In recent times, Microsoft has launched a groundbreaking AI+PC product, the Copilot PC, which incorporates a high-performance computing unit and at least 40 AI models. This marks a significant step forward in the evolution of AI endpoints into intelligent assistants. Edge AI—the ability to execute and process AI algorithms directly on terminal devices—has become a crucial business focus within the AI sector today.
What is Edge AI? Edge AI refers to applications that process data locally on devices without relying on cloud or server processing. The year 2024 is being heralded as the defining moment for the development of Edge AI. The introduction of Microsoft's Copilot PC has ignited discussions across the industry, alongside various Edge AI applications unveiled at major conferences such as COMPUTEX and Apple’s WWDC.
The rapid growth of AI, exemplified by innovations like ChatGPT, suggests that applications will increasingly leverage Edge AI technologies. Noteworthy products, including AI PCs, AI smartphones, and AI servers, are poised to capture market share swiftly. The empowerment of electronic devices through AI is evident; where users once needed to interpret device responses, now devices strive to understand human needs better. For instance, the Copilot PC boasts over 40 TOPS of AI computing power, offering innovative features like "recall" and real-time "screen reading." These capabilities enable users to quickly locate content based on memories and allow AI to interact with on-screen information through voice responses.
The robust investments of global tech giants indicate a strong future for AI. This year alone, Microsoft and Amazon have poured over $40 billion into AI initiatives, with expectations that total investments in this domain may reach $1 trillion as application scenarios expand and computational demands increase. Chinese tech leaders like Alibaba, Tencent, and Baidu have also laid out plans for future investments exceeding 250 billion yuan.
HP, for example, predicts that AI PCs will contribute to 10% of their shipments by the second half of 2024. By 2025-2026, this figure is expected to rise to 50%, with AI PC values projected to increase by 60% in the next three years. Third-party research firms like Canalys share an optimistic outlook, estimating that AI PC shipments will reach 51 million in 2024, soar to 154 million by 2026, and potentially hit 208 million by 2028, reflecting a compound annual growth rate of 42% from 2024 to 2028.
The swift advancement of Edge AI presents substantial investment opportunities for companies within the AI supply chain in China, highlighting its potential to significantly shape the future landscape of the industry.