Intel Corporation (INTC) Earnings Call Transcript & Summary

Everywhere around the world, companies governments and organizations of all sizes, continue to inspire us by how they solve their challenges, their ex, and in the process, do something wonderful. I'm Navin Shenoy, Executive Vice President of the Data Platforms Group at Intel. Together with my colleagues and Intel's CEO, Pat Gelsinger, we'll take you on a journey to discover the many ways people are using the power of data to solve problems, and how Intel is making that possible, with innovative technology in close collaborations with our customers and partners around the world. This is a pivotal moment in history. Never before have we faced so many global challenges that affect everyone on earth, and at the same time had so much opportunity. At Intel, we have a long history of applying our technology to solve difficult challenges, setting ambitious goals and transparently reporting on our progress. I'm proud of how our team responded in this difficult time. Showing resilience, innovating in real-time and demonstrating the tremendous value of our global manufacturing network to customers around the world. Almost 1 year ago, we launched the pandemic response technology initiative to solve a whole new set of exes caused by the global pandemic. We partnered on projects to support essential workers, hard hit businesses academia and students of all ages. For example, we work closely with GE Aviation to make air travel safer by approving and monitoring the air quality systems in airplanes. We engaged in a partnership with the University of California, San Francisco, and other health systems, so they can more safely and securely share imaging data and collaborate on AI-assisted COVID diagnoses and treatment. And we collaborated with the Berlin Institute of Health, using high-performance computing to study thousands of cells to better understand how the novel coronavirus works in order to inform the design of targeted treatment therapies. Today, I'm proud to announce that we're looking forward and building on what we've learned. Through the Intel RISE technology initiative, we are committing $20 million in additional funding, so we can expand our impact to create a more responsible, inclusive and sustainable world, enabled by technology and collective action. You'll hear more about this tomorrow. At Intel, our purpose is to create world-changing technology that enriches the lives of every person on earth. And we believe that together, we can unleash the power of data to make the world a better place. But how do we do that? Our collective challenges and opportunities are being shaped by 4 critical inflections. First, the proliferation of the hybrid cloud is delivering new levels of efficiency in scale. And the growth of the cloud is democratizing high-performance computing, opening up new frontiers of knowledge. Next, we are seeing artificial intelligence and machine learning, increasingly infused in every application from the edge to the network, to the cloud, to create dramatically better insights. Then there's the rapid adoption of 5G, which is fueling new use cases that demand lower latency and higher bandwidth, which is in turn driving computing at the edge, closer to where the data is created and consumed. The confluence of these trends is leading to the biggest and fastest build-out of computing in human history. To keep pace with this rapid digital transformation, Intel recognizes that infrastructure has to be built to be flexible across a broad set of workloads. Now this means that the data centers of the future will look very different from how they do today. They'll be more distributed in size and location, built on both public and private clouds, compute, storage and memory will be increasingly disaggregated leveraging pools of connected infrastructure. Security will be architected in at the chip level. Flexibility will extend across hardware, software, applications and services deployed as smaller units called micro services for the faster development time, and time to value. CPUs and XPUs will work closely together to solve increasingly complex problems across these distributed environments. And that is why, over the last several years, Intel has built an unmatched portfolio to deliver every component of intelligent silicon, our customers need, to move, store and process data from CPUs to FPGAs, to AI processors to GPUs to Ethernet to silicon photonics and to software. And all of this is backed by our recently announced IDM 2.0 strategy, which enables leadership products, leadership supply chain and leadership costs. This strategy uniquely positions us to respond to the needs of our customers. At the heart of our unmatched portfolio is our Xeon processor. It is the foundation for the cloud, for the network and for the edge. And it's designed with decades of collaborative innovation with our customers, building in security and acceleration for critical workloads such as AI. I'm very excited today to introduce you to our latest Xeon processor. This is the greatest processor we have ever built. And we know that great products come from great people. Hey, team.

Hey, Navin.

Hi, Navin.

Welcome.

Hey, Navin.

These are some of the leaders on our design team from the platform architecture, to the CPU architecture and design, to the advanced capabilities in areas such as security and crypto acceleration. I wanted to take this moment to acknowledge the incredible effort that you and the thousands of Intel engineers have contributed to this breakthrough product. It is truly a remarkable achievement, and it makes me very proud of what we can accomplish working together. So are you guys ready?

Absolutely.

