try and make that happen. Figure out who did it and investigate, and then hold them accountable. Lets look to our other favorite, russia. When he was sitting there. At it any different than china. Amy it at different. They are still interested in stealing our secrets military government. What youve seen publicly of course over the past several years at what we call malign foreign influence. Campaign campaign. Being able to use and take advantage of our social media. I really hope it makes people question whether or not but they are staying and what they are reading and hearing isnt real. Because we see instance after incident where they are using those platforms to try and divide us. Lets talk about a specific incident that happened in the headlines fairly written recently which at the florida registration incident. Amy as you saw, the department of justice charge several individuals, russian nationals who work for the gr you back a while ago its intrusions. Who basically stealing information. What we did at that time we saw that, it went up to the president ial elections and we realize we have got to bring all of the resources that we have in the fbi together to identify that type of activity and when it that is happening. In other agencies need to do the same thing. What we did at forum in the fbi a Foreign Influence Task force. Our Cyber Division criminal Investigation Division are counterintelligence Terrorism Division and looking at the problem so we have never stopped after those charges to identify where we see that activity happening. We did that into the midterm elections in 2018 and we are continuing to look for that type of activity into the 2020. In the elections. When we see ended we did see and saw attempts to try to infiltrate these elections networks that were being used. We never saw or at least we have no evidence that work there was any indication where boats were changed or anything like that but there were certainly instances where they were trying to gain access to information that surrounds the electoral process. It should be concerning to us. The fbi receives a lot of criticism around that incident which was really about transparency. What type of security was the fbi was not transparent enough about. How do you feel about that because transparency at both an asset and a risk in this line of work. Amy gets us really enjoy good discussion as to when people and companies see something, activity that looks off. They move at maybe not something but maybe it at. We are highly encouraging them to contact us. Then the problem at that first off, we recognize the competitive advantage that companies have or dont have when they acknowledge that they may have been attacked. So thats number one. But the problem at if you dont reach out to us. Then you are potentially not only enabling us to come in and help its pictures are also potentially not being able to share that information its other people or even to prevent the next one from happening to yourself. I will say that in certain instances that we are talking about here at that when a Victim Company does contact us, we take that very seriously. We have no obligation if you will to tell the world of the victims company says hey i really dont want the world to move about this. I want to work through it just make sure i understand what we have. Then this talk about that. Present, so you look at it together. Lets see if there at actually something to it. Ill come back to that in a minute. I want to ask you about the current administration. Trump was through a National Cyber strategy. He signed a bill. To train local Law Enforcement and sort of Cyber Technology tactics. The broadest way to let it. Do you think we are doing enough from a government standpoint. The executive branch or however youd like to break it down. Amy no. I think we can always do better at this. This at the future. The thing about our dependence on technology today, i view it as wholesale change in the way that we function. As a government and a people in a society and now the technology has meant that we need people who understand it. People who can really get into the zeros and ones. But we also need people who understand policy, understand how to conduct investigations and we need this people is it too. Bring this together so they can comment each other. I think thats all we tend to fall short. Figuring out how those things can work in symphony. Bring in and encourage that type of collaboration and coordination. We are doing a lot in that area but we can do a lot more. Collaboration people money laws. But also we need. Amy technology at inexpensive. The people who understand the technology, of course extreme chemic demand across the board. The government will never be able to compete its the private sector when it comes to salary. What we hope to compete its at they are never going to be able to do that you get to do in the government that you would do in the private sector. We need each other. We need shared information. Personally, if i had ideal space here, i would like to see an ability to move back and forth between private sector and government. More easily. I think that would further develop all of our understanding in our capabilities across the board. Be back lets bring us down, what should we be afraid of. Quite literally. Amy first of course the number one thing at we continue to see in the fbi the lowest common denominator of where the attacks come from. That would be the human. Its the user. We typically see as you dont face the systems, we dont update, get the patches, because its inconvenient comes in an inconvenient time and we put it off. The clicking and the perpetual clicking of things you dont move where they lead to, its amazing that we have the internet. We call it i see three. Since its existence at taken in about 350 thoughts and complaints. The vast majorities of those are four of course nonpayment on delivery. Also extortion. And there are data breaches. And when we ask you feel that way and ask how its happened, inevitably much of the time it comes down to well i thought this link was from a person entrusted. Or from someone i thought was legitimate. And thats what led us to where we are today. What share of your work on these very large, you concerned about nationstates and really high level stuff versus this kind of pedestrian so that we hear from our local it. Be till we are obviously concerned about both because when it comes to nations, they kept them very sophisticated people out there, governments, china and russia and we have formally charged them. The actual agents the government its doing things. The indictments last december. The chinese hacker from last year. Amy we saw a course in addition to the russians would be the election piece, you also saw the anti doping case. They were able to hack in to the ages the russian government at into the organizations. Then we see the same from iran and from north korea. But others, we need to be concerned about