Tore Svanberg: Yeah. Absolutely. And I also wanted to follow up on, I think it was a previous question about LLM or AI accelerator milestones, so what kind of milestones as investors should we be looking at here? I obviously understand the timing part of it, but what are some of the more specific milestones that we should be keeping an eye on?
Fermi Wang: I think the first important milestone is that we demo — our chatbot demos to our customers and it will happen sometime in the coming quarter. So I think that’s important because with the demo it also shows the performance of how we compete — compare to our competitors and all those information will become open to our customers. I think that’s probably the biggest near-term milestone.
Tore Svanberg: Very helpful. Thank you, Fermi.
Fermi Wang: Thank you.
Operator: Thank you. One moment for our next question. And our next question comes from the line of Kevin Cassidy from Rosenblatt. Your question, please.
Kevin Cassidy: Yeah. Thanks for taking my question. My question is also along the lines of the software stack, with the CV72 in China, how much of the software stack you developed, is there a component of that and can you sell that software stack too?
Fermi Wang: Yeah. So there are two, I think our strategy — software strategy inside China and outside are different. Inside China, we’re counting on our software partners because to really collect data and trend the data in China is problematic for us. So we are counting on working with our Chinese software partners to deal with CV72. Last quarter, we talked about — we already identified multiple, our software partners and they are porting aggressively their software to our CV72 platform and ready to demo to OEMs in this quarter. So I think from the China side is pretty — we know exactly what to do with CV72. With outside China, with CV3, we talked about our collaboration with Conti, but more importantly, we want to demo our own software stack, which we don’t plan to bundle 100%, but we definitely think this is important software, important technology that we can help our customer to leverage while we have developed.
This software stack will top more next time, but however is really we think one of the very few software stack is 100% AI based, and we can show the performance and the functions that were close to B and C level, and I think this is definitely one thing we need to talk about not only technology but also our business — our business model, we are ready sometime in the near future.
Brian White: Yeah, Kevin. I’ll just add next week September 5 to 8 Continental will be demonstrating our joint software stack on CV3 at the IAA shown, so public demonstration if anyone’s in there to check it out.
Kevin Cassidy: [Technical Difficulty] We’ll look for that. And maybe along those lines of demos and your work with Conti, is there any update on how many OEMs you’re talking to and any progress at all?
Fermi Wang: We announced — yeah, we announced one design win last time and at this time, we will continue to engage multiple OEMs with potential collaboration with Conti, but also independent that we also told you OEM directly. So we continue to have engagement — multiple engagements with OEMs at this point.
Kevin Cassidy: Okay. Thank you.
Operator: Thank you. One moment for our next question and our next question comes from the line of Suji Desilva from ROTH. Your question, please.
Suji Desilva: Hi, Fermi. Hi, Brian. So thanks for giving us the mix of revenue for the year, roughly between the products, Video, CV2, CV3. Can you give us a sense of what the mix is currently or kind of when it normalizes between auto and IoT, because it sounds like those two categories having different trends right now and I think it’d be helpful to understand kind of where each of the revenue today and maybe in a year or so when things normalize.
Brian White: Yeah. Sure, Suji. So if you go back to last year, automotive was about a quarter and IoT was about three quarters, given the relative stability of automotive this year versus IoT which is much more volatile to the downside that mix is looking more like 70% IoT and 30% automotive for the current year. Obviously, we said that the size of our SAM (ph) that pursuing over a multiyear time period is much more lever to automotive where we’d be the inverse of that relationship or long term we would expect automotive to be up 70% and IoT about 30% as we move out several years in the future as we get traction with CV3 and some of the other automotive.
Suji Desilva: Okay. Thanks, Brian. That’s very helpful. And then just trying to reconcile guys, the large pipeline number you’ve been giving for the last several quarters versus the inventory correction here, is there a timeframe in which some of that pipeline starts to convert meaningfully contribute, I imagine that that process will be independent of the inventory abbreviations (ph) that are happening right now, just correct me if that’s wrong, but I heard that’s not pushed out or pulled in any way because of what’s going on right now. Thanks.
Fermi Wang: So I think that talking about the funnel we talked about, so for the very near term, for example, if you talk about funnel for this year, definitely there is some impact from the inventory, but in general, I don’t think there’s the current inventory correction should have an impact to the funnel because it’s really based on design wins and also that probability ended the value of the design win. So we’ll be ready to talk about this number in November this year.
Suji Desilva: And Fermi, just give us an idea of what years does start to kind of come in the elbow of those, like how many years away that is?
Brian White: Well, our funnel, Suji, at six years, and given the time it takes to land some of these wins, in particular with CV3 it was back end loaded and definitely in the latter half of those six years.
Suji Desilva: Okay. Great. Thanks a lot.
Operator: Thank you, One moment for our next question. And our next question comes from the line of Gary Mobley from Wells Fargo. Your question, please.
Gary Mobley: Hey, guys. Thanks for taking my question. If I’m not mistaken, there’s about 20 customers that really move the needle for your overall business, have you had an opportunity to review those top 20 customers and where they stand with respect to inventory balances, whether healthier or not and to give us a sense [indiscernible] of the 20% sequential revenue decline expected for the third quarter. How many customers you are driving that down or is it isolate in just one or two?
Fermi Wang: I think that in general for IoT all of the top 20 customers are having inventory correction problems, but auto might not be as bad. Some of the auto customers have inventory problems, but our top auto guys — some of them may not. So if you look at — if you really separate application looking at IoT, any customer — any top — any of our top customers, all of them have inventory problems, maybe at a different degree, yeah.
