AI Goes Mainstream as ‘AI PCs’ Hit the Market 

John A., Microsoft Marketing Manager, builds a Microsoft Copilot+ display at the Best Buy store on June 18, 2024 in Miami, Florida. (Getty Images/AFP)
John A., Microsoft Marketing Manager, builds a Microsoft Copilot+ display at the Best Buy store on June 18, 2024 in Miami, Florida. (Getty Images/AFP)
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AI Goes Mainstream as ‘AI PCs’ Hit the Market 

John A., Microsoft Marketing Manager, builds a Microsoft Copilot+ display at the Best Buy store on June 18, 2024 in Miami, Florida. (Getty Images/AFP)
John A., Microsoft Marketing Manager, builds a Microsoft Copilot+ display at the Best Buy store on June 18, 2024 in Miami, Florida. (Getty Images/AFP)

A new line of PCs specially made to run artificial intelligence programs hit stores on Tuesday as tech companies push toward wider adoption of ChatGPT-style AI.

Microsoft in May announced the new AI-powered personal computers, or "AI PCs," which will use the company's software under the Copilot Plus brand.

The idea is to allow users to access AI capabilities on their devices without relying on the cloud, which requires more energy, takes more time, and makes the AI experience clunkier.

The PCs feature a neural processing unit (NPU) chip that helps deliver crisper photo editing, live transcription, translation, and "Recall" -- a capability for the computer to keep track of everything being done on the device.

However, Microsoft removed Recall last minute over privacy concerns and said it would only make it available as a test feature.

For now, the devices built by hardware makers like HP and ASUS run exclusively on a new line of processors called Snapdragon X Elite and Plus, built by the California-based chip giant Qualcomm.

"We are redefining what a laptop actually does for the end user," Qualcomm's senior vice president Durga Malladi told AFP at the Collision tech conference in Toronto.

"We believe this is the rebirth of the PC."

At the May launch, Microsoft predicted over 50 million AI PCs would be sold in 12 months, given the appetite for ChatGPT's powers.

Such a result would give a much needed boost to PC sales, which declined for two years from the halcyon days of the coronavirus pandemic before returning to growth in the first quarter of 2024.

Best Buy, the US retail giant, said it had trained tens of thousands of staff to sell and maintain the new line of AI PCs.

Some industry experts are more hesitant about their promise, predicting the actual benefit of upgrading to an AI laptop isn't compelling enough yet and will need more time.

"AI's evolutionary features aren't revolutionary enough to disrupt traditional buying patterns," said analysts from Forrester.

"For most information workers, there aren't enough game-changing applications for day-to-day work to drive rapid AI PC adoption."

Microsoft has aggressively pushed out generative AI products since ChatGPT's release in late 2022, with new AI features available across products including Teams, Outlook and Windows.

Feeling the pressure, Google quickly followed suit while Apple entered the game earlier this month, announcing its own on-device AI capabilities rolling out to premium iPhones in the coming months and year.

The latest MacBooks and iPads already have the capability to run high-performing AI features, but Apple has been slower to highlight those powers.

"I guess we missed the boat to name it an AI PC," Craig Federighi, Apple's senior vice president of Software Engineering, joked recently about the latest generation of MacBook.



Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
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Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)

Dell Technologies raised its annual revenue and profit forecasts on Thursday, buoyed by demand for its AI-optimized servers that are powered by Nvidia's powerful chips, sending its shares up about 3% in extended trading.

Dell's infrastructure solutions group, which includes Nvidia-powered servers, surged 38% to a record revenue of $11.65 billion in the second quarter.

The company's servers are engineered to handle AI systems' intense computational demands, including training large language models.

"Enterprise remains a significant opportunity for us, as many are still in the early stages of AI adoption," Chief Operating Officer Jeff Clarke said in a post-earnings call.

Clarke said that Dell sees an emerging opportunity in "sovereign AI" by leveraging the company's strong relationships with governments globally.

Nvidia on Wednesday said nations building AI models in their own languages were turning to its chips, and that this would contribute about low double-digit billions to its revenue in the financial year ending in January 2025.

Nvidia CEO Jensen Huang called out the partnership with Dell earlier this year, saying they were helping businesses create their own "AI factories."

Dell's stock has risen 45% this year.

Dell said on Thursday it now expects annual revenue outlook to be between $95.5 billion and $98.5 billion, up from $93.5 billion and $97.5 billion previously. It also raised its annual adjusted profit per share forecast to $7.80, plus or minus 25 cents.

Demand for its AI-optimized servers rose about 23% sequentially to $3.2 billion in the second quarter. The backlog for these AI servers was $3.8 billion.

"Our pipeline has grown to several multiples of our backlog," Clarke said in a statement.

Revenue for the second quarter ended Aug. 2 rose about 9% to $25.03 billion, beating analysts' average estimate of $24.14 billion, according to LSEG data. It reported adjusted profit per share of $1.89 per share, compared with estimates of $1.71 per share.

While AI server demand soared, Dell's PC business struggled, losing market share to rivals. However, a strong refresh cycle for

AI PCs are expected next year after Microsoft ends support for Windows 10.

Revenue for the client solutions group - home to PCs - fell about 4% to $12.41 billion.

"Dell lost PC shipment shares in key markets in the second quarter. It is the top vendor in the US business market, but its competitors have shown growth and gained more shares than they did a year ago," said Mikako Kitagawa, director analyst at Gartner.

The company took a $328 million charge for workforce reductions in the second quarter.

Separately, Reuters exclusively reported earlier on Thursday that Dell is again exploring a possible sale of cybersecurity firm SecureWorks, following previous unsuccessful attempts to find a buyer.