Microsoft vs. Apple: Satya Nadella Says AI-Focused Copilot+ PCs Beat Macs | WSJ

Summary

Microsoft CEO Satya Nadella introduces new AI-powered Windows computers, dubbed 'Copilot+PCs,' featuring neural processing units (NPUs) for advanced on-device AI tasks. These devices offer enhanced performance and battery life, thanks to Qualcomm's ARM-based Snapdragon chips. Key features include 'Recall,' which uses AI to semantically search through screen captures, and 'Co-creator,' which aids in creating digital art. The move signifies a shift towards more integrated AI experiences on personal devices, with a focus on trust and user control over data privacy. The new Surface devices will start shipping in June, starting at $999.

Takeaways

• 🍏 Apple's competition: Microsoft is confident in its ability to outperform Apple in the Mac market with its new line of Windows computers.
• 🤖 AI-puters and Copilot+PC: Microsoft CEO Satya Nadella introduces the concept of AI-puters, later referring to them as 'Copilot+PC', indicating a new era of AI-enhanced computing.
• 🧠 AI on the Edge: The new Windows computers are designed for AI processing on the edge, meaning they can perform AI tasks without needing an internet connection.
• 🔌 New Chips for AI: Microsoft has incorporated a neural processing unit (NPU) into its computers to accelerate AI features and matrix math computations.
• 🔋 Long-lasting Battery: The use of Qualcomm Snapdragon X series chips, based on ARM architecture, promises significant battery life improvements.
• 🚀 Performance and Speed: Microsoft claims that its Surface devices are 58% faster than the MacBook Air with M3 and offer 20% longer battery life.
• 🔍 Innovative Search with Recall: The new 'Recall' feature uses AI to perform semantic search over all user history, including screenshots, making it searchable.
• 👀 Privacy and Trust: The local processing of data with features like Recall ensures privacy and trust, as it processes information directly on the user's computer.
• 🎨 AI-assisted Creativity: The 'Co-creator' feature allows users to collaborate with AI in creative tasks, such as generating images based on text prompts and sketches.
• 🌐 Multilingual Translation: The new devices offer live translation capabilities for both video calls and in-person conversations in 44 different languages.
• 🖼️ Personalized Experience: The future of computing, as envisioned by Microsoft, revolves around personal agents like Copilot that understand and assist users across various platforms and devices.

Q & A

What is Microsoft's strategy regarding innovation in the computer industry compared to Apple?

Microsoft aims to outperform Apple by providing a computer for people who love Windows, that they can be very proud of, focusing on re-engineering their computers for AI and introducing new features like edge computing and AI capabilities on the device.

What is the significance of the term 'AI-puter' mentioned in the script?

The term 'AI-puter' humorously refers to the new generation of Windows computers that have been re-engineered to include AI capabilities, although Microsoft CEO Satya Nadella prefers the term 'Copilot+PC'.

How does Microsoft define an AI computer?

An AI computer, as defined by Microsoft, includes new chips and AI software that can perform tasks without needing an internet connection, utilizing edge computing to process AI on the device itself.

What is the role of the new chips in the AI computers introduced by Microsoft?

The new chips, specifically the Neural Processing Units (NPUs), are designed to accelerate AI applications by performing matrix math multiplications quickly, enabling AI features to run efficiently on the device.

How does the introduction of AI computers relate to the evolution of AI and cloud computing?

The AI computers represent a shift from cloud-based AI processing to edge computing, bringing the power of AI from the cloud to the device itself, which is a significant step in the evolution of AI technology.

What is the significance of the ARM-based chips in the new Windows computers?

ARM-based chips, like the Qualcomm Snapdragon X series, are energy efficient and similar to those found in smartphones. They offer improved performance and battery life, contributing to a competitive edge for Windows devices against Apple's Macs, which have also transitioned to ARM-based chips.

What is the 'Recall' feature and how does it work?

Recall is a semantic search feature that uses generative AI and the NPU to process screenshots taken by Windows, allowing users to search their history and even photos without relying on keywords. It operates locally on the device to ensure privacy and trust.

