Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: From robotaxis to AI chips, Bloomberg's at ludlowis standing by
Speaker 2: with Advanced micro Devices CEO Lisa Sue, who joins them
Speaker 2: live from AMD's Advancing AI event in California where they
Speaker 2: just unveiled their latest generation of chips.
Speaker 1: ED.
Speaker 3: That's right, Scarlett and Lisa Sue celebrating ten years as
Speaker 3: CEO of AMD. Lisa m I three twenty five X.
Speaker 3: Everyone I speak to in the world of technology accepts
Speaker 3: and sees that AMD is the number two rival behind Nvidia.
Speaker 3: How does the latest accelerator change that competitive landscape in
Speaker 3: that market?
Speaker 1: Well, first of all, Ed, it's great to be here
Speaker 1: with you today, Thank you for having us. It was
Speaker 1: a big day for us. We talked about so many
Speaker 1: new technologies. We launched a number of new products. We
Speaker 1: launched our new fifth gen epic server product called Turn.
Speaker 1: We launched MI I three twenty five and talked about
Speaker 1: our future roadmap and I three fifty and beyond. We
Speaker 1: talked about aipcs and networking. So it's been a great
Speaker 1: day as it relates to you know, MI I three
Speaker 1: twenty five and what we're doing in the data center
Speaker 1: accelerator market. I mean, this is such an exciting market
Speaker 1: right now. There's so much demand overall for new AI capability,
Speaker 1: and you know, we are doing extremely well. We had
Speaker 1: a number of customers on stage with us today too,
Speaker 1: including Microsoft, Meta, Oracle, number of new AI companies as
Speaker 1: well as all of the major OEMs, and everyone is
Speaker 1: excited about MI three twenty five and the roadmap.
Speaker 3: Ahead, and yet shares closed down four percent. The disappointment
Speaker 3: is not in the long term, right you updated the
Speaker 3: forecast for the market five hundred billion dollars in twenty
Speaker 3: twenty eight. But what can you tell me or how
Speaker 3: can you quantify the near term demand of those new
Speaker 3: customers that you just outlined.
Speaker 1: Well, you know, the best thing to say is this
Speaker 1: is an incredibly fast growing market. I mean, if you
Speaker 1: think about you know, what we've done just over the
Speaker 1: last twelve months or so, we've seen three hundred demand
Speaker 1: increase from when we started the year to In our
Speaker 1: most recent earnings, we actually said we would be over
Speaker 1: four and a half billion dollars in this important AI
Speaker 1: accelerator market. You know, we view this as a multi
Speaker 1: year opportunity for us, And what's really important. You know,
Speaker 1: what our customers say is, you know, we've shown that
Speaker 1: we have excellent hardware, but even more importantly, we've made
Speaker 1: tremendous progress in the overall software roadmap. And what that
Speaker 1: allows is that allows customers to get to market, you know,
Speaker 1: as fast as possible. So we're seeing, you know, with
Speaker 1: three twenty five, we expect the new chips to be
Speaker 1: anywhere from twenty to forty percent higher performance on key
Speaker 1: inferencing workloads than the competition. And that's a great place
Speaker 1: to be.
Speaker 3: Lisa, describe the demand for your AI products in just
Speaker 3: a single word, amazing. Give me more than that. How
Speaker 3: is this different to a year ago? You remember us
Speaker 3: sitting in San Jose, right, we were sitting together and
Speaker 3: it was the start of a very different time in
Speaker 3: the investment cycle. How is it different now?
Speaker 1: Well, I think so In a single word, the best
Speaker 1: thing to say is it's an accelerating market. And you
Speaker 1: know what we see is so many new applications, so
Speaker 1: many new opportunities to use AI. We're at the very
Speaker 1: beginning of the cycle. And one of the things that
Speaker 1: I've been very very encouraged that is, you know, when
Speaker 1: we started maybe twelve months ago, you would see that,
Speaker 1: you know, there would be a lot of people trying things,
Speaker 1: but it would actually take them a while to cut
Speaker 1: over to their production environment. That's actually much faster now.
Speaker 1: And what that means is, you know, there is more
Speaker 1: demand for AI capability. But we've also significantly improved our
Speaker 1: tools and overall software infrastructure. Sure. You know, we call
Speaker 1: our software suite something called rock Them and it has
Speaker 1: just made tremendous progress over the last ten to eleven months.
Speaker 1: That really allows customers to adopt our solutions much much faster.
Speaker 1: And that's the key for innovation is to try to
Speaker 1: get as much in as fast as possible.
Speaker 3: And CPU as well. If you're an investor on Wall Street,
Speaker 3: or you are a retail investor, or you're a technologist
Speaker 3: or dare I say it a technology journalist, everyone is
Speaker 3: so over indexed to GPU. I really want to know
Speaker 3: if you see a sort of revision back towards emphasis
Speaker 3: on CPU with all of the data center investment and
Speaker 3: build out that is to come.
