Bob joined Intel only in 2016, which makes him unusual. You're the first CEO of Intel to not be a company, lifer, essentially. And you've worked a lot of places. I'm just going to list them quickly eBay, General Atlantic, EDSTRW Webvan, my personal favorite of your of your former employers. And General Electric and I was sort of going, I think I was going in reverse chronological order right? That's right, that's right. And Bob was interim CEO of Intel for seven months, and so it was sort of like when **** Cheney was head of the search committee for the vice presidential nominee and Got the job, right? [ LAUGH ] Very good. Is that a question? No, [ LAUGH ] Just trying to get a rise out of you, but okay. So I wanna I want to start by giving everybody a sort of grounding and where where Intel is today we think of Intel as the company that makes the microprocessors that go in PCs. That's true but it's not the whole story. In fact, PCs are a smaller percentage of the overall revenue pie than they've ever been. So could you explain what Intel's business is today? Yeah. I mean to a certain extent, the makeup over the years was the CPU inside the PC and that was the massive growth driver. And several years ago we started to take the CPU and put it inside the server inside the data center. And then, from our vantage point, we saw a world where, and you've talked about it a lot during the course in the last couple of days, we saw a world where there's an incredible demand for data. And with that demand for data, there was more and more compute that was going into more and more things. So if you think about intel today, it's evolved from what we call a PC center company to a data center company. And it's not just a CPU inside a PC, but it's a CPU inside of everything. Inside a server, inside an automobile, inside a factory, inside a retail store, inside your home, so we build the CPU so that it essentially go inside more and more things, more and more computers. In an addition to that, over time we've had to evolve not just building a CPU, but as the world is about And the incredible demands for data calls for alternate architectures. So we have now. You know GPUs and FPGAs and software and more and more things going inside. More and more things so we've evolved from PC to a data centric company. Now for intels for much of intels history when you talk about architecture intel was the architecture for the PC industry, and as the company is trying to diversify it's trying to get into other segments are some of those efforts has gone better than others, well before your time spent a lot of, spent billions of dollars trying to get into Communications chips and that did not go well. Talk about the areas that are important for Intel's growth and how. And what the strategy is for being as As important in those segments, as Intel has been for so long in PCs. Yeah, yeah, I'll do it in two ways. One is what the technology goes into and what kind of technology, so what the technology goes into, I kind of touched on. Again, PC is roughly four or five years ago was 70 % of our business selling a CPU to a PC today that's 50. So what's happened in this data center transformation is again the CPUs just going into the side lots more things and we call it the data center business but also internet of things where More and more factories require high performance compute. More and more automobiles require high performance compute. More and more retail shops require high performance compute. More and more hospitals require high performance compute. So over time as more and more things demand more and more compute we tried to evolve the business to Particular applications that will be beneficiaries of the incredible amounts of data that's being created that needs to be analyzed, stored, retrieved, etc. So all your businesses are generating more and more data. For us, that means we got to make sure that we're evolving where we're putting our high performance compute to help you manage and analyze that data much more effectively. So that's a little bit about where we're taking the CPU. The what we're taking in at again, particularly as the workloads in a data center continue to evolve. The what we're taking inside these is not just the CPU But it's the GPU. That's graphical- Graphical processing unit- Which when I think of invidious being the company that I know that leads at that. Yeah. And we have we've always had a very strong integrated CPU with a graphics chip. But now we're developing a discrete GPU unit. FPGA is more customer oriented products for a data center environment we acquired through a company called El Tara, artificial intelligence chips that go inside everything that we do. But also there's a discrete artificial intelligence chip. So we have a much broader array of architectures that are required. In today's data centric world to do more and more processing, more and more analytics. In addition to that, as the advancement of processing power and compute has evolved and gotten better and better and better, you start to have an impediment called the pace of which memory Keeps pace with processing power. So if you want to get all the benefit out of the CPU or the GPU or the FPGA, you need to have be able to store and retrieve data faster and faster than you ever have before. So the things that go inside include memory. And then the things that make all those work together is software, so if you think about how weve evolved it is more architecture for hardware, more things like storage and more and more software that makes them all work together, more effectively for those end user cases that l defined. And can you other than that you gonna Make good investments, hire good people and try hard. Can you summarize why Intel will win in those things, those are areas where there are leaders. It's not necessarily Intel. And I know these are new and growing areas. But still, what will be Intel's special sauce in these newer areas? Well, I mean, first, the CPU is not going away. The resiliency and the innovation that we build inside of the CPU is still the predominant processor of workloads in all of these different environments. So The role of the CPU continues to be incredibly strong. In addition to that, what what a lot of our customers are looking for is not simply as their environments get more and more complicated. They're not just looking for the CPU or other pieces of hardware for their environment. They're