nation safety because of the capabilities that they bring. Then of course the other end of the spectrum, the criminals. The people are just doing it to line the prophets are getting pretty good at this. We do look at how much money goes through the rooms, the criminal ecosystem ill call it, its pretty phenomenal. Look at the statistics that we try to do like basically recovery assets in the financial fraud chain. We call it the recovery as a team. What they saw at in just the course of a little over a year, maybe a year and three or four months at they were able to recover 300 380 million and that was about 78 percent of what was called in. These are people, individuals peoples live savings. The criminals are getting really good at how to con you out of your money. Also how to deliver the malware. Its a whole ecosystem. One person does malware and one person does a Delivery System and another person does hosting and another person and they all Work Together in concert to be able to attack you and take you or what belongs to you. Im going to sleep so well tonight. Lets go to the audience now for questions. We have one right appear. Please remember to tell us your name and who you are its. Joel. What at your greatest fear, what can you ahead of that over the next ten years. Even a low percentage probability. Good ai because a red flag or a missed nuclear attack, what at your greatest fear. Amy my greatest fear would be its respect to our critical infrastructure, you dont have to go to many steps out to think about the consequences of somebody taking out even a small portion of the United States critical infrastructure. Energy or finance or transportation, those are some pretty dire consequences and has probably the number one thing that keeps me up. The second thing i would say at what you alluded to at the proliferation of technology. Some Amazing Things are on these vehicles, the internet of things. Interconnected devices. The brush to get something to market, means that sometimes security at an afterthought. Thats concerning because now we are trying to patch things that are already out there. Potentially vulnerable and usually are. My back here. David. We prayed a lot recently about the president somewhat unique relationships its the fbi. Ive curiosity, you as a leader and thinking about guiding the organization, how do you stay or remain fiercely independent. Amy that certainly, our directors talk a lot about this as well. Thats exactly what you said. I think the fbi his job at to collect the facts and to do it independently. To do it a politically and essentially to the best of our ability to identify and uncover the facts. No matter where they later who writes them at the end of the day, we present the facts. This is what we do. I think for us and organization, and particularly for leaders in my organization, its important to think our focus on the mission. We get criticism across the board and we have 410 years but its important that we focus on what we are doing in if we are doing it the right way. Michael miller pc magazine. Theres been a lot of controversy about attacks. Whether people should pay the ransom or not. What at your best recommendation. Amy i will always say that its not a good idea to pay the ransom. Because it just further encourages them. The encouragement that that gives to others to see that is a probable business. What we have seen at really a transition over time in the way the ransom were deployed at going after the obvious targets the ones who have the big money who could probably pay out. Nice to transition to focus on smaller companies. Smaller businesses and the ones who potentially dont have good security. Potentially are more susceptible to compromise. Thats concerning because they will ask for a lower dollar amount but in the end, getting a lot more bang for the buck. A lot bigger return on their investment. Obviously, what we would like people to do and companies to do at develop their security, have your backs up get the systems and place and updated so that you wont fall prey to this. Or if you do, and you probably will at some. , you have a place to go. You dont have to pay that ransom. They are not beholden to them. The last sale than that is there at never a guarantee that if you do pay brent some, that they are going to get your data back. Thats a scary proposition. Municipalities. Amy we have seen a lot of that lately. One of the things that we continue to focus on in a partnership its state and local governments and its private sector and its contractors that are out there that are providing the services, at trying to think ahead. The best message i could send out there at you are going to be a target. Give yourself that way. So what are your men dips healthy or Small Business or whatever, an entity of any sort, you are going to be a target. What are you doing right now today to develop the practices and protocols in the systems and security in place. Because again, we are going to say dont pay the ransom. You are just encouraging that behavior. Youve seen what happens over time in the sense. You get hit later or someone else does. Turns out that it cost a lot of money for folks to reconstruct their data and raised constructor systems but that is why we need to keep thinking about that in advance. Robert of fortune here. Theres a bill floating in congress that would enable companies to take active measures after cybertek people are call it the hack backbone. What are your thoughts on that piece of legislation. Amy i have no concerns about private industry. Taking offensive actions. I think that could lead to some very dangerous places. For our government even. We are thinking through one of the consequences are government offensive actions. You think about the Collateral Damage it could incur. All the consequences, potential retaliation, theres a lot of things that need to be factored in before so many stars taking offensive actions because we do might think at a simple pack back, it has a lot of treasury and secondary consequences that you may not even be aware of. You could potentially be initially more damaging to not only you as a company, but others. Into our infrastructure as well. Miserably yesterday we spent a lot of time at town hall talking about how do we recce regulate technology comedies. A lot of backandforth between the private and public sector. Does the fbi have is it too much power, not enough, how do you see that. Theres been a great deal of criticism about that. Amy basically in the way that we do business in our system of government was set up in such a way that i think the check and balances are important. The criticisms are important quite frankly. It keeps us in check. I think the regulations are important. The ability to progress as a nation depends on how well our legislation keeps up its the changes in our society and the changes in technology. The fbi at seriously not the only agency that at out there in this business even though sometimes it