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00:00> > «BLOOMBERG TECH» IS LIVE FROM COAST TO COAST WITH CAROLINE HYDE IN NEW YORK AND ED LUDLOW IN SAN FRANCISCO. ED: THIS IS «BLOOMBERG TECH.» COMING UP, AMD SIGNS A HISTORIC DEAL THAT COULD GENERATE TENS OF BILLIONS OF DOLLARS IN NEW REVENUE. CAROLINE: PLUS, WE SPEAK WITH DAVID SACKS ABOUT THE RELATIONSHIP BETWEEN THE U.S. AND CHINA. ED: AND ALEX SCHULTZ JOINS US TO DISCUSS META. CAROLINE: NOW WE TURN OUR ATTENTION TO THE BOARD OF MARKETS. WE ARE UP 0.6% ON THE NASDAQ 100. THE MOOD AROUND AI AND THE FRENZY THEREIN CONTINUES. LOOKING AT THE STOCKS UP 3.5% FOR THE INDEX THAT TRACKS THE SEMI CONDUCTOR INDUSTRY. BUT WHAT IS LEADING THE GAIN? OF COURSE, IT IS ONE KEY NAME. AMD AT ONE POINT HITTING A RECORD HIGH. 28% SURGE. AT ONE POINT IT WAS 37% HIGHER. TENS OF BILLIONS WILL BE ADDED IN TERMS OF REVENUE WITH THE OPENAI INFRASTRUCTURE PACT. A SIGN OF REAL CONFIDENCE IN THE AI ACCELERATOR AND BUILD OUT. WE HAVE SUCH AN INTERESTING CONVERSATION COMING UP ABOUT THIS NEW DEAL. ED: WELCOME TO BLOOMBERG RADIO AND TV AUDIENCES AROUND THE WORLD. AMD HAS SIGNED A DIFFERENT AGREEMENT WITH OPENAI TO DEPLOY GPU’S, EQUATING TO TENS OF BILLIONS OF DOLLARS IN REVENUE. OPENAI WILL GET UP TO 160 MILLION AMD SHARES IN TRANCHES. THE FOCUS IS INFERENCE. LET’S BRING IN LISA AND GREG, BOTH OF WHOM JOIN US ON SET AT «BLOOMBERG TECH» IN SAN FRANCISCO. GOOD MORNING. > > GOOD MORNING. GREAT TO SEE YOU. > > GOOD TO BE HERE. ED: THE MARKET REACTION IS VERY CLEAR. FOR AMD AND THE AI INDUSTRY AT LARGE, WHAT DO YOU THINK THIS REPRESENTS? > > LOOK. THIS IS A HUGE MILESTONE FOR AMD. WE ARE SO THRILLED WITH THE PARTNERSHIP WITH THE OPENAI TEAM AND IT IS A HUGE MOMENT FOR THE AI INDUSTRY BECAUSE WHEN YOU GET RIGHT DOWN TO, YOU NEED MORE AI COMPUTE. THAT IS WHERE WE ARE TODAY. COMPUTE IS A FOUNDATION FOR THE INTELLIGENCE WE CAN GET FROM AI. WE ARE A COMPUTER PROVIDER. WE HAVE SPENT YEARS ON OUR ROADMAP, WORKING WITH OPENAI, AND THE TEAM. TOGETHER, NOW WE ARE EMBARKING ON A MASSIVE BUILDOUT OF SIX GIGAWATTS OF AI COMPUTE. IT IS A BIG DEAL FOR US, FOR OUR SHAREHOLDERS, FOR OUR TEAMS, AND FOR REALLY THE PARTNERSHIP AND THE OVERALL AI ECOSYSTEM. ED: THE FOCUS IS INFERENCE. I THINK THAT IS IMPORTANT TO BE SPECIFIC ABOUT WHAT YOU WILL DO WITH THIS CAPACITY. SO LITERALLY EXPLAIN THAT PART. I AM CONSCIENCE THAT THE FIRST TARGET IS ONE GIGAWATT AND EVENTUALLY SIX GIGAWATTS. BUT WHAT WILL YOU USE IT FOR? > > I THINK THE WORLD CONTINUES TO UNDERESTIMATE THE AMOUNT OF DEMAND FOR AI COMPUTE. WE HAVE SEEN THIS EXPLOSION OF DEMAND WITH THINGS LIKE CHATGPT AT 800 MILLION ACTIVE USERS NOW. THIS PRACTICALLY DID NOT EXIST THREE YEARS AGO. WE CANNOT LAUNCH FEATURES OR NEW PRODUCTS BECAUSE OF A LACK OF COMPETITION OF POWER. WE SEE THESE MODELS CONTINUE TO GET X FINANCIALLY BETTER. I THINK WE ARE HEADING TO A WORLD WHERE — TICKET EXPONENTIALLY BETTER, AND I THINK WE ARE HEADED — WE SEE THESE MODELS CONTINUE TO GET EXPONENTIALLY BETTER, AND I THINK WE ARE HEADED TO A WORLD WHERE THIS WILL KEEP GROWING AND WE ARE BUILDING AS FAST AS WE CAN AND TRYING TO BRING AS MUCH COMPUTATIONAL POWER FOR THE ECONOMY AND THE WORLD. CAROLINE: THIS IS SUCH A BIG COMMITMENT TO INSTINCT IN PARTICULAR. AS A CUSTOMER, DOES IT MAKE OPENAI THE LARGEST FOR THAT PARTICULAR PRODUCT? LISA: THIS IS CERTAINLY THE LARGEST DEPLOYMENT WE HAVE ANNOUNCED BY FAR. SIX GIGAWATTS OF COMPUTE. WE WILL START WITH THE FIRST GIGAWATT IN THE SECOND HALF OF 2026 UNDER THE NEW NEXT-GENERATION MI450 CHIP. THESE TYPES OF PARTNERSHIPS TAKE YEARS TO GET COMFORTABLE WITH THE IDEA THAT WE WILL GO ALL IN TOGETHER. THIS IS AN ALL IN PARTNERSHIP IN TERMS OF BUILDING OUT THE AI COMPUTE THAT OPENAI NEEDS FOR EVERYTHING THEY ARE OFFERING TO THE WORLD. SO YES, IT IS A HUGE DEAL. IT ALSO SAYS A LOT ABOUT HOW MUCH NEEDS TO COME TOGETHER FOR THIS ENTIRE ECOSYSTEM TO OPERATE. WE ARE SETTING UP. CERTAINLY THERE IS A LOT OF ENGINEERING WORK, BUT OUR TEAMS ARE WORKING TOGETHER ON HARDWARE, SOFTWARE. WE ARE ENTERING THE SUPPLY CHAIN, ALL OF THOSE ELEMENTS ARE SET UP AND READY TO DELIVER ON THIS MASSIVE COMMITMENT. CAROLINE: TALK US THROUGH A LITTLE BIT ABOUT THE PLAYERS YOU NEED TO LEAN ON. THIS HAS BEEN YEARS IN THE MAKING WITH AMD, BUT WHAT OTHER PROVIDERS ARE INVOLVED? HOW ARE YOU THINKING ABOUT WORKING WITH ORACLE AND OTHERS OUT THERE? GREG: WE REALLY THINK OF THIS AS AN INDUSTRYWIDE EFFORT. IN GENERAL, WE THINK COMPUTE IS SOMETHING THAT REQUIRES THE ENTIRE SUPPLY CHAIN TO REALLY WAKE UP AND START BUILDING MUCH MORE THAN PEOPLE REPLANNING ON. I THINK IT STARTS FROM — MORE THAN PEOPLE WERE PLANNING ON, AND I THINK IT STARTS WITH ENERGY. THE COPYWRITERS ARE AN IMPORTANT PART OF THIS. WE ARE LOOKING TO DEPLOY AMD IN OUR OWN DATA CENTERS WITH COPYWRITERS. WE HAVE A DEAL WITH ORACLE AND OTHER COPYWRITERS OUT THERE. YOU CAN SEE WE VERY MUCH WANT COMPUTE, AS