AMD CEO Lisa Su on the Chipmaker's AI Forecast

22:58Lisa, how are you seeing that grow out and the ability to compete with the next range of chips? We are very bullish on our overall roadmap capability. I think the second half of the year has a number of customers really broadly adopting AMD.

23:17Caroline Hyde:Lisa, I have a question from our audience, if that's okay, a viewer of Bloomberg Tech. And as you know, loads of AMD employees, your peers, technology industry people want to hear what you have to say. I'm just going to read it to you. Can Lisa please explain, AMD is winning in gaming and consoles, but AI is where the margins are now. What's the plan to make AMD indispensable to the next open AI and not just cost effective alternative, I think, to NVIDIA is what they're saying? Well, Ed, the best way to say that is for those of you who know us as a company, we execute extremely well. Our roadmaps are strong.

23:55We're very excited about all of the progress that we've made. You know, MI300 was an excellent product. MI350 is, you know, a big increase above that. And then our next generation is also. And the key for us, if you look at our history, our history is doing what we say we're going to do, delivering to customers, delivering total cost of ownership. And with that, you know, being a great partner. And so from that standpoint, I think you can be very confident that we have a strong roadmap and we're going to execute on it well. And, you know, our largest customers want to have a dependable and, you know, good partner.

24:34It's been wonderful spending time with you, Lisa Su, AMD CEO. We thank you very much.

24:45Time now for Talking Tech. First up, SoftBank shares. They're actually higher on the news that OpenAI is set to sell shares at a$500 billion valuation inside of shares. It's a company, of course, it has a big investment in. But the news reversed an earlier fall in the Japanese company's stock after it reported net income that missed analyst expectations. Meanwhile, the US has charged two Chinese nationals with sending tens of millions of dollars' worth of advanced AI chips to China, violating export restrictions. Now, the defendants allegedly sent sensitive technology from NVIDIA, including H100 AI accelerators.

25:19Lawyers for the pair couldn't be immediately located for comment. And this mountain traversing robot dog is causing shares of Chinese robotics companies to climb. The mechanical dog is from startup Unitary. China has been showing off its robotics prowess in a lot this year, including with running and kickboxing humanoids. Ed, a favorite of yours.

25:41Caroline Hyde:Yeah. Coming up, Matt Brumberg, CEO of gaming creation platform Unity. If you want to talk about that company's earnings, we're going to talk more about the mobile gaming space in particular, what the dev community has been really focused on. This is Bloomberg Tech.

26:06Caroline Hyde:Welcome back to Bloomberg Tech. I'm taking a look at AMD, largely to just recap the conversation we just had with CEO Lisa Su. The stock came off session lows during the course of that conversation, talking about clear demand, particularly from hyperscalers in the AI accelerator market. They do think that they can shift some of that China-specific AI accelerator inventory carry that they had written down. That's one of the responses she gave to you. PC demand is very strong and they're taking market share was a very clear signal. We'll continue to track it. It's bouncing around. A lot going on.

26:37Caroline Hyde:Apple continues to push higher. $100 billion additional investment in the US, according to the White House later today. We expect to hear more. The stock's now up 5.5%. That's a big jump. Shopify is up 19.5%. It's now become Canada's biggest company by market cap. It is taking e-commerce market share and absolutely barnstorming print from that company. And then Supermicro's down 21%. Simple story. Told us that in fiscal 26, they would get$33 billion in sales. They previously told us 40 billion everyone's going well what's going on here you know it's just not as strong as they had previously told us we have more earnings yeah and we've got more big slumps actually this time let's check out snap shares plunging after reporting second quarter sales that fell short of wall street expectations said look the company blamed a technical issue with its ad buying tools that basically set price points too low the glitch has now been fixed but let's break down the numbers of the outlook with jasmine emberg we're pleased to welcome a the back VP and principal analyst at eMarketer.

27:37This is such a self-inflicted wound, and the market doesn't seem to be, well, forgiving them for it. Yeah, absolutely. I mean, it really was a dismal quarter for Snap. And even before it reported its earnings, I was saying that it wasn't looking great for the company, and that had less to do with the economic uncertainty and tariffs, which, of course, it had warned about at the end of Q1, and more to do with foundational structural issues within its ad platform and its ability to monetize. Now, I obviously could not have predicted that it would have an ad glitch in Q2 that would result in the deceleration and growth.