seems like we are. I think that interagency peace at really important because the way we interact its the dhs and dod in the plant private sector in academia and state and local governments at usually imparted because each one of those brings a different perspective and at critically important to the way to ensure that not one particular Government Entity warranty any entity has is it too much power. A round of applause for amy. Thank you so much amy for being its us. [applause] was not wonderful. Leading maker qualcomm recently one of their enduring battles. Five g technology in vehicles across europe. As one of the largest manufacturers, they have to still work hard to stand. To see it share what they five g future holds. Steve mullen top and qualcomm ceo. [applause] welcome back to the brainstorm tech stage. We do read that some Big Tech Company lost on the mobile revolution in how they are struggling, this at the guy that was up to. Steve has been ceo for five years. You are a lifer at qualcomm. Twentyfive years. Younger name and dozens of dozens of patents, electrical engineer. We often describe it as a chip maker but you actually make the chips, you design it. Were the two main businesses qualcomm has. We probably dont think of ourselves as a chip manufacturer. Its more about have a vision for where wireless could take us. We tend to invent the fundamental technologies. What at it that we need to do as an industry to create a downstream industry that can use cellular. Just to be shared. We are very active in that and have been for a very long time. Then wait create a lot of software to make it easy to use our chips. Everybody has the product difference. Its grown over the years. So they think that is sort of what we do but were really what we are doing at trying to figure out what technologies need to be invented and delivered at scale so that the industries can take advantage of cellular. Its probably more exciting and impacts more industries now that it was over the last three years of the because companies histories. Were about 33 years old. The tech company in terms of a company. Obviously the next 30 years will probably be more broad. Its pretty exciting. In addition to selling the chips, you invent things, mobile phones and other devices. You receive royalty fees, very lucrative royalty fees on those inventions. Thats been sort of an area of controversy over the last few years. So one thing that happened we do are here ago, you predicted that this big battle you are having that went out aware, they were assuming you are the royalties and your counter suing them. You said it would be a settlement, it will not go on and on and on. Everybody laughed and people would not believe you what happened in april. You settle its apple. How did you come to it. In enfolded very much the way we said. What happened i think at theres always disputes about the price of ip. Sometimes those disputes are are public and sometimes they tend to use global care physicians. These are big sophisticated companies but ultimately what tends to happen at that these things get resolved and then the normal working relationships between the market parties at what at lift over. Thats really what we have here if you look at the engagement between us and apple and other companies, there always after a licensing dispute. It settles down the focus at really how do we get the product out together. One way or the other. Thats really what dominates it. The much more countable spot from both companies and very happy to have that. Your stock at up 33 percent. What was it like a ceo and how did you feel when your best customers at doing this. This at not our first rodeo here. The key thing at to keep your mind and i on the big things. The big thing at five g his company or technology at coming and technology at typically if you have Great Technology you can figure out commercial disputes. It really has to do move so much its howie you are selling a product to them are not selling product to them it has to do its your relevance in the industry. Who should you be working together its. Those types of things. That creates the right environment. All of this external stimulus into the company, the company at very focused on pulling in five g. If you look at what people are really doing, thats what theyre working on. We emerge from the dispute and all of a sudden you see the qualcomm at a very strong position in five g. It wasnt distraction to about ten of us. But the people who are really focused on technology, their focus on technology because they love it. They kind of understand how unique it at. We have a great team and they really demonstrated that. Sumac i said his stock at up 33 percent since the middle of april, it was up 60 percent in the first few weeks after the settlement when another legal externalities as they are calling it, dropped. As a court ruling out in california that the federal trade Commission Said that you are anti competitive in europe licensing practices. That battle at ongoing. Sue stock has dropped somewhat over the last month. Whats going on. We obviously disagreed its the judge his ruling. And were going through the process of assaying ultimately an appeal. There at a lot of backandforth and a lot of things if you look at what happened yesterday its the department of justice actually filed an amicus brief in the court. A lot of people say sometimes that the briefing speaks for itself. Im sort of downplaying it but in this case it was so articulate better than i can make in terms why we think we are right in the law and why we think we are right in process. And ultimately will we prevail. Encourage people to read and just remember the writing entity sum at not some random person. This at actually the department of justice. The person and entity that holds the sway here. At least in antitrust law. We were happy to see that and we think we will prevail these disputes take those long time. And again the importance component of that at really for us five g at happening we are launching it and we will get through this. We its important to us that we get through this properly. I hope everyone at subscribing to the newsletter. I did read some of the reading. One of the reasons at why you shouldnt be prosecuted. Why at qualcomm informed of us national security. They also said rewrite of the law two. [laughter] it really has to do its relevance of the Cellular Technology we essentially recognize our leadership position in five g. Also the importance of five g and in this case i think they made it particular reference to the security of the some Defense Systems as well as the case of the department of energy. The importance to the infrastructure and the importance of it being secure as it goes forward. You couldve added a number of industries it who could have sent the same thing. The really just staying buying strategy for connecting my things at intercepting its five g. And we need to make sure that the leaders that produce those technologies