Yes.

Yes. Definitely.

Go forward.

Right.

I'm absolutely thrilled to introduce the latest third-generation Intel Xeon Scalable processor.

That is awesome. Great.

See you all. Thanks, Steve. The third-generation Xeon has been designed from the ground up for the cloud, AI, 5G and the edge. It brings a nearly 50% performance improvement generation over generation, with capabilities and features to support the most in-demand workload requirements. It's the only data-center processor with built-in AI. It has Intel crypto acceleration to increase the performance of encryption-intensive workloads. It adds advanced security with software guard extensions to protect data and code in real time. Our third-generation family supports industry-leading 1- to 8-socket configurations. We have a broad range of SKUs, optimized to meet all customer requirements from the edge to the network to the cloud. Now one of the foundations to enable innovation is security. Recent trends in confidential computing enable the migration of regulated data to leverage the benefits of the cloud. This unlocks exciting new advancements in medicine and finance by making it possible to utilize aggregate data sets, while still maintaining privacy and security. Microsoft Azure has been a key partner in bringing confidential computing to the market across the variety of use cases. And now delivers a range of confidential solutions enabled by Intel software guard extensions. SGX has proven on our Xeon E processors, and is now available on Intel Xeon Scalable processors, providing trusted enclaves to accommodate huge workloads and data sets. I'd like to welcome Microsoft CTO, Mark Russinovich to tell us more about Azure confidential computing. Mark, welcome.

Well, thanks, Navin, and it's really exciting to be here.

Tell us what you've been doing.

Microsoft has been working on confidential computing for close to a decade now, and that includes our own research, bringing up services as well as partnering with Intel on bringing confidential computing hardware into our data centers. But what matters most about confidential computing are the scenarios that it unlocks. And we've been working with many customers on building confidential computing solutions on top of Azure. One of the key customers in this partnership that we've got and the journey towards confidential computing is RBC. And with that, I'd like to introduce Eddy Ortiz to tell you a little bit about RBC solution and the unique capabilities that confidential computing gives RBC.

Thanks, Mark. I'm really, really glad to be here with you today. At RBC, we aim to provide our customers with the most innovative services while maintaining the utmost privacy and confidentiality of the data. We wanted to create the privacy preserving multiple data-sharing platform that can provide collective machine learning or rules-based insights. One fantastic use case of this innovative technology is to enable RBC to provide customers who choose to obtain with personalized offers on products that's highly relevant to them. RBC has a data set that provides us with a broad horizontal view of our customers spend data across multiple retailers. Individual retailers have a second data set with vertical and detail purchases of customers in their stores. By combining these 2 data sets, using confidential computing, RBC can offer customers with highly personalized offers without ever exposing customer data. Confidential computing is a key enabler of this capability as customer data is protected in a secure and isolated run-time environment that is not accessible to their retail partners or even system administrators on any machine.

Thanks, Eddy. It's been really fun working with you as leader in pushing the envelope here with new scenarios like this that include multiparty computation, where the data of all parties has kept confidential on top of confidential computing hardware. But what we're really excited about is powering your scenario and introducing support for other scenarios with third-gen Intel Scalable Xeon processors with SGX that have 2,000x the encrypted memory as the current solutions that you're running on top of. What this is going to do is make your solutions run even better and introduce the ability to bring in a whole lot of new scenarios on top of confidential computing.

Mark, do you have any other plans you'd like to share with the audience?

So we consider confidential computing as extension of our general-purpose fleet. And on top of these new Intel processors, we're also going to be offering new general purpose as well as large memory virtual machine sizes that offer better price-to-performance ratios than any virtual machine we've ever had in our fleet. So you can sign up, and request access to limited previous for both the confidential as well as the general purpose virtual machine sizes in the very near future.

Thanks, Mark, and Eddy, and congratulations on the excellent progress and results. Here at Intel, we're excited that the third-generation Xeons will be deployed by all of the top cloud service providers around the world. For over a decade, we've partnered with Oracle to deliver solutions for a wide variety of workloads, from high-performance in the cloud, to serving needs for machine learning, simulation and modeling. I'd like to introduce Clay Magouyrk, Executive Vice President, Oracle Cloud Infrastructure. Hi, Clay. Could you tell us some more about your collaboration with Intel.

