Joseph Moore: Great. Thank you. We’re going to talk about the reception you’re seeing with Sapphire Rapids. And in particular, it seems like it’s a really good chip. But I think the price at the platform level is getting more expensive, DDR5 is more expensive. What’s it like right now migrating to a more expensive platform and environment or budgets are under pressure, does that change the ramp relative to other CPUs that you have?
Pat Gelsinger: Yeah. Thanks, Joe. And you are touching on a very important issue, the memory. And obviously, the memory pricing for DDR4 has collapsed, right, and making that pricing gap versus DDR5 very visible currently. That said, customers don’t buy these platforms on memory prices. They buy them on TCO, right? The total cost of the operations that they get for the performance as they put them into operations. So memory price is one piece of that. But I’d also say DDR prices are expected to decline as we go through DDR5 price and the gap to DDR4 is widely forecast to decline, and that gap will diminish as we go through the year. However, right, you contrast that to the significant performance capability. And in some areas like AI, we’re seeing five to 6x performance benefits.
And when you put that into a TCO calculation, it’s overwhelmingly positive. Security is not measured on TCO. It’s measured on absolute statements of security and confidential computing. So overall, we are driving this ramp very aggressively through the year. We have strong demand of customers. We’re ramping our factories quickly. And we do believe that we’ll have a strong ramp of the Sapphire Rapids platform as we go through the year.
John Pitzer: Joe, do you have a quick follow-up?
Joseph Moore: Yeah. I also just wanted to touch on, I mean, you mentioned the migration of the ASG business into DCI and CCG. Is that — is there a change there in any of the priorities, or is it just a restructuring of where those businesses reside?
Pat Gelsinger: Yeah. It’s a restructuring of where the businesses reside. And as we move past this, I’ll say, launch phase of those products. And we’re now into the scale phase of those product lines. And for instance, discrete graphics, driving the attach rate and channel motions with our enormous client business. In the data center, bringing a broader portfolio across HPC, our Flex product line, the AI capabilities that we have that we’re uniquely delivering through data center. So all of this is about is the efficiency and scale of those business areas. And we’ve been having numerous discussions with our customers about these changes, and they have been very well received. And I’d say all the products that we launched out of AXG, the Flex product line, the discrete graphics product line, the MAX product lines.
All of those products are continuing forward, and we believe all of those will have strong ramps in their volumes, revenues and market impact as we go through the year. So with that, let me just wrap up our time together. First, thank you. We’re grateful for you joining us today, the opportunity that you’ve given us to update you on our business. And clearly, the financials aren’t what we would hope for. But we’re also pleased with the execution progress we made. And as a result, we’re confident in the strategic outlook that we have for our business. Though the macro is difficult. It was difficult in Q4. We expect it to remain difficult as we go through the first half of the year, but we’re laser focused on controlling the things that we can and every aspect of our execution, cost management and transformation is in our hands and we are well underway in executing against those paths.
So with that, we look forward to seeing many of you throughout the quarter, updating you on our progress next quarter. Thank you very much.
Operator: Thank you, ladies and gentlemen, for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.