MUCH AS POSSIBLE. WE THINK THIS IS IMPORTANT FOR THE ECONOMY, THE NATION, HUMANITY. WE ARE WORKING WITH EVERYONE IN THIS WHOLE INDUSTRY IN ORDER TO GET AS MUCH COMPUTER POWER ONLINE AS QUICKLY AS WE CAN. ED: LISA, I AM SORRY. SPECIFICS. WHERE IS THIS DATA CENTER GOING TO BE? IS IT ONE SINGLE SITE? IS THIS ORACLE THAT PARTNER WITH YOU ON THIS? LISA: ACTUALLY, WHAT THIS REALLY IS IS AN ANNOUNCEMENT ABOUT OPEN AI AND AMD WILL DO TOGETHER. THEY HAVE A LOT OF PARTNERS ON WHERE TO DEPLOY. THEY HAVE A LOT OF CLOUD SERVICE PARTNERS. IT IS UP TO GREG AND THE TEAM. BUT THE WAY TO THINK ABOUT IT IS FOR THIS AMOUNT OF COMPUTE, IT WILL HAVE TO BE IN A LOT OF DIFFERENT PLACES. IT IS A MASSIVE AMOUNT. ED: MULTIPLE LOCATIONS. LISA: MULTIPLE LOCATIONS. I WOULD IMAGINE MULTIPLE PROVIDERS TO GET THIS ONLINE AS FAST AS POSSIBLE. ED: GREG, THERE IS A LOT OF FOCUS ON WHERE OPENAI WILL GET THE MONEY FROM TO FUND ALL OF THIS. SAM ALTMAN’S BIG PICTURE COMMITMENT IS WELL DOCUMENTED. RIGHT? THE NUMBERS IN HIS MIND ARE IN THE TRILLIONS. BUT HAVE YOU SPECIFICALLY THOUGHT ABOUT DEBT FINANCING FOR THIS RELATIONSHIP WITH AMD? HAVE YOU THOUGHT ABOUT DOING A SPECIFIC EQUITY RAISE? YOU ARE VERY COMMITTED ACROSS MULTIPLE PROJECTS. GREG: LOOK. THE WAY I WOULD LOOK AT THIS IS AI REVENUE IS GROWING FASTER THAN I THINK ALMOST ANY PRODUCT IN HISTORY. ULTIMATELY, AT THE END OF THE DAY, THE REASON THIS COMPUTE POWER IS SO IMPORTANT AND WORTHWHILE FOR EVERYONE TO BUILD IS BECAUSE THE REVENUE ULTIMATELY WILL BE THERE. AS A COMPANY THAT IS TRYING TO MOVE AS FAST AS WE CAN, WE LOOK AT EVERYTHING. WE LOOK AT EQUITY, DEBT. WE LOOK AT TRYING TO FIND CREATIVE WAYS OF FINANCING ALL OF THIS. THAT HAS BEEN A HUGE FOCUS OF US FOR THE PAST COUPLE YEARS, THINKING ABOUT HOW WE CAN POSSIBLY BUILD THE AMOUNT OF COMPUTE THAT IS REQUIRED IN ORDER TO REALLY TRANSFORM THIS HOLY ECONOMY TO AN AI POWERED ECONOMY. I THINK YOU WILL SEE A LOT OF IDEAS BUT FUNDAMENTALLY I THINK AT THE END OF THE DAY IT IS BECAUSE — ED: I AM SORRY TO JUMP IN AND INTERRUPT. FORGIVE ME ON THIS ONE. THE CONDITION OF AMD ISSUING THE STOCK OPENAI REQUIRES YOU TO SPEND MONEY BASICALLY BECAUSE YOU HAVE TO DELIVER THAT GIGAWATT OF CAPACITY FIRST. LISA, I HAVE TO ASK YOU IF YOU HAVE ASSURANCES THAT OPENAI IS GOOD FOR IT. LISA: LET ME BE CLEAR. THIS DEAL IS A WIN FOR AMD, OPENAI, AND OUR SHAREHOLDERS. THAT IS THE WAY WE PUT THIS TOGETHER. I HAVE FULL CONFIDENCE IN OPENAI, GREG. THIS IS A MASSIVE OPPORTUNITY FOR US. RIGHT NOW, RIGHT HERE, IT IS ABOUT WHO HAS THE MOST COMPUTE AND HOW FAST WE CAN GET IT ONLINE. WE ARE COMMITTED TO DOING THIS TOGETHER. THE FACT IS AS OPENAI BUYS CHIPS, THAT IS GOOD FOR AMD. OUR REVENUE AND EARNINGS GO UP. WE EXPECT IT WILL ALSO BE VERY LUCRATIVE TO OUR SHAREHOLDERS FROM DAY ONE. AS WE DO THAT, WE ARE VERY HAPPY TO HAVE OPENAI AS A PARTNER, AND WE WIN TOGETHER. IT IS A VIRTUOUS POSITIVE CYCLE ABOUT HOW WE BUILD OUT THIS VISION FOR HAVING COMPUTE OUT THERE. CAROLINE: AND YET WE STILL QUESTION, AS YOU WERE TALKING ABOUT, SOME OF THE OTHER SUPPORTING ELEMENTS LIKE THE NEED FOR NUCLEAR, FOR POWER. ARE YOU FEELING CONFIDENT ENOUGH ABOUT THE REST OF THE COMPUTE IN THE SUPPLY CHAIN WILL BE THERE? IS THIS GOING TO BE MANY PARKING FROM THE U.S., OR ARE YOU LOOKING TO BUILD OUT INTERNATIONALLY WITH AMD? GREG: WE HAVE BEEN LOOKING AT ALL OPTIONS REALLY. OUR PREFERENCE AND THE CORE THING WE TRY TO DO IS BUILD AS MUCH AS POSSIBLE IN THE U.S. YOU CAN SEE THE COMMITMENTS OVER THE PAST YEAR, AND THAT IS NOT STOPPING. WE ARE CONTINUING TO BUILD. I DO THINK IT WILL BE IMPORTANT FOR THE WORLD TO HAVE COMPUTE. I THINK COMPUTE WILL BECOME THIS NATIONAL SECURITY STRATEGIC RESOURCE, IN EVERY COUNTRY WILL NEED COMPUTATIONAL POWER — AND EVERY COUNTRY WILL NEED COMPUTATIONAL POWER. WE ARE NOT LIMITING OURSELVES IN TERMS OF WHERE TO GO BUT IT IS IMPORTANT WITH THE U.S. NEEDS AND THE COMPETITION OF POWER THAT WE ARE EXPANDING THAT SUPPLY CHAIN. WE ARE WORKING WITH THE GLOBE TO MEET THE DEMAND WE EXPECT IN THE UPCOMING YEARS. CAROLINE:, LISA THE MANUFACTURING OF THESE CHIPS — LISA, THE MANUFACTURING OF THESE CHIPS, WILL YOU LOOK TO INTEL IN THE FUTURE? LISA: THE SUPPLY CHAIN IS SOMETHING WE WORK ON VERY METICULOUSLY. I THINK WE HAVE A VERY STRONG SUPPLY CHAIN. WE ARE DEEPLY PARTNERED WITH TSMC ACROSS THE SUPPLY CHAIN. JUST TO THAT EARLIER QUESTION, WE ARE ABSOLUTELY PRIORITIZING BUILDING IN THE UNITED STATES BECAUSE I THINK THAT IS SUPER IMPORTANT. THIS IS THE U.S. AI STACK. WE WANT TO HAVE AS MUCH OF IT IN THE U.S. AS POSSIBLE. WE CONTINUE TO LOOK AT HOW TO ENSURE THERE WILL BE A STRONG SUPPLY CHAIN MOVING FORWARD. ED: SAM POSTED ON X THAT THIS DEAL WITH AMD IS INCREMENTAL TO WHAT IS BEING DONE WITH NVIDIA. I HAVE SPENT QUITE A LOT OF TIME LOOKING AT THE MI FAMILY AND THE NEWER GENERATION OF PRODUCTS TO COME. IS THERE A CLEAR SPECIFIC BENEFIT TO USING AMD TECHNOLOGY