Q&A: AMD execs explain CES GPU snub, future strategy, and more

Why didn’t AMD talk about their upcoming GPUs in their CES 2025 keynote? Or their new Z-series processors for handheld PCs? What is the Ryzen AI Max? And when can I actually buy a Ryzen 9000X3D chip?

AMD executives only had 45 minutes for their CES 2025 keynote. Fortunately, they also tacked on an additional half-hour or so to field burning questions from a small handful of chip journalists, who crowded around David McAfee, AMD’s corporate vice president and general manager of its Client Channel Business, and Frank Azor, the chief architect of gaming solutions and gaming marketing at AMD.

Fire away, we were told — and we did.

Below, we’ve included a transcript of the conversation, edited for clarity where necessary. Though I don’t identify each reporter by name, they included Paul Alcorn of Tom’s Hardware, Ryan Shrout of Signal65, Marco Chiappetta of Hot Hardware, and myself.

Editor’s Note: The opening of the conversation included “prepared remarks” by the AMD executives, basically explaining that they only had 45 minutes for their keynote and that the company passed over remarks on their RX 9070 graphics cards and RDNA 4 architecture to give a fuller, more comprehensive explanation at a later date.

David McAfee: From a timeline standpoint, it’ll be a little bit later this quarter that we actually begin to roll out RDNA 4 graphics cards. But you know, our focus as we get into this generation is to deliver a really, really compelling value to the end user, with great price-performance.

Lean into all aspects of design efficiency, which is about making it simpler, more cost-effective, more power-effective, to really optimize from silicon all the way through board design so that we can hit the key features that those gamers who are playing enthusiast-class games care about at a price point that they’re going to be really excited to see.

And so I think that we believed, as we built this press conference with the strict time limits, spending five minutes on RDNA 4 was not going to be enough to do it justice. We’ll move it to a separate set of content that comes a little bit later this quarter. Frank, anything to add?

AMD

Frank Azor: We covered everything… There were certain things that we adopted in the press release and we didn’t put into the press conference, like the Z2 [handheld gaming] processor, for example. We tried to include RDNA 4, we really did.

It was going to feed the narrative that we didn’t care about graphics, because we had 45 minutes and we had to rush through. You have to introduce the architecture, all the deltas, all the ray tracing performance, or machine learning performance. Do the positioning of the cards, do FSR [FidelityFX Super Resolution]. Give you a whole overview around FSR, the ISP partners, what’s different about FSR. Show you how FSR works normally. We’d spend 45 minutes to an hour doing that… We started with all this content, and then you’re like, getting it down to the five-minute budget that we had for this.

Journalist: Are you sure it wasn’t because Intel showed half their hand, the Nvidia stuff leaked. You didn’t see some of the competitive offerings and think, maybe it’s not time to talk about this yet?

Azor: All of the above. It isn’t any one thing… It’s not like, oh, we’re just gonna delay because of this. David’s not kidding when he says all the content was in the deck, and part of it is we weren’t doing it justice.

And then you’re like, okay, we’re not gonna do it justice, so the audience is gonna be disappointed. Okay, then you have your competitors making their announcements. Then you have other factors weighing in on this. Okay, so you start looking at all these things, and you put it together, and you say, is it smart or not to include this? It wasn’t smart.

When I say, when we say, later in [the first quarter] we’re going to give you more details, just keep in mind what we just said. We had all the content ready to go. It’s not going to be like March 31.

AMD

McAfee: I’ll also say that I think we also wanted to make sure that our partners at least had enough air cover from us to talk about their products. I think for our board partners, you know this, this is an incredibly important show for them to be able to talk about what they’re doing next gen. And I think they’re all super excited about what’s coming as well.

Journalist: Are you guys cool with partner leaks? Everyone’s going to know the specs just by seeing the cards.

McAfee: I think you’ll see static demos of cards. Everybody loves a good wall of boards. And I think you’ll see that from all of our partners in their spaces. I don’t think you’ll see any live demos, or you better not see any demos from partners — I’ll put it that way. But, you know, power connectors, things like that, TDPs, I think you’ll see a lot of that stuff out there.

Azor: By the way, if you do see demos out there, just know that they don’t have the production [software] driver.

