Microsoft Unveils New AI-Enhanced Windows PCs

Microsoft CEO Satya Nadella unveiled a new category of PC featuring generative artificial intelligence tools built directly into Windows. The tech giant estimates over 50 million "AI PCs" will be sold in the next year due to demand for ChatGPT-style technology.

"We are introducing an entirely new class of Windows PCs engineered to unleash the power of on-device AI," Nadella said at a launch event, calling this new category "Copilot Plus"..."the fastest, most AI-ready Windows PCs ever built."

Microsoft has pushed aggressively to infuse generative AI, called Copilot, into products like Teams, Outlook and Windows, even attempting to revive its Bing search engine with the technology.

Copilot Plus PCs with powerful AI chips are 58% faster than M3 MacBook Airs. Lenovo, Dell, Acer and HP will release models running the new Copilot Plus software. The AI features operate on-device without data transfers or subscriptions.

Offerings include live translation, image generation and interacting via chats and prompts instead of menus. Microsoft's AI pivot has made it the world's biggest company by market cap after dethroning Apple.

As OpenAI's main $13 billion investor, Microsoft depends on its models like GPT-4 and Dall-E to power its AI products. Nadella's announcement follows Google and OpenAI showcasing chatbot updates with more human-like abilities last week.

Analysts believe demand for AI is boosting Microsoft and Google's cloud computing businesses as clients pay premiums for ChatGPT capabilities. Wedbush estimates AI will add $25-30 billion to Microsoft's sales by 2025.

Microsoft's move comes ahead of an expected Apple event featuring ChatGPT in new iPhones, with reports of a potential Apple-OpenAI partnership.