Lisa Su (2:55)

Significant? Well, first of all, Ed, it's great to be here with you at ces. I think CES is always a great way to kick off the year because you get so much perspective. So it was fun giving the keynote last night. Look, Helios is a massive system. You can see it in the background here. And AM I455 is just an incredibly powerful chip. And probably the context I would give Ed is, you know, one of the things that we're so clear about is that the demand for AI compute is just continuing to increase. And, you know, we have seen that over the last five years. When you think about just how much, you know, new capabilities have come on board and we've now seen a real inflection in the number of people who are using AI. So if you think today there are probably more than a billion active users using AI, and we expect that to scale to over 5 billion users over the next five years. So for all of that, you need compute and lots and lots of compute. And from that standpoint, you know, MI455 is a significant leap forward in terms of technology capability. You know, made up of 2 and 3 nanometer chips, 320 billion transistors. Just a lot of performance and a lot.

Ed Ludlow (4:06)

Of. What's the timeline for it to be deployed in the real world then? And who will be the principal first user of.

Lisa Su (4:11)

It? You'll see it in 2H26 and it will ramp from there. And, you know, we have very strong partnerships. OpenAI. Greg Brockman was on stage with us last night talking about all the use cases that they see. We've announced a partnership with Oracle, many others as.

Ed Ludlow (4:28)

Well. So given that it's is to, it's in full production now, it's getting ready.

Lisa Su (4:33)

To. We are, we are absolutely getting ready to ship.

Ed Ludlow (4:36)

It. That's at one end of the sort of scale and spectrum. At the other you have Mi440X, which is for small data centers. I'm trying to simplify it, but it's basically an enterprise product. What was it that you were trying to solve for with.

Lisa Su (4:53)

That? Yeah, I think what we're trying to solve for is, you know, the world is a very heterogeneous world. You have all kinds of use cases for AI from sort of the very biggest cloud data centers that are doing, you know, large scale training and inference to enterprise applications as well as supercomputers. And so we actually have a family of chips. At the highest end is our 455 for the Cloud environment. But we announced last night a Mi440 which is actually using the same basic building blocks but is now really focused on enterprise applications so that you can go into, you know, let's call it current data centers with the new technology. So we're excited about that as well. You know, there is enterprises are starting to increase their adoption of AI. In some cases they want their own control of their data centers in terms of on prem.

Ed Ludlow (5:45)

Environments. What are they doing with it though? I mean, you know, we, we've been so fixated on frontier models with hundreds of billions of parameters and the scale of infrastructure needed for that. With my 440 we're talking about something slightly different. I think it's just really interesting if you could explain what the demand is from those enterprises, what they want with the.

Lisa Su (6:04)

Technology. Well, I think you see many enterprises now using AI all throughout their their business processes. Whether you're talking about things in their workflow, even amd, we're using AI through every part of our development process. We're seeing a lot of applications in financial services, in health care. These are areas, especially in financial services that you people actually don't want everything necessarily in the cloud. They'd like to be able to have, you know, their own on prem deployments or private cloud deployments. And in this case, you don't want to have to build a brand new data center for every new generation of chip. Mi440 allows us to use some of those existing data centers and upgrade with the new.

Ed Ludlow (6:49)

Capabilities. Welcome. If you're watching us on Bloomberg Television or you're listening on Bloomberg Radio, we're live in Las Vegas and we're with AMD CEO Lisa Su. And we're talking about the latest generation of accelerators. What makes this generation of AMD accelerators the better option, particularly for on prem and at the edge over what Nvidia is offering right.

Lisa Su (7:13)

Now? Well, the best way to think about it, Ed, is we're in this place where AI is at an inflection point. We're seeing AI now in every part of compute. We see it in the largest models. You know, when you're thinking about things like ChatGPT and Gemini and Grok, you know, we're also seeing, you know, many use cases in new capabilities like, you know, video production, entertainment, health care, where you're doing drug discovery, all of these various things. You know, our claim to fame is really, you know, outstanding performance at, you know, very advantaged, total cost of ownership. And the other thing that, you know, we believe very strongly in is an open ecosystem and deep partnerships, you know, with our, you know, with our overall ecosystem coming together. So when you put those things in perspective, I think we have a great set of applications that will take advantage of these newest generation.

Ed Ludlow (8:13)

Chips. You mentioned that Greg Brockman, who's the Open Air president, was on stage with you last night. And one of the basic points that he made was there are tools and functions they would love to release and put out into the world, but they're compute constrained. I often ask you to quantify demand, but is there a way to quantify the severity in the lack of compute, you know, the deficit that's out there right.

