Microsoft has traditionally played a modest role in shaping the PC industry, but that era is now behind us.
Recent weeks have vividly demonstrated Microsoft’s profound influence in the PC market. As the developer of the most widely used operating system across millions—if not billions—of devices, Microsoft has considerable clout. The launch of Copilot+ and the subsequent hardware announcements illustrate how the tech giant is asserting its dominance.
Despite AMD and Intel having a head start in the evolving landscape of AI PCs, Computex revealed that they are now playing catch-up. Both companies are hastily responding to Microsoft’s requirements for Copilot+, disrupting their established release schedules and traditions that have endured for several generations.
The most compelling evidence of Microsoft’s influence is seen in AMD’s strategy. For the first time, AMD is prioritizing its Strix Point laptop CPUs over the new Ryzen 9000 desktop CPUs. Historically, Intel has dominated the laptop market, prompting AMD to unveil its new architectures on desktops before laptops. However, this pattern has shifted as AMD prepares to release Zen 5 for both laptops and desktops simultaneously in July. This indicates significant change within the industry. Currently, Copilot+ PCs exclusively utilize Snapdragon X Elite and X Plus chips, but Microsoft has indicated that AMD and Intel processors will also be included in future models. By launching Strix Point first, AMD demonstrates its eagerness to join this new PC era, driven by Microsoft's specifications for the Neural Processing Unit (NPU). Although AMD and Intel have produced NPUs, Microsoft demands a minimum of 40 Tera Operations Per Second (TOPS) from their processors. Strix Point meets this requirement, as will Intel’s upcoming Lunar Lake chips, while previous models from both companies have fallen short.
Although AMD's decision to launch laptop CPUs first is notable, Intel is also making waves. The company is expediting the release of its Lunar Lake chips, planning to launch in the third quarter of 2024—an advance from the year-end release of its Meteor Lake CPUs last year. With numerous Lunar Lake and Strix Point laptops anticipated by year’s end, many were already previewed at Computex. Intel’s haste is evident, despite its failure to announce specific models or performance details, merely claiming that Lunar Lake will compete with the Snapdragon X Elite.
These developments reflect more than just excitement; they highlight AMD and Intel’s race to align with the momentum around Copilot+. For Microsoft, Copilot+ signifies not just the introduction of a new laptop category, but a fundamental shift in how we perceive personal computing. AMD and Intel are eager to be a part of this transformative dialogue.
Intel’s stake in this shift is particularly compelling. For decades, Intel has been a key partner for Microsoft, leveraging its dominance in the laptop space for extensive marketing collaborations. However, Microsoft’s recent launch of Copilot+ appears to have caught Intel off-guard. During a Q&A after Intel's keynote presentation in Taipei, an unexpected tension arose when a reporter inquired about the Snapdragon X Elite. Intel’s executive vice president of client computing, Michelle Johnston Holthaus, appeared taken aback and sighed before responding.
Microsoft has long sought to optimize Windows on ARM, and with the rising trend of AI, it has seized the moment. The surprise move seemingly blindsided both Intel and AMD, despite their prior lead in AI processors for Windows. Intel is now awaiting an update regarding Copilot+ features for its devices, while laptop manufacturers are proceeding with models that incorporate the dedicated Copilot key alongside AMD and Intel’s latest AI CPUs. In response to questions about competition, Holthaus expressed confidence, indicating, "I believe by the time we’re in the market, we’ll ship more than our competitors combined,” a sentiment reflecting underlying frustration and readiness to compete.
While AMD has not publicly addressed these shifts, its presentations at Computex highlight "Copilot+" in conjunction with its new Ryzen AI chips, suggesting similar sentiments.
To adapt to the demands of Copilot+ PCs, AMD and Intel have also streamlined their mobile CPU branding. The new naming conventions are simplified and focused, aiming to resonate with everyday consumers. It’s crucial for shoppers to understand that a Core i9-13980HX competes with the Snapdragon X Elite, and the rebranding signals significant changes for both companies. Such overhauls typically occur only once in a decade, reflecting essential realignment efforts to effectively communicate the AI capabilities of their processors to a broader audience.
In summary, Microsoft is driving a shift in the industry, while AMD and Intel scramble to keep pace. Over time, the market will likely stabilize, as Microsoft has confirmed that both companies will soon be integrated into the Copilot+ ecosystem. Therefore, by next Computex, any disruptions caused by Microsoft’s initiatives may well be resolved.
This scenario vividly showcases Microsoft’s impressive power, catalyzing a response from two companies traditionally meticulous about their product cycles. We can only hope for a smoother transition when Microsoft eventually extends Copilot+ to desktop computers.
Ranking
