Hewlett-Packard is laying off 27,000 people. Yahoo is treading water. Facebook IPO shares got flipped and then flopped. Has Silicon Valley reached the end of the line? Will everyone just develop me-too iPhone apps?

I knew just the guy to prove otherwise.

The entrance to his building is littered with the gaudy red, blue, yellow and green bicycles that Googlers tool around on. I'm at the secret headquarters of the not-so-secret Google X, where the way-out-there projects of the search giant turn into reality. The gregarious play master, Sebastian Thrun, leads us into a well-worn conference room. The chairs are a shade of green not found in nature and the disrupting clang and cheers from a rousing foosball game waft in through the door. Mr. Thrun, 45 and slight in stature, is sporting a gray T-shirt of a local start-up and speaks softly with German-English diction.

"I feel I jump from an ocean liner and then learn how to swim," he starts. Oh, this is going to be interesting.