Microsoft unveils AI-enhanced 'Copilot+' PCs amid big tech rivalry

Microsoft Corp on Monday, introduced a new category of personal computers with artificial intelligence (AI) characteristics to compete with Alphabet Inc. and Apple Inc.

At a Redmond campus event, CEO Satya Nadella unveiled "Copilot+" PCs, a collaborative effort with manufacturers including Acer Inc. and Asustek Computer Inc. The new AI-powered laptops, which start at $1,000, will be available from June 18.

These novel machines can do AI tasks without the need for cloud data centres. This capacity enables features such as "Recall," which logs user activities, from web browsing to voice chats, and saves it locally for convenient retrieval. Furthermore, the Copilot voice assistant serves as a real-time virtual coach, as exemplified by its use in the computer game "Minecraft."

Yusuf Mehdi, Microsoft's chief of consumer marketing, predicted that 50 million AI PCs would be purchased over the following year. He stated that the possibility of running quicker AI helpers directly on a PC would be "the most compelling reason to upgrade your PC in a long time." According to Gartner, global PC shipments declined by about 15 per cent last year to 242 million units, implying that Microsoft expects its new AI PCs to account for roughly one-fifth of overall sales.

"People simply need to be convinced that the device experience alone justifies this entirely new category of Copilot+ machines," said Ben Bajarin, an analyst at Creative Strategies.

The "Copilot+" marketing initiative is like Intel Corp's 2011 "Ultrabook" campaign, which attempted to undercut Apple's MacBook Air with tiny, powerful Windows laptops. Microsoft also revealed that GPT-4o, the most recent AI technology from OpenAI, will soon be integrated into Copilot.

Along with Copilot+, Microsoft introduced a new generation of Surface Pro tablets and Surface Laptops that use Qualcomm Inc. CPUs based on Arm Holdings architecture. The launch of Prism technology will provide software interoperability across Intel, AMD, and Arm processors.

Microsoft machines outperformed Apple Goods in photo editing tasks using Adobe software, according to demonstrations at the event. Apple has already announced an AI-focused CPU, which is expected to be utilised in future laptops.

The Qualcomm Snapdragon X Elite chips, known for their neural processing units that enhance AI applications, are critical to Microsoft's AI market leadership strategy. The product rollout comes ahead of Microsoft's annual developer conference, emphasising the company's dedication to preserving its AI advantage through its cooperation with OpenAI.

Microsoft's early adoption of AI technology puts it ahead of Alphabet in the battle to commercialise AI solutions. Last week, OpenAI and Alphabet's Google presented competing AI technologies that provide real-time, interactive voice answers, a critical requirement for AI voice assistants.

Apple's decision to bespoke Arm-based semiconductors has increased competition in the Windows PC market, which was formerly dominated by Intel processors. These CPUs have given Macs longer battery life and improved performance. Microsoft, in collaboration with Qualcomm since 2016, has led efforts to move Windows to Arm architecture, with Qualcomm's exclusivity expiring this year, opening the door to rival chip designers such as Nvidia Corp.

(With inputs from Reuters)