28:13But I think that really does point to these longer term, more deeper challenges that it has within its business model. I do think in a different context, investors might have been just a little bit more forgiving, though probably not much more forgiving because they tend to be with Snap. But, you know, Snap has been working very hard for quite some time on revamping its ad platform, focused really on direct response. And I think they're getting frustrated. They're getting impatient because the results, while sometimes there's progress, it's mostly been inconsistent. And then if you take the larger context of Meta and Reddit's blowout earnings for Q2, it makes it really hard for Snap to shift responsibility to macro conditions or headwinds and leaves very little room for mistakes.

29:02I mean, well said. Where they consistently deliver is daily active users, unless we forget there's almost half a billion of them. But what's interesting is they're trying to move away, perhaps on the more volatile ad side of it, to subscription. Is that working? Well, Snapchat Plus has been and continues to be a bright spot for Snap. And one of the things that that says to me is that while Snap still struggles to roll out features for advertisers that they like and need, they certainly know how to bring features to consumers that they like and that they're willing to pay for. I do think going forward, diversification of its revenue streams in general is just going to be so much more important for Snap, and Snapchat Plus continues to drive a lot of its revenue growth, especially considering the fact that while its monthly active user base showed really strong signs of progress in terms of getting toward that$1 billion user goal that it has, we saw a lot of weakness in North America, which is Snap's core market.

30:07and where it makes most of its money. And that also means then that Snap is going to be more reliant on international markets going forward to monetize via ads. And that's extremely challenging or more challenging because it's harder to make money there. And again, the weakness in North America points to structural problems.

30:28Caroline Hyde:Jasmine, just real quick, I appreciate what you said about the response investors have to Snap sometimes. I just always remember it either going up a lot or down a lot. but that speaks to like lack of consistency like meta showed us that all the stuff they've done around ai shores up the core bread and butter business is snap not experiencing something similar yeah i mean i think meta showed us that you can spend a lot of money on ai if your core business is doing well and it truly is i mean meta is a powerhouse it continues to deliver on efficiency and effectiveness for advertisers you know snap has been playing catch up to meta in many ways, including in AI.

31:08You know, it doesn't have the same scale and resources that Meta has to build this powerhouse AI-driven ad business, but it certainly needs to do more work there. One thing I will say for Snap, though, is, you know, we saw an increase in SMB advertising, small and medium-sized businesses, and I do think that that is, you know, a direct result of its investments in AI in its ad platform because these advertisers are generally drawn to places where it's easy to advertise. And that's, you know, one of the impacts that AI has on advertising on these platforms.

31:45Caroline Hyde:Jasmine Enberg from eMarketer, thank you so much for joining us on the program. Let's stick with earnings and get out to gaming. Shares of Unity Software actually now lower by almost 9%. Blink and you miss it kind of situation this morning, Caro. The stock had spiked after the company reported better than expected second quarter earnings. Something's changed. Let's talk it through with Unity CEO Matt Brunberg. Well, help me. There was a good response. You beat expectations. There's particular focus for you guys in the mobile gaming market. The stock is sort of reverse direction is down 8%, Matt.

32:20Caroline Hyde:Your read on that, please. Yeah, we're not stock investors. We're business builders. So my answer to that is a little bit of who knows. What we're really focused on is building a growing, enduring business. And I think that when we look back on the second quarter, 2025, the history is going to show that it was an inflection point for our turnaround. It was sort of the time when accelerated product development and delivering more for customers started to show up in a really meaningful way in our business. And I think that's basically where we are. I really appreciate having you on the show. I take a lot of interest in Unity because we recently had Roblox CEO Dave Buzuki on the show of their own earnings.

32:59Caroline Hyde:It's probably more analogous in the gaming space to put you nearer to a Roblox. Maybe you disagree. But mobile gaming right now is a huge focus. How is that a driver for your business and a priority for you? It's the biggest priority there is. We're effectively the operating system for the mobile gaming business globally. 70 % of the mobile games in the world are built on Unity. And 85 of the top 100 mobile game advertisers advertise with us. So what we've really seen in the last year or so of this turnaround is that when we make fundamental investments in delivering better product for that set of customers, for the mobile gaming business, that our business is lifting.

33:42And we've really seen that over the year. And we're actually really excited about investor reaction over the course of the year as well. I'm going to go back to perhaps the stock reaction and what our own Bloomberg Intelligence analysts have been saying, Matt. And forgive me, it's not always bathed in positivity because they say, look, there's a sequential decline of your create segment in the next quarter that suggests muted adoption of your Unity 6 offering. Just describe that. Is that something you're seeing? Are you seeing Gen.AI startups? I think that's just incorrect. Unity 6 is the fastest adoption of any version of Unity we've ever seen.

