Krzanich says Moore's Law, the concept of chips constantly improving in complexity every couple of years, is "alive and well," despite continued claims that Moore's Law is slowing down or ending.

Mr. K says hardware leads software, but everyone I've ever talked to in Silicon Valley says the opposite: Content is king. But Intel says it isn't possible without hardware to power it (fair point).

Said the average person will generate 1.5 GB of data a day by 2020.

BTW Krzanich fun fact: He started his career at Intel in 1982 in New Mexico as a process engineer.

"Today, I'm going to show you examples of how the digital and physical world are merging." Said we'll look at travel, work and gaming -- all in VR.

"VR makes it possible" to have experiences of being there -- like climbing Mount Everest -- from your living room.

Everyone's looking around in their VR headsets. I hope Zuckerberg doesn't just show up again.

OK, so we're parachuting in Utah. This is pretty cool.

"We all just experienced that from the first-person point of view," something most of us would never do, Krzanich said.

So this is really fascinating. One of the complaints content makers tell me is that too much VR relies on passive experiences -- entertainment. Not interactive experiences, which they say are going to really sell the tech. It was cool--I've never done that type of thing. But what's interesting is my brain isn't tricked into thinking I'm there. I'm just looking around a 360 camera. It's cool. But do I need to rush out and buy it?

Oh, Sean, I'll never forget where my butt is. But you're absolutely correct. Sitting experiences are not very immersive. They're more gee-whiz.

I will hold you to that, Ian.

Ted and Brian are both making the point of moving around and interacting with live video.

Brian said we'll be experiencing a first-ever live VR video experience.

We're now in Vietnam. Looking at water barrel...

In this video, the images actually move around depending on where you're looking.