How does Microsoft address privacy concerns with the Recall feature?

Microsoft addresses privacy concerns by ensuring that Recall operates locally on the user's computer, giving them control over their data. Users can restrict Recall from taking screenshots of certain websites or apps or turn it off entirely.

What is the 'Co-creator' AI feature and how does it enhance user experience?

Co-creator is an AI feature that allows users to collaborate with AI in creative tasks, such as generating images based on text prompts and sketches. It uses a stable diffusion image generation model running locally on the device.

What is the significance of the local live translation feature in the new Windows computers?

The local live translation feature enables real-time translation of video calls or in-person conversations from 44 different languages into English, powered by small language models stored on the device. This enhances global communication and accessibility.

What future developments does Microsoft envision for the AI capabilities in Windows?

Microsoft envisions a future where AI capabilities are ambient and integrated into various platforms and devices, not just limited to Windows. They aim to create a personal agent that is accessible everywhere and can interact with users in different modalities.

Outlines

00:00

💻 Innovative AI-Powered Windows PCs

Microsoft CEO Satya Nadella discusses the company's new AI-optimized Windows computers, dubbed Copilot+PCs, developed in collaboration with manufacturers like Lenovo and Dell. These devices are designed to rival Apple's Mac in innovation and performance. The computers feature new chips and AI software capable of performing advanced tasks without an internet connection. Nadella highlights the significance of edge computing, which brings AI processing power to individual devices, and introduces the concept of the AI PC. Microsoft has integrated a neural processing unit (NPU) into these computers to accelerate AI applications. The NPU works alongside the CPU and GPU, enhancing the device's capabilities. Additionally, the use of Qualcomm's energy-efficient Snapdragon X series chips, based on ARM architecture, is noted for its potential to extend battery life significantly. Microsoft claims that their Surface devices are faster and have longer battery life compared to the MacBook Air with M3. The conversation also touches on the future of AI in computing, with a focus on building trust with AI agents and the potential for AI to enhance user experiences through features like Recall, which offers semantic search over user history, and Co-creator, which enables AI-assisted image generation.

05:03

🌐 The Future of AI and Personal Computing

The script delves into the evolving relationship between humans and AI agents, emphasizing the importance of trust and personal choice in shaping these interactions. It introduces Co-creator, an AI feature that allows users to collaborate with AI in creative tasks such as painting, utilizing a stable diffusion image generation model. The discussion also covers local live translation capabilities, which can convert 44 different languages into English in real-time, powered by small language models stored on the device. Large language models like chatGPT or Copilot continue to operate in the cloud. Looking ahead, the script mentions the upcoming integration of open AI's latest GPT-4.0 model with Copilot, creating a more interactive and personal computing experience. The future of computing is envisioned as one where computers understand users rather than the other way around, with AI agents becoming ubiquitous across various platforms and devices. The potential for AI to be integrated into glasses and other wearable technology is also considered, suggesting a future where AI is an ambient and integral part of daily life.

Keywords

💡Innovation

Innovation refers to the process of creating new ideas, devices, or methods. In the context of the video, Microsoft's CEO Satya Nadella discusses the company's efforts to innovate, particularly in the area of personal computers, with the aim of outperforming competitors like Apple. The script mentions that Microsoft is introducing new chips and AI software to their computers, which are designed to perform tasks without an internet connection, showcasing their commitment to innovation.

💡AI-puters

AI-puters is a playful term suggested in the script to describe the new generation of computers that are integrated with artificial intelligence. Although the term is not officially adopted, it encapsulates the idea that these computers are not just traditional PCs but are enhanced with AI capabilities. The script discusses how these computers are 're-engineered for AI' and can perform tasks like semantic search and image generation, which are powered by AI.

💡AI

AI, or artificial intelligence, is the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. The video's theme revolves around integrating AI into personal computers, creating what Microsoft refers to as 'AI computers' or 'Copilot+PCs.' AI is central to the video's narrative, as it enables new features like edge computing, semantic search, and generative AI models that run on the device itself.