Lisa Su (8:36)

Now? Well, let me just give you some numbers to kind of ground what we think the demand environment is, is looking like. So if you think, you know, today we have about a billion active users and we're ramping that to, you know, 5 billion over the next five years. And we have about, let's call it 100 Zeta flops of compute, you know, all around the world. And that's just generic number that, that aggregates all of that. You know, we think we have to increase compute by another 100 times as you go over the next four or five years. And I introduced a term last night, the yada flop. You know, people are like, what is a yada flop? A yada flop is actually 10 to the 24th in terms of flop. So that's a one followed by 24 zeros. And to give you, you know, just a view of just how much things have really increased, I mean, that's another 100 times more compute than we have today. So that gives you an idea. Now you think, what are you going to use all that compute for? I mean, the truth is the models that we have today are great. I mean, they do amazing things. You know, we talked about a number of use cases, you know, perhaps, you know, one that's, you know, very hits very close to home is, is writing software like, you know, people are using the AI tools right now to significantly enhance the productiv of software developers. But it's good, but it can get so much better. And I mean, I think that's the key point. You know, we like to say that is really going to be everywhere and it's really for everyone and it's for each one of us to make our businesses more productive, you know, each one of us more productive, you know, going forward. And so we're still in the very early innings of really unlocking the power of.

Ed Ludlow (10:23)

AI. So where we stand is, okay, There's a, there's a compute deficit and software has kind of hit the limits of what current generation COMPUTE can offer. Help us understand the bottlenecks and barriers to deploying that compute. A lot at the moment about memory chips. What else? Energy, Electricity. What's crossing your desk, Lisa? This. That gives you pause and say this is, this is a problem right.

Lisa Su (10:48)

Now. Well, our job as a technology industry is to push the bleeding edge. I mean, that is our job. And so, you know, when we think about like the Mi 455 deploying 2 nanometer and 3 nanometer chips, having the latest generation memory, high bandwidth memory, that, that is out there and really deploying these big systems. The important thing is that the entire ecosystem come together and we plan together for this next big inflection in compute. And that's exactly what we're doing right now. I think we're working very closely with the entire supply chain to ensure that we have the, the resources to exp. Compute environment. And yes, you know, some of the things that you mentioned are, let's call it constrained, but which is most severely. So, you know, I don't think that's any one thing. I think we're all looking at, you know, how do we build faster? You know, certainly, you know, power is one of those areas where, you know, you see throughout the world, you know, power is being brought online as fast as possible. Certainly from a silicon standpoint, you know, we're ramping our production capabilities with our partners. From a memory standpoint, our partners are ramping as well. So it's not any one thing. I think it's all of these things have to go sort of in tandem. And that's why partnership is just so important in, in this.

Ed Ludlow (12:09)

Business. We started this conversation talking about Helios first rack scale architecture and infrastructure from amd. Could you talk about the future and how much of the content you want to own in a server? You know, we started this, this story with the gpu. Frankly, if you look at what Nvidia is doing, they want to increasingly own all of what's inside the box. Is that something that AMD is focused on.

Lisa Su (12:35)

Too? You know, what's most important for us is to ensure that we have turnkey solutions that are very, very easy for our customers to deploy. Because when you think about, you know, how do you use all of this COMPUTE most effectively? You want it to go into the data center and really be up and running on day one. And for that you have to optimize a full system. But from standpoint you know, we are very focused on an open ecosystem. So yes, we design the CPUs and the GPUs and some of the networking elements. But we also work, you know, really with a broad ecosystem of partners with industry standards. It's all about ensuring that we get the best of all worlds when we put our solutions.

Ed Ludlow (13:17)

Together. Looking ahead to my 500 2027, that has 1,000 times the performance of the Mi 300 generation. So your last generation of real world deployed gear, something's coming that's a thousand times better. How did you make it a thousand times.

Lisa Su (13:36)

Better? It is just incredible engineering at every level. So am I. 455 is 10 times better than the chip that we just launched six months ago, the Mi 355. And my 500 is another 10X. You know, on top of that, we are using the most advanced technology out there. We have a very, you know, very clear focus on, you know, hardware, software, system, co design and it is, you know, clearly pushing the bleeding edge of.

Ed Ludlow (14:08)

Capabilities. What is the status of AMD's ability to sell products into China right.

Lisa Su (14:15)

Now? So, you know, China is an important market for us. You know, we actually sell a broad range of chips into China, including our, you know, our PC as well as, you know, other embedded.

Ed Ludlow (14:26)

Chips. In the data center context, of.

Lisa Su (14:28)

Course, sorry, in the data center context, we are, you know, certainly we see China as an important market. We were, we did get some licenses from the U.S. government, you know, late last year as it relates to some of our previous generation, our Mi 308 chips. And we are in the process of applying for new licenses with our Mi325 chips that were recently been allowed to, to apply for licenses. We haven't gotten those licenses yet, but we continue to continue to view China as an important market for.

Ed Ludlow (15:01)

Us. The reason I ask about it is in part because a lot of the work that's being done in open source models and bridging the gap between open and closed is being done in China to some extent. And there's been a lot of discussion about the demand being there in China. But could you reflect a little bit on that demand, but also what the Chinese government's attitude is to you taking a later generation of tech to the.

Lisa Su (15:25)

Country? Well, I do think the demand for, you know, AI in general and in China is high for all the reasons that we talked about. I think we are in a demand environment where, you know, more compute is beneficial across the world. We think, you know, China is an important market for us and it's very active in having our solutions deployed. So, you know, we continue to view it as something that's important. We're working with the US Government, government as well as our Chinese customers, you know, to find good solutions.

Ed Ludlow (15:55)

There. And there are signs from both governments that the license process is moving. Commerce is kind of notorious for things sitting on a desk for quite a long.

