Nvidia and AMD are poised to challenge Intel’s long-standing dominance in the PC market by developing ARM-based chips, according to sources familiar with the matter. This move comes as Nvidia currently dominates the market for artificial intelligence (AI) computing chips and aims to expand its reach into personal computers. AMD also plans to join the race by manufacturing chips using ARM technology.
Both Nvidia and AMD are expected to launch their PC chips by 2025, joining Qualcomm, which has been producing ARM-based chips for laptops since 2016. Microsoft, in collaboration with chip companies, is working to facilitate the development of ARM-based processors for Windows PCs, as part of its strategy to diversify chip suppliers and compete with Apple.
Apple’s success in incorporating its own ARM-based chips in Mac computers, resulting in improved battery life and performance, has put pressure on other PC manufacturers. Executives at Microsoft are particularly interested in achieving similar efficiency and performance with AI processing, which they have observed in Apple’s custom chips.
Microsoft had previously granted Qualcomm exclusivity to develop Windows-compatible chips using ARM architecture until 2024. However, once the exclusivity deal expires, Microsoft encourages other chip makers, including Nvidia and AMD, to enter the market.
One of Microsoft’s goals is to integrate advanced AI features into the CPUs being developed by chip makers. This aligns with Microsoft’s vision of AI-enhanced software, such as its Copilot, becoming an integral part of the Windows experience. Therefore, Nvidia, AMD, and other chip manufacturers will need to dedicate on-chip resources to support these AI capabilities.
While the shift to ARM-based designs presents opportunities for innovation and improved performance, it also poses challenges. Software developers have traditionally focused on writing code for x86 computing architecture used by Intel and AMD, meaning that existing code may not be compatible with ARM-based designs. Nonetheless, Intel has also been incorporating AI features into its chips and recently demonstrated similar capabilities on a laptop.
The developments from Nvidia, AMD, and other chip makers could disrupt Intel’s longstanding dominance in the PC industry. Microsoft’s drive to diversify chip suppliers mirrors its experience in the 1990s when it sought to avoid dependence on a single vendor like Intel.
The introduction of ARM-based chips in PCs promises to bring increased competition and potentially improved performance to the market. However, the success of this transition depends on factors such as compatibility, software support, and consumer adoption. As the industry evolves, it will be crucial for chip manufacturers to strike a balance between innovation and compatibility to cater to the needs of different stakeholders.
