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.



Nations Building Their Own AI Models Add to Nvidia's Growing Chip Demand

FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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Nations Building Their Own AI Models Add to Nvidia's Growing Chip Demand

FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

Nations building artificial intelligence models in their own languages are turning to Nvidia's chips, adding to already booming demand as generative AI takes center stage for businesses and governments, a senior executive said on Wednesday.
Nvidia's third-quarter forecast for rising sales of its chips that power AI technology such as OpenAI's ChatGPT failed to meet investors' towering expectations. But the company described new customers coming from around the world, including governments that are now seeking their own AI models and the hardware to support them, Reuters said.
Countries adopting their own AI applications and models will contribute about low double-digit billions to Nvidia's revenue in the financial year ending in January 2025, Chief Financial Officer Colette Kress said on a call with analysts after Nvidia's earnings report.
That's up from an earlier forecast of such sales contributing high single-digit billions to total revenue. Nvidia forecast about $32.5 billion in total revenue in the third quarter ending in October.
"Countries around the world (desire) to have their own generative AI that would be able to incorporate their own language, incorporate their own culture, incorporate their own data in that country," Kress said, describing AI expertise and infrastructure as "national imperatives."
She offered the example of Japan's National Institute of Advanced Industrial Science and Technology, which is building an AI supercomputer featuring thousands of Nvidia H200 graphics processors.
Governments are also turning to AI as a measure to strengthen national security.
"AI models are trained on data and for political entities -particularly nations - their data are secret and their models need to be customized to their unique political, economic, cultural, and scientific needs," said IDC computing semiconductors analyst Shane Rau.
"Therefore, they need to have their own AI models and a custom underlying arrangement of hardware and software."
Washington tightened its controls on exports of cutting-edge chips to China in 2023 as it sought to prevent breakthroughs in AI that would aid China's military, hampering Nvidia's sales in the region.
Businesses have been working to tap into government pushes to build AI platforms in regional languages.
IBM said in May that Saudi Arabia's Data and Artificial Intelligence Authority would train its "ALLaM" Arabic language model using the company's AI platform Watsonx.
Nations that want to create their own AI models can drive growth opportunities for Nvidia's GPUs, on top of the significant investments in the company's hardware from large cloud providers like Microsoft, said Bob O'Donnell, chief analyst at TECHnalysis Research.