Lisa Su (16:03)

Time. I think we are optimistic that, you know, we'll have an opportunity to, to get some of those licenses.

Ed Ludlow (16:09)

Granted. You're watching Bloomberg Television. You're listening to Bloomberg Radio. This is Bloomberg Tech, and we're live in Las Vegas with the AMD CEO, Lisa Susan. So last question really in the data center context is the markets and investors want data and signs that you're taking market share. What would the metrics be that you'd point to either that already exist or over the coming 12 months that would evidence.

Lisa Su (16:34)

That? Well, I think my 455 is a, a clear inflection point in, you know, both our technology capability as well as the deep partnerships that we have across the industry. So we're excited about, you know, what we see in front of us. And, you know, we' talked about, you know, tens of billions of dollars in AI revenue as we get into 2027. And I think these are important metrics for us as a company. When we think about the AI.

Ed Ludlow (17:04)

Potential for all the focus on data centers, some forget that AMD is leader in PC in many respects. The forecasters have very different opinions of what will happen this year. Year. Some see shrinking market, some see modest growth driven literally by just ipc. You've been able to take market share and grow irrespective of what the broader conditions are, but they haven't been great. How have you done that and do you expect that to continue to be the.

Lisa Su (17:37)

Case? Well, the PC market is a very good market for us. You know, we grew a ton in the PC market in 2025 and that really came from the strength of our product portfolio. We bet early in ipc. So it was a clear area where we believe that the technology would generate demand. We also went through a refresh cycle with Windows 11. And as we go into 2026, I think we'll, we'll want to see how a few quarters play out. I think the general demand for computing is certainly there. There are some supply chain constraints that, you know, we're working through and we want to watch going forward. But, you know, our case is one where we are still underrepresented in parts of the market. You know, we are very, very strong in gaming. We're very strong in consumer. I think we're underrepresented in enterprise laptops. And we view this as a.

Ed Ludlow (18:30)

Growth area for US is a PC.

Lisa Su (18:32)

Change that PCs absolutely help in terms of, you know, just the upgrade cycle coming in. We're excited about some of our work with AI development systems as well. We, we announced a new AI development system last night that we think will be also very.

Ed Ludlow (18:50)

Attractive. Those constraints you were talking about in the PC context are specifically DRAM or it's broader than.

Lisa Su (18:57)

That. It's more around the memory side. So when you think about, you know, memory overall, I think we have so much demand coming from, let's call it AI data center computer, that we want to see how it impacts sort of the rest of the memory market out.

Ed Ludlow (19:11)

There. One of the other areas that you discuss with Greg Brockman on stage from OpenAI was sort of the net or broad economic impact of AI, not just the companies. I think you were talking more about global economy. Again, very difficult. How does one measure progress in whether AI has or has not had a direct positive economic impact around the world in any given.

Lisa Su (19:39)

Year? You know, it's true, it's hard to convolve all of the things that are happening, but I think from a sense of, you know, what we see in the business, and, you know, many people want to see direct return on investment for a particular set of investments. What I would say is that, that we know that AI is making a difference in the productivity of companies. We know that. I can see that within AMD in terms of as we deploy AI, you know, we're able to get products to market faster. We're able to significantly improve some of our business processes. So, you know, as we go forward over the next several years, I think you're going to see that much broader in enterprises. Every CEO that I talk to is talking about AI. It is front and center in terms of how to build a better company, how to build a better portfolio. And so, you know, I think what, you know, Greg was talking about is when you aggregate all of that, I has to impact the world at a GDP level. And we'll see that over the next few.

Ed Ludlow (20:43)

Years. You're watching Bloomberg Television. You're listening to Bloomberg Radio. This is Bloomberg Tech, and we're live in Las Vegas. We're speaking to AMD CEO CEO Lisa Su. You are an investor in Generative Bionics. It's also a technology partner and they have unveiled a humanoid robot here in Las Vegas. CES in fact, if the magic of television can happen and we cut to the wide, you see it in the.

Lisa Su (21:06)

Background.

Ed Ludlow (21:07)

Right. You know, this is the first tangible sign I feel we've, we've seen from AMD on how you intend to play in physical.

Lisa Su (21:16)

AI. Yeah.

Ed Ludlow (21:17)

Yes. Explain your strategy. It is the next big market.

Lisa Su (21:21)

Right? Yes. And I wouldn't say it's the first time but it's probably one of the areas where we don't highlight as much because there's so much focus on data center and cloud and the opportunities there are, you know very much in front of us. But when we look at fiscal AI, you know, starting from all of the work we've done in FPGAs and embedded real time capability, we have been in this space for a long time. You know we already power a lot of robotic applications, you know, out there. But I think as we go into the humanoid capability and you know we're excited about our partnership with you know, Bionics and the work with on June1 I think that takes us to another level in terms of capability and intelligence and what we're trying to do.

Ed Ludlow (22:07)

So is the business model to be all things the brain inside of the humanoid robot. On the inference side the underlying software being trade on a trained on AMD accelerators just I don't what's the go to market I guess is what I'm.

Lisa Su (22:19)

Asking. You should expect that our partnerships extend all through all of those levels. So we have the components that can power the humanoid robots, you know, sort of real time local capability which is very, very important. And then we also have the technology behind that in terms of, you know, how to train and inference on these, on these.