FOR INFERENCE RELATIVE TO THE CAPABILITIES OF NVIDIA? OR DO YOU SEE AND BROADLY AS SOME SORT OF DIVERSIFYING FACTOR — IT BROADLY AS SOME SORT OF DIVERSIFYING FACTOR? GREG: THERE IS A HUGE COST TO ANY PLATFORM. WHEN WE LOOK AT WHAT IS OUT THERE, GETTING AI TRAINING TO WORK IS A HUGE AMOUNT OF LIFT. THAT IS SOMETHING WE HAVE ONLY DONE THE WORK FOR NVIDIA. BUT FOR INFERENCE, THAT IS SOMETHING THAT IS MUCH MORE — THERE IS AN EASIER AREA OF ENTRY. ONE THING WE FOUND IS THE WORK THAT LISA HAS BEEN DOING ON THE MI450 SERIES, IT LOOKS LIKE IT WILL BE AN INCREDIBLE CHIP. THE WAY THESE THINGS WORK IS THERE ARE NICHES FOR DIFFERENT BALANCES OF MEMORY AND COMPUTATIONAL POWER, SO AS WE HAVE A DIVERSITY OF WORKLOAD, WE ARE FINDING HAVING A DIVERSITY OF CHIPS ALSO ACCELERATES WHAT WE DO. ED: THERE ARE OPERATIONAL AND FINANCIAL MILESTONES TO BE MET. YOU HAVE TO START SOMEWHERE, SO IN THE FIRST INSTANCE, ONE GIGAWATT. BUT WHEN YOU DRAW OUT THE PATHWAY TO THE FIRST GIGAWATT — BUT WOULD YOU DRAW OUT THE PATHWAY TO THE FIRST GIGAWATT? IT SEEMS LIKE YOU ARE WORKING QUICKLY. LISA: ABSOLUTELY. IF I CAN BUILD ON SOMETHING HE SAID, HE IS ABSOLUTELY RIGHT. THERE IS A DIVERSITY OF WORKLOADS, AND THERE WILL BE A DIVERSITY OF RECORDS ACROSS CUSTOMERS, MODELS, USE CASES. FROM THAT STANDPOINT, WE FEEL REALLY GOOD ABOUT HOW WE ARE POSITIONED. WE LOVE THE WORK HERE BECAUSE FRANKLY OPENAI IS THE ULTIMATE POWER USER OF OUR CHIPS AND TESTS US IN VERY GOOD WAYS. I THINK THAT IS WHAT GIVES US CONFIDENCE THAT THE TECHNOLOGY IS THERE. TO YOUR POINT ABOUT MILESTONES, YES, THIS IS CLEARLY A CASE WHERE WE ARE TIED TO EACH OTHER. THE FIRST GIGAWATT OF DEPLOYMENT IS SUPER IMPORTANT. WE WILL START THAT THE SECOND HALF OF NEXT YEAR AND BUILD ON FROM THERE. IT REALLY IS NOT JUST THE TECHNOLOGY BUT COMMERCIAL MILESTONES, ADOPTION MILESTONES, AND HOW WE PROLIFERATE THE CAPABILITY MOVING FORWARD. BUT I AM LOOKING FORWARD TO MOVING THIS AS FAST AS POSSIBLE. WE ARE WORKING WITH A NUMBER OF CLOUD SERVICE PROVIDERS WHO ARE ALSO ACTIVE IN OUR TECHNOLOGY. IT IS A CATALYST TO GET THE INDUSTRY TO BUILD FASTER. CAROLINE: TIED TO EACH OTHER IS SUCH AN INTERESTING TURN OF PHRASE. GREG, YOU ARE SEEING MORE AI USERS AND CHIPMAKERS AND DESIGNERS BECOMING MORE FINANCIALLY TIED TO EACH OTHER. IS THIS GOING TO CONTINUE. — IS THIS GOING TO CONTINUE? IS THIS THE STEP FORWARD? GREG: I REALLY SEE THE TRANSITION TURNING TO THIS AI POWERED ECONOMY. WITHIN OPENAI, WE HAVE SEEN WHAT IT IS LIKE WHEN YOUR PROGRESS IS LIMITED AND ACCELERATED AS TWO SIDES OF THE COIN BY COMPUTATIONAL POWER. TEAMS WITHIN OPENAI, THEIR ABILITY TO DELIVER IS TIED TO THE AMOUNT OF COMPUTE THEY GET. I THINK WE ARE HEADED TO A WORLD WHERE THAT IS HOW THE WHOLE ECONOMY WILL FUNCTION. WE ARE STARTING TO SEE IT. PEOPLE HAVING ACCESS TO BETTER AI TOOLS. IF YOU ARE A CODER, YOU ARE ABLE TO DO FAR MORE IF YOU HAVE BETTER ACCESS TO BETTER AI MODELS. WE ARE HEADING TO A WORLD WHERE YOU CAN HAVE 10 TIMES AS MUCH AI POWER BEHIND YOU. YOU WILL PROBABLY BE 10 TIMES MORE PRODUCTIVE. WE ARE MOVING TO A WORLD WHERE THE WHOLE INDUSTRY IS WAKING UP TO THE FACT THAT WE HAVE JUST NOW PLANNED. WE HAVE NOT PLANNED FOR THIS MOMENT WHERE THIS EXPLOSION IS HAPPENING. I THINK THIS WHOLE INDUSTRY HAS TO FIND A WAY TO ACTUALLY RISE TO MEET THE OCCASION. ED: LISA, YOU HAVE GIVEN US A LOOK TO THE FUTURE BEFORE ABOUT HOW YOU ADDRESS THE TOTAL MARKET, THE INDUSTRY. NOW THAT THE INK IS DRY WITH OPENAI AND GREG, ARE YOU RETHINKING EITHER YOUR BIGGER PICTURE ANALYSIS OF THE MARKET FOR AIX ON THE RAIDERS AND GPU — MARKET FOR OPENAI ACCELERATORS AND GPU’S? LISA: I HAVE TOLD YOU BEFORE, I BELIEVE THIS IS A HUGE MARKET. WE HAVE SIZE. JUST THE AI ACCELERATOR BEING OVER $500 BILLION OVER THE NEXT FEW YEARS. I THINK SOME MIGHT SAY MAYBE I WAS A LITTLE CONSERVATIVE IN THAT ANALYSIS. BUT THE WAY TO THINK ABOUT IT IS THERE IS SO MUCH NEED FOR COMPUTE. YOU JUST HEARD IT FROM GREG. THIS IS A HUGE PIE. YOU WILL SEE THE NEED FOR MORE PLAYERS COMING INTO IT. FROM MY STANDPOINT, THIS IS A BIG VALIDATION OF OUR TECHNOLOGY AND CAPABILITY. AS MUCH AS WE LOVE TO WORK WITH OPENAI, WE ARE WORKING WITH A LOT OF OTHER CUSTOMERS AS WELL. THERE IS A LOT OF EXCITEMENT AROUND MI450. CAROLINE: WE SAT AND GREG — LISA AND GREG, IT HAS BEEN A JOY TO HAVE YOU BOTH ON THE SHOW. MORE ON AMD AND THE IMPACT ON THE BROADER TECH MARKETS. WE WILL SPEAK TO TONY WANG OF T. ROWE PRICE. THIS IS «BLOOMBERG TECH.» ♪ CAROLINE: LET’S STAY ON THE AMD, OPENAI STORY. T. ROWE PRICE’S PORTFOLIO MANAGER TONY WANG, YOU HAVE EXPOSURE TO AMD. $70 MILLION OF MARKET CAP ADDED IN ONE DAY ALONE WHAT DOES THIS SIGNAL — ALONE. WHAT DOES THE SIGNAL? TONY: I THINK IT IS EXCITING FOR AMD. I THINK IT GIVES THEM A REALLY BIG LEAGUE CUSTOMER TO SCALE AND THIS WILL PROBABLY ATTRACT OTHER CUSTOMERS TO THE ROADMAP AND CONTINUE TO BUILD OUT. I HAVE ALWAYS HAD THE THESIS THAT IT IS REALLY