continue to be successful. That is really what its about. Probably has less to do its us in particular and more to do its our leadership position in five g and how important five g at. Two downstream industries. Lets talk about five g and try to demystify it. Ive got to go to providence recently. In providence, rhode island at one of the few places that has 5g inservice. Can we do a show at the end and see how many people it who have five g phones. Just a couple over here here. Not is it too many. So i tried the five g phone and i downloaded a movie onto my phone and in ten seconds, very impressive. Im not sure thats enough to make me want to sign up for five g service. Tell us a little bit about what the technology really at going to bring to us besides his feet. Five g really has two components or two vectors of interest for the industry. First one at purely to the cellular industry. A lot of it has to do its what at there and what at the advantage to them. Its basically two things. The ability to keep up its the demand of wireless video. The peoples wireless video demand continues to go up very dramatically. And even beyond reith witherspoon at desired to get data. [laughter] although she at wonderful and all that. One of my colleagues suggested 600 episodes of the simpsons. Thats just an example of tremendous amount of demand. That will continue for a long time. What five g does at it actually allows the operator to get access to that at about a 30th of the cost. And he allows us to have access to the bands which gives it from its ability to provide services to the consumer and in some cases even compete its wireline operators. Like cable. You see verizon doing that particularly in the United States. Thats kind of the classic margie issue. It has less to do its a dramatic impact to the consumer. Although the big data feeds, see it, they love it. Its this incredibly beneficial for the operators to launch. So much so that i think if you dont have a good five g strategy, they are going to be of behind. The history of the industry at that if you get lift behind, you never really gets backup. Honey think the us industry at really doing. There actually doing quite well. Rhetoric around that, whats happening in five g in his first case, at this the first time it at a global launch. Typically you see these technologies happen in one geography typically japan and korea and the United States. The mistrust of others areas. This time it at actually launching worldwide. We actually have a lot to do that. We actually ran around and orchestrated and make sure all of the industry margins are ready for launch in five g. But the reason it at launching more dramatically worldwide has to do its second reasons of why five g at important in the industry and it at how do i create the sort of connectivity fabric underneath of everything so that industries can take advantage of digitization. So if you ask any Investor Company any Infrastructure Company or healthcare coming one of the need to figure out. The need to figure out how to deal its the dissertation of their stuff and their people are remotely control things and do it securely. Five g was designed purposely to allow it to card occur. The seller roadmap really intersects its these new industries. We talk about how that is a similar transition to what occurred we do had electricity in the steam engine and all those things. Probably overdone a bit but we have a very significant impact. Thats what qualcomm tries to do it first holy tried to admit fundamental technologies to allow that to occur. We try to figure out how to get that out of skills of the people can run these businesses and typically its about how i create a bigger pot. What happens at industries are being impacted opposed to consumer industries. But if you going to figure out how you control the infrastructure of an industry or how i can fundamentally disrupt the delivery of healthcare education becomes industrial policy for countries and what happens at entry say i actually dont want to be late. I better launch it as soon as possible because i want to start running these experiments myself. And of course that creates a poem. You see five g mapping faster than forgey. Both in terms of number devices a number of operators and even the sellthrough of devices if you look at what happened in south korea. When do you think how many more time of when most people have their hands up. Next year. You can go into verizon and you can buy a samsung five g device. He looks exactly the same as the forgey. In fact people buy it, it has five g and the use of forgey, they dont even move its a five g. Theyre going to have access very dramatically and very different in the forgey transition. We had much thicker devices and a lot of early teething pains of the technology. Thats not what you have today. All of the things that people talk about that you wouldnt be able to solve, how to get antennas and had a make sure works and all that. They are resolved. They are in the devices. We feel very good about it. If you look at what the operators arranging for next year, its going to be difficult to not by a five g phone. I want to get into a few of the examples to help people understand how five g applies the headphones. Someone we are talking about cars. You may have heard or read the self driving cars are going to communicate its each other and its the infrastructure over five g and will have a lot of data needs. Seek and you explain it before we get the selfevident cars to five g. The connected cars dramatic trend not only for classic telematics. I want to be able to get things off of the car, but they usery experience. We desperately need with technology to do that we have been inventing for some time for about why it happens is that computing that is occurring dramatically increases but you also have a need for cars to communicate to other cars often times through the network or through the other cars for co and as you talk to the car company they are trying to figure out how do i take this and change the experience . Pretty dramatic actually. And its great for us on top of the scale to get the bandwidth with those technologies that are how i make sure it meshes into that. So i want to ask you with that smart phone revolution and qualcomm has tried some other areas. None of them so what are the best opportunities for new markets beyond smart phones quick. We do have a significant nonmobile business but the reality is we have a very significant mobile business. And you dont have to believe Market Growth or unit growth. With the price of the unit that they sell. And we will see an increase in the amount of content that qualcomm gets. And even without Market Growth. To be very attractive and thats over the next several years. That 105 g phone. But then the second half is the auto business which is a 5 billiondollar that is important business for us and several years ago that was 2 million. And we have a tremendous business in the networking