💡Edge Computing

Edge computing refers to the practice of processing data closer to the source of the data, rather than in a centralized data-processing warehouse or cloud. In the script, Microsoft's new computers are described as having the capability for edge computing, which allows for AI processing to occur directly on the user's computer. This is made possible by the inclusion of a neural processing unit (NPU) and is a significant shift from relying solely on cloud-based processing.

💡Neural Processing Unit (NPU)

An NPU is a specialized hardware component designed to accelerate AI tasks, such as matrix math multiplications, which are essential for running AI applications. In the video, the NPU is highlighted as a new chip component in Microsoft's Copilot+PCs that enables local AI processing, contributing to the device's AI capabilities and performance.

💡ARM Architecture

ARM architecture refers to a family of processor architectures based on the Reduced Instruction Set Computing (RISC) principles. The script mentions that the new Qualcomm Snapdragon X series chips, which are optimized for Windows, are based on ARM architecture. These chips are known for their energy efficiency and are more commonly found in smartphones, similar to Apple's transition from Intel to ARM-based chips in their Macs.

💡Recall

In the context of the video, Recall is a new AI feature introduced by Microsoft for its computers. It represents a semantic search capability over all the user's history, allowing the computer to recreate moments from the past. The script describes how Windows takes screenshots and uses AI and the NPU to process the data, making it searchable. This feature is significant as it demonstrates the integration of AI into everyday computing tasks, enhancing the user experience.

💡Co-creator

Co-creator is an AI feature mentioned in the script that allows users to collaborate with AI in creative tasks. The video provides an example of using a text prompt to generate an image, where the AI assists in the image creation process based on the user's sketch. This feature exemplifies the potential of AI to augment human creativity and productivity.

💡Trust

Trust is a central theme in the video, particularly in relation to AI agents and their role in computing. The script discusses the importance of building trust with AI, as users must feel secure and confident in the AI's actions and data handling. The local processing of data, as seen with the Recall feature, is highlighted as a way to build trust by ensuring that the data is processed on the user's own computer.

💡GPT-4.0

GPT-4.0 refers to the latest version of OpenAI's generative pre-trained transformer model. In the script, it is mentioned that Microsoft's Copilot will be updated to incorporate the GPT-4.0 model. This model is significant as it represents the cutting-edge of AI technology, capable of understanding and generating human-like text, and it signifies the ongoing integration of advanced AI into computing interfaces.

💡Personal Agent

A personal agent, as discussed in the video, is an AI-powered interface that is always available to assist the user. The script describes it as being able to see the screen, hear the user, and interact in a conversational manner. This concept represents the future of computing, where AI is not just a tool but an integrated part of the user's digital experience, capable of performing actions and accessing memories on behalf of the user.

Highlights

Microsoft CEO Satya Nadella is excited about new Windows computers re-engineered for AI.

The term 'AI-puter' is humorously suggested, with 'Copilot+PC' being a more serious term for these new devices.

New Windows computers feature chips and AI software capable of performing tasks without an internet connection.

AI advancements are attributed to abundant cloud computing, which led to the creation of models like GPT-4.

The cloud computing revolution is expected to move to the edge, starting with the reinvention of the PC.

Microsoft introduces the concept of AI PCs or 'Copilot+PCs', signifying the next step in personal computing.

Edge computing allows for AI processing to occur directly on the user's computer.

Microsoft adds a neural processing unit (NPU) to facilitate AI applications on personal computers.

The NPU works alongside the CPU and GPU in the new Copilot+PCs to enhance performance.

Qualcomm's new processor optimized for Windows offers impressive battery life of up to 22 hours.

Snapdragon X series chips are ARM-based, similar to those in smartphones, offering energy efficiency.

Microsoft claims Surface devices are significantly faster and have longer battery life than MacBook Air with M3.

The move to ARM-based chips represents a shift in Microsoft's relationship with Intel.

New AI feature 'Recall' allows for semantic search over all user history, including the ability to recreate moments from the past.

Windows uses generative AI and the NPU to process screenshots and make them searchable.

Microsoft emphasizes user trust and privacy with AI features processing locally on the user's device.