It's great to be here, Navin. The collaboration between Intel and Oracle has been fantastic. We've been working together for decades. And we're now working together to bring the power of the Intel third-generation Xeon Scalable processor to Oracle cloud infrastructure. We're doing that for our HPC instances, which really offer the highest performance and best peak performance you can get anywhere in the world. And we're also doing that for our general purpose workloads with our new flexible VMs.

And how has this helped to support your cloud offerings?

This has helped our cloud in a couple of important ways. The first is for HPC customers like Nissan that are doing things like crash simulations on our platform. The new Intel Xeon processors give a much higher performance that enables those workloads to be run in a much quicker way. The other way this has helped our platform is with our new flexible VM offering, first available now for Intel processors. What we're doing is we're enabling customers to separate out memory and core usage so they can create the right VMs they need for their workloads. All of this is available in a limited preview today. And then later, on April 28, this will be available for all customers. In addition to that, we're keeping the same pricing as our previous generation of Intel offering, but we're giving the significant performance improvements to all of our customers.

Thanks, Clay.

Thanks for having me, Navin. I really appreciate it.

The technology innovations with the latest third-gen Xeon also provide significant value to the telecommunications industry. In fact, Intel has worked hand-in-hand with communication service providers for the last decade. First, on the transition to NFV and now on the shift to cloud-native as we head into the era of 5G and edge. As networks transform, our latest third-generation Xeon delivers the right performance and flexibility for the most critical 5G and edge workloads. Now Verizon has been at the forefront of this 5G transformation. So I'm pleased to welcome Srini Kalapala, Verizon's Vice President of Technology Strategy and Network Cloud, to talk about their journey and our collaboration. Hi, Srini, you've been very active in 5G. Tell us what you've been doing.

Thanks, Navin. Verizon has been leading the 5G innovation and deployment from the beginning. We were the first to deploy 5G networks. We were the first to deploy mobile edge computing on top of the 5G networks, and we were the first to extend virtualization all the way from core of our networks to the forges of our network. And there'll be many more first that we will continue to drive as you look forward. We are building the 5G network the right way. We're building with the cloud native and virtualization principles to meet the demands of the cloud-native world around us and the most advanced use cases that are emerging around us.

How does virtualization play a key role in developing a fundamentally differentiated network?

Virtualization plays a very important role in the way we are building our 5G network. I mean, as I mentioned, we are building our 5G network in the right way, means that we are going to deliver advanced capabilities that our customers require. And what virtualization does that by virtualizing the core all the way to the edges of the RAN. We are able to move the network functions to any point in our network. And thus, meeting some of the critical requirements, such as ultra-level communication or the extreme low-latency communication or connecting massive amount of devices where we can scale the network to the demands of the users at any point in time. We wouldn't be able to do any of these without actually having the entire underlying network fully virtualized and fully scalable with the cloud-native principles.

And as you deliver on this vision, what do you need and expect from Intel and the ecosystem at large?

As we look to deliver the most advanced 5G network with virtualization, we rely on partners like you to drive the silicon, the cloud and the software forward like today's launch. We count on Intel and our ecosystem partners for innovation and nimbleness and speed to market to continue driving this technology forward and the industry towards 5G.

Well, thank you, Srini. And congratulations to you and the Verizon team on leading the industry in the shift to vRAN. We're excited to see what you're doing to transform the network and how you can leverage our Xeon processors, ethernet adapters, and flex RAN reference software at the platform level.

Thanks, Navin.

Thanks, Srini. There's no question we can do wonderful things when we work together. Through engagements with our partners, we've realized that delivering silicon isn't sufficient. Customers need solutions that are easy to deploy. For years, we have been investing in a range of solutions from market-ready solutions to Intel select solutions. We've delivered verified solutions from genomics analytics and simulation in HPC, to vSAN on VMware, to open cloud, to NFE for networking, to Microsoft SQL, SAP HANA and AI inferencing. There are over 500 ready-to-deploy partner solution offerings in market. So today is a special day, with the introduction of our third-generation Xeon Scalable processors and many other products in the portfolio. Congratulations to all our partners and customers around the world. Thank you for letting us help you solve complex challenges together. At Intel, we're committed to creating world-changing technology that enriches the lives of every person on earth. We believe that when you have performance and flexibility, you can solve for anything. And that's how wonderful gets done. We can't wait to see what you will do with the latest third-generation Intel Xeon Scalable processor. In a moment, we'll dig a little deeper. And you'll hear from Lisa Spelman, Corporate Vice President and General Manager of the Xeon and Memory Group. Thank you.