Ed Ludlow (22:41)

Humanoids. When last we met in person it was in Washington D.C. and the President had just outlined a broad strategy for America and I and it really centered around infrastructure deregulation, allowing those building the infrastructure to move faster. That was kind of in the second half of last year. In the months that have followed, have you seen any signs that it was worked and anything that you could point to that says yeah, people are able to build faster maybe to, to address some of the compute deficits we.

Lisa Su (23:15)

Discussed? Well, I can say for sure, you know the President's action plan, you know when we met, I think this was back in July when it came out, I was very optimistic about having a really forward leaning strategy from you know, sort of the whole view of what does it take for the US to lead in AI And I think we've made a ton of progress along the way and, you know, I had Michael Kratzio joined us last night on stage as well to talk about the Genesis mission, which is, you know, another, you know, sort of public private partnership approach to really advance science in the United States. And when you look at, you know, all of these things, you know, building faster, ensuring that we have, you know, the right export controls so that we are able to have the US.

Ed Ludlow (24:03)

Stack adopted across, have the right export.

Lisa Su (24:07)

Controls. Currently, we are certainly working very closely with the, the various parties in the US Government to ensure that we have the right balance there. And we also have, you know, this notion of how do we invest more here and ensure that in the United States that we are, you know, running as fast as possible to bring AI capacity online to help us in science and sort of the broader economic.

Ed Ludlow (24:34)

Benefits. Lisa, what what happens in 2026? What happens in the world of AI and what do you think will define this year in terms of the progress that your industry hopes to.

Lisa Su (24:46)

Make? Well, I started our keynote last night with the senses that, you know, you ain't seen nothing yet. That's really how I feel. I mean, we're sitting here in January and it's just amazing how much progress is made, you know, every week and every month. When we see how these models are developing, when we see how the use cases are developing, and then when we see the tangible results on businesses and outcomes, I believe that, you know, we saw a good amount of that come to fruition in 2025. We're going to see much more of that in 2026. So that everyone should understand that, you know, AI is not just, you know, hype out there. It's not just, you know, sort of things that people are talking about in the investment community. It's things that people are using every day real time and feeling like, hey, my life is better because I have this technology. And I think we're going to see that in.

Ed Ludlow (25:40)

2026. Lisa Sumd, CEO, AMD, with it's in the world's first two nanometer chips going into Helios, its first rack scale system solution. Carrie, back to you on set in Las.

Caroline Hyde / Bloomberg Tech Host (25:52)

Vegas. What an extraordinary conversation. Ed Ludlow, as always with Lisa. Sue of amd, of course, took to the stage last night alongside Greg Brockman of Open Air. And we just got checking on the shares because there were significant statements coming from Lisa throughout that interview with that we are off by 3.3% even as she continues to articulate how much computer is going to need to increase, increase 100 times in the next four to five years. Talking about the early innings that we're at in terms of unlocking AI and really talking up the MY455 pushing at the bleeding edge of capability. Also talking about the demand they have in AI for China in particular. Chinese demand is high. They're working with the government as it stands for finding solutions to be able to ship to China. Also talk about how they're underrepresented in enterprise laptops as well. Well by 3.3% though because seeing JP Morgan saying look like in video, AMD's outlook for compute demand is very bullish. And they're hearing about the My500 series coming on course of 2027 launch but not much new according to Morgan Stanley in terms of brand new information. Nvidia is up 4. 10 of a percent is maybe we've got a little bit more detail on the Rubin unveil and the fact that six chips have already come back on their next innovations, the next architecture for their compute. And we're seeing that they're already back. They're likely to be shipping in the course of 2026. But also talking up the future of self driving vehicles within video, a new platform to rival maybe even a Tesla. You know, Musk says I'm not losing sleep over that. But also hearing about the future robotics coming from Nvidia as well and demand for H2 hundreds coming from China. So, so much to digest on these particular stocks. So much still to learn here in Las Vegas. And we're going to be seeing sitting down of course with the CEO of Nvidia, that is Jensen Huang and Siemens CEO Roland Bush right here from Las Vegas, from ces. Coming up we are going to be talking though right alongside not only these leaders who are speaking with Ed Ludlow in the next few hours. In the next few minutes you're going to be hearing from the lucid interim CEO Mark Winterhoff. We're going to discussing the future of global EVs, the industry, the company's new Robotaxi partnership with Uber, with Nuro. How are they intertwining with Nvidia? How are they thinking about the future of self driving platform there as well? So much to get to in terms of supply chain as well. Stick. Here we are from the Consumer Electronics show in Las.