BIG AND IF COMPANIES CAN DELIVER ON THAT COMPUTE, THERE IS A LOT OF COMPANIES THAT CAN WIN IN OVERALL COMPUTE. OVERALL, VERY EXCITING. I THINK IT HAS A GOOD SET UP FOR THE NEXT FEW YEARS — SETUP FOR THE NEXT FEW YEARS. CAROLINE: LISA JUST TELLING US SHE WAS A BIT CONSERVATIVE AT $500 BILLION. OPENAI TELLING US WE ARE LOOKING AT ALL KINDS OF WAYS OF FINANCING THIS. HOW ARE YOU FEELING ABOUT THE KNITTING TOGETHER OF PURCHASES AND CREATORS, DESIGNERS, AND CHIPS? TONY: IF YOU STEP BACK OVER THE LAST 10 YEARS, EVERYBODY HAS UNDERESTIMATED AND I THINK WHAT IS EXCITING ABOUT AI IS THERE ARE A LOT OF PRODUCTIVITY USE CASES HERE. WE ARE STARTING TO SEE AI AGENTS FORM AND PHYSICAL AI. AS LONG AS THE END USE CASES ARE DELIVERING A LOT OF VALUE AND THERE IS PROMISE, THAT IS WHAT MATTERS IN TERMS OF THE ROI. I THINK THESE CONTRACTS, THEY ARE BACKSTOPPED BY BLUE-CHIP COMPANIES LIKE MICROSOFT OR ORACLE. IN TERMS OF HOW I FEEL ABOUT FINANCING, IT CONTINUES TO BE A GOOD ATTRACTIVE WAY TO DO IT AS LONG AS THE USE CASES ARE INTACT. ED: THE MECHANICS OF THE DEAL ARE THAT OPENAI HAS THE RIGHT TO BUY UP TO 160 MILLION SHARES OF AMD AT A PENNY A PIECE, BUT THE RIGHT CONTINGENT ON THE OPERATIONAL AND FINANCIAL MILESTONES WE DISCUSSED. IT IS NOT CIRCULAR FINANCING. IT IS SOMETHING DIFFERENT. HOW COMFORTABLE ARE YOU WITH THAT MECHANISM? TONY: I THINK IT CAN MAKE A LOT OF SENSE. RIGHT? IT PUTS THE TWO COMPANIES KIND OF IN CODEVELOPMENT AND PARTNERSHIP. I THINK THERE IS SHARED ECONOMICS. IT IS A WIN-WIN FOR BOTH COMPANIES. A PRETTY HIGH PRICE ON THE AMB STOCK PRICE SO IT IS GOOD FOR BOTH SIDES. IF THEY WIN, THEY WIN TOGETHER. I THINK IT MAKES SENSE. ED: DOES THIS ALTER AMD’S POSITION IN THE AIX ALUMINA MARKET? IN OTHER WORDS — AI ACCELERATOR MARKET, IN OTHER WORDS CLOSING THE GAP WITH NVIDIA? TONY: I THINK IT IS DOING THINGS DIFFERENTLY, BUT YOU ARE ALLUDING TO THE MARKET NARRATIVE OF AMD WAS BETWEEN THE VIDEO ON THE GPU SIDE AND BROADCOM ON THE CUSTOM SIDE. THIS CAN HELP THE NARRATIVE LIKE GOING FROM A SECOND PLACE PLAYER TO OPENAI ON THE COMPUTE SIDE. IT GIVES THEM CREDIBILITY, SCALE, AND ADDITIONAL CODEVELOPMENT R & D TO IMPROVE THEIR ROADMAP. TO ME, IT IS DEFINITELY A BIG POSITIVE. I DON’T THINK IT IS A ZERO-SUM GAME. IT FURTHER SIGNIFIES THE DEMAND FOR AI COMPUTE. IT IS GOOD FOR THE COUNTRY TO BUILD THIS MUCH CAPACITY BECAUSE I THINK THE END PAYOFFS ARE IMMENSE. CAROLINE: TONY, WE ARE AT A NEW RECORD HIGH FOR THE NASDAQ 100. AT ONE POINT, AMD WAS AT A RECORD HIGH. DO YOU FEEL CONFIDENT THESE ARE GOING TO CONTINUE TO GAIN IN VALLEY WITH THIS AI STORY — IN VALUE WITH THIS AI STORY? TONY: THERE IS A LONG-TERM GOOD STORY WITH OUR HOLDINGS. THEY ARE STRONG COMPANIES THAT ARE GREAT PLATFORMS, AND AS A RESULT, I THINK WE ARE ENTERING THIS INFLECTION IN AI DRIVING A TON OF PRODUCTIVITY. THINK ABOUT OUTPUT IN PRODUCTIVITY AND LABOR. PRODUCTIVITY IS GOING UP, AND LABOR WILL BE RELATIVELY UNCAPPED AS A LIMITING FACTOR. TO ME IT IS EXCITING. THERE IS NO BETTER TIME TO BE A TECH INVESTOR. SO MUCH CHANGE AND DYNAMISM SO I AM EXCITED. ED: IF YOU ARE HUMANLY PLEASED, MY COLUMN TODAY WAS ABOUT THE DEBT DEALS UNDERPINNING THE AI INFRASTRUCTURE BUILDOUT WE ARE SEEING. EVERYONE SEEMS TO HAVE A DIFFERENT COMFORT LEVEL WITH THAT AS WELL. HOW SANGUINE ARE YOU ABOUT THE ROLE OF DEBT IN WHAT WE ARE SEEING? TONY: YEAH, I THINK THE KEY SIGNAL HERE IS, WHAT IS THIS AI CAPACITY WORTH? AND WHAT IS THE USE? A FEW YEARS AGO, WE WERE DEBATING IS THE USEFUL LIFE FOR A GPU DATA CENTER THREE OR FOUR YEARS? THAT WAS SHORT. IF YOU LOOK AT THE GPU’S FROM SEVEN OR EIGHT YEARS AGO, THEY ARE STILL BEING FULLY UTILIZED BECAUSE AI WORKLOADS ARE BEING FULLY DEVOLVED. IT MAKES SENSE AT THE PRICE FOR FOR OTHERS TO RUN ON THEM — PRICE POINT FOR OTHERS TO RUN ON THEM. I THINK THE USE POINT IS FOUR OR FIVE YEARS AND THERE IS MORE AND MORE USE CASES WHEN YOU THINK ABOUT ROBOTICS, LIKE DIAGNOSTICS, SIMULATION. THERE IS JUST A TON MORE THAN WE THOUGHT THERE WERE THREE YEARS AGO. AS LONG AS THAT CONTINUES, IT MAKES A LOT OF SENSE. CAROLINE: A PIPIT TO ANOTHER PART OF YOUR PORTFOLIO — A PIVOT TO ANOTHER PART OF YOUR PORTFOLIO, VERIZON. TONY: CAN YOU REPEAT THE QUESTION? CAROLINE: WITH VERIZON, WE ARE SEEING EXECUTIVE CHANGES AT THE TOP. HOW DO YOU FEEL WITH VERIZON CHANGING OVER THE REINS TODAY? TONY: ACTUALLY, WE DO NOT OWN VERIZON SO THAT IS OUT OF MY WHEELHOUSE TO COMMENT. ED: TONY WANG FROM T. ROWE PRICE, WE ARE TRYING TO GET YOU ON ALL THE NEWS OF THE DAY. WE APPRECIATE YOUR INSIGHT ON THE AMD DEAL. CAROLINE: APPLE IS FACING AN INVESTIGATION IN FRANCE OF STORING VOICE RECORDINGS. SUBCONTRACTORS HAVE ACCESS TO RECORDINGS. THE IPHONE MAKER SAYS IT USED SIRI INTERACTIONS TO IMPROVE SERVICES AND ONLY STORES THEM IF USERS OPT IN. THE GAINS BY NEW VIDEO PARTNERS SIGNAL THE DEMAND FOR AI CHIPS REMAINS STRONG. TESLA SHARES JUMPED AFTER THE COMPANY POSTED