McAfee: All these performance leaks, well, it is accurate for the way the driver performs on the card right now. It is nowhere near where the card will actually perform once we release the full performance driver.

Journalist: Did that also factor into your decision?

Azor: It’s not a readiness issue.

McAfee: We have in house the full performance driver. We intentionally chose to enable partners with a driver which exercises all of the, let’s call it, thermal-mechanical aspects of the card, without really running that risk of leaking performance on critical aspects of the of the product. That’s pretty standard practice.

Journalist: In the past, you’ve emphasized dedicated graphics units on those cards. Now it seems like you’re adopting AI, which is the approach that your competitors are taking. Can you explain that? Why now and what’s shifted in your thinking?

McAfee: I’ll start with that. I think both ray tracing and AI are great examples of that shift. Look a couple of years ago, when the first RTX cards came into the market, there were one or two ray tracing titles and the performance was pretty crummy.

It was more of a technology showcase than it was a real gaming experience. And I think you’ve seen ray tracing change dramatically over the past couple of years. It really has become a much more integral part of so many games today.

Nvidia

I think that ML super resolution is ramping up that same curve pretty quickly as well, where, you know, it’s not for everybody. The purists want every pixel, you know, just brute-force rendered and are not going to be excited about that technology. But it’s also what a lot of gamers are adopting, and I think that especially for those higher resolution gamers that are looking for the combination of high-res gameplay and high frame rates, there’s almost no other way to get there. And I think a lot of gamers are accepting that.

Journalist: And that’s the same approach you’re taking with FSR4?

McAfee: Maybe to talk a little bit about FSR specifically — FSR4 is ML super resolution, and it is built for… as we bring it to market, it will be built for our RDNA 4 architecture. RDNA 4 will bring a pretty massive increase in terms of ML [operations] and compute capability in the shader unit itself. So it is kind of fine-tuned for RDNA 4.

Bringing that to other product families is certainly a possibility for the future, but not something we’re talking about right now, nor committing to a timeline of when that will be available. But as we launch it, it’ll be RDNA 4-focused.

Journalist: My question is on the continuing shortages of 9800X3D parts. This is becoming crazy, and nobody can find these processors pretty much anywhere.

McAfee: What I can say is that we have been ramping our manufacturing capacity — the monthly, quarterly output of X3D parts. That’s 7000X3D as well as 9000X3D. It’s crazy how much we have increased over what we were planning. I will say that the demand that we have seen from 9800X3D and 7800X3D has been unprecedented.

Adam Patrick Murray / Foundry

Azor: Put it this way, we knew we built a great part. We didn’t know the competitor had built such a horrible one. So the demand has been a little bit higher than we had originally forecasted.

McAfee: I think the thing you have to keep in mind is, unlike, you know, building a traditional semiconductor product, it’s basically, you know, 12 to 13 weeks from when you start a wafer to when you get a product out the other end of the machine, and the stacking process adds time to that.

And so it’s longer than a quarter to really ramp, you know, the output of those products, and so we’re working very, very hard to catch up with demand. I think as we go through the first half of this year, you’ll see us continue to increase output of X3D. You know there’s no secret, X3D has become a far more important part of our CPU portfolio than I think we, any of us, would have predicted a year ago.

And I think that trend will continue into the future, and we are ramping capacity to ensure we catch up with that demand as long as consumers want those X3D parts.

Journalist: Is there a gating issue? The silicon or the cache?

McAfee: It is really none of the above. It’s the problem of, you’ve got that lead time to build individually, the CCD wafer, the cache wafer, and then the stacking process that follows adds considerable amount of time as well. It’s a non-trivial timeline when you’re talking about building X3D products.

Journalist: Does the expansion into a broader number of desktop X3D products help or the mobile Fire Range X3D products help? Does it exacerbate the problem or spread the demand around?

McAfee: If I look historically at our 7000X3D products, the 7800X3D was dramatically the highest volume part in that product stack. I think that those 12- and 16-core parts, there are certain types of customers that buy those.

But, you know, I think the reality is, if you are truly a creator, you probably still buy the 9950X. The X3D doesn’t add much at all for creator workloads like, I think, in the data we’ve seen, and you guys will see it as well when you get the chance to review it — it’s like a percent of incremental performance by having the X3D there.