Zac Smith

Summarize in three sentences what zone to win is all about.

Summarize in three sentences what zone to win is all about.

There we go.

There we go.

Well, yeah, I mean, that's what we say with startups. They're finding product market fit, right? Startups are finding fit. They don't even have anything working yet, which is an awesome muscle.

Well, yeah, I mean, that's what we say with startups. They're finding product market fit, right? Startups are finding fit. They don't even have anything working yet, which is an awesome muscle.

Incubation, transformation, productivity, and performance.

Incubation, transformation, productivity, and performance.

Yeah, exactly. Well, I mean, I think what I learned, I'd always respected Intel as a company, but what I learned working with them pretty closely was how hard of a task they had ahead of them, right? I mean, first off, we think of market leading for 10 or 15 years in something. They've been market leading for 40 years.

Yeah, exactly. Well, I mean, I think what I learned, I'd always respected Intel as a company, but what I learned working with them pretty closely was how hard of a task they had ahead of them, right? I mean, first off, we think of market leading for 10 or 15 years in something. They've been market leading for 40 years.

It's really, really hard when you're used to own a 90% of the market to change anything. And I think that that has to be You know, appreciated because I didn't appreciate how complicated cultural changes when it starts to go off track or when you forgot or couldn't figure out how to innovate the next thing because you were so busy making all the money. Right.

It's really, really hard when you're used to own a 90% of the market to change anything. And I think that that has to be You know, appreciated because I didn't appreciate how complicated cultural changes when it starts to go off track or when you forgot or couldn't figure out how to innovate the next thing because you were so busy making all the money. Right.

And like, you know, you know, winning all the market. Right. Because why would you do anything else the next 86 years? you know, great data center CPUs and desktop CPUs because it's working. And so that's what I kind of appreciated out of that. I would say that I was surprised. I did find that all the chip companies really struggled.

And like, you know, you know, winning all the market. Right. Because why would you do anything else the next 86 years? you know, great data center CPUs and desktop CPUs because it's working. And so that's what I kind of appreciated out of that. I would say that I was surprised. I did find that all the chip companies really struggled.

You know, it's kind of like blindingly obvious and at the same time, not in the realm of possibility that the chip companies all needed some sort of recurring or subscription revenue. They have huge, huge increasing investment cycles around CapEx, whether that's designing their technology or that's producing it with Intel and their fab.

You know, it's kind of like blindingly obvious and at the same time, not in the realm of possibility that the chip companies all needed some sort of recurring or subscription revenue. They have huge, huge increasing investment cycles around CapEx, whether that's designing their technology or that's producing it with Intel and their fab.

But they have these huge things where then they go and then they just sell the chip one time. And increasingly, you know, they're competing against, I believe, their biggest customers, hyperscale clouds, which are also making their own chips. But they have a nice, juicy recurring revenue model. So they get to make money on those chips every day or for years and years and years.

But they have these huge things where then they go and then they just sell the chip one time. And increasingly, you know, they're competing against, I believe, their biggest customers, hyperscale clouds, which are also making their own chips. But they have a nice, juicy recurring revenue model. So they get to make money on those chips every day or for years and years and years.

And I believe that that look to me – and I was very surprised. I was like, hey, y'all, we should work on that together. And – Every chip company, when we would talk to them, was kind of like, yeah, we should, but could you guys just buy the chips from us, please? And we're like, no, let's practice the other thing. Let's move to the Apple subscription model.

And I believe that that look to me – and I was very surprised. I was like, hey, y'all, we should work on that together. And – Every chip company, when we would talk to them, was kind of like, yeah, we should, but could you guys just buy the chips from us, please? And we're like, no, let's practice the other thing. Let's move to the Apple subscription model.