34:21It's the most stable. It's the most performant. So we've been really, really pleased by that. Again, you're drawing me into wondering about the stock. I would just tell you it's much more likely to be the 100-plus percent run up over the past year in anticipation of what are sharply better results. And again, it's a kind of inflection point in our business. I would guess that has more to do with those dynamics. Love that context, Matt. Give us the context of the ad space. And you're encroaching a bit more on app-loving space, for example. How do you compete? How are you seeing yourself take market share or indeed Applovin still being a really strong competitor?

34:58Yeah, we don't really think about market share in this business. The way this business works is performance-based mobile advertisers buy performance. And they buy against their ROAS, their return on investment targets. And they will buy infinitely across that efficient frontier. So as we deliver more value, customers will spend more money with us and our business will grow. And that's what's happening. This is a big competitive space with some of the largest, most competitive players in the world operating in it. And we're really excited about our ability to compete, and not just now, but in the future.

35:33Caroline Hyde:Matt, I'd love to end by talking just very quickly about developers and the creator community. One of the big issues in the end market, the App Store, Apple or Google, is revenue split. Just what you're doing to incentivize the creators, but also bring everyone with you if you're growing at that click. Yeah, I mean, we are the tools that those folks use to build their experiences and then operate those businesses for years and years in live service. So when we deliver better, more effective tools, for example, to your point, to help them monetize commerce in a native way, for example, and help them acquire users more efficiently, that business grows.

36:12So we're a partner in that growth with them. Matt Bromberg, CEO of Unity. It's great to have some time with you.

36:25Caroline Hyde:Bloomberg is reporting that OpenAI is in talks for a potential share sale for current and former employees that would put the company at a$500 billion valuation. That's the chart right there. The move would boost OpenAI's price tag, according to sources, which was previously at$300 billion. Bloomberg's Shireen Ghaffari broke the story and is with us now. The mechanism actually doesn't even really matter. It's an insider share sale that sets this valuation of$500 billion. But it feels like just yesterday that we broke the story on the last$300 billion valuation. Tell us about the jump. Tell us about what we're hearing from sources is going on.

37:07Yeah, I mean, it's a significant jump in valuation, more than two thirds of the last price tag. You know, the last round that we reported on finalized in March, led by SoftBank. Since then, we've seen strong user and revenue growth, as we've reported. But again, this price tag would put OpenAI in a new league as one of the most highly valued private companies out there if this sale were to go through. Extraordinary how it eclipses even the owner of TikTok over in China and well ahead of, in close second, is SpaceX here in the US. What's interesting is we're getting so many updates to the product itself as well, Shireen.

37:47We're seeing how they're getting an offering Chachapiti to federal offerings with just one dollar. They're trying to open source a little bit more. Does this just build up the idea that this is going to be the winner? I think it's still too early to say in the AGI race who, if anyone, will be the definitive winner. But I will say this is this has always been a rapidly moving field. And I think the past few months have been especially fast. We are seeing new releases from OpenAI this week. We have the open source model that just dropped. And it's widely expected that their more major model update GPT-5 is coming soon.

38:27On top of that, if you look to the left and right, we have Anthropic also released an update to its model. Also in talks to have a new round of funding that would more than double their past valuation from just earlier this year. So I think this is really a sign that the AI market continues to grow. And it does raise questions about are these valuations justified? And I think that depends on how bullish you are on the Gen AI market as a whole.

38:56Caroline Hyde:Shereen, reading your report, there's a lot of detail here. I mean, one important point is we understand why OpenAI is doing this right with the secondary. The timing is because of talent wars. And Sam Altman has this workforce that he has to keep happy. Right. So as we reported, one of the reasons why OpenAI wants to do this secondary share sale, why it makes sense, is that it gives employees an opportunity to essentially cash out. If you're working at Meta, which is aggressively, by the way, there's this fierce talent war going on right now, right? And Meta has poached several prominent OpenAI employees.

39:36If they want to retain these employees, you know, people want to be able to liquidate their shares. And this provides current and former employees a potential way to do that. Shireen Ghafari, thanks so much for the update on OpenAI. Now, let's get back to the public markets where Uber is already out with its earnings. but after the bell we get plenty more. Lyft, DoorDash, Airbnb. There is one woman who covers them all. Natalie Leung. You've got a busy day. Let's talk about Uber because it's actually trading lower. Is that more about how far the shares have run into this or the worry about sort of the spending or capex on autonomous here?

40:11It's a little bit of both. Definitely there's a lot of excitement going into the earnings today, which was mostly a beat. but there was a small miss in the core ride share business by Uber and that was really offset by the strong performance of the delivery unit. So there's a lot for us to look at in terms of what it means for consumer spending and investors were also excited to hear more about the autonomous strategy of the company.