Everyone's trying to solve a different problem. Let's call it X. X could be anything. No doubt, your X is different than his X, and your X or their X That's a lot of Xs. But your X isn't yours to solve alone. It's ours too, and a problem shared is a problem halved. That's why we reimagine the performance for the third-gen Intel Xeon Scalable processor, which is not just fast, it's flexible, which means we can solve for scalability from edge to cloud while still solving for intelligence, security and efficiency. As we've made it easier than ever with solutions built on open standards. Together, we can solve for X. Whatever your X may be because performance should flex for every X still out there. To help our customers and people around the world solve for their X, we've created a platform that delivers true flexibility that brings artificial intelligence everywhere and is built to serve all workloads from the edge to the cloud, delivering more performance, more scale and more wonderful. The Intel Xeon platform is the foundation. It is the most pervasive platform on the market, delivering everything customers need to move data where it needs to be, quickly store and retreat it, and has an unmatched lineup of processors, accelerators and memory. From Xeon to XPUs to Optane-persistent memory and SSDs to Ethernet adapters, Intel delivers and enables the quality, compatibility and global ecosystem support to holistically solve our customers' most challenging problems. We're thrilled to launch our latest third-gen Intel Xeon Scalable processors and share all of its exciting new capabilities, including industry-leading artificial intelligence CPU performance that gets even smarter with new software optimization, and turnkey solutions that harness Xeon's deep learning boost, built-in AI acceleration. Intel crypto acceleration, which reduces the performance impact of pervasive encryption. Intel software guard extensions, an advanced hardware instruction that provides enclaves of protected memory to deliver enhanced security for sensitive data. And across our third-gen lineup, we deliver industry-leading, 1-, 2-, 4- and 8-socket configurations that allow customers to optimize their node sizes, achieving higher virtual machine density with fewer stranded resources for delivering more total cost of ownership savings. The Intel Xeon platform is the foundation for all your deployments. And at the center of the platform is the latest third-gen Intel Xeon Scalable processor. With up to 40 cores, increased I/O bandwidth, memory channels and memory capacity with Optane, Intel is delivering more advanced platform capability. Over the last 20 years, we've increased workload acceleration built in to Xeon to support an expanding variety of workloads. And we're delivering impressive performance increases across image classification, virtualization, data analytics, forward packet processing for networking and so much more. This represents a significant performance boost compared to the prior generation. Our customers can quickly leverage this performance with the foundation of software and ecosystem enablement for seamless VM migration from 5 prior generations of Xeon processors. Now let's go explore what the latest third-gen Intel Xeon can do. Let's start at the edge. By 2025, 75% of data will be generated outside of a core data center. That growth is coming as companies and governments see the massive opportunity to deliver personalized services in real time. For a factory manager, lower latency and reduced response times means factories can operate on real-time data that will alert them when tools need to be serviced and when product quality is not being met. This will help reduce downtime, improve safety and keep their factory running. But why does Xeon make sense at the edge? We're all realizing the benefits of moving compute closer to the data source to reduce those response times, lower latency to relieve demand on network bandwidth and to secure sensitive data, all requiring a more compute-intensive edge service delivery architecture. With the performance and flexibility to service AI, storage, virtualization and networking workloads, our latest third-gen processors support a wide variety of edge workloads, and enhance the performance of growing multi-breaded applications, which are used for image classification and object detection. For our factory manager, this translates into real-time image processing on every product throughout the assembly line to determine if it meets quality requirements and design specs. With the speed of modern manufacturing in many industries, that's been an unattainable goal until now. Xeon's benefits extend beyond the factory floor to nearly every sector of the economy. And through our years of work across the entire edge value chain, we've aligned to use cases and fixed common integration headaches across numerous industries, resulting in IoT and edge solutions that customers can take advantage of today. Storefronts, cell towers, factory floors, no matter which edge you claim, it will run best when powered by Intel. And while performing compute at the edge brings incredible value and opportunity for our customers, having the networking capabilities to quickly and efficiently move the data at the edge and back to the data center is critical. And that brings us to the power of 5G. Telecommunications service providers want to harness the potential of 5G to deliver new services across multiple locations in real time. In a 1-year period, mobile data traffic grew 50% driven primarily by an increase in video content, which accounts for 66% of all traffic. Services like mobile video streaming are data hungry. Admit it, more of you watched, created or participated in a TikTok this last year than you would have guessed at the beginning of 2020. In order to meet the demands, to support this growth, network operators need to significantly increase capacity and throughput without dramatically growing their capital footprint. The ability to