On Monday, Microsoft debuted a new category of PCs with AI features as it rushes to build the emerging technology into products across its business. The new AI PC is introduced to compete with Alphabet and Apple. At an event on its campus in Redmond, Washington, Chief Executive Satya Nadella introduced what Microsoft calls “Copilot+” PCs, saying that it and a range of manufacturers would sell them, including Acer and Asustek Computer.
Microsoft held the product event a day before its annual developer conference.
Microsoft AI laptops
Its shares trade near record highs following a Wall Street rally driven by expectations that AI will fuel strong profit growth for the company and its Big Tech rivals, just after Microsoft launched the laptops.
The new Microsoft PC will be Able to handle more artificial-intelligence tasks without calling on cloud data centers, will start at $1,000 and begin shipping on June 18.
Copilot’s Recall feature
The ability to crunch AI data directly on the computer lets Copilot+ include a feature called “Recall.” “Recall” tracks everything done on the computer, from Web browsing to voice chats. By creating a history stored on the computer that the user can search when they need to remember something they did, even months later.
The company also demonstrated its Copilot voice assistant acting as a real-time virtual coach to a user playing the “Minecraft” video game.
Microsoft new PC sale
Yusuf Mehdi, consumer marketing head, said Microsoft expects 50 million AI PCs will be purchased over the next year. He said faster AI assistants that run directly on a PC will be “the most compelling reason to upgrade your PC in a long time.”
Global PC shipments dipped about 15% to 242 million last year, according to research firm Gartner, which suggests Microsoft expects the new category of computers to account for around one-fifth of all PCs sold.
“People just need to be convinced that the device experience alone justifies this entirely new category of Copilot+ machines,” said analyst Ben Bajarin of Creative Strategies.
Microsoft marketing strategy
Microsoft’s new “Copilot+” computer marketing category that highlights AI features is reminiscent of the “Ultrabook” category of thin-form Windows laptops that Intel promoted with PC manufacturers in 2011 to compete against Apple’s MacBook Air.
As per Microsoft executives GPT-4o, the latest technology from ChatGPT maker OpenAI, will “soon” be available as part of Copilot.
ARM Qualcomm chips
Microsoft also introduced a new generation of its own Surface Pro tablet and Surface Laptop. These feature Qualcomm chips based on Arm Holdings’ architecture. It also introduced a technology called Prism that will help software written for Intel and AMD chips run on chips made with Arm technology.
Microsoft vs Apple
Microsoft showed its new devices in action against an Apple device. It showed photo editing software from Adobe running faster on the Microsoft device. Apple earlier this month showed a new AI-focused chip that analysts expect to be used in future laptops.
The Qualcomm Snapdragon X Elite chips include a so-called neural processing unit. This is designed to accelerate AI-focused applications, such as Microsoft’s Copilot software.
Microsoft aims to extend its early advantage in the race to produce AI tools. The tools that consumers are willing to pay for. Its partnership with OpenAI allowed it to jump ahead of Alphabet as they race to dominate the field.
Microsoft tapped Qualcomm to lead the effort to move the Windows operating system to Arm’s chip designs in 2016. Qualcomm has exclusivity on Microsoft Windows devices that expires this year.
Stock update
Microsoft shares closed up 1.2% Monday afternoon to $425.34, just shy of a record reached in March. Qualcomm rose 2% to $197.76 for a record close
