Good morning. AMD’s Lisa Su and HP’s Enrique Lores met more than a dozen years ago, before they were CEOs of their respective companies. When I had the opportunity to speak with them together last weekend at the F1 United States Grand Prix in Austin, I asked them what qualities they first noticed in each other that cemented their partnership. Lores highlighted Su’s clarity of vision while Su told me she appreciated Lores’ willingness to take a bold bet on a then-struggling semiconductor company with a ho-hum product line that was losing ground to competitors like Intel and Nvidia.
“We had used AMD only for the low end of our consumer business and together we saw an opportunity to use their technology in more high-end products aimed at commercial customers,” said Lores, who notes that he was sold after seeing what was happening. “We both had to convince our CEOs that it made sense and develop the economics to show that it made sense. »
As CEOs, they transformed their company and strengthened their collaboration, with AMD now providing the high-performance chips at the heart of HP’s AI-driven PCs, laptops and workstations. Under Su, AMD has become a powerhouse in the AI revolution and a case study in reinvention. Lores, meanwhile, has transformed HP from a hardware company to what he calls an “experience solutions company” that brings AI capabilities from the cloud to the device.
The challenge for HP these days is getting customers and software companies to buy into the value proposition at a time when a lot of corporate money continues to be invested in big language models. While Lores has revived HP’s fortunes since becoming CEO in 2019 and continues to grow PC sales, concerns about tariffs and weakness in the printing sector have driven the stock price down 15% this year. AMD stock almost doubled.
But that doesn’t change the strength of a partnership that both parties say is built on mutual trust as well as the bottom line, as they co-develop new technologies and AI architecture for the workplace. Lores said, “When you have a friend, you trust your friend, and when you do new things, it’s important to have that level of trust. When you go through problems, which happens too, it’s also good to try to have trust in the other side.”
Contact the CEO daily via Diane Brady at diane.brady@fortune.com
Top news
Trump urged Zelensky to surrender to Russia
The president urged the Ukrainian president to cede Donbass to Putin or face destruction. “Trump appears to have repeated many of Putin’s speech points verbatim, even when they contradicted his own recent statements about Russia’s weaknesses. » FT reports.
Ceasefire in Gaza broken by both camps
Hamas fired anti-tank missiles at Israeli positions and Israel responded with airstrikes. “We knew this was coming. And the more these guys are allowed to attack each other, the more they’re going to attack each other,” a White House official said. told Axios.
Trump softens towards China
Dow Jones Futures pink Sunday after President Donald Trump softened his tone on the U.S.-China trade war during a Sunday interview with Fox News. “I’m not looking to destroy China,” Trump said.
Chinese GDP increases 4.8% in third quarter
This is down from 5.2% in the second trimester and is considered to be relatively weak for China.
Must read: The FT’s story on China’s rare earth industry
If you want to understand why China doesn’t feel the need to back down from Trump’s tariff threats and how it came to control the world’s supply of rare earths, start by here.
Study shows how quickly ‘AI psychosis’ can set in
For some users, AI is a useful assistant; for others, a companion. But for the unlucky few, chatbots powered by this technology have become an illusory and illusory threat. Steven Adler published an analysis showing that ChatGPT repeatedly and falsely reinforced a man’s delusions and psychological distress.
S&P Global Report Reveals Bigger Than Expected Corporate Losses
A new report from S&P Global on 9,000 companies find that they will lose at least $1.2 trillion more this year than they expected before the year began. This increased loss is attributed to tariffs and other factors, including energy prices and increased capital expenditures, according to the company.
How Macy’s CEO wants to turn around the retailer
Macy’s CEO Tony Spring is trying to revive the retailer after years of poor performance by emphasizing customer service and visually appealing layouts. “It’s not rocket science,” Spring said Fortune“It’s a return to retail standards.”
The Louvre was broken into
The museum is closed during the police investigation. The thieves struck in broad daylight, while the museum was open, and targeted a number of antique jewels. France is in turmoil.
The markets
S&P 500 Futures Contracts were up 0.34% this morning. The index closed up 0.53% in its last session. STOXX Europe 600 was up 0.54% at the start of the session. The UK’s FTSE 100 was up 0.36% at the start of the session. Nikkei 225 in Japan was up 3.37%. The Chinese CSI 300 was up 0.53%. South Korea’s KOSPI was up 1.76%. India’s Nifty 50 was up 0.47% before the end of the session. Bitcoin amounted to $111.1 thousand.
Around the water fountain
Jensen Huang says Nvidia went from 95% market share in China to 0%: ‘I can’t imagine any policymaker thinks this is a good idea’ by Jason Ma
Fortune 500 CEO Coach: The best leaders have developed a surprising talent: They know how to be “actively” lazy by Bill Hoogterp
Even the author of “Trumponomics” admits that “tariffs are taxes – and taxes are bad.” by Eva Roytburg
Mercedes F1 team CEO Toto Wolff’s experience with two Gen Z drivers made him realize that workplace stereotypes are “a bit unfair”. by Sasha Rogelberg
CEO Daily is compiled and edited by Joey Abrams and Jim Edwards.
