Microsoft’s Windows chief believes that artificial intelligence (AI) has the potential to bridge the gap between cloud computing and personal computers (PCs). While Microsoft has primarily focused on cloud-based AI, chipmakers like AMD, Intel, and Qualcomm are pushing for AI to reside on local PCs powered by their own processors. However, there seems to be no conflict between the two approaches. At AMD’s recent Advancing AI presentation, Microsoft’s chief Windows executive expressed that cloud AI and local AI can coexist harmoniously. This stance is crucial for Microsoft, as it not only supplies licenses for millions of Windows machines but also sells Microsoft 365 subscriptions to an impressive 76 million consumer subscribers. In addition to this, Microsoft aims to charge users $30 per month for Microsoft 365 Copilot, an AI tool designed to enhance productivity, further emphasizing the importance of AI in Microsoft’s future.
AMD, along with its competitors, is determined to promote the use of local AI on PCs. They have highlighted applications such as Adobe Photoshop, Lightroom, and BlackMagic’s DaVinci Resolve, which utilize on-chip AI. Microsoft’s own software, like Windows Studio Effects, also takes advantage of local AI capabilities for tasks such as background blurring and audio filtering. Placing AI functions in the cloud could potentially undermine the value added by chipmakers. However, Pavan Davuluri, the new corporate vice president in Microsoft’s Windows and Devices division, has hinted at a hybrid strategy that combines both local AI and cloud-based processing. This approach, which Davuluri refers to as a hybrid engine, aims to leverage the benefits of local computing such as enhanced privacy, responsiveness, and low latency, while utilizing the power of the cloud for tasks like microphones, models, large datasets, and cross-platform inferencing.
During a conversation between Davuluri and AMD’s CEO Dr. Lisa Su, it was clear that Microsoft has high expectations for AI performance. Su humorously stated that Microsoft always demands more TOPS (trillions of operations per second), to which Davuluri responded that they would utilize every TOP provided. The collaboration between Microsoft and AMD aims to create a future where AI is seamlessly integrated across various apps, services, and devices, ultimately functioning as an agent in users’ lives. This collaboration is part of Microsoft’s larger vision for the Windows ecosystem.
In conclusion, while chipmakers are actively pushing for localized AI on PCs, Microsoft sees a future where AI can coexist in the cloud and on local devices. This hybrid approach leverages the benefits of both cloud and local computing for the best AI experiences on PCs. Microsoft’s collaboration with AMD and their shared vision of an AI-driven future strengthens this belief. As AI continues to advance, it will undoubtedly play a significant role in bridging the gap between the cloud and PCs, further enhancing Microsoft’s revenue streams and the overall user experience.