and essentially what happens and plus computing we will see that but you will also see tremendous Business Model evolution and then the opportunity to sell products but also to help enable new industries to grow. You dont have to believe much more to make a very attractive company. Are there questions or comments in the audience . And with the five g race there are only a few Telecom Providers in the world and second is there a uniform standard that was for the four g in the past . How does that impact different types of five G Networks Across the world quick. It is a unified standard i think very little we dont see that happening at all. In terms of who is ready or who is not ready but theres always the option but can i afford to put in what is required for five g . That tended to be a discussion so that we would have heard that but most operators have committed to the five g program and they are in the process now of how do i get this out before my competitor. Meeting at the spectrum is not available like in india they have yet to auction the spectrum but the mod mediators are quite keen and they are trying to convince people how we support the global launch. We are from accuweather so looking five years ahead what we dont hear much about like medicine for those businesses that are important but we dont hear much discussion about. So logistics and traffic flow and Weight Management and how you move things around securely in big cities. Five g is tailormade for that. We have always believed healthcare had an opportunity to be disrupted by having secure communications of the whole issue of how do i validate the medical devices that people take home with them are secure enough and authenticated so i can make a medical decision. Probably less of a technical problem because how do i solve the legal and regulatory issue issues, should we do that then tremendous opportunity with that value and the delivery of healthcare and education. But really what people try to figure out is the infrastructure or people and if i was able to control them in to make decisions about what they generate i can optimally optimize and generate a new business. But back in the early 2000 timeframe qualcomm had fundamental technology that was required. And the idea what we were thinking about maybe 911 to find people with a medical emergency. But very Small Technology went into the phone with location and to connect to the internet and that very small innovation created uber which is a tremendous Business Model innovation today with five g we are creating more Technology Change in bigger industries and that downstream innovation that qualcomm ignites there is tremendous winners and losers on a global scale. Thats the reason why the company is so excited. I have one last question. So not that long ago you will spend 40 billion and then broad calm came along that one of the former ceos of your company talked about qualcomm coming out of it and then nothing happened. So is there anything out there you would like to see quick. There is always opportunity. We are focused today on driving five g and also the opportunities that we agreed with apple. But there is always opportunity in consolidation. We think we have a unique opportunity and what do we need to add to that . So what is that . You can see where we are going as a company with these type of industries that are important but we have a very stable path over the next several years to execute. Thank you so much for the conversation. [applause] hello. Our next guest experiences ranging from google and working with the Obama Administration white house president ial innovation fellows completely changing the field of Software Engineering and to make it happen please look at our next guest. [applause] thank you. How is everybody doing . Today i want to talk to you about ai as a frontier and a little comment i want to make what im actually talking about is Computer Science at the aid of humanity using this information to build skill and with the decisionmaking systems hearing about the african horizon narrative going on for a couple of years over the past decades born in nigeria and living in San Francisco so from the imf we know most of the worlds emerging economy is coming from subsaharan africa. 60 percent of one. 2 billion corporations under the age of 25 at the end of the decade africa will have 90 cities. And by contrast United States has ten of those. This is not only interesting to me but the home of all half of global Payment Users 120 million different people with mobile payments. So with Machine Learning at the frontier learning about the Machine Learning itself and talking about deploying the scale and decisionmaking system in the frontier environment. So what i usually think about is American West settlements that environment with that innovation to make life work that there are so many Different Things leading to Silicon Valley. We are on the edge of another Technology Frontier this time not in San Francisco but in africa. They are the same conditions that have a different type of Technology Innovation and the interesting thing with this decisionmaking system so last summer i went on vacation with my family and we arrived at the airport and immediately that i can get access on my phone and went to my phone and i was very surprised that i was offered some limited amount of Financial Services immediately. They realize there was enough data to offer me the services i was rather intrigued for quite my phone and called uber and they took me to where i was going and this is where the same technology happened. But what struck me but then we went to the border of tanzania and its a whole different town in the interesting thing about the drive you can see how far d technology has penetrated and in the small villages with these mobile payments so i realize then that it would radically change in one of the interesting things that Technology Wilderness is what do you do that one of the solutions is take to the air that company at a San Francisco they have created a very innovative Logistics Solution and then to use drones and here are the villages and you can just use them these are the kinds of radical Technology Innovations as well as Machine Learning in these environments. Want to end with an interesting story last month based on the latest report we realized nigeria was one of the countries with the Fastest Growing rate of development so we went to go see what they were up to and then to inform us for what we should do. And then we invited to go to the invent that was amazing every Single Person earned their way through it didnt matter who they were or where they were born in affluence or poverty all that mattered was their work and it struck me even as i a person that believes to see the impact of bias to see how powerful it was and many of them never even knew each other. It is the power for each of us. Thank you. Thank you so much. Now we will move on many people write off those cryptocurrencies