On Monday, Microsoft CEO Satya Nadella introduced a new category of PC that integrates generative artificial intelligence tools directly into Windows, the company’s leading operating system. Microsoft projects that over 50 million “AI PCs” will be sold in the next year, driven by the growing demand for devices equipped with ChatGPT-style technology.
“We are introducing an entirely new class of Windows PCs engineered to unleash the power” of on-device AI, Nadella said at a launch event in Redmond, Washington.
“We call this new category ‘Copilot Plus’…the fastest, most AI-ready Windows PCs ever built,” he added.
Of all the tech giants, Microsoft has pushed the most aggressively to infuse the powers of generative AI into its products, often leaving rival Google to play catch-up.
ChatGPT-style AI, which is called Copilot at Microsoft, is available across the company’s products, including Teams, Outlook and its Windows operating system.
Microsoft even tried, so far unsuccessfully, to rejuvenate Bing, its poor-performing online search engine, with generative AI powers.
“These improvements provide the most compelling reason to upgrade your PC in a long time,” said Microsoft Vice President Yusuf Mehdi.
Microsoft announced the release of Copilot Plus PCs, featuring advanced AI tools integrated into Windows. These PCs, equipped with powerful AI-ready chips, are reported to be 58 percent faster than Apple’s M3 MacBook Air. Major manufacturers like Lenovo, Dell, Acer, and HP plan to launch PCs using Microsoft’s new Copilot Plus software.
Microsoft highlighted that the AI functionalities will operate on the device itself, eliminating the need for data transfer to remote data centers and avoiding subscription fees.
The AI features will include live translation, image generation, and interactive capabilities through chats and simple prompts instead of traditional clicking on files or drop-down menus.
This strategic pivot to AI has significantly boosted Microsoft’s market position, making it the world’s largest company by market capitalization, surpassing Apple.
Microsoft’s investment in OpenAI, amounting to approximately $13 billion in cloud computing credits, supports the substantial computing needs of the ChatGPT-maker. In return, Microsoft integrates OpenAI’s models, such as GPT-4 and Dall-E, into its products.
Nadella’s announcement followed recent updates from Google and OpenAI, which enhanced their chatbots’ human-like interactions and ability to interpret surroundings via video.
Google also introduced AI answers to its search engine, despite concerns about potential impacts on advertising revenues and web traffic.
Analysts believe that the growing demand for AI products is boosting Microsoft and Google’s cloud computing businesses, with clients willing to pay a premium for ChatGPT-like capabilities.
Wedbush Securities analyst Dan Ives projected that AI could add $25 billion to $30 billion to Microsoft’s sales by 2025, calling the current investment in AI “unprecedented.”
Microsoft’s AI advancements precede an anticipated Apple event next month, which may feature ChatGPT-like capabilities in a new iPhone.
There are also rumors of a possible partnership between Apple and OpenAI. This rapid development in AI technology continues despite societal concerns and regulatory scrutiny, with authorities considering measures to monitor and potentially limit AI deployment.