achieve this is built upon a virtualization foundation, an area of Intel expertise. Our network-optimized Xeon end SKUs offer lower latency, higher throughput and deterministic performance with a variety of core counts and power envelopes. And on a range of broadly deployed network and 5G workloads, our customers will see up to an average of 62% more performance. Network operators are addressing the continued growth in mobile traffic through a technique called Multiple Input and Multiple Output, known as MIMO, which essentially enables the grouping of antennas. Through a combination of our latency on processors, Ethernet 800 series and eASIC accelerators. Our customers can double their 5G MIMO performance within a similar power envelope, effectively doubling capacity and throughput, leading to best-in-class performance. With Intel technology deployed across networks globally, our customers' software investments carry forward and can continue to be leveraged across network advancements. We are now sampling our Intel Xeon D processors as well, allowing our customers to scale for even greater flexibility in form factor-constrained environments. Watching the network transition to Xeon over the last decade has been one of the most exciting and gratifying transformations to be a part of, such a great example of the power of the right hardware portfolio, acceleration features and compelling software. Now let's move to the cloud. A typical data center services a variety of workloads across web tier, artificial intelligence, database management and many more. And with the seismic shift brought on by the pandemic, we've seen tremendous growth in video streaming and conferencing. For example, Netflix saw their average users viewing time jumped 61%, and leading video conferencing service providers grew over 600%. I don't need to confess how much I personally contributed to those stats. To deliver quality services across all of these workloads and adapt quickly to change in demand, customers need a flexible infrastructure that delivers consistent performance. Our latest third-gen Intel Xeon is built to deliver this. It's been validated and tested at cluster-level scale to ensure reliability. Customers can expect to see up to 50% more performance with leadership performance on latency-sensitive workloads, such as database, e-commerce and web server applications. The latest third-gen Xeon also offers seamless migration from on-prem to cloud creating a simpler path to trusted cloud environments. Through years of innovative collaborations with cloud service providers and ISVs, Intel has created the foundation for a true hybrid and multi-cloud environment, one that enables our customers to achieve greater economies of scale and flexibility whether on-prem or in the public cloud. For example, if a customer is using VMware on-premise, migrating their virtual machines between the public cloud and their on-prem environment is seamless. Unparalleled software compatibility allows multi-cloud portability with consistent application performance regardless of where the workload is run. In response to these customer requirements, Google's cloud and 2 mainstream instances will be available shortly with our third-gen processors to support customers' web servicing, database management, mobile gaming, dev test environments and edge workloads, along with hybrid and multi-cloud solutions. In fact, our latest third-gen Intel Xeon processors will be deployed by all of the top cloud service providers around the world. And customers can achieve greater performance by leveraging our portfolio of products. We've been working with Oracle to take advantage of Intel Optane-persistent memory with Intel Xeon technology and have engineered the fastest online transaction processing response times in the database market with Exadata X8M. Customers like World Bank can see 10x lower latency and 2.5x increase in online transaction processing performance. Oracle has made these benefits available in their Exadata cloud service and Exadata cloud customer offerings. The bottom line is seamless migrations and consistent flexible performance on a global scale are important to you, then there's only 1 choice for your cloud, Intel architecture. With growth in data, both in the cloud and at the edge, the race is on to encrypt and protect everything from your grocery list to your medical record. Encryption relies on cryptographic operations that are compute intensive, slowing down user response times and overall system performance, yet they are necessary because they often support critical business operations where security is paramount. For example, if there's an online retailer who is processing millions of customer transactions per day, it is imperative that your customer's personal data is protected as transactions are processed across multiple networks, which is why for more than a decade, Intel has led the industry in reducing the compute cost of cryptographic algorithms through innovative instructions like Intel's AES-NI, which we released in 2010. In some way, the third-gen processor builds upon our leadership position and Intel crypto acceleration delivers breakthrough performance across a host of important cryptographic algorithms, including public key cryptography, symmetric encryption and hashing. These investments support and accelerate not only my growing online shopping habits, but the transition to new post-quantum cryptography schemes that the industry will navigate in the coming decade and represent unprecedented performance enhancements in cryptography that are only available on Intel. But what about AI? Xeon is the only data center processor with built-in AI acceleration. From working in this space over the past few years, I've seen AI move from a niche workload to one that is becoming increasingly pervasive from personal assistance to content recommendations to leveraging AI for internal process automation. Over 80% of emerging technologies today have AI foundations. But AI isn't just