in writing if those block chain currencies will or how they plan to get ahead with those big ideas. Please welcome joe and dominic. [applause] thanks for being here. Lets do an audience pole who owns cryptocurrency . Who is thinking about buying cryptocurrency . Thats a pretty even split. So by way of introductions with the internet computer with that platform that relies on the block chain where you have servers through different data centers as part of the foundation of what you are trying to do to disrupt the big tech giants and those decentralized versions like amazon companies. Joe you run a block change Development Company but the second leading cryptocurrency you hear them disrupting banks versus big tech is that part of it when you talk about that theory with a different type of facebook or google or how does that play into your vision . Bit coin essentially invented nextgeneration decentralized database and the token that economics would incentivize people and in that way essentially to build decentralized system so in 2012 many people said we should be using this database infrastructure for everything. So that it was born and we built this with what we theny since then have tools and infrastructure with different verticals that they are intending to do to go after with the Major Services of the internet but more than that because they have a trust foundation or a global settlement layer in that Financial Funding we can issue billions of dollars of additional assets. So the idea of an internet computer we already have a theory and services so why do we need the internet computer . Inventing the internet with that range of superpowers it is intended as a complete replacement as a legacy and it addresses major issues such as the difficulty of creating secure infrastructure and the difficulties that we have with the internet today to provide a platform that will provide a platform for innovation and investment. The centralization is to create a decentralized version of these huge tech companies. Is there any evidence a company could rise to the level where it could challenge that dominance . The only is wikipedia and asked that even on the same level. An increasing part of the internet so one approach to deal with that is to bring antitrust and try to break up big tech and then to provide the alternative needs one dash by providing a platform this would be roughly analogous to the open source projects and with that governance system these provide a Platform Risk so to be the harbinger of things to come with the ipo they are very Successful Company than facebook change the rules then lost 85 percent of their value. Eighteen out of the last 22 tech ipos mention Platform Risk as the existential threat but the problem is if you build on the api then you are building on fact you cannot trust it and then have access to linkedin. And those that will provide a way to take a different example and guarantee they would never be removed or revoked with those investors that needed to incorporate those business profiles but this has that mutual effect to drive that development. So that protocol if you build on facebook you build on a platform that somebody else controls toward the end of the monetization cycle youll have to eat your lunch if you build on tc acp protocol then you can be relatively certain that will not shift for competitive reasons. Web three. Oh which is the evolution of rvr right now would be decentralized with those automated agreements with a decentralized bandwidth and then to have that discussion they are currently contemplated a massively decentralized and that plays out in different dimensions. If it is decentralized are there only nonprofits who can do this quick. The protocol open platforms with this New Invention called cryptoeconomics the issuance of a token and effective mechanism design so Different Actors can pursue their interest and perform different rules and achieve the goals of the system so you can achieve decentralized governance while still enabling people to pursue their own interest. Can you make money doing that quick. Put it this way you are an entrepreneur wanting to build a new Business Service to incorporate business protocols would you rather build on closed proprietary linkedin closing down apis dash but lets say they are still provided who would you rather build on . And to guarantee your foundations were solid what would you rather build on . In those numbers of engineers and researchers and partly because the technology is interesting making that more open with that platform as an investor part of that major transition. I wanted to talk a little bit about it had a terrible crash and it started to bounce back is sheer it is still good but it hasnt had that same bounce back as bit coin has and are still trying to scale those questions on 2. 0 but in terms of scale where it could replace these huge platforms. It is fair to say that the second largest cryptocurrency by far the largest ecosystem and the number of projects that are building on the platform we have scaled enormously so many of the people who were focused on the more speculative aspects related to bit coin that was launched on the platform, some of those worked out well many worked out quite badly and many speculators are coming back at this point let all through that that technology and entrepreneurs into the ecosystem once you see the value of decentralization you cannot and see that on that architecture so through that. The ecosystem has grown enormously. Enterprise usage we work in many different verticals and has grown exponentially. Even on a transaction basis that it can handle around 120 Transactions Per Second and where we have many different technologies we see tens of hundreds of thousands of transactions coming online in terms of scalability and it will be here in spades want to get started in its release. Any questions from the audience . I would like to hear about governance so how can you build something that will take on google and facebook . And it takes years to create scale and what will that do that they can participate quick. That theory of decentralization is powerful but it does require Good Governance like Everything Else and his people would agree governance of the decentralized platforms with what we try to figure out i believe we launched an unprecedented platform about a year and a half and have continued to pioneer the architecture to scale enormously and essentially end up being the base trust layer. The project is different that we are focusing having Different Actors that are incentivized to make the platform better have a voice and i like the idea of more automated governance by the token votes and we can do some of that but there are projects that are contemplating building layers and layers of governance of these platforms and it will take years to figure that out. Slowly and prudently but even without that many Different Actors committed to improving the platform will be able to