CRYPTIC VIDEOS TEASING A POSSIBLE PRODUCT UNVEIL. EXECUTIVES HAVE SAID AN AFFORDABLE MODEL IS ON THE WAY IN THE WORKS. ED: WE WILL SPEAK WITH THE WHITE HOUSE AI AND NO CZAR DAVID SACKS. I AM SURE DAVID HAS A VIEW ON THE OPENAI AND AMD DEAL. BUT RIGHT NOW IN D.C., THERE IS A DEBATE. THE DEBATE IS, DO WE OR DO WE NOT EXPORT CHIPS TO CHINA? THE NASDAQ 100 UP 0.8%. THE STOCKS REALLY ROARING, AND IT IS AMD DOING IT. AMD HAS PAIRED THE GAINS WE HAVE SEEN IN THE EARLY PART OF THE SESSION, BUT IT WAS A RECORD HIGH WITH THE BIGGEST JUMP ON TRACK FOR NINE YEARS. IT IS A SIX GIGAWATT DEAL WITH OPENAI OVER A NUMBER OF YEARS. A LOT MORE DISCUSSION AROUND THAT STORY TO COME. THIS IS «BLOOMBERG TECH.» ♪ CAROLINE: WELCOME BACK TO «BLOOMBERG TECH.» WE CHECKED IN ON THESE MARKETS. RECORD HIGHS. OCTOBER. BITCOIN UP PERCENT. WE — BITCOIN UP 2%. WE HAD A WISCONN VALLEY — WE HAD A RISK ON RALLY. IT IS AMD UP 26%. AT ONE POINT, RECORD HIGHS. SOARING AFTER DOING THE DEAL THAT CAN GENERATE BENDS OF — GENERATE TENS OF BILLIONS OF DOLLARS. WE HAD A GREAT CONVERSATION A MOMENT AGO WITH LISA AND GREG. ANOTHER GREAT CONVERSATION COMING UP. ED: LOOKING FORWARD TO THIS ONE. JOINING US NOW IS DAVID SACKS. DAVID, THERE IS SOMETHING I WANTED TO TALK TO YOU ABOUT FOR A LONG TIME, AND WE WILL GET TO IT, THE DEBATE AROUND, SHOULD THE UNITED STATES OR SHOULD THE UNITED STATES NOT EXPORT SOME FORM OF AI CHIP TO CHINA? I AM SURE YOU CAN APPRECIATE THE AMD AND OPENAI AGREEMENT IS VERY INTERESTING. SO AS A PLACE TO START, CAN I ASK YOUR INTERPRETATION OF WHAT IT SIGNALS WHEN YOU HAVE A U.S. CHIPMAKER LIKE AMD AFTER NVIDIA AND ONE OF THE FRONTIER MODEL TALK LIKE OPENAI WORKING CLOSELY TOGETHER ON INFRASTRUCTURE? DAVID: WELL, I THINK THE MAIN THING IS THERE IS AN AI BOOM GOING ON IN THE MARKET IS HIGHLY COMPETITIVE. WE HAVE A NUMBER OF LEADING TO COMPANIES AND THEY ARE ALL COMPETING AND BOOMING. WHAT WE SEE HERE IS THIS AI BOOM KEEPS GOING AND GOING, KEEPS DRIVING BUSINESSES TO NEW HIGHS. THIS IS ALL A RESULT OF PRESIDENT TRUMP’S PRO-INNOVATION, PRO-EXPORT, PRO-AI POLICY. WE SAW THIS HELP DRIVE U.S. GDP TO A 3.8% GROWTH RATE IN THE SECOND QUARTER. I THINK THIS BOOM SEEMS LIKE IT WILL KEEP GOING AND GOING. CAROLINE: WE JUST HEARD THE LATEST ON A PODCAST SHOUTING YOU OUT, THOSE IN THE TEAM AT THE WHITE HOUSE GUIDING WHEN IT COMES TO TECHNOLOGY. BY AM INTERESTED WHETHER YOU AS AN INVESTOR HAVE GREAT COMFORT IN THESE RELATIONSHIPS, FINANCIAL RELATIONSHIPS BETWEEN CHIP DESIGNERS AND SHIP USERS. DAVID: IT IS UP TO THEM. I DON’T REALLY TAKE SIDES IN THESE DEALS. WE WANT ALL OF OUR AMERICAN AI COMPANIES TO BE SUCCESSFUL. THEY ARE ALL COMPETING WITH EACH OTHER AND COOPERATING WITH EACH OTHER. IT IS CALLED COMPETITION. THAT IS A GREAT THING TO SEE. MY AI HAT ON WE JUST WANT THESE MARKETS TO BE COMPETITIVE AND AMERICAN COMPANIES TO BE SUCCESSFUL. THAT IS WHAT IS HAPPENING RIGHT NOW. CAROLINE: I AM LOOKING AT A FUTURE ROLLOUT, THE BUILDOUT. ANYTHING THAT GIVES YOU PAUSE IN TERMS OF THE INFRASTRUCTURE NEEDS AT THE MOMENT? DAVID: WELL, ANYTIME YOU ARE WORKING IN THE WORLD OF ATOMS, IT WILL BE MORE COMPLICATED THAN WORKING IN THE WORLD OF BITS. IT IS IMPORTANT FOR US TO SKIM UP THE AMOUNT OF POWER AVAILABLE TO AI COMPANIES. AND YOU ARE SEEING THAT THANKS TO PRESIDENT TRUMP’S POLICIES THAT ARE PRO-ENERGY. THE PRESIDENT BACKED THE IDEA OF DRILL, BABY, DRILL MANY YEARS. HE WAS FARSIGHTED AND UNDERSTOOD ENERGY HAS THE BASIS FOR EVERYTHING, CERTAINLY THIS AI BOOM. WE ARE IN THE PROCESS OF ALLOWING MORE POWER GENERATION IN THE U.S. PRESIDENT TRUMP IS ALLOWING SO-CALLED BEHIND THE METER POWER GENERATION. IN OTHER WORDS, THESE AI COMPANIES CAN STAND UP THEIR OWN POWER GENERATION. WE NEED TO SQUEEZE MORE OUT OF THE GRID AND ARE ENABLING NEW OIL AND GAS AND NUCLEAR, SO ALL OF THE ABOVE. I THINK ENERGY IS THE MAIN THING, AND PRESIDENT TRUMP IS SUPPORTING THAT. ED: FINAL QUESTION ON AMD AND OPENAI. DID THE PARTIES CONSULT THE WHITE HOUSE ABOUT MOVING FORWARD WITH THIS ARRANGEMENT AND THEIR PLAN TO WORK TOGETHER? DAVID: NO, NO. NOT WITH ME, AND I DON’T EXPECT THEM TO. WE DON’’T GET INVOLVED IN THE DEALMAKING BETWEEN PRIVATE COMPANIES. WE ARE HERE TO CREATE A POLICY ENVIRONMENT THAT IS SUPPORTIVE FOR ALL OF OUR AI COMPANIES. ED: APPRECIATE THAT. OK, SO I ASKED YOU TO COME ON THE PROGRAM BECAUSE WE SPOKE AT THE END OF LAST WEEK FOR A STORY DONE OUT OF D.C. ON THE IDEA OF, WHAT IS A CHINA HAWK? BUT ALSO WITHIN THAT BROAD DESCRIPTION, SHOULD THE UNITED STATES OR SHOULD THE UNITED STATES NOT EXPORT DEPRECATED AI CHIPS TO CHINA? YOU HAVE BEEN VERY GENEROUS WITH YOUR TIME, BUT I JUST INVITE YOU AGAIN FOR OUR «BLOOMBERG TECH» AUDIENCE, EXPLAIN HOW YOU VIEW YOURSELF IN THIS DEBATE AND WHAT YOU THINK IS STRATEGICALLY MOST IMPORTANT FOR THIS COUNTRY? DAVID: FIRST OF ALL, I WOULD SAY I CONSIDER MYSELF TO BE A CHINA HAWK. I WANT THE U.S. TO WIN THIS AI RACE. WE