for born-in-the-cloud companies. Around the world, the most established industries are leveraging it to drive value from food recommendations at Burger King to underground pipe inspection at DC Water, battling COVID at Mercy Health to assisting disaster relief at the Red Cross, among countless others. AI is being used everywhere. Intel began optimizing our hardware and software for AI back in 2016. And with the third-gen Intel Xeon Scalable processor family, we are delivering a 74% increase in inference performance gen over gen. Since most data scientists don't run a singular AI workload, we looked at a recent Cagle survey and chose a broad set of 20 popular machine and deep learning models including training and inference. We've benchmarked against our competitors. And the latest third-gen 40 core has up to 1.5x higher performance on a [ geo mine ] compared to our competitor's 64-core part. We did the same against the latest GPU in the market and outperformed it by 1.3x for a broad mix of AI workloads. That is the benefit of DL Boost. As important as the underlying hardware foundation is, we know that the software is of at least equal importance. And that translates to data practitioner productivity by using Intel optimized software, powered by 1 API to streamline end-to-end data science on third-gen Xeon, data practitioners can now build smarter models faster. Finally, in order to scale to even more businesses, we've also focused on simplicity. Now businesses can choose from a broad selection of more than 200 enterprise ISV solutions for data analytics and AI. The Xeon platform delivers the performance, productivity and simplicity that you need in order to enable AI everywhere. Now let's take a look at how it adapts for workloads with different characteristics from one of the largest cloud providers, Tencent. On the screen, you can see 2 workloads from Tencent's cloud environment. The first is an AI example from their rapidly growing cloud gaming market. As I launch this workload, you'll see how the built-in AI acceleration, utilizing Intel DL Boost delivers outstanding performance. Gamers increasingly want a customized experience. And here we are simulating a gamer, uploading a picture to generate an avatar of themselves that they can use while playing their favorite games. The avatar on the left is being generated by our second-gen Xeon processor with FP32. On the right, you can see the same avatar being created on the third-gen Xeon with intake. The combination of the third-gen Xeon and Intel DL Boost technology delivers the avatar 4.2x faster. So Tencent's customers don't miss out on any gaming action. Tencent has also used Intel crypto acceleration to help improve TCO for their content delivery networks. Here, you can see that the new crypto instructions help accelerate the RSA authentication of their CDN users. With the help of this instruction, you can see that Tencent is able to authenticate 5x the number of users compared to the second-gen Xeon platform. This allows Tencent to eliminate the cost of add-in crypto accelerators delivering a great TCO benefit for their adoption of the third-gen processors. These were just a couple of workload examples from Tencent that highlight the value of Xeon's built-in acceleration and our customer solutions capability. As the world shifted to a work- and learn-from-home environment, online transactions increased dramatically, creating a market for cyber criminals to hack credit card data, health care companies, and opened up new ways to target both individuals and organizations. Within the first half of 2020, there were over 36 billion data records exposed. As more businesses and shopping move online, this trend will only continue to grow without disruptive action from Intel and our customers. As you heard earlier from Mark at Microsoft, Intel's SGX provides a trusted execution environment to help protect sensitive code and data. SGX has the smallest potential attack surface within the data center system and will help customers better protect sensitive data records. And while SGX is new to third-gen Xeon, it has been available on Xeon E for multiple generations being researched, hardened and deployed across major cloud service providers, including IBM, Alibaba and Baidu, and is already leveraged in production by hundreds of the most security-conscious enterprises. Customers are looking forward to the larger enclave size that third gen provides. Now let's take a look at SGX in action. More than 300,000 people will be diagnosed with brain tumors worldwide this year, and early detection of tumor boundaries is essential for treatment. We've been working with the University of Pennsylvania to train AI models to assist with identifying brain tumor boundaries. A key to creating an accurate AI model is training it on diverse data. Hospitals independently perform thousands of brain scans. But patient privacy regulations often prohibit hospitals from sharing their data with the help of SGX and a new computing paradigm called Federated Learning, which allows machine learning algorithms to be trained on data from multiple institutions. Hospitals can collaborate on AI training while keeping the data and proprietary algorithms confidential. Let's take a look at these capabilities. Here, brain MRI scan data from multiple health care sites is being analyzed and trained within the SGX enclave. Each site has complete control of their data at all times without any having visibility into data at other sites. Now you can see an example of the model detecting tumor boundaries on the left, having been trained using only a single institution data. And on the right, using patient data from 23 out of 64 hospitals, and we're already seeing an 11.1% accuracy improvement. You can imagine how important every percentage increase in accuracy is to improve patient outcomes. And here to tell us more is Professor Dr. Christos Davatzikos, the Director of the Center for Biomedical Image Computing and Analytics at Penn. Hi, Christos.

