Apple competes with Microsoft! Microsoft fully upgrades AI PC: Copilot integrated into Win11, software and hardware work together

According to Zhitong Finance, before holding the annual global developer conference Build on Tuesday, Microsoft (MSFT.US) announced the full integration of its AI assistant Copilot into the Windows system. Microsoft has launched a new type of artificial intelligence computer named Copilot+PC. The company stated that, partly due to chips specifically designed for artificial intelligence processing, machines from the Microsoft Surface series and other manufacturers can perform over 40 TOPS/second, making them more powerful than Apple's (AAPL.US) top MacBook Air M3 and 58% faster. The new hardware Copilot+Surface Pro starts at $999, with a domestic starting price of 8688 yuan, and will be shipped on June 18.

Microsoft is promoting new computers equipped with advanced chips designed to run Windows software with artificial intelligence capabilities without quickly draining battery life. The company released the Surface Laptop and a Surface Pro tablet on Monday, both powered by Qualcomm chips, capable of running some AI tasks without an internet connection. Other computer manufacturers such as Lenovo, Dell, HP, Asus, Acer, and Samsung are also launching personal computers that support artificial intelligence, using Qualcomm's Snapdragon X Elite and X Plus processors to potentially extend battery life and run Microsoft's Copilot AI chatbot.

Microsoft stated that device manufacturers will later release personal computers with AMD and Intel chips following the Copilot+ standard. These personal computers will be able to translate audio, recommend responses to incoming information, suggest changes to app settings, and even engage in discussions with people about on-screen content. The new Recall feature helps find content previously viewed on the PC, providing real-time subtitles in over 40 languages including Chinese.

The Recall feature will be able to search logs of previous operations on the PC. Recall relies on AI models running directly on the device, allowing it to operate offline, with data indexes never being sent to remote servers. The AI model will be able to generate images based on written descriptions and drawings.

Competing with Apple's iMac

Microsoft CEO Satya Nadella believes that the new generation of computers equipped with dedicated AI chips and faster performance will reignite the long-term competition between Windows PCs and Apple's Mac computers. In an interview on Monday, Nadella stated, "Apple has done a great job. We now want Windows and Mac to truly compete again."

Microsoft is banking on Qualcomm's Arm-based high-efficiency chips, which can handle AI models, to defend its Windows licensing rights. As Arm-based chips in Macbooks replace Intel, the world's largest computer processor supplier, Apple has increased its market share in terms of PC shipments Microsoft is working hard to provide consumers and business users with ChatGPT-like features. With Microsoft's support, OpenAI released the ChatGPT chatbot at the end of 2022, which quickly developed as a tool for quickly obtaining computer-generated poetry, email drafts, and summaries of historical events.

Apple is catching up with large tech competitors in the field of artificial intelligence, preparing to unveil an ambitious strategy at next month's global developer conference. According to previous reports, the company is placing high-end chips - similar to those designed for Mac - into cloud computing servers used to handle cutting-edge artificial intelligence tasks that Apple devices will soon face. Simpler AI-related functions will be processed directly on iPhone, iPad, and iMac. Apple will focus on making users' daily lives easier - such as providing suggestions and offering customized experiences.

Meanwhile, Microsoft is leveraging its relationship with leading AI startup OpenAI to take an early lead in the emerging field of generative AI services. However, this partnership is under scrutiny by regulatory authorities. Officials in the United States, Europe, and the UK are reviewing Microsoft's and its competitors' AI investments to determine whether these investments will impact competition and whether they should be subject to stricter regulation similar to mergers and acquisitions.

Nadella stated that Microsoft's partnerships are intensifying competition in this emerging field rather than limiting it. Nadella said, "Competition is fierce today, right? Whether you're a big player or a small player. So I don't think it's a question of acquiring or not acquiring a company, it's a question of competition."

Advancing Windows on ARM

Other major tech companies, including Microsoft, are quickly incorporating generative AI to enhance their products. The Copilot chatbot, based on the underlying AI model of ChatGPT, is now available on Bing search engine alongside Windows 10 and Windows 11 operating systems. Users who subscribe to Office software can pay extra to have Copilot provide written responses to their documents.

The GPT-4 model within ChatGPT only completes the necessary computations on Microsoft's Azure cloud. New personal computers can run some AI models locally without an internet connection. Nearly four months ago, Nadella told analysts on the company's earnings call, "By 2024, AI will become a primary component of every personal computer."

Microsoft has had little success in getting people to adopt Arm-based Windows PCs, as the performance of these computers is not always as good as those running Intel or AMD chips. Some applications are incompatible. Running generative AI locally means that computers will require more power, making strong battery life more critical. This could make Windows on Arm more appealing According to a report sent to clients earlier this month, Morgan Stanley analysts predict that by 2026, Arm-based systems will account for 14% of all Windows PC shipments, up from 0% in 2023.

While Microsoft leads the expansion of hardware products, it also collaborates with Adobe in this event to further advance the Windows on ARM project. Microsoft stated in this event that the full suite of Adobe applications will soon be available on "Copilot + PC" devices, with Photoshop, Lightroom, Firefly, and Express already available. Adobe also announced that Illustrator and Premiere Pro will be launched starting in June