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Caroline Hyde / Bloomberg Tech Host (29:46)

Done. Welcome back to a very special edition of Bloomberg Tech live from Las Vegas in ces. Quick check on these markets as we stand because we had some big announcements over here at the Consumer Electronics Show. Key among them has been from India and from AMD now. Nvidia up a quarter of a percent at the moment. We hear about the future of Rubin. We hear about how it's coming on track. Already manufacturing partners are bringing back six sets of chips for the next stage of architecture. They're talking up new self driving platform platform. They think about robotics. Nvidia catching a bit only about a quarter of a percentage point. AMD down 3.8% even as we hear Lisa sue talking about the 100x compute need over the next 4 to 5 years and how they're going to be satisfying it with their next generation of chips. But not enough new for the market to get its head around it would feel. Nasdaq 100 up 410 of a percent. Let's move on to some big movers though because amid these announcements come the ramifications, the ripple effects on other key companies companies Johnson controls checkout we're off by 8% but this is a cooling and server equipment company in many ways. That's looking at the ways in which you cool down Nvidia's chips. Well maybe you won't need air to do that in the future. Maybe they will to cool them with water cooling and that sent some shivers down some suppliers spines it would seem we're off by 8.5%. Some in the market saying there's a bit of overreaction. So says Barclays. Tesla off by 4%. Is this the concern around a self driving platform being built by Nvidia? Well, you know, Musk posted on yesterday that it's not losing any sleep over it, but for now there's a little bit of a reason to be selling Tesla after its rally yesterday. SanDisk up 24%. And this is as we hear actually the still unbelievable need for memory and memory storage. Standisk once again managing to feel the ripple effects of Jensen Huang's work words. He said that on stage yesterday. And SanDisk rallies higher along with other memory companies such as Micron. But let's talk about other announcements being made here at ces and among them is from Lucid, because Lucid Neuro and Uber, they're bringing their robo taxi ambitions to life, unveiling a new autonomous vehicle right here at cs. Mark Winterhoff, Lucid interim CEO, joins us now. I'm very pleased to say. Why is your robotaxi going to be.

Mark Winterhoff (32:03)

Different? Well, I guess it's the integration of, you know, our leading EV technology, the luxury experience that the Lucid Gravity provides with the Neuro driver, you know, in bringing this to market very, very, very fast. Because I mean from when we all came together, the three of us, to when we plan to roll it out by the end of the year in a, in a paid service, actually it's less than 18 months and if you do that in that short period of time, that's actually a very unique thing by itself. But the product itself, itself, we are now unveiled, the production intent design is much more integrated, less, you know, a lot of different things on the edges of the vehicle, more integrated. And so it's going to be a very, very good experience for the.

Caroline Hyde / Bloomberg Tech Host (32:48)

Customer. Will it always take that form, the relationship of Nuro, Uber and yourself? Because we've just had Jensen involved unveiling his own self driving platform. Would that be integrated? Would you be an OEM that uses that, that more directly for the.

Mark Winterhoff (33:02)

Consumer? In fact, we announced a couple of months ago in a partnership with Nvidia on exactly that topic. So we are also using Nvidia Drive for our Gravity but for our B2C customers. So the same thing that was basically announced yesterday with Mercedes, we will also have by the end of this year in our Lucid Gravity. And when we come with our midsize platform, also in the end of this year, we'll have this from the start in that. But we don't stop there. We will actually. Actually next step is L3 where you actually have mind off on the highway. And then that will is planned for 2028. And then L4 we're planning together as Nvidia by 2029 for our B2C customers. So it's different, it's a different path than on Robotaxis. But we will also continue to evolve our robotaxi.

Caroline Hyde / Bloomberg Tech Host (33:54)

Ambitions. Will the regulation be there by 2029? Is that what you're banking.

Mark Winterhoff (33:58)

On? But that's what we are banking on. Yeah, absolutely.

Caroline Hyde / Bloomberg Tech Host (34:00)

Yeah. And more broadly, I. How do you see therefore the ecosystem evolving? What in 2029 will I.

Mark Winterhoff (34:07)

Own? You mean a.

Caroline Hyde / Bloomberg Tech Host (34:10)

Car? Robo taxis that are already on offering. If I choose between Waymo, I can use between Uber, I could get in your car in that respect, do I need to therefore really own my own.

Mark Winterhoff (34:19)

Lucid? You will. You will. I think, I don't think that we get to a point where there will be only robo taxis, because use cases, for instance, in inner city, you know, or short runs make sense with robo taxis. But you also want to be able to, you know, make it your. Your own vehicle. You don't want to go into something where somebody else was just sitting in. Or let's say if you have a family, you have more than one kid, you need, you know, a child seat. You want to lock this around and put it into a robo taxi and then take it out again. I mean, it's not feasible. It's not. It's not feasible anyway. There will always be.

Chase for Business Representative (34:54)

Both.

Mark Winterhoff (34:54)

Yeah. And what I think what is very important is on the, not only on the robotaxi side, but also on the retail customer side, you want to choose do I want to be driven or do I want to drive myself? In particular, our cars are known how great they drive. And actually that's a very important thing because I mean, EVs very often are, you know, kind of like stigmatized with, oh, that's the sustainable choice. And it's expensive and the road needs incentives. That is not true. Our cars, for instance, they drive fantastic. They, they actually have better performance than internal combustion engines. If you compare them in there in their real, the real comparative competitive set. So I think this will go away over time that you have that conversation between internal combustion engines and EVs. And EVs will will win in the.

Caroline Hyde / Bloomberg Tech Host (35:43)

End. Well, let's talk about where lucid is at this moment, because last year, it was a painful year in terms of stock.

Mark Winterhoff (35:50)

Performance.