40:37Caroline Hyde:It's a 24-hour period that's like the Super Bowl for Natalie Leung in the gig economy and app-based tech company space. You're super busy, as Caro said, But what always happens, you get Uber and then you get Lyft. And there's obviously some read across. What are the expectations for the smaller of the two? For Lyft, they're still expected to post double digit growth in the key metric of growth bookings. And for this quarter in particular, we want to look at the third quarter outlook because it's the first time they're including the FreeNow business, which they completed the acquisition last week.

41:11and that will add business from new European markets such as UK and Germany. So that is something of interest for me today. Talking of Europe and Germany and more broadly expansion there, DoorDash has been making a bit of M &A over in the UK. Its share has been on a tear this year, up 53%. Where do we expect numbers for that company to go? Yes, similarly, on the back of Uber's very strong delivery results, DoorDash is also expected to post nearly 20 % growth on that top line as well. Their delivery deal has not closed yet, so might not be seeing those results there yet, but pretty strong spending on the U.S.

41:51side is expected.

41:53Caroline Hyde:Let's complete the Grand Slam, the complete sweep, and do Airbnb. What are you looking for in that name? Yeah, it's, again, it's a first quarter where we'll see results from their newly relaunched experiences and Alucard services business, which Brian Chesky has said would add$1 billion in annualized revenue for the company. So we'll see the first results from there, as well as a broader sentiment on U.S. travel. One question I'd have is, how does Natalie Lung do all of those earnings at the same time? Bloomberg's Natalie Lung. Busy evening for you ahead. Thank you very much. The people who seem to get more done than everyone else.

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45:08Caroline Hyde:Okay, Apple shares are on the screen and we're pushing towards session highs, up almost 6 % now following the announcement that the White House says the iPhone maker will invest an additional $100 billion in the United States. Bloomberg's senior executive editor for tech, Tom Giles, is here. It's a big number in isolation, sort of, but it's also got to be taken in aggregate. Absolutely. Look, Apple spends a lot on these types of initiatives all the time. They have already been planning to spend hundreds of billions of dollars in the coming years. The Trump administration likes big, round, big honking numbers, right?

45:49And this is a way for them to say, we've scored a victory. We are bringing manufacturing back to the United States. On Apple's part, making these pledges, throwing these numbers out there. And again, these are plans. This is money that they do plan to spend. This is a good way for them to, as BI analysts have said so eloquently, soften, dampen Trump's ire because they still do have a lot of their supply chain outside of the United States. Trump administration wants to say big U.S. corporations are bringing manufacturing back to the United States. This is the question that we need to ask and we will be asking in the coming months and weeks.

46:28And that is how much of real production of the iPhone, how much of Apple's high-end products is actually going to come to the United States versus China versus India? That's the real question. Or is it stuff around the edges? And that's a question that we're going to be asking Apple and a lot of other people are going to be asking Apple in the coming weeks. Yeah, because, Tom, the$500 billion thus far that had already been announced, well, that was more about servers. That was actually about training. And that was, in some ways, we saw a little bit of the chunk of change. I think it was about 500 million being allocated to actually sort of rare earths as well.

47:07What are we actually anticipating as to how much, if any, can really be for the iPhone? Right. And some of this is also them committing to purchasing more from U.S. suppliers. Again, this is part of their supply chain. They need these parts. They will be spending this. But will this be creating lots of jobs? Will people be manufacturing, assembling these products in the U.S.? Time will tell. Again, these companies like to, they've already been planning to spend a lot of money, and they're putting lots of big round numbers around them. And again, it's an opportunity for the Trump administration to claim a victory.

47:43But if you're talking about server farms, if you're talking about buying from U.S. manufacturers, If you're talking about training facilities, there's a big delta between that and actually putting together, piecing together these high-end devices and moving that supply chain out of India and out of China. Look, it's in Apple's interest to diversify their supply chain. No one is doubting that. So much of it is reliant on China. And that really bit them and a lot of other people, you know where, during the pandemic. and they really need to kind of diversify away from that. President Trump doesn't particularly want him only diversifying into India.

48:26Bloomberg's Tom Giles, great to have you. Thank you for the analysis. That does it for this edition of Bloomberg Tech, and what a show.

48:32Caroline Hyde:Yeah, and jokes aside, like, it's a really heavy earnings period still. We move from the mega caps, but there's a lot of names giving numbers. We're learning a lot about the world of technology. Recap it on the podcast. You know where to find it. on the Bloomberg Terminal, as well as online on Apple, Spotify, and iHeart. From San Francisco and New York City, this is Bloomberg Tech.

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