Host gary shapiro, this years ces, what are some of the buzz products . Gary well, ces 2018 is pretty big, and products, you know, theres a lot of focus on Artificial Intelligence in many different ways. So, we have the smart speakers which, you know, alexa and google home. Obviously, googles huge here, but were talking about other products into the home and the car. Were also talking about Artificial Intelligence in another way, and that is smart cities. We have a big focus on smart cities for the first time. We have the secretary of transportation here talking about it and a lot of different groups focusing on it. And thats not about the to assume her is, in a sense, for business and government. It is business to those investing and making our lives and cities better because twothirds of the population will live in cities soon compared to onethird in 1960. Other big things, of course, is we continue that Movement Toward selfdriving cars. We know were getting there, theres more and more companies involved. Theres more and more demos and, of course, theres car introductions. We had a major phone introduction here. Smartphones are Getting Better designed, longer battery life, they are easier to use, some of them are even using keyboards, things like that. A lot of systems in technology are occurring, and robotics, of course. Thats one that will continue to grow every year, and it makes sense because robotics and smartphones and internet of things, as we get older, we need Technological Solutions for a lot of things, and thats one of the ways we will be able to take care of our parents and ourselves, frankly. Host weve spent a lot of time over in the robotics area of this convention. Its grown enormously. Of course, robotics will grow. Since i was a kid reading science fiction, this has been the future. Robotics are growing in not only what they can do, but theyre becoming more humanlike, if you will. And theyre going to learn what we like. Right now a robot, their single function, they were a little awkward and a bumpy. Kind of like an old navigational device. Theyre learning it better and better and know what we like. Host one of the other themes that weve found here is 5g, the advent of 5g. Guest certainly, the world is going to 5g. The u. S. Has to be part of that. That is very significant and important. 5g will give you 100 times the speed to download a movie or to watch something, and itll also give you close to zero latency , which is the gap between sending and receiving. 5gnk about how important will be to the self driving equation. Life or death matter, whether your car communicates with another car or sees a pedestrian in response, we need to reduce redundancy, and 5g is part of the solution. Its also part of the solution to get broadband to the rural parts of america. It wont be the most expensive to put into place, itll get a lot of information very quickly, and allow all americans to become part of the developed world, if you will. Host weve talked about several of products here, but wheres the policy and the regulation that goes to those products . Guest well, with 5g specifically we have to invest in infrastructure. We have to make sure the spectrums there, wehave to encourage economies, we have to finish the standardization process. With selfdriving cars, under the obama and trump administrations, its been the same forward momentum, the same vision of a world as secretary chao said at ces with where disabled and elderly people will be empowered and the rate of human errorcaused action will go down dramatically saving , thousands of lives and hundreds of thousands of injuries each year. Host sometimes when you come out to ces it looks like a car show in portions of it. Gary certainly, this year weve grown about 27 in the size of our show. Its about 300,000 square feet for cars. Vehicle technology as we politely say. And it is, the truth is the entire were not a car, were not selling cars to the public. It isnt this years model that we are pushing. We are pushing the possibilities of the future, in a sense. A lot of the infrastructure controls, qualcomm, intel, others are saying this is what we can do in the future, this is where we can go. So the entire ecosystem is here and, of course, the Car Companies themselves theyre seeing it, theyre also getting their own visibility, lookingat looking at their own concept cars. The Technology World is not a world where you can be a Single Company and do great things. You have to partner with other companies. Thats why we get the innovation leaders from around the world, because in four days they can see everyone they need to see that would take them several months otherwise to go around the world and meet with. Host gary shapiro, this is the first time weve seen you since the fccs Net Neutrality rollback. I want to get your view and the view of cta. Gary well, its a very complex, nuanced issue. I personally thought it was the right thing to do because the fcc change that happened just a couple years ago under the Obama Administration gave the fcc enormous powers it should not have. It should not have the power to regulate every device which hooks up to the internet including automobiles. The Automobile Companies andthe Technology Companies that make stuff were concerned about this because we have seen, depending who the Political Party is controlling the fcc, the things they could force on companies can totally block innovation and great development. I was part of the voluntary principals who worked so well for 18 years that we went around the fcc, convinced them to [inaudible] the broadband carriers agreed to provide and the companies that the internet uses, and even was happy with that. It worked great. And the truth is the different sides are not as far apart today. The republicans, democrats, and broadband providers, and broadband using companies, theye