• Microsoft, along with partners, is set to completely redefine the PC experience by rearchitecting Windows to integrate generative AI-powered native CoPilot agents at every layer.
• The stars are aligned for Microsoft to bring a step change to the PC experience with advancements in semiconductors driven by its partnership with Qualcomm.
• Microsoft has announced CoPilot+, building upon its cloud-based CoPilot and CoPilot Pro to bring on-device native GenAI experiences powered by models (SLM, LLMs, LMs) running in the background.

The PC is one electronics category that is still called PC, unlike devices like phones, watches and TVs which have transitioned to smartphones, smartwatches and smart TVs. This has been possible because of years of research and development in software, AI and smart applications, making these devices disrupt the market. On the other hand, the PC has been relegated to the position of being a traditional productivity device with limited intelligence or “smartness”. However, this year, the PC is going through a pivotal moment in becoming more intelligent. Microsoft, along with partners, is set to completely redefine the PC experience by rearchitecting Windows to integrate generative AI-powered native CoPilot agents at every layer, all of which are fully optimized with the silicon underneath. These generative AI-based applications will warrant advanced silicon in the form of compute as well as memory which is not only high performance, driving more than 40 TOPS computations powered by an NPU alongside CPU, GPU and advanced memory (min 16GB DRAM, 256GB SSD), but also highly power efficient. Stars are aligned for Microsoft with right partners – Qualcomm and OpenAI This is where the adoption of Arm-based silicon has been solving the power efficiency problems in a PC, as we have seen with the M-series Apple Silicon. However, Qualcomm has leapfrogged Apple, Intel and AMD to bring its leadership in low-power compute with Arm-based designs, along with years of experience and IP with AI Engine and its acquisition of Nuvia, to rearchitect a compute silicon for the next-generation AI PC or what Microsoft calls the CoPilot+ PC. Source: Microsoft The stars are aligned for Microsoft to bring a step change to the PC experience with advancements in semiconductors driven by its partnership with Qualcomm, which will help architect a completely differentiated, intelligent and efficient PC experience integrated with Microsoft’s own AI expertise and partnership with OpenAI to have a formidable answer to Apple’s Macs. Qualcomm’s Snapdragon X Elite platforms, which were purposefully built for these next-generation AI PCs, are the only chipsets to power more than 20 designs across the top seven global PC OEMs at launch. Intel and AMD are behind and will follow up with more x86-based CoPilot+ designs later this year. But this is a significant win and entry into the PC space for Qualcomm, completely redefining the competitive landscape with a solid offering. Source: Qualcomm Unlocking powerful native intelligent experiences and more Microsoft has announced CoPilot+, building upon its cloud-based CoPilot and CoPilot Pro to bring on-device native GenAI experiences powered by models (SLM, LLMs, LMs) running in the background. The data doesn’t leave the PC, boosting privacy and security. The CoPilot agents are built on OpenAI’s GPT4. Some of the experiences that Microsoft has showcased are compelling on how GenAI can drive new use cases, automation and multiple assistants to boost productivity, creativity and security. Every Microsoft CoPilot+ PC is secured with the Pluton Security Processor out of the box and deeply integrated with personalized privacy controls. Some of the native CoPilot+ experiences Microsoft has showcased include: Recall: This is a flagship CoPilot+ feature that leverages the “personal semantic index”, giving a PC “photographic memory” by remembering every instance of action, content and settings across any application, website or document stored on the device. This is done by more than 40 AI models always running in the background and taking snapshots of information to build a timeline and retrieve information quickly and intuitively when prompted. This is a flagship GenAI feature showcasing the power of AI-powered semantic search and retrieval of information which is very personalized, private and intuitive, helping users save time and energy. Source: Microsoft Cocreate: This is another native GenAI-based CoPilot+ feature baked into specific applications such as Paint, where any ink strokes or text inputs can help generate images in near-real time, helping one brainstorm or express ideas, art and creativity. This is a glimpse of AI-powered photo editing and styling capabilities which when scaled with more context, intelligence and creativity can help generate great graphics and memories within seconds. Source: Microsoft Live captions: This is another meaningful GenAI feature of CoPilot+. It drives real-time live translations as the audio traverses through the PC across all the apps consistently. More than 40 languages can be translated into English subtitles and vice versa in a live or pre-recorded format and without needing the internet, with everything on the device being powered by the magical DSPs inside the NPU. Growing native partner experiences Several announcements have been made on native ARM64 experiences, apart from native Microsoft apps such as Chrome, Spotify, Zoom, WhatsApp, Blender, Affinity Suite and Slack. Many of them, such as Adobe Suite, CapCut, Cephable, Camo, DaVinci Resolve, djay Pro LiquidText and Luminar Neo, are leveraging the powerful 40 TOPS+ NPU to build multiple native GenAI experiences within their applications. Microsoft has also announced Prism, a more powerful emulator for running native or x86 applications more efficiently and seamlessly. This should be the key moment for the Windows-on-Arm ecosystem to compete effectively with the incumbent Windows-on-x86’s dominance. New Microsoft Surface portfolio includes CoPilot+ PCs Microsoft rearchitected the new Surface and Surface Pro lineup powered by the Snapdragon X Elite platform as CoPilot+ PCs. A good refresh and many “first” specs. Displays: 12.8” to 15” with the Surface Pro sporting an OLED HDR display for the first time, 120 Hz refresh rate, Dolby Vision IQ Processors: Qualcomm Snapdragon X Elite and X Elite Plus Connectivity: Wi-Fi7/5G, two USB4 ports supporting three external 4K displays Accessories: New Surface Pro keyboard can be used in both attached and detached mode with CoPilot key and includes the new Surface Slim Pen and quiet haptic touchpad. Source: Microsoft AI PC outlook and opportunities

• CoPilot+ fundamentally changes how users interact with PCs. It makes their experience more intelligent, contextual and meaningful. This positions Microsoft and its ecosystem uniquely in the market, particularly when compared to Apple.
• As CoPilot+ expands to enterprise PCs, the GenAI models will not only boost productivity in core applications like Microsoft Office, Azure AI and Dynamics CRM but also within solutions from partners such as Adobe, Cognizant, IBM, ServiceNow and Amdocs.
• By integrating CoPilot+, enterprises can expect improved workflows, smarter task management and enhanced collaboration, ultimately driving innovation and efficiency.
• According to our AI PC Tracker, GenAI-capable laptop PCs will account for more than three in four laptop PCs shipped in 2027.
• As a result, the semiconductor content value for the PC segment will also grow almost 2x by 2027.
• The Microsoft announcements show how users will use PCs that are more intelligent, contextual and meaningful, taking creativity, productivity and usage to a different level.
• Ahead of Apple's WWDC event in June, this is a very significant differentiation for Microsoft and its ecosystem versus Apple. At this point, we believe Qualcomm should be the main growth driver for Arm PCs along with GenAI capabilities in the short-to-mid term.