AMD CEO Lisa Su on the “Dead Sexy” AI Chips Race - On with Kara Swisher

Podcast Summary: AMD CEO Lisa Su on the “Dead Sexy” AI Chips Race - On with Kara Swisher

Episode Release Date: May 10, 2025
Podcast: Pivot by New York Magazine and Vox Media Podcast Network
Host: Kara Swisher
Guest: Lisa Su, CEO of Advanced Micro Devices (AMD)

1. Introduction and AMD's Ascendancy

Kara Swisher opens the episode by highlighting AMD's remarkable turnaround under Lisa Su's leadership. When Su took the helm in 2014, AMD was teetering on the brink of bankruptcy. By 2022, the company had not only stabilized but also surpassed Intel in market capitalization. Su's strategic decisions and straightforward communication style have earned her accolades, including being named Time's CEO of the Year in 2024.

Kara Swisher [03:24]: "In 2022, AMD passed your biggest rival, Intel, in market cap for the first time. Congrats on that."

Lisa Su [03:34]: "Thank you."

2. The AI Race and Hardware’s Crucial Role

Swisher emphasizes that while much attention in the AI space centers on generative models and software, the real tension lies within the semiconductor industry providing the necessary computational power. Su concurs, stressing the foundational role of chips in enabling AI advancements.

Kara Swisher [00:31]: "But the real power and a lot of the tension in the AI space is in the hardware, the semiconductor industry that is building all of that compute."

Lisa Su [05:00]: "Chips are really sort of the underpinnings of this entire tech community where AI is going."

3. Navigating Trade Wars and Tariffs

The discussion shifts to the geopolitical challenges affecting AMD, particularly the trade tensions initiated by the Trump administration. Su explains how fluctuating tariffs and export controls present significant obstacles.

Kara Swisher [07:30]: "Taiwan is facing a 32% tariff... How are you dealing with that?"

Lisa Su [08:31]: "We are not sitting in the corner crying. We are recognizing that semiconductors are now very high priority on national agendas."

4. Supply Chain Resiliency and U.S. Manufacturing

Su delves into AMD's efforts to bolster supply chain resiliency, especially in light of semiconductor manufacturing being predominantly based in Taiwan. She advocates for bringing more manufacturing back to the United States, acknowledging the complexity and long-term commitment required.

Lisa Su [09:41]: "Supply chain resiliency becomes really top of mind... We did a lot of work around the pandemic to give our supply chains more resiliency."

Kara Swisher [23:26]: "Talk about the impact of the CHIPS Act..."

Lisa Su [25:29]: "TSMC's yields and capability in Arizona are as good as the chips that they build in Taiwan. That's a clear existence proof."

5. Export Controls and National Security

Addressing export controls, Su highlights AMD's role in national security through its technology in supercomputers. She stresses the importance of balancing market access with national security interests.

Lisa Su [15:20]: "We want the US to continue to lead... How do I go faster, how do we get the technology out faster."

Kara Swisher [21:34]: "Export controls could result in charges up to $800 million... How do you deal with that?"

6. The CHIPS Act and U.S. Industrial Policy

Swisher probes into the CHIPS Act's influence on semiconductor manufacturing in the U.S. Su acknowledges its significance in fostering industrial policy and accelerating manufacturing investments domestically.

Kara Swisher [23:53]: "Can you give us some insight into those deals look like and what's changed in that regard?"

Lisa Su [24:17]: "The CHIPS Act was a good catalyst to start people really taking the bold steps to bring manufacturing back to the U.S."

7. Competition in AI Accelerators: Nvidia vs. AMD

The conversation turns to the competitive landscape of AI accelerators, with a focus on Nvidia’s dominance. Su outlines AMD's strategy to compete by expanding its GPU offerings and forging key partnerships.

Kara Swisher [26:38]: "There's been an AI arms race... How has the AI race changed your strategy?"

Lisa Su [34:17]: "We're going to see like a 35 times improvement in performance [with the new Mi355 GPUs]."

8. University Research and R&D Investments

Su underscores the importance of university research in driving innovation. She expresses concern over governmental caps on research funds and advocates for increased private sector involvement in supporting academic research.

Kara Swisher [37:26]: "How do you look at these governmental caps and other freezes to university research?"

Lisa Su [38:16]: "Private sector does have to do more, frankly. Public-private partnerships in general are a good thing."

9. Talent Acquisition and Immigration

The role of skilled immigration in sustaining the tech industry's growth is a key topic. Su emphasizes the necessity of attracting and retaining top global talent to maintain U.S. leadership in technology.

Kara Swisher [40:31]: "How do you get top talent back to the U.S.?"

Lisa Su [40:35]: "It was the place to come to go to school and the place to come to do bleeding edge technology. We want it to stay that way."

10. Tech CEOs and Political Engagement

Swisher explores the intersection of technology leadership and political responsibility. Su shares her perspective on the need for authentic engagement with governmental policies affecting the tech sector.

Kara Swisher [41:29]: "Do you have a role or responsibility to speak out?"

Lisa Su [43:56]: "As tech CEOs we do have a responsibility to speak out, but it has to be authentic."

11. Vision for AI's Future: Overhyped vs. Underappreciated

In discussing AI's trajectory, Su believes that the current focus on short-term predictions overshadows the long-term transformative potential of AI technologies. She emphasizes that we are only two years into a decade-long AI evolution.

Kara Swisher [49:09]: "What is overhyped and underappreciated in AI?"

Lisa Su [50:22]: "People are spending too much time trying to predict exactly what's gonna happen in the short term... We are two years into a 10-plus year cycle."

12. Concluding Thoughts: Tech for Good and AMD's Future

Su concludes by articulating AMD’s commitment to leveraging technology for societal betterment. She envisions AI as a tool to accelerate research and enhance human capabilities rather than replace jobs.

Lisa Su [48:17]: "I believe the products that we're building actually do make the world a better place."

Kara Swisher [51:34]: "What are you most nervous about?"

Lisa Su [51:56]: "We get too scared of the technology... One shouldn't be too afraid of it."

Key Takeaways

Hardware's Pivotal Role in AI: The semiconductor industry is fundamental to AI advancements, underpinning the computational needs of generative models and beyond.
Geopolitical Challenges: Trade wars, tariffs, and export controls present significant hurdles, necessitating strategic agility and long-term planning.
Supply Chain Resiliency: Strengthening supply chains and increasing domestic manufacturing are critical for mitigating global uncertainties.
Investment in Innovation: Continuous investment in R&D and embracing open ecosystems are essential for maintaining technological leadership.
Talent and Research Support: Attracting global talent and fostering university partnerships are vital for sustaining innovation pipelines.
Balanced Political Engagement: Authentic and informed engagement with policymakers can help shape favorable environments for tech growth.
Optimistic AI Vision: Emphasizing long-term growth and the positive societal impact of AI technologies over immediate speculative concerns.

Notable Quotes:

Lisa Su [05:30]: "AI has been around for a long, long time, but what was true about it is it was sort of so hard to use because not everyone had access to AI."
Lisa Su [15:43]: "We want the regs are done in a way that give us as much access to the market as is not a threat to national security."
Lisa Su [28:35]: "AI can really accelerate the rate and pace of research beyond what we're thinking about today."
Lisa Su [48:19]: "I'm super excited about what we have in front of us. And yes, AI is a big piece of that..."

This comprehensive conversation between Kara Swisher and Lisa Su provides deep insights into AMD's strategic maneuvers amidst the evolving landscape of AI and global trade dynamics. Su's forward-thinking approach underscores the critical interplay between technology, policy, and innovation.