Windows Chief Sees AI Bridging the Cloud, PCs
Microsoft continues to reap billions of dollars from its subscriptions, and the integration of artificial intelligence (AI) is set to further bolster its revenue. However, major chipmakers like AMD, Intel, and Qualcomm are also placing big bets on AI and want it to thrive on PCs, powered by their own processors. This raises the question of whether there will be a conflict between cloud-based AI and local AI.
According to Microsoft’s Chief Windows Executive, there may not be a conflict after all. At AMD’s recent Advancing AI presentation, where the company unveiled its AMD Ryzen 8040 family of AI-enhanced mobile processors, Microsoft expressed its belief that cloud AI and local AI can coexist harmoniously.
This is a crucial matter for Microsoft, as it not only provides licenses for millions of Windows machines but also sells a significant number of Microsoft 365 subscriptions. In fact, the company recorded 76 million consumer subscribers in the third quarter of 2023, with commercial growth reaching 14 percent on top of that. Moreover, Microsoft plans to charge users $30 per month for Microsoft 365 Copilot, an AI tool aimed at enhancing productivity. Like most of Microsoft’s services, Copilot will utilize the Microsoft Azure cloud, which forms the bulk of the company’s revenue.
On the other hand, AMD, along with its competitors, is pushing for consumers and commercial customers to run AI applications on their local PCs. AMD showcased applications like Adobe Photoshop and Lightroom, as well as BlackMagic’s DaVinci Resolve, which utilize on-chip AI capabilities. Microsoft’s own Windows Studio Effects also tap into local AI capabilities for background blurring and audio filtering. This approach challenges the chipmakers and the value they bring to the table.
Fortunately, Pavan Davuluri, the new Corporate Vice President within Microsoft’s Windows and Devices division, hinted at a hybrid strategy. He suggested the use of both local AI processing and cloud-based AI functions, referring to it as a hybrid engine where cloud and local computing work hand in hand.
Davuluri explained, It’s really about seamless computing across the cloud and client, bringing together the benefits of local compute — things like enhanced privacy and responsiveness and [low] latency with the power of the cloud: microphones, models, large datasets, cross-platform inferencing and so on. He added, And so for us, we feel like we’re working together to build that future destination of best AI experiences on PCs.
During the event, AMD CEO Dr. Lisa Su lightheartedly remarked that Microsoft always demanded more trillions of operations per second (TOPS). Davuluri responded, We will use every TOP you provide.
Su concluded, Together with Windows, we feel like we’re building that future for Copilot, where we will orchestrate multiple apps, services, and devices. It will function as an agent in your life that has context and maintains context across entire workflows. So we’re really excited about these devices coming to life and the Windows ecosystem.
In summary, Microsoft understands the potential conflict between cloud-based AI and local AI but believes that a hybrid approach combining the strengths of both can provide the best AI experiences on PCs. With chipmakers like AMD, Intel, and Qualcomm vying for AI dominance on local devices, the stage is set for an exciting future of AI integration. Ultimately, users stand to benefit from this race, enjoying enhanced productivity and seamless computing across various platforms.
