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Chris Anderson

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2017-07-05
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2017-07-05
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  1. Yeah, I think I might have, so I could have moved to Silicon Valley sooner. But in that, if I'd done so, I would have missed China. I would have missed being in China at the moment. And that's a cool thing to have experience. And that was cooler. I guess I would have, the only time I regret is the time I spent in Washington, D.C. I was too long in Washington. I saw the world through kind of a political lens. And I wish I'd gotten out of there sooner. You know, here in Silicon Valley, D.C. feels a long way away.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  2. I mean, I've been pretty lucky in being in the right place at the right time throughout. Sometimes being too early is as bad as being wrong, and I've certainly been too early on some things.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  3. If the employers want to see that as data science, data science it is. And that's a very hot profession. You get paid for that. Sure.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  4. For what it is. So I agree with everything you just said. The way I ended up selling it was I said, well, okay, let's call it computer science and let's call it data science. So data science is basically computer science plus statistics of various sorts. One of my sons is at Northwestern, and he did economics or econometrics and computer science, which is another way. Huge overlap between the two. Huge overlap. And so when you put econometrics and computer science together,

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  5. So, my 17 year old is trying to choose a major. And you, Barry, Uncle Barry, as we'll call you for this purpose of this argument, are going to convince my 17 year old to major in What you just said Sell it in a way that doesn't sound like spinach.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  6. I mean, we live in Berkeley. You see Berkeley as one of the best goals in the world, but I just won't go to it. I didn't get in either, but they didn't apply. In fairness, they didn't apply. So, you know, if you ask me what I was to study today, I'm going to give you an answer which sounds boring, and then we have to find a sexier way to sell it. The answer is statistics.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  7. Scale right up. It's basically using the same Google neural network stuff. But the cost of the hardware itself is about $100, $150. And we made it so it's fun, we made it so that a student could do it. And, you know, it's dangerous for the cars, but not for humans. Right.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  8. Contestion, the grand challenge, et cetera. So this weekend, for example, we're going to be doing robot-to-robot wheel-to-wheel Thomas Carr racing in a huge warehouse like semi-abandoned warehouse in Oakland, California. And then we're going to do robot versus human. And this is not, these are not toys. I mean, they look like toys because they're like one tenth scale, but this exact same technology is using it at Tesla or anything. They could scale.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  9. So, physically fit, I just play tennis, but I have some of my dear friends and mentors are my tennis partners, and so tennis is not about the tennis. So I'm spending time with your friends you wouldn't otherwise schedule. Intellectually, I still have tons of hobbies. And 10 years ago, we did DIY drones. Now we're doing DIY robocars and applying the same sort of grassroots. What if you made an autonomous car for $100? Now, it wouldn't carry a person the same way a drone doesn't carry a person, but it's LIDAR computer vision, neural networks, you know, Google Cloud software. And this is now down.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  10. And every time I talk to a new company in Silicon Valley that's doing hardware, they're like, yeah, we know that the hardware is commoditized and we know the Chinese, but we think we have five to seven years. It's like, yeah, I said that too. You got six months. You got six months.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  11. These are serious things. I learned that my instinct right now is that essentially it was the universe telling me what should have been obvious, which is that Silicon Valley should focus on software. China's extraordinarily good at hardware. The notion of advanced Silicon Valley cloud software running on Chinese hardware, which, by the way, is your phone. Right, exactly. Is the way we should go? And it's kind of like, don't fight it. Rather than build your own hardware, go find some brilliant company in China that's making the hardware and partner. Let them talk.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  12. Yeah, exactly. So when we started the going price for an advanced drone was about $1,500, $1,600, even more. And so our bill of materials was about half that, which is appropriate. By the time, a couple months after we launched the going price was below our bill of materials. And as of like about a year ago, it was down to about $300.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  13. Until September of last year. So in between, the only way you could really get drones out there was on the shelves of Walmart. And so we raised a lot of money and we spun up outsourced manufacturing and consumer electronics. And perhaps the most complex consumer electronics device ever at that time. And we decided to do the consumer products thing right with distribution and marketing and retail shelves and all that. And we designed a good product and we We ended up with negative margins. And Pebble.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  14. Where do I start? So in our progression at 3DR from the technology to the consumer electronics to the tool using drones as sensors, because of regulation, regulation only allowed recreational use. So the only way we couldn't do commercial use.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  15. There you go. And digitally as well. So it's very hard to believe there's any kind of suppression of media for economic reasons. I mean, basically the cost of distributing, creating, distributing content is very low. So when people talk about the free press, it's a very archaic, almost American notion of the fourth estate. I mean, no other country has this sort of maybe some other countries, but in general, this notion that you have these kind of natural monopolies, big city newspapers who are necessary to counterbalance political forces, very weird, very American, very 20th century doesn't seem relevant today.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  16. So, I'm always baffled by that question. I get it all the time. There is no shortage of media. You know, it's the golden age of media. Now we call that media Facebook or we call it, you know, the web or we call it social media. But there's, you know, we now have access to global media.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  17. I hate to keep using Kevin Kelly examples. Those are the ones I'm reading right now. There's a new book. Well, anyway, those are the ones I'm going to highlight for now. Okay.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  18. Precisely. And so the reason that the case there is that the reason we haven't encountered other civilizations because they're hiding. Because they know that we're fascinating.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  19. So one notion, I mean the most interesting thing, I don't want to ruin the plot, but the Dark Forest, the middle one, sort of explains the notion that if you encounter, if you know that there's another species out there, you assume that sooner or later they're going to kill you. And so it's really important that they not know you exist. And he kind of walks to the logic. So we shouldn't be broad