agree on Net Neutrality. Its the implementation thats wrong. And i think theres also agreement throughout america that what we really need is competition in broadband. In europe, theres a hundred Different Companies providing telecommunications. Their prices are a lot lower and in many cases, theres been so better than ours. Their speeds are better than ours. Why is it . Its competition. We dont have that here. We need it. Wifi provides alittle bit of, fiber, fios through verizon, cable provides some of it, but we need as much competition as possible. And then the whole issue becomes so much less important because if theres any harm, if they could change their company out, its not a problem. Or if there is, even without that competition what could happen today is the fcc could step in, and congress would step in immediately. With or without this decision, the internet is not going to go away. My problem ive had with it is both sides have exaggerated so badly whats going to happen and concerned consumers that we are in a position now of,where theres people that have such malicious intent toward the present chairman of the fcc that he, his kids are being bothered, theyre getting death threats. This is not american to go after a public official, who frankly, is a brilliant guy doing what he thinks is right with a lot of substance a nuance behind him and a lot of good people , disagreeing on both sides, but the fringes and extremes are a reflection of a very bad direction that i believe the country should not be going in. Host what does it take to put on a show like this . Gary we plan so far ahead, and we try to focus on trends that we see in the future, and we aggressively reach out to have our own partners so we can see where the technologys going because went do everything we cant do everything. We also block out space in las vegas for the next 20 years, we have a fulltime team of people who are aggressively around the world with, we want to guess the 60,000 people that come from outside the united states. Its important for the event, its important for the las vegas economy, its important for the companies that invest with Global Marketing budgets to be here and make it a great experience so the average person who comes here has over 32 meetings and is very, very efficient in what they do. Host ces takes over this city, and this is a city thats used to having a lot of people here. Guest las vegas has more hotel rooms, we use everything we possibly can. We are thrilled we just broke ground on a brand new Convention Center thats supposed to launch the ces 2020. We look very much forward to that. A stater of state of the art felt. Facility. Entertainment, work or force around las vegas, the airport is only 15 minute away from virtually every major hotel and Convention Center. This is the best in the world bar none. How host how many square feet does ces take up . Gary well, we count ourselves by the amount of space that exhibiters buy, and were about 2. 76 million net square feet, but generally that translate toss 5 million gross. You could have a team offive people trying to see the show in four days, and those five people even if they split up will not see the entire show. Our car the car show alone, portion alone is about half the size of vatican city. Gary shapiro, one host gary shapiro, one other thing you do out here is garys book club. What is that . Gary well, ive written a couple of books, and they became bestsellers things to thanks to ces, but i think that opportunity should be spread to other people as well. We identify a number ofauthors based on dozens that apply as having something really relevant to say. I just finished an interview with john grisham, the best selling author. He wrote a book called the tumor, butits about this new technology. They are looking at brain tumors, prostate cancer, and its outpatient basis, no chemo, no surgery, and its not a cureall, but its a cure a lot in a very unintrusive way where you can drive in yourself and drive out three hours later and your treatment is over. Host gary shapiro is president and ceo of the Consumer Technology association which owns and sponsors ces. Thanks for your time. Host now we want to introduce you to frank soki. Whats your title at intel and what do you do . Frank im the general manager for Virtual Reality. I focus on Virtual Reality and how we work with other parts of our organization including data center, the device side of things and [inaudible] host how big a component is v. R. At intel . Frank oh, my gosh, i see this as in 20 or transformation that is going to impact every element we have, cloud, you know, think about how immersive v. R. Is, how interactive its going to be, the data sets that have to give you an amazing amount of detail in this, and to be able its an amazing opportunity. When i say once in a 20year i equate this to when computers didnt have an interface, didnt touch everything. Virtual reality is going to transform everything. Host how is it developed . Frank think of it this way. Part of it is an evolution of what we have today. Ill use ad design as an example. You know, its a flat experience. Its 2d, you try to make 3d model. If you take that to the next level, hey, me and you as design engineers, now i can see that in Virtual Reality space, i can collaborate with you, spin it around, change things really in real time. This is the way people like to operate. Theres a physicality behind that and you are collaborating with 70 else. Somebody else. What were doing is taking v. R. And bringing that to the nextlevel. Thats one example of how i see it evolving. And then i like to say v. R. Is an element of giving us a better ability to control things. Were seeing that in two areas. One in sports, youre seeing the way you want to see it, not from a single camera angle, and were seeing it [inaudible] we work with