Caroline Hyde / Bloomberg Tech Host (35:51)

Yes. You were having to cut, downgrade how many cars you were going to be able to produce. But then suddenly you ramped at the end of the year you've delivered significant production in Q4. How does that.

Mark Winterhoff (36:01)

Scale? Yeah, so I mean I have to say I'm very proud of what the team pulled off. I mean we had, and I was very vocal about this, we had issues with ramping up our gravity. Our first SUV supply chain, it was, it was supply chain, several supply chain issues. I mean whole 2025 was full of, you know, supply rises, let's put it that way. Not only for us, also for, for the whole industry, but then we still delivered in Q4, our eighth consecutive record quarter on deliveries as well. You know, that means the last two years, every single quarter we increased our deliveries and when it comes to production, we increased the production for the whole year by more than 100% and just in the, in the last quarter from Q3 to Q4 or even that by more than 100%. So we're really now ramping up and we solve the supply chain issues.

Caroline Hyde / Bloomberg Tech Host (36:53)

Completely. So 2026 will not be a supply chain headache.

Mark Winterhoff (36:55)

Issue. Not that I, what I know of. I mean last year if you would have asked me the same question in January, I would said the same thing. And then a couple of things.

Caroline Hyde / Bloomberg Tech Host (37:04)

Happened. Yeah, what happened was a trade war and tariffs. How have you changed your supply chain with Asia in.

Mark Winterhoff (37:11)

Particular? Yeah, well, I mean this is still a process because you cannot do this from one day to the other. If you have. We're building actually, by the way, all of our vehicles right now are built in the United States, but still we have components coming from other parts of the world and we are in process to localize this in order to not have to, to pay the tariffs. As an example of one very big element of our, of our bill of material is the batteries. And right now they come either from Korea or a bigger chunk actually from Japan. And we will localize this to the United States mid of this year. So that will actually help already quite a bit. But there's still more work to do. So we are, we're making those decisions as we go in order to bring more things stateside, in order to save.

Caroline Hyde / Bloomberg Tech Host (37:59)

Them. Where is lucid space in terms of global market.

Grainger Representative (38:02)

Share?

Caroline Hyde / Bloomberg Tech Host (38:03)

Share? We've just heard that BYD has become the number one EV producer in the world, eclipsing Tesla. Tesla still has significant chunk of share. We've seen show me grow in China as well. Where do you.

Mark Winterhoff (38:13)

Fit? Well here's the thing when these days when people talk about EVs they mix everybody up meaning BYD, Tesla and show me or anything else. And us, we are a luxury manufacturer right now we're not playing the same price point as right now for we don't have yet. We will but we don't have yet the, the $50,000 or even less offering we want to. Yes. That Tesla has. The Chinese are actually further down when you look in, in the Chinese market, I mean you cannot make money there. And we have by the way no plans to go to China because I don't think there's any, any way to make it to make a profit there for western OEM coming in. But we think in our luxury space what we offer luxury and I would also say premium because we will go down to, to the premium sector around about $50,000. That's what we will do. Yes, absolutely. But we have no plans to go down to I don't know, 30, $20,000. And that's where the bulk of the, the sales of the Chinese are right now. When you look at the level higher then it's not that.

Caroline Hyde / Bloomberg Tech Host (39:26)

Great. We love speaking with you here. Congr the announcement a future of Robo taxis and of consumer owned lucids. Mark Windhof, the interim CEO of that business. Coming up, we've got a gaming conversation for you. Razer looking to AI to enhance the gaming experience with the CEO Min Young Tan. That's next. This is Bloomberg.

Okta Representative (39:46)

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Caroline Hyde / Bloomberg Tech Host (40:17)

AI. Gaming company Razer. Well, it's unique. Unveiled a suite of new AI products aimed at enhancing the gaming experience. Please to say Min Yang Tan, Razor CEO joins us now to talk about how your roots are in gaming hardware. We know you for the seats, for the headphones, for the mouse, but you want to be an AI ecosystem. How, how do you frame this to your.

Min Yang Tan (40:45)

Users? Well first up, you know for us at Razer we've been building the ecosystem in the gaming space. Well from a hardware perspective, many people are familiar with us for the hardware. But over and above from a software Perspective. We've got over 150 million users on our platform. We've got about 70,000 developers just developing our tools over and above. We have also built out one of the largest payment networks for gaming. So that's been the ecosystem we've got. But over the years we've been building AI for ourselves because we believe that AI gaming is going to be completely disrupting changing things in the gaming space. So, you know, we've been looking at everything from AI gaming tools for developers, we've been looking at things for gamers, and we've got a whole bunch of super exciting lineup for.

Caroline Hyde / Bloomberg Tech Host (41:29)

Everyone. Okay, so let's talk about the lineup. I think about in particular some of the hardware, the headphones that in many ways are going to rival smart glasses. Talk us through these headphones and how they work and why they're AI.

Min Yang Tan (41:39)

Enabled. Sure, you're talking about Project Motoko. So we've unveiled that at ces. First up, we think smart glasses are great, but headphones, it's already a universal form factor factor. We're not looking to bring a new form factor to the gamers, the users. And we're one of the largest producers of gaming headphones in the world at Razer. So what we. Well, I think the entire installed base today for headphones in the world is about 1.5 billion headphones. And we're talking about perhaps every year there's about 400 million new headphones being shipped at any point of time. The refresh rate is really great. And what we've done is that we've taken a common universal form factor and we've added a AI smarts to it. So it's got dual. Project Motoko has got dual 4K.

