Good morning. AMD’s Lisa Su and Enrique Lores of HP met greater than a dozen years in the past, earlier than both was CEO of their respective firms. After I had a chance to speak to them collectively this previous weekend through the F1 United States Grand Prix in Austin, I requested what qualities they first noticed in one another that stood out and cemented their partnership. Lores pointed to Su’s readability of imaginative and prescient whereas Su advised me that she appreciated Lores’s willingness to take a daring guess on a then-struggling semiconductor firm with a ho-hum product line that was shedding floor to rivals like Intel and Nvidia.
“We had used AMD just for the low finish of our shopper enterprise and we collectively noticed a chance to make use of their expertise in additional premium merchandise for business prospects,” mentioned Lores, who notes that he grew to become satisfied after seeing what was within the pipeline. “We each needed to persuade our CEOs that this made sense and develop the economics to indicate that it made sense.”
As CEOs, they went on to remodel their firms and double down on their collaboration, with AMD now supplying the high-performance chips on the coronary heart of HP’s AI-driven PCs, laptops, and workstations. Beneath Su, AMD has change into a powerhouse within the AI revolution and a case examine in reinvention. Lores, in the meantime, has been remodeling HP from a {hardware} enterprise to what he calls an “expertise options firm” that brings AI capabilities from the cloud to the system.
The problem for HP today is getting prospects and software program firms to purchase into the worth proposition at a time when numerous enterprise {dollars} proceed to stream into investing in massive language fashions. Whereas Lores has revived HP’s fortunes since changing into CEO in 2019 and continues to develop PC gross sales, issues about tariffs and weak point within the printing enterprise have minimize 15% from the inventory value this 12 months. AMD inventory has nearly doubled.
However that doesn’t change the energy of a partnership that each say is constructed on mutual belief, in addition to bottom-line outcomes, as they co-develop new applied sciences and a brand new AI structure for the office. Mentioned Lores: “When you may have a pal, you belief your pal, and if you find yourself doing new issues, it’s essential to have that stage of confidence. Once you undergo issues, which additionally occurs, it’s additionally good to attempt to have belief within the different facet.”
Contact CEO Each day through Diane Brady at diane.brady@fortune.com
Prime information
Trump urged Zelensky to give up to Russia
The president urged the Ukrainian president to surrender the Donbas to Putin or be destroyed. “Trump appeared to have adopted a lot of Putin’s speaking factors verbatim, even after they contradicted his personal latest statements about Russia’s weaknesses,” the FT stories.
Gaza ceasefire damaged by either side
Hamas fired anti-tank missiles at Israeli positions and Israel responded with air strikes. “We knew this was brewing. And the longer these guys are allowed to assault one another, the extra they are going to assault one another,” a White Home official advised Axios.
Trump softens on China
Dow futures rose on Sunday after President Donald Trump softened his tone on the commerce conflict between the U.S. and China throughout an interview with Fox Information on Sunday. “I’m not trying to destroy China,” Trump mentioned.
China GDP grows 4.8% in Q3
That’s down from 5.2% in Q2 and is thought to be comparatively weak for China.
Should-read: The FT’s historical past of China’s uncommon earth trade
If you wish to perceive why China feels no must again down within the face of Trump’s tariff threats and the way China ended up in command of the world’s provide of uncommon earths, start right here.
Research exhibits how rapidly ‘AI psychosis’ can take maintain
For some customers, AI is a useful assistant; for others, a companion. However for a number of unfortunate folks, chatbots powered by the expertise have change into a gaslighting, delusional menace. Steven Adler printed an evaluation displaying that ChatGPT repeatedly and falsely bolstered one man’s delusions and psychological misery.
S&P International report finds extra loss than anticipated at firms
A brand new report from S&P International of 9,000 firms discovered that they’ll lose not less than $1.2 trillion extra this 12 months than they anticipated earlier than the 12 months started. The elevated loss is attributed to tariffs and different components together with vitality costs and rising capital expenditure, in keeping with the agency.
How the CEO of Macy’s desires to show the retailer round
Macy’s CEO Tony Spring is attempting to convey the retailer again to life after years of poor efficiency by returning the main focus to customer support and visually interesting layouts. “It’s not rocket science,” Spring advised Fortune, “it’s again to the requirements of retail.”
The Louvre was robbed
The museum is closed whereas police examine. The robbers struck in broad daylight whereas the museum was open and focused a particular variety of vintage jewels. France is agog.
The markets
S&P 500 futures have been up 0.34% this morning. The index closed up 0.53% in its final session. STOXX Europe 600 was up 0.54% in early buying and selling. The U.Okay.’s FTSE 100 was up 0.36% in early buying and selling. Japan’s Nikkei 225 was up 3.37%. China’s CSI 300 was up 0.53%. The South Korea KOSPI was up 1.76%. India’s Nifty 50 was up 0.47% earlier than the top of the session. Bitcoin was as much as $111.1K.
Across the watercooler
Jensen Huang says Nvidia went from 95% market share in China to 0% — ‘I can’t think about any policymaker pondering that that’s a good suggestion’ by Jason Ma
CEO coach to the Fortune 500: One of the best leaders have developed a shocking expertise—they know how one can be ‘actively’ lazy by Invoice Hoogterp
Even the writer of ‘Trumponomics’ admits ‘tariffs are taxes—and taxes are unhealthy’ by Eva Roytburg
Mercedes F1 group CEO Toto Wolff’s expertise with two Gen Z drivers made him understand the office stereotypes are ‘a bit unfair’ by Sasha Rogelberg
CEO Each day is compiled and edited by Joey Abrams and Jim Edwards.
