Microsoft CEO Satya Nadella on Monday announced a new category of PCs featuring generative artificial intelligence tools built directly into Windows, the company's world-leading operating system.
The tech giant estimates that more than 50 million “AI PCs” will be sold over the next 12 months, given the demand for devices equipped with ChatGPT-style technology.
“We're introducing a whole new class of Windows PCs designed to unleash the power of distributed AI,” Nadella said at a launch event in Redmond, Washington.
“We're calling this new category 'Copilot Plus'…The result is the fastest, most AI-enabled Windows PC ever built,” he said. I added.
Of all the tech giants, Microsoft has been the most aggressive in building generative AI capabilities into its products, often forcing rival Google to catch up.
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ChatGPT-style AI, which Microsoft calls Copilot, is available across the company's products, including Teams, Outlook, and the Windows operating system.
Microsoft has tried to rejuvenate its online search engine, Bing, with generative AI capabilities, but it has so far failed.
The shift to AI was celebrated on Wall Street, with Microsoft now replacing Apple as the world's largest company by market capitalization.
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Nadella's AI announcement follows announcements from Google and ChatGPT maker Open AI last week.
The companies unveiled updates to their chatbots with more human-like interactions and new capabilities to understand their surroundings through video, but the innovations are not yet available to users.
Google also announced it would add AI-powered answers to its world-leading search engine, despite concerns that it would erode advertising revenue.
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Microsoft is a major investor in OpenAI, injecting approximately $13 billion in the form of cloud computing credits to meet the vast computing needs of ChatGPT creators.
Analysts believe that a hunger for AI products is fueling Microsoft and Google's cloud computing businesses, with customers willing to pay a premium for features like ChatGPT.
Wedbush Securities analyst Dan Ives said in a note to clients that AI could add $25 billion to $30 billion to Microsoft's revenue by 2025.
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“Spending on AI is unprecedented across the technology world, and this is just the first phase of the ongoing AI revolution,” Ives said.
Microsoft's introduction of AI to PCs and devices comes ahead of next month's Apple event, where ChatGPT functionality is widely expected to arrive on new iPhones.
Media reports also suggest that Apple may announce a partnership between Apple and OpenAI.
Despite concerns that generative AI poses a threat to society, tech giants are competitively launching products.
Authorities, including in the typically less regulated United States, are tracking AI developments more closely and developing ways to potentially set limits on its adoption.
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