At the Build development meeting, Microsoft will talk about its plans for AI PCs.

Microsoft will reveal its latest AI initiatives at the Build developer conference on Tuesday, after high-profile events staged by OpenAI and Google this month.

Microsoft has a huge PC user base because of its control of Windows, giving it an AI edge.

Microsoft CEO Satya Nadella predicted in January that AI will be a “first-class part of every PC” by 2024.

The company’s Copilot chatbot is available in Bing and Office for a charge. PC users will learn more about Windows’ AI integration and what they can accomplish with new AI PCs.

The build comes days after Google I/O, where the search giant debuted its most powerful AI model and demonstrated its Gemini AI on PCs and phones. OpenAI introduced GPT-4o before Google’s presentation. Microsoft invests most in OpenAI, and its Copilot technology uses its models.

Microsoft must maintain its lead in AI and boost PC sales, which have been flat for two years after a major upgrade cycle.

Morgan Stanley analyst Erik Woodring expressed optimism for the PC industry recovery, citing user feedback and upgrades to notebook ODM manufacturing in a recent investor note on Dell.

According to Gartner, PC shipments rose 0.9% in the quarter following a multi-year decline. Microsoft CFO Amy Hood claimed PC demand was “slightly better than expected” on the company’s quarterly earnings call last month.

Microsoft’s new AI technologies may encourage commercial and consumer users to update their HP, Dell, or Lenovo laptops.

On April 26, after Microsoft reported earnings, Bernstein analysts wrote to investors that “While Copilot for Windows does not directly drive monetization it should, we believe, drive up usage of Windows, the stickiness of Windows, customers to higher-priced more powerful PCs (and thus more revenue to Microsoft per device), and likely search revenue.”

Microsoft will supply software for managing online AI operations, while its machines will use CPUs from AMD, Intel, and Qualcomm for offline work. That may involve speaking to Copilot to summarize a transcription without a connection.

What’s an AI PC?

Neural processing units are major hardware components of AI PCs. NPUs are more powerful than CPUs and geared for AI applications. Traditionally, firms like Apple have employed them for photo and video enhancement and speech recognition.

Microsoft has not revealed AI PC capabilities without an internet connection. Google’s Gemini Nano AI can summarize and transcribe recordings, propose text answers, and more on its Pixel 8 Pro phone, which doesn’t have a CPU.

Late 2024 will see computers with Intel’s Lunar Lake CPUs and specialized NPUs. AMD’s Ryzen Pro and Qualcomm’s Snapdragon X Elite with NPU will launch in the quarter and middle of the year, respectively.

Intel claims the processors allow “real-time language translation, automation inferencing, and enhanced gaming conditions.”

Apple’s new iPad Pro M4 processor highlights NPUs after years of use. M4 chips are expected in next-generation Macs this year.

Arm Windows 

Qualcomm processors, unlike Intel and AMD, use Arm-based architecture. Microsoft will present “The Next Generation of Windows on Arm,” which will presumably discuss how Qualcomm processors run Windows and how it differs from Intel and AMD chips.

Recent Canalys research shows Intel has 78% of the PC processor market, followed by AMD at 13%.

Qualcomm has marketed Snapdragon Arm-based computers for their better battery life, slimmer designs, and cellular connectivity. However, early Qualcomm processors provided users with limited features. Qualcomm’s Snapdragon 835 CPU couldn’t run most Windows apps in 2018. 

Windows now supports standard applications on Arm, but issues remain. ARM-based machines have their own FAQ page. 

AI anywhere else

Microsoft will hold workshops like “AI Everywhere” on how to “accelerate generative AI models” on cloud-based devices. 

An “Azure AI Studio” workshop will show developers how to construct Copilot chatbots like Google and OpenAI’s Gemini and ChatGPT. A corporation may create a chatbot to help employees choose health plans.