UNDERSTAND CHINA IS OUR MAIN COMPETITION GLOBALLY IN THIS AI RACE AND WANT TO DO EVERYTHING WE CAN TO WIN. PRESIDENT IN HIS AI SPEECH ON JULY 23 LAID OUT THE TEMPLE OF THE STRATEGY. WE NEED TO BE PRO-INNOVATION, PRO-INFRASTRUCTURE, PRO-ENERGY, AND PRO-EXPORTS OF THE U.S. TECHNOLOGY STACK DOMINATES THE WORLD. THIS IS IN THE SERVICE OF THE UNITED STATES WINNING THE AI RACE. WE UNDERSTAND IT WILL HAVE MAJOR ECONOMIC AND NATIONAL SECURITY RAMIFICATIONS. WE ARE IN IT TO WIN IT. ED: THERE IS A LOT OF FOCUS ON THE DIRECTOR CHINA PART, BUT THE OTHER WAY SOME LOOK AT IT IS THERE IS A MARKETPLACE OUTSIDE OF AMERICA AND CHINA, THE MIDDLE EAST BEING AN EXAMPLE.WHAT IS YOUR POSITION ON THAT AND WHETHER THE UNITED STATES WANT TO LEAVE THE WORLD OPEN TO CHINA TO SELL ITS OWN TECHNOLOGY? DAVID: WELL, THERE WAS A VIEW IN THE PREVIOUS MINISTRIES AND THAT WE SHOULD NOT SELL CHIPS TO MANY COUNTRIES, INCLUDING THE RESOURCE RICH GULF STATES. AND I THINK THAT WAS A MAJOR MISTAKE BECAUSE EVERY TIME YOU TELL A COUNTRY THEY CANNOT BUY THE AMERICAN TECH STACK, WHAT IS THEIR REACTION GOING TO BE? THEY ARE GOING TO TURN TO CHINA AND ADOPT THE CHINESE TECH STACK. I HAVE A VERY SUPER METRIC FOR MEASURING WHETHER WE ARE WINNING THE AI RACE WHICH IS GLOBAL MARKET SHARE. IF WE LOOK AROUND THE WORLD IN FIVE YEARS AND SEE THAT AMERICAN TECHNOLOGY STACK WITH AN 80% MARKET SHARE, THAT MEANS THAT WE WON. BUT IF WE LOOK AROUND AND FIVE YEARS AND SEE THE CHINESE TECHNOLOGY STACK, HUAWEI CHIPS AND DEEPSEEK, HAS A MARKET SHARE, THEN WE LOST. THAT IS WHAT HAPPENED IN 5G AND WE DO NOT WANT A REPEAT OF THAT. THE STRATEGY SHOULD BE FOR THE U.S. TO DOMINATE THE WORLD AND HAVE THE GREATEST MARKET SHARE. I THINK THIS IS PRETTY OBVIOUS TO EVERYONE INTO THE VALLEY BECAUSE WE UNDERSTAND THE WAY TO WIN TECHNOLOGY RACES IS TO HAVE THE BIGGEST ECOSYSTEM. IF YOU ARE A TECHNOLOGY PLATFORM COMING WANT TO HAVE THE MOST DEVELOPMENT USE IN YOUR API. IF YOU ARE AN APP STORE, YOU WANT TO HAVE THE MOST APPS YOUR APP STORE. IN A SIMILAR WAY, WE WANT THE MOST AMERICAN USERS IN THE STACK AS POSSIBLE. I FIND IT HARD TO UNDERSTAND WHY THE PREVIOUS ADMINISTRATION WOULD EXCLUDE THESE RICH COUNTRIES FROM PARTICIPATING ON OUR TECH STACK. IT CERTAINLY DID NOT HELP US IN THE RACE WITH CHINA. IF ANYTHING, PRESIDENT TRUMP’S POLICY BOXES OUT CHINA FROM THE MIDDLE EAST WHEREAS THE PREVIOUS ADMINISTRATION’S POLICY FORCED THESE COUNTRIES INTO CHINA’S ARMS. CAROLINE: YOU HAVE REWORKED, THEREFORE, THE DIFFUSION IDEAL SET BY THE PREVIOUS ADMINISTRATION, BUT WHEN YOU ARE ALLOWING ONLY LESS POWERFUL CHIPS, I THINK THE PRESIDENT EVEN CALLED THEM OBSOLETE VERSIONS OF THE VIDEOS CHIPS INTO CHINA, DOES THAT MEAN THAT SHIP OF INNOVATION IN CHINA HAS ALREADY SALE BECAUSE THEY WILL NEED TO HAVE THE MOST SOPHISTICATED AND WILL HAVE TO BUILD IT THEMSELVES? DAVID: WHEN YOU TALK ABOUT WHAT WE EXPORT TO CHINA, THAT WILL BE A COMPLICATED QUESTION. THERE ARE ARGUMENTS ON BOTH SIDES. I THINK THERE IS A PRETTY STRONG ARGUMENT FOR NOT SOMETHING CHINA EVER LATEST AND GREATEST CHIPS BECAUSE THAT WOULD BE TOO BENEFICIAL TO THEM. IF YOU DON’T SELL ANYTHING, HOWEVER, THAT WILL ACCELERATE THEIR DESIRE TO BE INDEPENDENT OF THE AMERICAN STACK. I THINK THERE IS A COMPELLING ARGUMENT FOR SELLING THEM A LET’S CALL IT DEPRECATED AMERICAN CHIP OR A LESS GREAT AMERICAN CHIP. BY THE WAY, THIS IS WHY THE BIDEN ADMINISTRATION APPROVED THE H20 IN UNLIMITED QUANTITIES FOR EXPORT TO CHINA. ONE PRESIDENT CAME IN, HE SAID THOSE SALES HAVE TO BE LICENSED AND ARE SUBJECT TO A 15% SURCHARGE. NONETHELESS, ALL THE PEOPLE WHO APPROVED THE BIDEN POLICY STARTED ATTACKING PRESIDENT TRUMP. I THING THIS IS A CLASSIC CASE OF NO ONE HAD A PROBLEM WITH IT UNTIL PRESIDENT TRUMP AGREED TO DO IT. ED: JENSEN HUANG WENT ON A PODCAST AND THERE WAS A REACTION TO WHAT HE SAID. YOU WOULD POINT OUT YOU ARE AN OFFICIAL OF THE GOVERNMENT. JENSEN IS A PRIVATE CITIZEN AND CEO. MANY TALENTED COMPUTER SCIENTISTS AND ENGINEERS COME FROM CHINA. I THINK THAT WAS THE POINT HE WAS MAKING, BUT THE PERSONNEL PART OF THIS STORY, WHERE DO YOU STAND ON THAT? DAVID: IT IS TRUE THAT HALF OF THE WORLD’S AI RESEARCHERS ARE FROM CHINA SO WE HAVE TO BE OPEN TO WORKING WITH THIS TALENT OR ALLOWING THIS TALENT TO USE THE AMERICAN CHIP STACK TO SOME DEGREE SO IT IS A COMPLICATED QUESTION ALWAYS OF WHAT YOU ALLOW CHINA TO DO. I THINK HE WAS MAKING A POINT ABOUT THE TALENT PIPELINE. WE HAVE TO BE OPEN TO IT TO SOME DEGREE. I CONSIDER MYSELF TO BE A CHINA HOCK BUT WAS NOT TRIGGERED BY WHAT HE SAID BECAUSE I WATCHED THE ENTIRE TWO HOUR PODCAST, NOT JUST THE 30 SECOND CLIP AND UNDERSTOOD WHAT HE WAS TRYING TO SAY INCONTACT. IT IS A NUANCED QUESTION. LET ME SAY TO ALL OF THESE PEOPLE CRITICIZING HIM, WHAT HAVE YOU DONE TO HELP US WIN THE AI RACE? I CANNOT THINK OF A MORE STRATEGIC ASSET IN THE AI RACE THAN NVIDIA AND JENSEN HIMSELF WORKING FOR 30 YEARS ON