AI feature 'Co-creator' enables users to collaborate with AI in creative tasks like image generation.

Local live translation is another AI capability, supporting 44 different languages.

Copilot will integrate with open AI's latest GPT-4.0 model in the coming weeks.

The new Surface devices are expected to start shipping in June, with prices starting at $999.

Microsoft envisions AI as a new type of interaction with computers, optimized for personal agents like Copilot.

The future of computing is described as a computer that understands the user, rather than the user needing to understand the computer.

Transcripts

- Apple's done a fantastic job of really innovating

on the Mac, we are gonna outperform them.

- So you feel like you've got Apple now.

- We have a computer for people who love Windows

that they can be very, very proud of.

- Microsoft, CEO Satya Nadella

is very excited about his new Windows computers

because they're not just any Windows computers.

Can we call 'em AI-puters?

- (laughs) No, I like Copilot+PC.

- [Joanna] Yes, these Copilot+PCs coming

from Microsoft itself

and others like Lenovo and Dell

have been completely re-engineered for.

- AI, AI, AI, AI, AI as a new input.

- But what even is an AI computer?

Microsoft's latest have new chips and AI software

that can do some cool tricks

without even needing to connect to the internet.

After talking to Nadella

and seeing the new Surface devices in action,

I'll say it looks pretty darn promising.

- Here's the interesting thing, right?

Which is, if you sort of take all of

what we've been talking about with AI,

it all came about because of abundance of compute,

all primarily in the cloud, right?

So, that's what created the GPT-4, for example,

which essentially changed the world.

Now, what happened in the cloud

is going to come to the edge,

and the edge that first needs to be reinvented

before we talk about everything else is the PC.

And so, that's sort of what I think of as the AI PC

or the Copilot+PCs.

- Okay, translation for non-computer scientists.

ChatGPT, Microsoft Copilot,

those other generative AI tools you've been using,

the processing happens in the cloud, AKA some data center.

Now, some AI processing will happen right on your computer,

what is called edge computing.

To do this, Microsoft had to add a new chip component.

Pretend I'm not a computer nerd.

What is an NPU?

- It's a neural processing unit.

So, if you wanna build any AI application,

you have to have an accelerator,

just like we have in the cloud,

to be able to run these matrix math multiplications fast

in order to drive AI features.

And that's what the NPU does.

- [Joanna] The NPU joins the CPU and the GPU

in the Copilot+PCs.

But here's the really exciting thing.

- Qualcomm's got a new processor,

which we've optimized Windows for.

The battery lab, I've been using it now.

I mean, it's 22 hours of continuous video playback.

- [Joanna] These Qualcomm Snapdragon X series chips

are based on ARM architecture.

And here's another translation.

These energy efficient chips are more like the ones

in your smartphone than the Intel chips

in your Windows laptop.

A few years ago, Apple transitioned all its Macs

from Intel chips.

- [Speaker] To our own Apple silicon.

- [Joanna] Those chips are based on ARM,

and it made MacBooks really awesome.

- We finally feel we have a very competitive product

between Surface Pro and the Surface laptops.

We have essentially the best specs

when it comes to ARM-based silicon and performance

or the NPU performance.

- Microsoft says the Surfaces

are 58% faster than the MacBook Air with M3

and has 20% longer battery life.

Intel will make Copilot PCs,

but this is a move away from that once tight relationship.

Which system do you use?

- I use the Surface laptop.

- Have you heard the fan go on?

- No.

- See, this is what I'm really hoping for,

a Windows PC that doesn't sound

like it's going to outer space.

(Satya laughs)

- You have it, you got it.

- [Joanna] Okay, but what new AI powers

does the NPU unlock in Windows?

- One of the dreams we've always had

is how do we introduce memory, right?

Photographic memory into what you do on the PC,

and now we have it.

So, it's called Recall.

It's not keyword search, right?

It's semantic search over all your history.

And it's not just about any document.

We can recreate moments from the past essentially.

- Here's how it works.

Windows constantly takes screenshots

of what's on your screen.