Mark Winterhoff (42:24)

Cameras to provide vision across.

Min Yang Tan (42:27)

Cooking. Absolutely. Well, it provides vision to the assistant. We've got far field mics to get audio. So in short, what we've got is a AI wearable, which is universal. It's going to be easy to just provide the smarts across to it. It works with all the models out there, it works with grog, chat, GPT, so on and so forth. And essentially we've now got AI scale marks for every single gamer and every single person out.

Caroline Hyde / Bloomberg Tech Host (42:51)

There. So you're thinking that this will make a leap from not just gamers, but others who just want to use it as a tool in the.

Min Yang Tan (42:58)

House. Well, if you look at how gaming as a whole pretty much leads a lot of innovation out there. If you are talking about social networks, all that came from gaming first. Even AI in the GPUs. It started just with.

Caroline Hyde / Bloomberg Tech Host (43:11)

Gaming.

Min Yang Tan (43:12)

Yeah. So the way that we see it is that a vast amount of innovation comes from gaming and essentially we'll see the gamers adopt it first and then the rest of the.

Caroline Hyde / Bloomberg Tech Host (43:21)

World. Let's talk about $600 million you're spending. Where is that going to be deployed? Is R and D, is it talent, is it.

Min Yang Tan (43:27)

Compute? Pretty much all of the above in terms of R and D. We've been hiring AI scientists, we've been working on our internal.

Caroline Hyde / Bloomberg Tech Host (43:34)

Tools. That's.

Min Yang Tan (43:35)

Expensive. It's expensive, but multimodal I think in terms of that and we believe that where is going, we're going to see a vertical companies come up and for us we are hyper focused in terms of AI gaming where we see a massive opportunity for ourselves. It's the entire industry from gaming being able to use AI tools, develop new games. Gamers will be able to use hardware, software and services to get a more immersive and engaging.

Caroline Hyde / Bloomberg Tech Host (44:05)

Experience. But some are uncomfortable. Some are worried about AI slop, some are worried about their own gaming experience not being as well high end as it had usually been. How do you counteract some of that slight growing backlash to the use of AI in gaming.

Min Yang Tan (44:22)

Development? So I'm a gamer, I'm not wild about AI slop either. But what we are talking about at Razer is providing the tools across the developers to develop even better games. Games. So it's not about generative AI, it's about, for example, QA companion. We're coming up with QA companion to allow game developers to shorten the time cycles to do quality assurance for a game. Over and above, we're looking at other ways in which we can reduce the cost for game developers so that they can spend more time in terms of creativity, in terms of being able to build even better games. So for us, AI is about augmenting the experience experience rather than replacing.

Caroline Hyde / Bloomberg Tech Host (45:00)

It. But you have said that you think one or two mega games will be AI created in the.

Min Yang Tan (45:05)

Future. Well, I think all of the games in the future will have some level of AI tools to assist it. Whether it's in terms of designing better workflows, whether it's in terms of doing better qa. In short, I would say that AI has the opportunity to really provide even better, more immersive games, even more competitive games in a.

Caroline Hyde / Bloomberg Tech Host (45:26)

Few. Jeff, you have flown from.

Min Yang Tan (45:27)

Singapore.

Caroline Hyde / Bloomberg Tech Host (45:28)

Yes. You're an interesting company that's got presence in California, but also in Asia. How does the supply chain look right now for you amid what was a pretty turbulent.

Min Yang Tan (45:36)

2025. It was an exciting time, I must say. So we are dual headquartered in the US and in Singapore. I think in terms of supply chain, we spent a lot of time, I think because we ship globally, a third of all businesses in the U.S. a third in Europe, a third in Asia. We are truly global company. But we've been able to kind of work through our supply chain in terms of getting components done, in terms of shipments. And we are still looking at every.

Caroline Hyde / Bloomberg Tech Host (45:59)

Day. It's been wonderful having you.

Min Yang Tan (46:01)

Here. Thank.

Caroline Hyde / Bloomberg Tech Host (46:02)

You. Thank you for talking us through the announcements. Some of the new gear and the supply chain that goes with that. Min Young Tan, of course, the CEO of Razer. Coming up, we're going to be breaking down more of the news coming out of the Consumer Electronics show right here in Vegas. Stick with us. This is Bloomberg.

Okta Representative (46:16)

Tech. These days it seems like AI agents are just about everywhere you turn, every field and every function. But without identity, you can't trust they'll serve your business instead of jeopardizing it. Fortunately, Okta helps you get identity right by securing your AI agents identities, giving you a single layer of control, a single standard of trust. So whether an AI agent supports a single user or your entire enterprise, with Okta you'll turn risk into opportunity. Secure every agent, secure any agent. Okta secures.