increasingly looking for a platform who has the packaging technology to bring together the CPU, the GPU, the FPJs, the software. And we believe as we evolve that we have more and more technology packaging and processing capability than anybody else on the planet. So as we think about the world today, it was a relatively short period of time ago that we defined the company as having roughly 90 % share of CPUs inside the PC in the data center. In that world, prospects for growth are not that significant. In today's world in terms of the silicon and the platforms require, we look at our market as a $ 300 billion, Tim. Where we don't have 90 % share, we have roughly 30 % share. Yeah. So, the prospects and the opportunities to grow. When you have 30 % share of a much bigger market, a much more significant. And we think we're uniquely positioned to go after that much larger market. In 2017, Intel spent $ 15 billion to buy mobile AI which does technology for autonomous vehicles. Explain what that is and what. Intel's part of the market is. So I think it was almost a two year anniversary. We couldn't be more thrilled about mobility being a part of Intel and again at its when we think about those devices. Those things that require massive compute. We think about the industries automotive being the maybe the best example where the compute the horsepower required to enable the evolution of the automobile of the future that requires really significant high performance compute. The role of mobilize is really kind of threefold one and I caught part of the discussion on the stage earlier. One is, I think can defined iterative approach and I believe I should defined You know, a go for gold approach or L5 autonomous drive in. Ten is talking about assisted drive in. Right. What mobilize approach is, they are the leading player in providing product Inside of tens of millions of cars today of initially L1, L2, L2 +, L3 products. So its core business Is double the size of what it was when we bought it, it generates. What is that size, how big a business is it? It was roughly $ 700 million last year, and it was $ 500 million when we bought it. So if you project forward you can get to kind of the size of the business. And I'm sorry for interrupting you, marquee customers are? And every all the OEM >> All the big auto [ UNKNOWN ] Virtually every OEM and or the tier one provider that they rely on >> And these, to simplify it. These are semiconductor sensors that enable this either, assisted or just shy of completely autonomous driving. At its most simplistic level characterizes two things. Vision. Yeah. Cameras and then an A. I. algorithm wrapped around that camera to allow you to process all the information being digested, it allows you to drive safely. So that at its core is the L1 to L2 to L2 plus business that is fast growing, lots of customers, 26 design wins over the course of last year. And just, I'm sorry, please. In addition to that, I'm gonna get a little fired up cuz this is a pretty cool business. [ LAUGH ] In addition to that we're evolving not just putting the hardware inside the car but how do you then when you're when you're when you have hardware and tens of millions of cars you're ingesting it a lot of information a lot of data. And what we've been doing with a lot of our customers either we MS or. New customers outside of the automotive space is how do we leverage this data that's being ingested process to make it relevant for new and different applications. So that's the second wave of what mobile is trying to do. More service oriented, data rich applications of how we ingested it, use it in new and different ways. The third aspect is really and you know, Robo taxi as a vehicle to accelerate the rate of adoption of autonomous driving. So mobile AI is, you know, deploying technology inside automobiles where we have a very strong position today. It makes a lot of money we invest that money back in to the second service oriented opportunity. And third new methods of mobility down road. So mobile I itself makes a lot of money. Yes. So just to be clear, so even at a if you're approaching a billion dollar run rate it's a relatively relatively small part of Intel but you think first of all, it makes money second off very fast growing and could be a big part of Intel in the future. Absolutely, that's the intention. The big you know, a thing that Silicon Valley people talk about with regard to your leadership and Intel is that you're not a technologist. You're only the second non technologist to be CEO of Intel. You know what, how do you lead such a technology driven company not being a technologist, yourself? Well first, you gotta make sure they have a lot of brilliant technologists that you're surrounded by and I'm blessed with that Intel is very rich and deep technology capabilities, brilliant people. And my my role is, in some ways, strategy intense respect. for what the engineers are capable of and a huge desire to get them to dream through inquisition. And from that, I think, a little bit the power of this incredible technology- rich organization that I'm fortunate enough to lead with a desire to change the world is a pretty powerful combination. Your questions if you have them. Yep, I have one right in the front. It may take a while to get you a microphone. Just so just stand up and start talking, the microphones coming your way please identify yourself .>> Michael Miller brothers investments in PC Magazine. Over the last 50 years. Intel has been known for helping the economy by delivering roughly twice as many transistors for roughly the same price every two years. That seems to becoming harder and harder to do. How do you think that impacts the economy as a whole and your business going forward. And of course, Michael is referring to the popular notion that Moore's Law is dead or dying. I mean, in one sense, it gets harder and harder to do which means fewer and fewer people can do it and that we characterize as competitive modes. Secondly, we've over the last couple of years in terms of Moore's law or transistor density which in effect was defined as two x the density in two years and. A few a years ago we went from a process node, we went to, when it was getting harder, we went to 2. 4 scaling factor. And then this most recent technology, what we characterized as our 10 nanometer technology. We went for 2. 