Companies Like liberty or be real. Now the audience can participate in that game from any point they want. We see those technologies evolving. So Virtual Reality is giving us the ability to work in a way that is the way we want to work, which is the way weve been kind versus the way weve been kind of force to work. Host what components of vr are you working on . Frank we make the cpu which is very important on the host cpu, not a gpu. Frank no, ill go through. theres several pieces. Gpu is another element. And on the computing side, certainly the applications, but to create the virtual environment, you have to demonstrate the ability to do the physics oh, my goodness. Host keep going. Looks like we just had an electrical blowout here. Frank with all the electricity, im not surprised. Host keep going. our cameras are rolling. Graphic component to this, this plays a very important role. So weve been working very closely with microsoft so that our integrated graphics can have a Value Proposition in sort of the entrylevel space of vsm r. , and our next integration keep Getting Better and better and better. Then when we talk about what we are doing with storage and memory, taking those large data sets, because Virtual Reality has large data sets, and not losing detail, we have an example with the smithsonian institute, you can see arts, and its very detailed, and you want to go from exhibit to exhibit very quickly. The speed is important, but i want to zoom in on the details. Helps you to that. And then youve seen what weve done with htc and wireless technology. That was a pcbased technology that were bringing to the yard, single wired technology. To have three wires connected. I want one highspeed wire. Host is the cloud transformational when it comes vr . Are when it comes to frank yes, the cloud is transformational for almost every kind of workload you can think of. You cannot ignore the efficiencies of a large data set. Everything needs to be cloudenabled. But we always have this dissertation about, oh, so you dont need a powerful [inaudible] yeah, you do. Why do you need so many cores and graphics, because these workloads keep getting heavier and heavier, and we need a balance. We need tothink about edge. My hypothesis on v. R. Side of thing is it has tobe low latency. People get motion sick. Then you have to have a guaranteed quality of service that goes behind that. So between whats happening on the cloud and getting served up to devices like pcs or phones, and then i would submit you want to layer security on top of that because some of these are collaborative experiences where there is an enduser. So theres a security layer weve got to be on that. But cloud and edge are going to be very important. Then 5g, were bringing it up to the client endpoint, you need the bandwidth. Again, huge datasets. Host weve all seen the videos or weve all had the glasses on and seen v. R. Happening, but intel has a big tent down here. Guest yeah. Host whats in there . Thats a v. R. Tent, isnt it . A Virtual Reality tent . Franklin in a way. Were demonstrating autonomous driving, so we are thinking about what does v. R. Bring to autonomous driving . Think of your car as another environment youre going to be traveling in and out of. Let me hypothesize a future state for you on augmented and Virtual Reality. I think these ai and vr worlds are going to disappear. Were going to be wearing Something Like im wearing and im going to be able to do that from outside my building as i transition to a car that as a ton of computers, by the way. These are the kind of problems were thinking about and working on solving. What tease host, what is the difference between virtual and augmented reality . Frank oversimplistically, think of augmented as a see through experience. Im seeing you, and things are coming at me but im still , seeing the real world around me. V. R. I go into something. So im not seeing the real world, but even there are exceptions there. There are cameras being put on virtually, let glasses that let me avoid collision. So that is already happening, but generally thats how you see a. R. And , the er host how did you get into this business . Frank oh, my gosh. Virtual reality . I would say its a natural extension of some of my interests at intel. I like to focus on things that are on the cusp of happening, im always interested in whats evolving and what has a ton of potential. I like seeing Technology Come to bear, but i also like seeing the benefits that it brings, so i always look for opportunities like that. That journey has brought me through communications, workstation, data center. Gaming kind of brought me here, i concentrated on gaming and then the are v. R. Coming into its own finally even though its still nascent, and i love things with tons of potential that do more than just entertain. One, physicaln is theaters another one, being able to do surgery and have Better Outcomes where people dont have to have chemotherapy because of the fidelity with which you can do surgery, so that kind of thing. Host you have a Computer Science background . Franklin yeah. I have an electronics degree. I look for areas where im kind of pushing my limits but where intel is moving in. Even 36 years ago in telecommunications. Those were the opportunities i loved to look for. Host when you hire folks, do you look at gamers . Frank you know, we have absolutely do. So were looking for people with a diversity of experience, some gaming, some some esports, some more on the tech side of things. We look for Business Development people who understand tech but have a strong Business Development angle. Just the same way i described Virtual Reality, its not about one specific element. If you get into this business, it means you have to be able to understand gaming, tech, Business Opportunity marketing, you have to have business sense. You have