THESE GPU’S, AND HE IS A HUGE SOURCE OF AMERICAN ADVANTAGE IN THIS AI RACE SO LET’S SHOW HIM A LITTLE GRACE. CAROLINE: CONTEXT IS EVERYTHING. WE APPRECIATE YOU TALKING ABOUT THE COMPLICATED AS WELL. GREAT TO HAVE YOU WITH US. COMING UP, ALEX SCHULTZ THIS IS HOW AI IS CHANGING THE DEVELOPMENT LANDSCAPE. THIS IS «BLOOMBERG TECH.» ♪ CAROLINE: A NEW BOOK IS OUT. IT IS BY ALEX SCHULTZ. HE SAYS AI WILL BE GAME CHANGING FOR ADVERTISERS IF USED CORRECTLY. HE KNOWS SOMETHING ABOUT DIRECT ADVERTISING AND DIRECTING IT AND UNDERSTAND THE ANALYTICS BEHIND ALL OF THIS. WELCOME TO THE SHOW. I AM INTERESTED IN HOW YOU HAVE SEEN THE UNFOLDING OF THE LAST DECADE OR TWO. INCREMENTAL GROWTH IS SOMETHING YOU TALK ABOUT SO MUCH. HAVING DIRECT IMPACT WITH DIRECT TARGETED APPS IN MANY WAYS. BUT THEN YOU HAVE TO THINK ABOUT HOW COMPANIES HAVE LONG-TERM VISION, AND NORTHSTAR AS YOU PUT IT. HOW ARE COMPANIES MANAGING TO BALANCE THIS? ALEX: THANK YOU FOR HAVING ME. AWESOME TO BE HERE. INCREMENTAL GROWTH IS ABOUT WITHOUT YOUR INTERACTIONS. YOU NEED TO SEE WHAT THE LIFT IS OF YOUR WORK. THAT FITS TOTALLY LONG-TERM. WHAT IS THE GOAL YOU WANT TO ACHIEVE? THAT IS ABSOLUTELY A QUESTION OF I HAVE A GOAL. HOW DO I INCREMENTALLY LIFT THAT GOAL? CAROLINE: YOUR NORTHSTAR IS WRITING THIS BOOK AS WELL AS THE DAY-TO-DAY UNDERSTANDING THE ANALYTICS UNDERNEATH. WHAT IS HAPPENING IN TERMS OF MARKETING FOR META AND THE GROWTH STORY? WHY DID YOU PUT THIS OUT HERE? ALEX: MY NORTHSTAR FOR THE BOOK IS TO BE USEFUL. I WANT LARGE AND SMALL BUSINESSES TO USE THE TOOLS. ADVERTISING, 1985, BIBLE, INCREDIBLY AMAZING BOOK, BUT THERE ARE NEW CHANNELS THAT HAVE EVOLVED SINCE THEN. I KEPT BEING ASKED FOR A BOOK SO I WANTED TO PRODUCE A USEFUL BOOK TO HELP PEOPLE BE GOOD AT THAT. ED: IN THE BACK PART OF THE BOOK ON AI AND ITS IMPACT ON MARKETING, YOU TALK ABOUT AN AUDIENCE OF ONE. THE IDEA THAT AI CAN MAKE THE ADS SO TARGETED TO THE INDIVIDUAL. WHAT ARE THE RISKS WITH THAT? YOU CLEARLY NEED A LOT OF DATA ABOUT THAT PERSON TO MAKE THE AUDIENCE OF ONE RELEVANT AD. ALEX: FROM MY PERSPECTIVE, WE HAVE NEVER WHICH THEY POINT WHERE THERE ARE CLEAR LAWS AND PLATFORM POLICIES ABOUT PURPOSE USE LIMITATION OF DATA, SO IT IS CLEAR WHAT YOU CAN USE THE DATA FOR. PEOPLE LIKE PERSONALIZED ADS SO THEY HAVE CONTROL OF WHAT DATA YOU CAN GET. YOUNG PEOPLE UNDERSTAND HOW TO MANAGE THEIR OTHER THEM AND OF THE PERSONALIZED ADS THEY GET WHEN THERE IS SOMETHING RELEVANT THAT IS USEFUL FOR THEM. I THINK THE BALANCE IS IN A BETTER PLACE THAN 10 YEARS AGO IN TERMS OF PEOPLE’S UNDERSTANDINGS OF THESE THINGS SO THE RISKS ARE MUCH LOWER. I THINK THE BIGGEST RISK IS NOT TAKING A MINUTE OF IT. YOU LOOK AT HOW EUROPE IS IN THE REPORT, THEY ARE REGRETTING THE LACK OF GROWTH THEY HAVE VERSUS THE GROWTH THE U.S. HAS, AND PART OF THAT IS ADVERTISING. ED: THE BIG PICTURE WITH META HAS BEEN THAT ALL OF THE WORK WITH AI HAS PAID OFF, LIKE THE BREAD AND BUTTER CORE BUSINESS. CAN YOU GIVE US INSIGHT INTO HOW MUCH MORE VALUABLE AN AI POWERED AD IS, WHAT THE CONVERSION ON IT IS RELEVANT TO TRADITIONAL ADVERTISING, HOW IT DRIVES GROWTH ON THE TOP LINE? ALEX: BUSINESS HAS BEEN COMPLETELY TRANSFORMED BY AI. WHEN TIKTOK CAME ALONG FIVE YEARS AGO, EVERYTHING YOU WERE LOOKING AT ON FACEBOOK AND INSTAGRAM WAS CONNECTED. TODAY, THE MAJORITY OF INSTAGRAM AND FACEBOOK ARE UNCONNECTED CONTENT, AND YOU CAN SEE IN THE EARNINGS RESULTS WHAT THE IMPACT OF AI ALLOWING YOU TO RANK CONTENT BASED ON SEMANTIC UNDERSTANDING OF CONTENT IN THE INDIVIDUAL DOES FOR ENGAGEMENT, AND THEN YOU SEE IT ON THE ADS IN TERMS OF THE REVENUE COMING THROUGH AND ALSO FOR ADVERTISERS SO IT IS VERY HIGH DOUBLE-DIGIT PERCENTAGE UPLIFT IF YOU ADOPT THINGS LIKE ADVANTAGE PLUS SHOPPING CAMPAIGNS, MAKE SURE YOU FEED THE DATA THROUGH, AND DO THE BASICS RIGHT, WHICH ARE DESCRIBED IN THIS BOOK, BOTH WITH META BUT ALSO USING ANYONE ELSE’S TOOLS. CAROLINE: WHAT ABOUT HUMAN CREATIVITY AT THIS MOMENT? ALEX: ONE OF MY STRUGGLES AS CREATIVITY IS ALWAYS ABOUT PIXELS. I LOVE MY CREATIVE TEAM. THEY ARE INCREDIBLE. THINGS WERE GREAT. IT REALLY WORKED. BUT THERE IS A TON OF CREATIVITY WITH DATA, WITH TARGETING, WITH CONVERSION EVERY OPTIMIZATION — CONVERSION RATE OPTIMIZATION. WHAT I GET TO IN THIS BOOK AS IT IS NOT DAVID OGILVY SAYING STICK A CAR TO A BILLBOARD WITH SUPER GLUE TO SELL SUPERGLUE. IT IS ABOUT GIVING PEOPLE AMAZING PERSONALIZED EXPERIENCES AND HIGH CONVERSION RATES. ED: ALEX SCHULTZ, THANK YOU VERY MUCH. TUNE INTO BLOOMBERG SCREEN TIME ON THURSDAY FOR A DEEP DIVE ON THE CREATOR ECONOMY WITH THE HEAD OF META’S INSTAGRAM ADAM MOSSERI. COMING UP, WE WILL GET BACK TO THE DEAL BETWEEN OPENAI AND AMD AND WHAT IT MEANS FOR THE BUILDOUT OF AI INFRASTRUCTURE AND EVERYTHING ELSE. THIS IS «BLOOMBERG TECH.» ♪ CAROLINE: GOING TO GET BACK TO OPENAI AND AMD. THE DEAL PUSHING THE BOARD OF MARKETS HIGHER. JOINING US AS A SENIOR MARKET