Hi, Lisa.

What is AI doing with medical imaging? And what are some of the challenges you are facing?

Yes. So AI has the potential to contribute to precision diagnostics very much by reaching out and learning from very rich and diverse data around the world. This hasn't been very easy to do up till now. And an example is a [ breath ] challenge, which is an international challenge on brain tumor segmentation. I think using federated learning with Intel's SGX technology, we'll be able to kind of break some of these boundaries and reach out into siloed -- otherwise siloed data to be able to build more accurate, but also importantly, generalizable AI models for clinical predictions. We already started to see a lot of promising results. An example is FeTS, the federated tumor segmentation challenge or initiative led by Spyros Bakas in our faculty. But there's a number of other consortia that are also waiting in line to benefit from this technology. I think, altogether, we are entering a very exciting new era in medicine, which revolves around: number one, precision diagnostics; and number two, personalized treatment. And I think ultimately, this is going to dramatically improve health care, but also hopefully help save or prolonge many lives.

Thank you so much, Christos, for partnering with Intel to do more wonderful. Another built in acceleration capability only available from Intel is AVX512, a set of instructions to speed up performance for some of the most demanding computational workloads in areas like 3D modeling, audio and video processing, financial analytics and more. We've benchmarked against our competitors. And with AVX512, our latest third-gen Xeon delivers higher performance across financial services, industry and life sciences workloads for molecular dynamics. This is the value of integrated acceleration. In the world of financial services, this capability is extremely important, something our partners at NASDAQ truly understand. I'd like to introduce Akbar Ansari, Vice President of the Innovation Group at NASDAQ. Hi, Akbar. Can you tell us more about how you're using homomorphic encryption?

For any organization, data confidentiality and integrity is critical when it comes to sharing data for secure multiparty computation. The ultimate solution is the one which assumes zero trust, and homeomorphic encryption is one of the emerging technologies as it allows competition on the encrypted data itself.

So this is great. How are you working with Intel on your project?

Homomorphic encryption is very performance intensive. And it can pose significant performance challenge when it comes to large enterprise scale data sets. We are working with Intel-owned hardware acceleration to achieve higher performance using AVX512 instructions. For NASDAQ, this will help us deliver innovative products and use case into the hands of our customers quickly and effectively.

Thank you, Akbar. I know as an investor myself, data protection and privacy is of extreme importance to me and my family. This is a great example of how data-intensive workloads are becoming foundational to business applications, and driving more businesses to embrace high-performance computing. The root of HPC remains scientific discovery. And one of the most widely used applications in HPC is nanoscale molecular dynamics, or NAMD. A drug discovery code, scientists used to better understand how diseases work. In the HPC track, you'll see how Xeon optimizations help NAMD run faster with fewer cores than other computing architectures. Intel is committed to delivering HPC products and solutions with our CPU, XPU and optimizations through toolkits and ISV-optimized solutions with the HPC community. I've shared how our products are helping our customers, but they also rely on our solutions offerings to enable and accelerate deployments, from market-ready solutions to Intel Select Solutions, covering critical workloads from the edge to the network to the cloud, there are over 500 ready-to-deploy partner solution offerings in market, covering the broadest set of use cases. We have a long history of solution enabling and ecosystem support, including the development of builders programs, reference architectures, software enablement and contributions to open source tools. With Intel-defined configurations and partner innovations, Intel Select Solutions deliver verified performance while reducing the time and resource investment for our customers to deploy. At Intel, we love seen all the unique ways our customers leverage our technology and solution offerings to create opportunities and solve their most pressing challenges from cloud gaming to blood flow to brain scans to financial market security, the opportunities are endless with flexible performance. And every day, we look forward to helping you solve for X, whatever your X may be, so that together, we can do more wonderful. We're especially proud of our partners and the meaningful relationships we have to deliver value together. Thank you for continually inspiring us with the work you do. Before we close today, I would like to take the opportunity to welcome Pat to his first data center launch. And what better way to welcome him than hearing from a few of our close friends.