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  20. And is Quinley something? No, it's not Quinley. I can't remember the exactly, but what's cool is that the author, by day, he's an engineer in a power plant in the middle of China. And by night, he writes the most exciting kind of mind-expanding science fiction about what would the universe be like if there were, how would we encounter life? Why haven't we encountered life? How would we communicate? Anyway, it's six.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  21. No, the three body problem series. It is the most exciting science fiction. If you liked the first one was the three-body Brahman, the second one was the Dark Forest, and the third one, his name is Escaping Me.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  22. Yeah. Well, recently I've been reading, I had this rule for like 30 years I would only read nonfiction. And the books Kevin Kellies of the World. Recently, I've been reading fiction again, but only science fiction on the grounds that it's a, you know, I can almost justify it because there's, you know, it's kind of a vision of the future.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  23. So, I think of, I mean, I don't think of myself as a writer. I think of myself as a guy who can sort of capture ideas and get them out there. So as an editor, of course, you're not typically not writing. You're just packaging ideas as companies package ideas, open source communities, package ideas. And writing is one way to do it. I think that perhaps the most influential writer for me was Nicholas Negroponte in his original book Being Digital, which very early days. But sweeping notions that digital was different, that it almost had kind of fundamental physical properties. And I think that was probably, I mean, I haven't read it for years, but I can't tell you whether it was well written or not, but it was very powerful ideas.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  24. So, I don't think of myself. I mean, thank you for saying that. My parents were writers, and so I promised I'd do everything but that, and I failed once again.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  25. Well, you know, Wired and its founders had a huge influence on me. So Kevin Kelly in particular, his book Out of Control. Well, Cool Tools is what he's one of the things he's known for. But one of his original books, Out of Control. So earlier in the conversation.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  26. He goes After the story you told us. Absolutely. Fred Hauser, Swiss immigrant LA, by day working in the film industry brings sound to bring the talkies in. And by night, inventing the automatic sprinkler system, which, by the way, is exactly what a Swiss engineer in LA will do. LA's greening the desert. A Swiss engineer would put a clock on a sprinkler.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  27. Well, they were like these hicks from the sticks, Georgia, and we were like the coolest man in Washington, D.C., I know. Right. And it's a bit of a non-sequitur there. And so our manager thought it'd be funny to have a battle of the REMs. Where the winner got to rename the loser.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  28. No, I went to, I was a playing punk rock band, so I was a bicycle messenger by day. And at age 27, finally get back to school and get a degree. I was such a mess-up that I decided to do the hardest thing possible just to convince people that I actually had a brain. So that's why I did physics. But the cool bit is that one of the bands I played in was called REM.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  29. Well, I feel I ultimately went to school at George Washington and studied at UC Berkeley, which is where we are here as well. I failed out of a school, I won't mention. But the cool bit is that.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  30. Yeah, I'm sure it was inspired. The only reason that talk is on YouTube is that my other talks were abject failures. And it turns out not all talks get put on the website