challenge those entities that have a smaller number of highly incentivized actors it will be a foundation for many systems. Thinking about governance quick. Yes the internet has organizations like the ipo address it has automated the algorithm systems with that Computer Network that is comprised of manufacturers and also a key part to address Platform Risk. So the second part is how we can compete with innovations like google and facebook but the Foundation Strategy is to use the Silicon Valley playbook but also in San Francisco and researchers and engineers so in that sense and with the notforprofit and we did be successful with the places like from google. So if they wanted to they can fraudulent so what do you do about that cracks what is your power or the networks power quick. So it does have the network on board for someone who is capable of neutralizing bad actors if that is good or bad but we do have that technological means to address that. And then to assume the vast majority of transactions of the network are valuable because they are between significantly or fully identified actors to build infrastructure to have digital aspects in many Different Countries with full identity checks so we are bringing identity and reputation and it is a deep philosophical issue that shouldnt have that base trust layer that is permission this or should we have one that is sensible by government actors the power of technology with two different jurisdictions. Should bad actors be tolerated . Thats difficult answer. Generally know but who defines a bad actor . Thats all the time we have. Thank you for being here. [applause] our final guest is an air force major and white house fellow serving in science and Technology Policy the inventor of three Us Technology patents we are so fortunate to have him here to share insight on how the us will stay ahead with Transportation Technology from commercial drones and Autonomous Vehicles. Please welcome our next panel. [applause] thank you very much brooke a welcome thank you for sticking to the very end we are excited you are here are quite feel we are very far apart so have to pretend we are closer. A couple of things we had one had things come up where glad you could step up so to have very specific policy areas he is responsibility responsible for i would ask them to speak to the Trump Administration beyond those policy areas for i just want you to know that and i also want to tell you as an air force officer and a policymaker i have encouraged him to use that jargon which he will explain to us. So tell everybody about your background. I started as a techie Computer Science at stanford i worked for aol in the old netscape building as a Software Engineer with emerging technologies and the 2005 timeframe. And then to serve the country and then ended up leaving Silicon Valley to join the air force i spent the last ten or 11 years as a pilot flying the large cargo airplane all over the world in afghanistan and iraq. Unfortunately this year i was given an excellent opportunity to serve in the white house the office of science and technology that comes from hightech experience and as a pilot in the air force without advance portfolio with Aircraft Systems automated billing vehicles and then the future transportation what that looks like. That is the policy area that you describe as the furthest along so tell everybody what the white house is doing by way of talking about what drones will look like in the United States. To launch the Drone Industry it has been mindboggling honestly. So around the 2016 timeframe regulators said how will we enable operations of these vehicles in the National Airspace with traffic over congested areas and as we were working through that we realized we have no data what type of characteristics do they have a can they fly over the large Populated Areas . Succumbing through that data how can we get that through a local context . Flying a drone in San Francisco is different than rural parts of oklahoma. Regulators at the faa are not equipped to make all of those decisions so we created a Pilot Program or ipp and the idea is Public Private partnerships with private industry to work through the cases of various communities across the country so we have nine participants in the program from pipeline expectance with delivery advices Law Enforcement and the whole idea of the program is the various localities coming back to the faa to make rules. When you say participants those are companies or locations quick. Usually a Government Entity san diego is one. They have partnered with a private company that is relevant to that area and different parts of the policy areas. So to select all of those that was matched closely by department of transportation and faa we are one year into that program it was an explosion of the different types of these cases and they made some regulatory action as a result and just recently we released a notice of proposed rulemaking so prior to this rule those operations are prohibited unless excepted by the faa and they award those in some circumstances but the majority of the waiver on waiver applications were developed so by proposing a role a rule we now free up those resources to work toward a more complicated use case. So right now flying a drone is like flying a kite you cant see it however the faa now is working through waivers and authorizations to allow that line of sight to happen. Let me interrupt you you say all drone flight that the operator cannot see is illegal quick. Unless by the faa. Only in some cases. That considers if we accept a rule. There is a lot of information and data the vendors need to provide to allow the faa to accept a level of risk. Beyond visual line site a couple were approved that required a manned aircraft flying with it. Thats not the most economical approach but when it comes to safety everything in airspace to make so hobbyist are violating this law every day. Was at a correct assumption quick. I think thats fair. So we have the criminal impossible negligent the concern is around the negligent so then to counter that policy issue we are working from the white house as well the reauthorization bill of 2018. We lobbied very hard to get those additional authorities for the department of justice and Homeland Security to identify and some cases those drones that are operating in areas they are not supposed to be. Previously department of energy has those Authorities Congress worked with us thats what we arrived at looking forward we dont need a federal response every time you like to be on see that expanded. Because the law did not anticipate that otherwise. First to put on your pilot hat how concerned are you as a pilot . I think your policy outlook is how do we make this work commercially as an exciting new field but how concerned he was a pilot . If you think of the type of operations i would do or a large aircraft pilot most drones viewing is 400 feet. For larger plane we would land at about five seconds. [laughter] so