Welcome back, Pat.

A warm welcome to Pat in his new role.

Pat, and congratulations again on your new role.

All of us at Cisco are looking forward to working closely with you and your team to drive incredible innovation for our customers.

I'm really excited to have you in the role. We have a long history of working together, and I can't wait to work with you to accelerate the innovation with both of our companies.

Congratulation on releasing the third generation, Intel Xeon Scalable processor.

After a year, they've highlighted the essential role technology organizations of all sizes are ready to accelerate their digital future.

As the data accelerates its pace, we need to create new compute capabilities to that data.

To have customers solve some of amenities, which is the challenges from vaccine research to conservation for smart cities.

It's exciting to see that you have the performance and the new features.

Congratulations again to you and the Intel team on this achievement, and we look forward to a great partnership.

Thank you for the warm welcome, and thank you to my colleagues for your support. It has been exhilarating to be back home at Intel, and meeting with so many friends, our valued partners and customers. Technology has never been more important for humanity than it is today. Who could have predicted a year ago, the monumental challenges IT would face supporting millions of remote workers through a warp-speed cloudification of infrastructure or creating entirely new digital-first customer experiences that resonate in a virtual role. In this landscape of rapid digital disruption, which has been accelerated by the global pandemic, Intel's technology and leadership products are more critical than ever. This is certainly the case as we launch our latest third-gen Intel Xeon Scalable processors, which are designed to help our customers and partners solve for their challenges of today while planning for the unknown demands of the future. This new processor family offers a flexible architecture that delivers built-in AI acceleration and advanced security capabilities that are so necessary in a world of workload diversification and growing complexity. With our newest Xeon Scalable processors, our ecosystem can create solutions that matter, and our customers can place their workloads securely where they perform the best from the edge to the network to the cloud. Whether you're securing financial services through confidential computing, adopting AI to accelerate medical diagnostics or optimize supply chains or you're transforming networks to embrace 5G sequencing genomes or connecting factories, cities, people and things at the edge, our third-gen Intel Xeon scalable processors and our data-centric portfolio are the trusted technology foundation for your solutions. I often say technology is like magic. It is the power to touch and improve the lives of every person on the planet. We know that alongside our customers and partners, developers and engineers are the lifeblood of our industry. They are solving for X every single day. They accelerate the cycle of innovation to create wonderful solutions and applications. They bring our businesses to life, they bring the magic to the technology. We recently announced that we're bringing the spirit of the Intel developer forum, or IDF, back this year with the launch of a new event series called Intel On. If you're a developer, an engineer or a technology geek like me, come join us at our Intel innovation event in San Francisco this October, where you will hear more about our plans to create more unified and inclusive developer experiences. It's the richness of our differences that will lead us to imagine and create new world-changing technology. And that's what we'll do together at the innovation event in the fall. It's a new day at Intel. We are no longer just a CPU company. Only Intel can bring together software, silicon and platforms, packaging and process with at-scale manufacturing for our customers so they can build their next-generation innovations. This is our unique advantage as an integrated device manufacturer or IDM. 2 weeks ago, I announced the next major evolution of our IDM model. I call it IDM 2.0. It's our differentiated winning formula that will deliver a new era of innovation, manufacturing and product leadership through the powerful combination of 3 capabilities: one, Intel's internal factory network; two, strategic use of foundry capacity; and three, our new Intel foundry services. Our IDM 2.0 strategy combines leading process, product supply and cost that we will use to design the best products and manufacture them in the best way possible for our customers in every category we participate in. These are truly exciting times ahead for our industry. We can harness the power of our differences, and work together to solve some of the world's biggest challenges, build on an exciting technology foundation, grow new partnerships and accelerate innovation. I am confident we can help our customers navigate today's landscape of tremendous change, and together, build world-changing technology that touches every human on the planet. Thank you. Thank you for all your support and partnership. Take care. Stay safe, and I hope to see you soon.