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  31. Yeah, no, I mean, but in the best sort of way, which is like people give us credit for each other's work. It's like, you know, Chris, you know, you've done such written books, Wired, 3DR, and you run TED. How do you do it? And it's like, ah, well, you know, I have a clone.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  32. I like an airplane that's got a three foot, four foot wingspan, something like that. It doesn't have to be a battery, but you can use a gas powered engine. So yeah, it's not a problem.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  33. Low density. We're talking about going beyond visual line of sight, which So I think there's going to be bits where it's accepted first. And getting back to delivery, you know, the Amazon original video of delivering in your suburbs, that's hard, dogs. Online trees. But delivering to a rural area that's quite expensive for the Postal Service to get to? That actually makes more sense.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  34. I mean, I think when you're talking about places like farms, which is private land away from people, I think that's going to be a pretty low land.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  35. Whatever it is. Exactly. So that's the process we're going through with the FAA to figure out what sort of evidence they need to allow that kind of autonomy.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  36. The drones got much better perceptual powers than you have. You're there, it's over there. It has cameras all over the place. It's got sensors. It's got radar and sonar and lidar and all this kind of stuff. How about just let the drone stay on harm's way? And if it's got an issue, it can alert you and tell you to pay attention. Makes sense. But in the meantime, why don't you do what you're best at, which is answer.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  37. A charging dock. It's a pad, and we don't happen to use the pad because since we have a human there. We might as well use them to change the bat But yeah, such a thing exists. You can buy charging docks or pads and things like that. But no, what we're talking about is autonomy. The notion of taking the human out of the loop, and it's simply a regulatory thing. So we work with the FAA to figure out what would it take to allow them. So right now it has to be one person, one human, one drone. What about one human drone? What about one human global fleet of drones monitored remotely? Turns out that actually you can sit there on the ground and you're in command, but you're not. You're checking your email. You're not looking, et cetera.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  38. We could do it today. The only thing stopping us. Is that FAA regulations currently require a pilot in command? Now the pilot, this is the PIC, the pilot command, doesn't have to be a pilot, doesn't actually have to be in command, but there has to be human present. And when I said that the way it works is that you open up your iPad and you just swipe, that swiping act is regulatory.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  39. And I would love it to be covered in mud. I'd like to have stickers, like union stickers on it, something like that, just absolutely conventional construction equipment. And no one cares about it because all they care about is the data. And what they know is that every morning they have an up to date, super high resolution, 3D, 2D model of the site. They digitized the site was just automatically digitized in the cloud every day.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  40. And it just kind of works. Yeah, yeah, yep, yep. You So that is the sign of success. So if someday drones are as boring as possible. Which is to say there's a box. There's a box on the farm. There's a box on the construction site, whatever. And every morning at like 8.30 a.m., the box opens. It's not a sprinkler coming out. It's a drone coming out. It surveys the sprinkler. Like a room.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  41. Exactly. It was certainly my inspiration. I spent my summers. I was kind of a rotten kid, and so I was sent to spend my summers with my grandfather. We just spent the summer silently working in the workshop. But what I love about the sprinkler, a sprinkler is my inspiration for drones. You may not think so. You may not see the connection, but a sprinkler is a robot, you know, a robot sprinkler is connected to the internet. It's got sensors. It comes up, mechanically, does its own thing, goes back in. What I love about is how boring it is.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  42. Well, you know, so Bezos has the delivery, but there's also Uber and others are talking about air taxis. We are talking about drones on every construction site or every farm, et cetera. Of all of those, I think actually Sing drones is a conventional part of construction or agriculture is probably the nearest. My grandfather was the inventor of the automatic sprinkler system. And he was my inspiration.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  43. That's the thing. Now, you don't want to create your valuation so high that you could create a lot of value, but there's only like, you know, three people in the world that could buy you and they won't, because then you have to go public. So it's a delicate balancing act, but if you created value and if you've taken the time to sort of tackle a big industry.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  44. Well, I wouldn't see the whole thing through the lens of unicorns. I mean, obviously, you have a multibillion dollar valuation. There aren't a lot of ways to get liquid. But if you have a lower valuation, hundreds of millions or something like that, then M&A is a perfectly reasonable way to do it. And so I would say that when you look at our investors in particular, combinations of strategics like Autodesk and Qualcomm and then venture capitalists, they're all looking at creating big value down the line, either it's looking at construction. We have the opportunity to be part of the transformation of the second biggest industry in the world. If we get this right, there will be any number of companies that would want to buy us. We may not choose not to sell. But the notion of when you're creating value, you open up optionality.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  45. Well, as an individual, there's lots of ways to get liquids, there's plenty of secondary markets for that. It is for your employees. It's a little tougher. And there's been a lot of, you'll probably can advise me on this. There's been all this talk of, you know, secondary markets, liquid secondary markets that could allow people, employees, et cetera, to get liquid. They've never really come to fruition.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  46. Well, you know, dominant meme is saying a lot. I mean, I think in general, and it sounds like a cliche, you know, the idea that, and this goes right back to the foundings of Wired, the idea that can technology can change the world. Continues to resonate. Elon Musk is kind of everybody's hero. But Jeff Bezos and Larry and Sergei from Google are all in the same category. They are tackling the big problems. This is the environment, food, life off the planet, the future of transportation of energy. I mean, this is like, you know, say nothing of biotech and medicine and all that. People feel like they're doing meaningful work.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  47. I think that's Hungarian and the hyperlope are different than that. Oh, really? Yeah, I'm a little digging a tunnel between the two, but it would be.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  48. People don't give Elon enough credit for that particular one. He was able to buy that factory. It's a mile long. Right. He was able to buy that factory for pennies on the dollar before there was any real case. And originally, Tesla was like a tiny corner, like one-tenth of the factory at the end. By the time he's done, he'll be using all of it and more.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  49. No, it was actually. No, it's a great story. It was really good, this American Life episode. It was Numi, the GM Toyota, I think, experiment, the future of car manufacturing. Well, it turns out to be right. Turns out that's the future of...

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source

  50. Any questions? Where do I sign? Yeah, exactly. I mean, I'm sure that at some level, the ability to have upside in your stock options or salary. I mean, of course, that's a thing. But it should be a second order thing. I mean, the reason that the Teslas and Ubers are able to, well, the Uber's a special case, let's not say the Teslas of the world or Apple's are able to hire so well, is because you're going to do really exciting, meaningful work.

    2017-07-05 · Masters in Business · Chris Anderson: Don’t Confuse Valuation With Tech Adaptation · IDENTIFIED FROM THE TRANSCRIPT · source