Then uses a generative AI model right on the device

along with the NPU to process all that data

and make it searchable, even photos.

I got to try it out.

I searched "brown leather bag."

It came up in visual search.

There's no place on this page

that it says "brown leather bag."

It just knows because it sees this brown leather bag.

There could be this reaction from some people

that this is pretty creepy.

Microsoft is taking screenshots of everything I do.

- Yeah, I mean, that's why

that it can only do it on the edge, right?

So this is, you have to put two things together.

This is my computer, this is my Recall,

and it's all being done locally, right?

So that's the promise.

So, that's one of the reasons why Recall works

as a magical thing,

because I can trust it that it is on my computer.

- You can also restrict Recall from taking screenshots

of certain websites or apps or turn it off entirely.

And it seems to me this whole next wave

of AI computing is gonna be built somewhat around trust.

If we're gonna have AI agents that go out

and do things for us,

why should people trust Microsoft over another company?

- And I think we are at the very early stages

of understanding how our relationship

with AI agents should be shaped by us primarily

because that's the only way to build trust.

If somebody else, this is not a vendor decision.

It's a personal, maybe even spiritual decision

of how we want to, and that's why I don't believe

there's just gonna be one, right?

Because I may have multiple agents

that I may want to delegate different types of things to.

- [Joanna] There's another AI feature called Co-creator

that runs locally right on the device.

- How do we really take good old paint

and say, "Hey, I'm not just painting myself,

but I'm able to co-create with an AI."

- You put in a text prompt, "a Windows XP wallpaper

with a big green mountain,"

then start drawing

and a stable diffusion image generation model

right on the device starts to generate an image

based on your sketch.

Yes, that's very good.

There's local live translation, too.

It can translate live video calls

or in-person conversations

from 44 different languages into English.

And it's fast.

(woman speaking foreign language)

Yeah, I have a dog.

(woman speaking foreign language)

Browser.

All of this is powered by small language models

that are stored on the device.

Large language models like chatGPT or Copilot

still run in the cloud.

In the coming weeks,

Copilot will get open AI's latest GPT-4.0 model.

- It's kind of like a new browser effectively.

So, it's right there.

It sees the screen, it sees the world, it hears you.

And so, it's kind of like that personal agent

that's always there that you wanna talk to.

You can interrupt it.

It can interrupt you.

- The new Surfaces will start shipping in June,

starting at 999.

But I had a few more questions about the future.

AI is this new type of way of interacting with computers.

Yet here you're releasing a pretty traditional looking

type of computer.

- You know, think about what we did back in the day

when the internet happened.

It sort of like, the browser was born on Windows

and it went beyond Windows.

That's, I think, what's gonna happen.

That's why I think we want

to make sure we build the Copilot+PC

that's optimized for Copilot.

But I fully expect the Copilot to be everywhere.

And the innovation of the interface of your personal agent,

how I interact with it, how it accesses memories,

how it does actions is gonna be everywhere.

It's gonna be ambient.

- Where else could it go?

- It'll go on the phone, right?

I'll use it on WhatsApp.

I'll use it on any other messaging platform.

It'll be on speakers everywhere.

So, in some sense, it'll be anywhere

users want to interact with it

with different modalities, right?

If you take what GPTO showed

and you combine it with Copilot as the interface,

for us, that's the type of magic that we wanna bring.

First to Windows and everywhere else.

- What do you think about glasses?

- Well, we loved glasses for a long time.

In fact, one of the things that we will do with Meta

is to take Copilot

and really bring it to all of the work that they're doing.

- Can we close our eyes together

and we're gonna imagine

the future of computing. - Okay.

- What is the future that you see?

- The future I see is a computer that understands me

versus a computer that I have to understand.

- Okay, does it look like this?

- It reminds me of XP.

- This is what it turned it into.

- Oh wow.

- Could this be the wallpaper of the future PC?

- It definitely can be.

And you have the power to do it, Joanna.

You can set your wallpaper on Windows.

- Well, I wanna leave this with you

and maybe you can make this the default in Windows 12.

- Thank you so much.