Google CEO Eric Schmidt went on Colbert last night to shed some light on how the search engine works, and also demonstrate that he doesn't totally get what the show is all about and may have even had his feelings hurt a little bit. (Look at his face during the interview!)
It's part of Stephen Colbert's humor-affront-style to use the buzz words of whatever field the guest belongs to and use them comedically against the guest. Whether Schmidt is familiar with that fact or not, he didn't seem to appreciate it.
Come on, guy– "At what point will Google's algorithm become self-aware and turn on its masters?" is a legitimately funny joke. All Schmidt seemed able to muster was a defensive, "We don't do data mining" and a fearful glint in his eye that Colbert might bring up this.