Caroline Hyde / Bloomberg Tech Host (46:47)

AI. Very special edition of Bloomberg Tech live from Las Vegas. We are checking on an Nvidia that is up 7, 10 of a percent, actually managing to rally a little bit more on the day as we hear that Nvidia is saying that the US government is working hard on China license approvals. Of course we're trying to understand when they will get the approvals for H200 to really get done and start shipping to China if China wants them. But Jensen Huang last night saying there is strong demand, demand in China for his H200 and more broadly there's strong demand for his Blackwell and he's already managing to get back the six prototypes, already got six chips from the Vera architecture from the manufacturing partners and will ship them in the course of 2026 as well. So really some moon music. That sounded very optimistic. He's also talking about the future of self driving a platform being unveiled and also robotics. So let's talk more about what we're going to hear unveiled at ces. We're in full swing, maybe not behind me, as you can see the participants still waiting to come into this particular center convention center in Las Vegas. But we are all about the announcements Already the power, the impact of AI. Bloomberg's consumer tech editor is with us, Dana Wollman. And I'm so pleased to have you here because trying to discern what the most impactful announcements are is tough. What about the robot side of things? What's catching your.

Dana Wollman (48:08)

Attention? So there are so many robots here that see us. The organizers of CS have set aside a whole dedicated space just, just for robots this time around. And there are some that we really feel that we need to see in person when the show floor opens today. We've read, for instance, about LG's laundry folding robot, which was announced a couple of days ago. But a lot of these things, you really have to see them in action to fully appreciate them, or as the case may be in some cases not appreciate them. Say, actually this is really overhyped and maybe the demo is too tightly controlled. So that's what we're going to be looking for today. Now that the media days have settled down and now that the show floor is opening, we can actually see some things kind of up.

Caroline Hyde / Bloomberg Tech Host (48:44)

Close. Yeah, because we just had the razor CEO on and you've been up close with some of those headphones and maybe not always in practice, they work quite as well as they would like to in the wild. What about what hasn't worked in the wild, many would say is where wearables, some of them have flopped, some of them have been bought by others. Are we going to get more.

Chase for Business Representative (49:03)

Flake? So.

Dana Wollman (49:04)

Many. And what has really struck me at this show is that there are so many form factors that are not smart glasses. Almost as if all of these manufacturers decided that smart glasses, even though it's an emerging category, are already passe, they're already.

Caroline Hyde / Bloomberg Tech Host (49:16)

Pedestrian. Necessarily owns.

Dana Wollman (49:17)

That. Yes, we need to do something else for the sake of doing something else. So you're going to see a lot of the same ideas built in, microphones and cameras that can do a lot of the same things as, I don't want to say traditional smart glass glasses, but met as smart glasses, but packed into other form factors that are not smart glasses. I mean, for instance, without revealing anything I'm not supposed to on live tv, you may see some jewelry at the show that does a lot of the same things and uses the same core technology, but it's just not, I.

Caroline Hyde / Bloomberg Tech Host (49:46)

Mean everyone, in many ways, an aura ring is enabled. And Samsung has an AI ring.

Dana Wollman (49:51)

Too. Yes, just not with no camera capabilities in the ring. Or to your point, the headphones that Razer just announced, they look like regular over the hear over the ear headphones. And they are, they function as headphones, but they have dual microphones and cameras inside and can do things like offer real time translation, which is something a lot of the new smart glasses can.

Caroline Hyde / Bloomberg Tech Host (50:10)

Do. Also, the multi mold, multimodal versions of AI and in wearables is where we're going to start seeing these things progress and.

Dana Wollman (50:17)

Move. Yes. It's just that if last year CES was the year of smart glasses, this is the year of sort of tbd, something else in terms of form factor.

Lisa Su (50:24)

Yes.

Caroline Hyde / Bloomberg Tech Host (50:25)

Jewelry. And what would you say sentiment's like here this year? Because we just heard from two CEOs saying 2025, you just couldn't make it up. As to what a surprise it was when it came to tariff turbulence. What do we think the makers here are.

Dana Wollman (50:38)

Feeling? Oh, the. The device.

Lisa Su (50:41)

Makers.

Dana Wollman (50:41)

Yeah. You know, there's been some discussion, at least among the laptop makers, years of memory shortages and the price of ram. Some are trying not to discuss it, but they will say, oh, by the way, this is the price of our new, our new devices. And then I think otherwise there's a real effort to make consumers comfortable with. I think what you're going to see around the floor are either robots or, and not all humanoids, but different kinds of robots and in some cases like razors, desktop AI avatar, different implementations that are either cute or anthropomorphic. We saw the other night a robotic AI dog, cute puppy that got a lot of attention. So it does seem like the companies are very intentionally trying to make people comfortable with AI. In this case, using.

Caroline Hyde / Bloomberg Tech Host (51:27)

Cuteness. Cute. I'll let her loose on the floor. Now that does it for this special edition of Bloomberg Tech. In an hour, an exclusive conversation with Jensen Wang. Stick for it. This is Bloomberg.

Okta Representative (51:40)

Tech. These days, it seems like AI agents are just about everywhere. You turn every field and every function. But without identity, you can't trust they'll serve your business instead of jeopardizing it. Fortunately, Okta helps you get identity right by securing your AI agents identities, giving you a single layer of control, a single standard of trust. So whether an AI agent supports a single user or your entire enterprise, with Okta you'll turn risk into opportunity. Secure every agent. Secure any agent. Okta secures.

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