i am not concerned with that being said this is definitely something we need to work towards and then to bring up another policy is the concept of remote id if i can download an app and i can see all the air traffic and say that is Southwest Airlines are United Airlines flight that drones dont have required transponders they are not required to report their position that does have a little security concern from the government side but also Traffic Management what if there is a lot flying around you with them to hit each other. So thats what we view as the foundation to enable this new industry. I assume thats faa can do through rulemaking . There is a current public estimate in one year. Talk about one of the companies in the talk about zip line doing some things in afric africa. I dont want to talk about any specific company or endorsing any action but i would say that each locality has a very different use cases i was just in oklahoma and what they were working on was feral hog traps and how they and then that packages the drones and packages them in a way that gets at the problem i was not aware that was an issue drones could address but we watch a demonstration of 100 drones flew in with geo tag to identify the drop zone. And then drops feed down. So that goes down into how interesting and exciting the successful the program is because it gets them to work through cases none of us would have imagined. That goes to the food new category. Another policy was in the back of my consciousness that we are still interested in commercial applications and the concorde way data production and commercial flight many years ago. So why now . Honestly it is the industry. A lot of companies are working on this right now in aerospace and lockheed just got in working on the demonstrator with nasa so industry came to us with a Business Case how these will be successful obviously with the concorde there are a lot of issues in terms of noise and pollution and cost and i would argue today airplanes like concorde noise level would not be accepted by most communities. So the industry now is taking another look with the benefit of 50 years of research and development that has made engines more efficient. That is what started this. Our view is not to decide winners and losers but to enable testing. Bet your policy viewpoint your taking time to work on this so you think it would be a good thing to come back. In a commercial sense but also r d and aviation and other areas as well. So we would expect getting more r d would help the Aeronautics Industry as a whole for what is possible for the future transportation. Have you ever flown faster than the speed of sound quick. We dont fly supersonic intentionally so no. [laughter] would you like to . Sure. Absolutely. You said urban air mobility i think that means air taxis like huber is developing is this a real thing . It is very real and it is coming. I think of this as phase one we have to get through to get through a success but in terms of what is next larger ua f passenger carrying, cargo packets realm of the vehicles that uber and others are working on but our view is an ecosystem with urban mobility not just the airplane better vertical takeoff and landing that is predominantly being considered for the infrastructure that comes of that so urban air mobility where will they land plex one of them told me these vehicles when they recharge it draws the current of an average grocery store. Infrastructure may not be able to handle plugging in a grocery store. We have to think about that. We are working on the small areas first and i wouldnt say we would say this this year or next year but its definitely on the horizon. And that scientific policy sends will the standard for these be the same standard the faa currently has four airplanes and to be honest a lot of companies from Silicon Valley and then say how can we get them flying . The very first question is have you talked with the faa and are you familiar with the certification process works under part 23 is sufficient a lot of the new categories of airplanes that they are seeing. I want the private sector and in some of these areas with government experience working with private Sector Companies to help understand the realities when it comes to aircraft certification, but that being said we can get there to get out under googles wing of the Package DeliveryDevelopment Starting operations in virginia. They received operation certification that means they are a small air taxi carrier they comply with the same requirements small air taxi if i want to go to las vegas and fly a tour helicopter that is part one theres training requirements and Maintenance Requirements and through working with the faa they got there on the certificate so they are excited about that. The one thing we have not talked about our Autonomous Vehicles with a huge interest in Silicon Valley. Talking about what you Pay Attention to you dont lead with that. Autonomous vehicles are a little more complicated. Talk about aviation the way the faa likes to couch regulation think of the airmen, airspace and aircraft and come up with rules that address all of these things. So with aviation that makes it easy for them and an Autonomous Vehicle space controlled by state and local entities with the drivers license and the operators are issued by states and the different players there so it is a little more complicated and needs to do more research with those Automated Vehicles so Dot Department of transportation and 2. 0 frames that discussion and that they call for nits a which is largely responsible for certifying these vehicles and how do we change that certification work . That may not be the case for what that means to manipulate. But the way that nhtsa writes the rules traditionally the faa takes a more performancebased approach so i went to fly the simulator the airplane has no front at all just lcd screen side to cameras that is performancebased and that could be done by cameras. And where drones are less complicated is there something the white house could do to make autonomous regulations less complicated quick. We are working through our policy options in that space that requires coordination state and local and otherwise that at some point in the future i dont rule that out because if you think about it with that unified strategy that will take some work on our end. Talking about urban air mobility that drones are generally under 400 feet and the future of air taxis. How do you envision air control system with traffic patterns in the urban mobility space quick. Absolutely we refer to that its Traffic Management that relies heavily on remote id technology the larger airplanes that are mixing in with commercial air traffic or helicopter traffic we have to think about what does it look like in that case . We hope we can get it right and then we tackle that next. Is as a level five Autonomous Vehicle quick. Commercial will come before that thank you very much. [applause]