7 scaling so the reality is we're able to continue to scale the technology that provides the capabilities for you to leverage it to kind of grow your business in new and new and different ways. And when we went for 2. 7 higher scaling factor took us longer to do it. So our challenge is getting back to kind of a two point O factor. In our belief is there's lots of road left in Moore's Law. Lots of juice left. So we'll continue to innovate and drive process technology in the future. In addition to that, in addition to that their's more things we have to do. So it's not just about process capabilities. Packaging a different technologies becomes more important so you can put advanced Process technology and maybe last generation technology together on the same chip because the application may not require just current gen technology. The role of the different architectures that I've talked about before become increasingly important. And lastly, software becomes a much bigger role. So at the end of the day, customers don't really pay us for chips based on what transistor density they have. They pay us for chips on what performance it delivers. And the deliver of performance is evolving overtime. Bobby. Different architectures, more software in better packaging. Talking about new architecture Intel has been significantly laid in delivering this ten nanonmeter technology five years later approximately. Briefly why and secondly, as a new comer, you've addressed The culture of the company that you wanna keep some of the best of the old culture but you need to change it as well. Lots of leaders in the room experience that. Would you talk about that? Well first the challenges of being late on this latest node of Moore's Law was somewhat a function of What we've been able to do in the past, which, in essence, was define the odds on scaling the infrastructure. And with that, define the odds in the past, we set, what it says, a very complicated scaling factor. Moore's law 2. 0 This new node, this ten nanometer node we said, let's try 2. 7. At a time where it gets harder and harder, we set a more and more drastic goal. From that it just took us longer cuz you gotta then, the way you build the fab and process, you're putting more revolutionary nodes inside The fab, so. So can I interrupt you to the extent that you're late. You set the bar too high rather than anything else is what you're saying. We prioritize performance at a time when predictability was was really important. Yeah, I'm sorry to rush over. [ CROSSTALK ] Yeah. So the short story is we learn from it will get our 10 nanometer note out this year, and we'll. We said our 7 nanometer note to the gentlemen's earlier question that will we'll be out in 7 Adam in two years and it'll be a 2. 0 scaling so back to the historical Moore's Law. Moore's law curve it does relate a bit to a bit to culture. This company. Has an unbelievable culture that over the course of 50 years, has been able to reinvent itself by delivering incredible things and technology where the world is changing all the time. It built incrediblely strong market positions. You don't get to 90 % share with a lousy culture. It's a real strength of the company. But today our dreams are much bigger. We don't wanna have 90 % market share, cuz there's not that much room for growth. So if you redefine the role you can play in the industry, to have 30 % share You have to begin to dare to dream, you're not protecting what you've built, you're evolving your thinking, you're daring to dream. And when customers have more choice, by definition, 70 % of the market is owned by somebody else, you've got to be much more customer obsessed in everything you do. When customers have more choice, you have to be much more competitively aware and work together more as a team, one intel, when the competition is outside rather than the competition being for resources inside. And when you go from 90 to 30 % share, You have to be more fearless you have to take more risks to evolve in the technologies that you're doing. And then last, we say to pull the entire company together and our pace in our ambitions to play a much bigger role in the industry. More truth and transparency in the free flow of information. So it makes the scale of what we do much more nimble and faster. Last but not least, diversity, inclusion and everything we do. Having diverse thought and ideas in every room and every meeting enhances our thinking and the products that we build and how we go to market. Those five aspects are what we're doing to evolve a wonderful culture, because our ambitions and our dreams are much bigger than they've ever been. I appreciate that. I won't paraphrase back everything you said, but if you listen carefully, he did identify the aspects of the old culture that needed to change. We have time for one quick question and one quick answer. Please. Hi Bob, we're [ UNKNOWN ] review NVidia, [ UNKNOWN ] Intel, to buy [ UNKNOWN ]. And Intel and NVidia have been good unspoken partners in the CPU GPU relationship. Does this acquisition mean now that Intel will not be focusing heavily on GPU to compete with NVidia? And how does the future of GPU look for Intel? Well, first, I think the the players in the industry, given these incredible demands for they to see opportunity to take our technologies Invest in new technologies and capitalize on a much bigger opportunity. And in doing that, we think about organic investments and acquisitions to make us stronger. For us, acquisitions include Mobili, they include Alterra, they include Movidius, they include Nirvana. So we're always investing organically and inquisitively in technologies to enable us to play In a much bigger role in the success of our customers, we're not the only one that does that. So obviously in video with a relatively large acquisition, they see bigger opportunities to leverage their competencies. So that's just the nature of what we do and it means that we will, you know we will compete, we will be partner Where it makes sense and we'll also compete where we have competitive products. Bob, we're out of time but to rephrase his question in a yes or no fashion. Do you intend to compete directly against Nvidia in GPUs and graphics chips? Clearly out intention is to we have integrated GPUs today. And our intentions are to launch a discrete GPU in the next couple years. Bob Swan, thank you very much. Thank you. I appreciate it. [ BLANK_AUDIO ]

A Look Inside Intel with CEO Robert Swan

Tech

He’s been at the helm since January 2019.
