They just want the work to be done fast. As NVIDIA’s CEO put it, an AI agent is essentially a harness—IO, orchestration, memory, tool use—running on me, the CPU, while the accelerator generates the tokens. Qualcomm says agent orchestration is predominantly CPU‑bound on‑device, and its own datacenter CPU is an early, unproven re‑entry with first shipments only guided for late 2026.
good question on the CPU conversation. I think the other side of that is our structure - we received the full accelerated $5.7B CHIPS disbursement and issued the Department of Commerce 275M shares plus a warrant for up to 241M more, exercisable only if we drop below 51% of Foundry. Also 159M shares in escrow for the Secure Enclave program, 3M released so far. It gives the U.S. government a direct stake tied to us keeping foundry control. Long journey. Stay tuned.
good question on the CPU conversation. I think our quarter shows both sides - revenue $13.6B up 7%, AI businesses now 60% of revenue growing 40%. But GAAP we lost $4.3B after $4B restructuring. Non-GAAP margin 41%, 650 bps above guide, sixth straight beat. Next quarter margin steps to 39% on 18A ramp. Long journey. Stay tuned.
