Microsoft has debuted a new category of personal computers with advanced AI features, as the company rushes to integrate this emerging technology across its product lineup and compete with tech giants like Alphabet and Apple.
At an event on Microsoft’s Redmond, Washington campus, CEO Satya Nadella introduced the “Copilot+” PC lineup. Nadella said Microsoft and several manufacturers, including Acer and Asustek, will sell these new AI-powered computers.
Microsoft is launching the Copilot+ laptops as its stock trades near record highs, driven by Wall Street’s excitement over the potential for AI to drive strong profit growth for Microsoft and its Big Tech peers.
Empowering users with on-device AI capabilities
The new computers will further be able to handle more artificial intelligence tasks directly on the device, without needing to rely on cloud data centers. Priced starting at $1,000, the Copilot+ PCs will begin shipping on June 18.
One key capability of these AI-infused laptops is a feature called “Recall.” This tracks everything the user does on the computer, from web browsing to voice chats, creating a searchable history stored locally that allows users to easily recall past activities, even months later.
Microsoft also demonstrated its Copilot voice assistant acting as a real-time virtual coach for a user playing the popular game “Minecraft.”
Competing with Alphabet and Apple in the AI-driven computing landscape
Additionally, Microsoft’s move comes as its shares trade near record highs, driven by Wall Street’s expectations that AI will fuel strong profit growth for the company and its tech industry rivals. Furthermore, the new “Copilot+” computers are Microsoft’s attempt to compete with Alphabet and Apple in the emerging AI-powered computing landscape.
Targeting significant market opportunity
Yusuf Mehdi, who leads consumer marketing at Microsoft, expects 50 million AI-powered PCs to be purchased over the next year. He believes these faster, more capable on-device AI assistants will be “the most compelling reason to upgrade your PC in a long time.”
Moreover, this new “Copilot+” computer category from Microsoft is reminiscent of the “Ultrabook” branding Intel promoted with PC makers in 2011 to compete against Apple’s MacBook Air. While global PC shipments dipped 15 percent in 2022 according to Gartner, Microsoft expects the Copilot+ lineup to account for around 20 percent of all PCs sold going forward.
As analyst Ben Bajarin of Creative Strategies notes, “People just need to be convinced that the device experience alone justifies this entirely new category of Copilot+ machines.”
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