ANALYST. THESE ONGOING DEALS BETWEEN CHIP DESIGNERS AND ULTIMATELY THOSE THAT ARE POACHING THE GP USE, WHAT DO YOU MAKE OF IT? > > ACTUALLY, IT IS VERY AMAZING NEWS, ESPECIALLY FOR THOSE QUESTIONING THE CIRCULAR NATURE OF THE BUSINESS AND THE DEALS BEING ANNOUNCED RIGHT NOW. WE LOOK AT AMD AND THE OPENAI DEAL TODAY WITH AMD STRIKING DEALS WITH DATA CENTERS AND CHIPMAKERS INSIDE AND OUTSIDE THE U.S. IN ORDER TO STAY AHEAD OF THE GAME AND MAKE SURE THEY ARE NOT CONSTRAINED BY CAPACITY CONSTRAINTS, SO THAT BASICALLY MEANS THIS COMPANY TODAY IS MORE WORRIED ABOUT NOT HAVING ENOUGH SUPPLY FOR THE HUGE DEMAND IN THE COUNTRY AND THAT IS OUTRIGHT POSITIVE FOR THE AI SENTIMENT HERE. THERE MOMENT LOOKS LIKE IT HAS COME. CAROLINE: CERTAINLY BEGINNING NVIDIA SAW PULL BACK A LITTLE BIT — CERTAINLY. NVIDIA SAW PULL BACK A LITTLE BIT. IS THERE ANYTHING THAT GIVES YOU ANXIETY ABOUT NVIDIA’S DOMINANCE? IPEK: ABSOLUTELY NOT. CONTEXT IS EVERYTHING. WE ARE RECEIVING INFORMATION IN A VERY INSIGHTFUL WAY OF IS COMING. NVIDIA ANNOUNCED THEY WOULD BE INVESTING 100 BILLION U.S. DOLLARS IN OPENAI. A 10% STAKE IN AMD FOR OPENAI. SO THE AMD CHIPS WILL NOT REPLACE BUT RATHER COMPLEMENT. BEYOND THIS DEAL, THIS COULD GIVE SOME LEVERAGE TO AMD BUT IT LOOKS LIKE THE COMPANIES ARE CONFIDENT THAT THE PIE IS BIG HAVE TO FEED EVERYONE. ED: FOR PUBLIC MARKET INVESTORS, IS OPENAI THE PRIVATE COMPANY BECOMING SOME MACROLEVEL FACTOR THEY HAVE TO MODEL IN? IPEK: ABSOLUTELY. THEY ARE SO HUGE NOW. THEY ARE THE BIGGEST START UP THE WORLD. THEY ARE WORTH $500 BILLION U.S. DOING HUGE DEALS WITH PUBLICLY TRADED COMPANIES. THOSE ARE THE MARKET MOVING DEALS OF MARKET MOVING STOCKS. WE ARE TALKING ABOUT NVIDIA AND AMD. SO DEFINITELY OPENAI IS PRETTY MUCH THE CENTER OF THIS AI REVOLUTION. IT HAS BEEN THE STARTING POINT AND IS GAINING IMPORTANCE EVERY SINGLE DAY. WITH EACH DEAL THAT THEY ANNOUNCE, THEY ARE SECURING THEIR POSITION AT THE CENTER OF THIS GAME. ED: SHOULD WE BE ASKING MORE QUESTIONS ABOUT HOW OPENAI WILL PAY FOR ALL OF THIS THEN? IPEK: WELL, YES. THEY SAID THEY WILL BE LOOKING AT SOME FUNDING POSSIBILITIES THAT HE DID NOT GIVE DETAILS ABOUT, BUT ONE OF THE QUESTIONS HERE IS THAT AI IS ACTUALLY A VERY CAPITAL-INTENSIVE PLAY, SO THIS COMPANY NEEDS FUNDING. NVIDIA COMING TO THE RESCUE COULD OPEN THE WAY FOR OTHER COMPANIES ALSO LOOKING TO HELP OPENAI AND TAKE IN THE COMPANY THAT HAS NOT YET GONE PUBLIC. I THINK AT OPENAI, IF ANYTHING THEY WILL NOT BE HAVING FUNDING PROBLEMS AT THIS STAGE OF THIS GAME BECAUSE THEY ARE DOMINATING THE AI BUSINESS RIGHT NOW. IT IS A PRIVATE COMPANY. IT DOES HAVE ALL THE FUNDING IT NEEDS FROM PRIVATE AND PUBLIC INVESTORS JUST EAGER TO TAKE PART OF THIS COMPANY ACTUALLY. CAROLINE: IF THE GROWTH STORY IS SO CLEAR IN TERMS OF REVENUE, BUT WHEN YOU COMPARE $13 BILLION IN REVENUE PER YEAR AND THINKING THE TRILLIONS OF DOLLARS IT HAS TO SPEND, WHAT GIVES YOU COMFORT THE REVENUE WILL MATCH THE AMOUNT THAT ULTIMATELY NEEDS TO BE FINANCED ON IT? IPEK: IT IS DEFINITELY THE REACH THAT THEY HAVE. WE HAVE SEEN OVER THE PAST THREE YEARS OTHER COMPANIES LIKE META OR CHINESE COMPANIES ASIDE BUT MANY COMPANIES RIGHT, PERPLEXITY, META, X FOR EXAMPLE WITH GROK, AND OTHER MODELS TRYING TO COMPETE WITH OPENAI. SO FAR, THEY HAVE NOT BEEN SUCCESSFUL MEETING THAT LEVEL OF ENTHUSIASM THAT OPENAI HAS SO FAR. SO OPENAI IS SURGING. IT IS THE FIRST TO COME IN AND STILL HAS THE POPULARITY AND LEVERAGE OF BEING THE FIRST,. I THINK THEY DO HAVE VERY GOOD LEVERAGE IN EXPANDING THEIR BUSINESS AND MAKING MORE REVENUE IN THE FUTURE. THEY JUST NEED TO PLAY THE GAME RIGHT. THEY JUST NEED TO FIND THE RIGHT PARTNERS, AND THAT IS EXACTLY WHAT THEY ARE DOING RIGHT NOW. ED: GREAT TO HAVE YOU BACK ON THE PROGRAM.APPRECIATE IT A LOT . WHAT A PROGRAM IT WAS. THAT DOES IT FOR THIS EDITION OF «BLOOMBERG TECH.» TUNE IN LATER TODAY. WE HAVE MORE NEWS TO COME FROM OPENAI. WE WILL SPEAK WITH THE COO ON THE SIDELINES OF OPENAI’S DEVELOPMENT DAY. CAROLINE: CAN’T STOP, WON’T STOP. WE APPRECIATE IT. MEANWHILE, CHECK OUT OUR PODCASTS. THERE ARE SO MANY CONVERSATIONS YOU HAVE TO DIAL BACK INTO. GET INTO LISA, GREG, DAVID, AND ALEX SCHULTZ OF META AS WELL. ALL ONLINE.

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AMD’s Chip Deal With OpenAI Triggers Explosive Rally | Bloomberg Tech 10/6/2025

October 6th, 2025, 9:13 PM GMT+0000

AMD CEO Lisa Su and OpenAI President Greg Brockman join Bloomberg Tech to weigh in on the two companies’ deal to roll out AI infrastructure, a pact the chipmaker said could generate tens of billions of dollars in new revenue. Plus, White House AI and Crypto Czar David Sacks defends the Trump administration’s approach to China in the context of the global AI race, and Meta CMO Alex Schultz has a new book on how AI is changing the advertising landscape. (Source: Bloomberg)

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