Speaker 1: I think the most important thing to think about when
Speaker 1: you think about data center infrastructure is there is no
Speaker 1: one size fits all in computing. You know, you need
Speaker 1: great CPUs, you need great GPUs, you need to be
Speaker 1: able to bring those together in systems. You need to
Speaker 1: have all these different types of you need to have. Frankly,
Speaker 1: AIPCS is another category that we find to be a
Speaker 1: very interesting and exciting category. So when you put all
Speaker 1: those things together, First of all, we're super excited about
Speaker 1: our new generation of EPIC servers. This is our fifth
Speaker 1: generation we called turn. We've seen tremendous performance in many cases,
Speaker 1: our performance over the competition has increased substantially with this
Speaker 1: new generation. And what CIOs are telling me is they're
Speaker 1: looking to modernize their data centers. You know, the idea
Speaker 1: of you know, there's a lot of data center infrastructure
Speaker 1: out there that is, you know, three, four or five
Speaker 1: years old. You know, those guys are not as performant,
Speaker 1: They take up a lot of space, and frankly, they
Speaker 1: cost a lot from an operational standpoint. And so we're
Speaker 1: able to substantially modernize the data center by adopting our
Speaker 1: new generation of EPIC CPUs. We're seeing anywhere from a
Speaker 1: seven to one ratio. You can replace seven legacy servers
Speaker 1: with a single new and fifth generation EPIC server and
Speaker 1: that just results in tremendous Paybass for enterprises.
Speaker 3: Lisa, this is a question from our Bloomberg Technology Audience direct.
Speaker 3: Would you consider using Intel for foundry.
Speaker 1: Well, look, when we look at the manufacturing landscape for semiconductors,
Speaker 1: it's really important to have a strong manufacturing set of partners.
Speaker 1: We're extremely happy with the work that we do with TSMC.
Speaker 1: They're great partner. It is also super important for us
Speaker 1: to have geographic diversity. I think what the Chips Act
Speaker 1: has done has been excellent in terms of trying to
Speaker 1: bring more manufacturing back to the US. We're excited about
Speaker 1: the work that's being done in Arizona, and we're very
Speaker 1: active in bringing some of our chips into the new
Speaker 1: factories of TSMC and Arizona. And we're always looking at
Speaker 1: the manufacturing landscape and we'll always think about how we
Speaker 1: can have the most resilient supply chain.
Speaker 3: Lisa. For the last month, Bloomberg's Ink and I have
Speaker 3: been using aipcs with processes based on our architecture. I
Speaker 3: feel like the GAT with XAV six is closing. When
Speaker 3: does a MD wade into that arena?
Speaker 1: Well, I need to send you an AIPC, that's for sure.
Speaker 1: So look, aipcs are an exciting new category. It really
Speaker 1: will change the way the PC form factor behaves, especially
Speaker 1: for enterprises. When you think about, you know, all of
Speaker 1: the business productivity, all the collaboration we do, all the
Speaker 1: security that you need. AIPCS really fits that. You know,
Speaker 1: we just announced that we'll have copilot plus enterprise PCs
Speaker 1: with our new stricts rising AI capability. We had Microsoft
Speaker 1: on stage to talk about some of the new experiences there.
Speaker 1: You'll see plenty of aipcs from a MD this year,
Speaker 1: and that even increases as we go into twenty twenty five.
Speaker 1: So over you know, one hundred plus enterprise platforms with
Speaker 1: best in class AI capability.
Speaker 3: Lisa, let's end the conversation looking to the future. You
Speaker 3: celebrated ten years a year ago. You set out aggressive
Speaker 3: targets for your company and the industry. You sat next
Speaker 3: to me and outlined them. Where do you go next?
Speaker 1: Well, I would say, first of all, you know, this
Speaker 1: is an incredibly exciting time to be in the industry
Speaker 1: when I think about what we have in front of us,
Speaker 1: the promise of AI, you know, the fact that high
Speaker 1: performance computing is you know, at the center everything in
Speaker 1: the world, and we're able to really use the technology
Speaker 1: for good, you know. That's super exciting for me. And
Speaker 1: then we have this humongous opportunity when you think about
Speaker 1: AI overall, and AMD is the only one in the
Speaker 1: industry that can really bring together all of these end
Speaker 1: to end AI pieces. So it's a super exciting time
Speaker 1: and I'm really looking forward. I'd like to say we're
Speaker 1: just getting started.
Speaker 3: A m D CEO, Lisa Sue, thank you for your time.
Speaker 3: Scarlet Vonnie