Liveblogging Eric Schmidt/Google Interview at Brainstorm

Google CEO Eric Schmidt is on stage right now at Fortune's Brainstorm conference being interviewed by Fortune's David Kirkpatrick. Here are my notes live:

Q: What is Google?s next great revenue stream?

Schmidt: How about text ads?

Q: The biggest knock against Google is that it is a one-product company. how do you respond to that?

Schmidt: Google is a one-product company. It is called Google. We think about features, not products. People usually talk about text ads when they say that. While the vast majority of our revenues comes from text ads, there is no single large category of text ads or geography. It is well diversified. We serve text ads against content that is not searchable.

Q: We select for people who share our values. We don?t value experience very much. We also select for people who want to work with other people. Because it is collaborative.

Q: But you are known for saying that it is hard to manage larger groups?

Schmidt: If you look at the history of software development, all the interesting things that have been built have been built by two people. It is the nature of software technology.

Q: Isn?t working in larger teams going to be necessary?

Schmidt: this is an unsolved problem. You start small, then you have big projects. You follow a traditional S Curve, but the time you have become like this you are entirely predictable {talks about 20 percent time as driving creativity and helping to recruit top technical people]. It serves as pressure cooker release valve.

Q: Almost every challenge you have has to do with scale. I hear more people saying I don?t feel safe that Google should have so much information about me.

Schmidt: Because of the way technology works, all the technology companies are aggregating information about people. It is a political debate. Countries differ on this question. England has the largest number of closed circuit cameras by a factor of ten, but they also let you sue the papers if you feel you are defamed.