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Intel’s Bold Goal: Powering Chips for 100M AI PCs by 2025

Intel Chips 100 Million AI PCs 2025

Intel plans to supply core processors for as many as 100 million AI-enabled PCs by 2025, according to senior executives speaking to Nikkei Asia.

David Feng, Vice President of Client Computing Group at Intel, mentioned that the company aims to provide 40 million AI PCs this year and 60 million next year, which is over 20% of the estimated global PC market in 2025.

In the age of AI PCs, Feng emphasized the importance for Intel to focus on not just chip performance but also services and user experience. This highlights the significance of collaborating with software and application developers.

“We specialize in selling the performance of chips, including CPU, GPU, and chipsets, as a complete package,” Feng informed Nikkei Asia. Now we are fully focused on selling experiences. I am discussing a concept that relies on software to function, highlighting the importance of partnering with application developers.

According to him, Intel is collaborating with Microsoft to shape the future of AI on personal computers. The idea comprises three main components: Intel’s Core Ultra PC chipset, which includes the company’s initial platform with an integrated neural processing unit (NPU) for managing AI tasks; Microsoft’s AI chatbot, Copilot; and a specific “Copilot key” on the keyboard. Feng mentioned that he anticipates a rise in enterprise spending because of the potential for AI PCs to enhance work efficiency.

Carla Rodriguez, who serves as vice president and general manager of Intel’s client software ecosystem, mentioned to Nikkei Asia that the company is focusing on attracting partners and broadening use cases. One instance she mentioned is Intel working together with video conference service providers like Microsoft Teams, Webex, and Zoom. This collaboration is focused on creating AI-powered functionalities such as eye tracking that adjusts the user’s gaze towards the camera, background removal, and smart framing to keep users centered on screen, according to Rodriguez.

The upcoming AI PC from Microsoft will include features such as instant translation of American sign language into English text, real-time transcription of videos, and automatic conversion of text to PowerPoint slides. Intel is strengthening collaborations with security software developers to leverage the NPU for functionalities such as anti-phishing and ransomware detection.

Intel is the leading provider of microprocessors for PCs, dominating approximately 76% of the market for chips in laptops. Apple and Qualcomm are striving to expand their market share by introducing Arm-based computer designs.

Since the second half of 2022, the PC industry has seen a notable inventory correction due to the effects of the Russia-Ukraine conflict and increasing inflation, affecting demand. This represents a significant shift from the rapid expansion seen at the height of the remote work and remote learning trends driven by the COVID-19 pandemic.

In 2023, the global PC market experienced a 14% decline compared to the previous year, attributed to slowdowns in both the commercial and consumer segments, according to Counterpoint Research. The research agency predicted that the global PC market, in terms of shipment volume, may return to pre-COVID levels this year. This is expected to be driven by the replacement of the Windows 11 operating system, the growing adoption of Arm-based PCs, and the rise of AI PCs.

Most PC manufacturers, excluding Apple, have announced their intention to launch AI-powered PCs later this year. Jason Chen, chairman of Acer, shared with reporters that generative AI represents a new opportunity for the industry and will be his company’s main focus for 2024.


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