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