Microsoft CEO Satya Nadella introduced a groundbreaking category of PCs featuring generative artificial intelligence tools built directly into Windows, the world’s leading operating system.

The tech giant projects that over 50 million “AI PCs” will be sold within the next year, driven by the demand for devices powered by ChatGPT-style technology.

“We are introducing an entirely new class of Windows PCs engineered to unleash the power of on-device AI,” Nadella announced at a launch event in Redmond, Washington. “We call this new category ‘Copilot Plus’…the fastest, most AI-ready Windows PCs ever built.”

Among tech companies, Microsoft has been the most aggressive in integrating generative AI into its products, often leaving competitors like Google in its wake. ChatGPT-style AI, branded as Copilot at Microsoft, is now embedded across the company’s offerings, including Teams, Outlook, and the Windows operating system.

Microsoft has even attempted, albeit unsuccessfully so far, to revitalize Bing, its underperforming online search engine, with generative AI capabilities.

“These improvements provide the most compelling reason to upgrade your PC in a long time,” stated Microsoft Vice President Yusuf Mehdi.

The new Copilot Plus PCs, equipped with powerful AI-ready chips, are reportedly 58 percent faster than the M3 MacBook Air. Major manufacturers such as Lenovo, Dell, Acer, and HP are also planning to release PCs running on Microsoft’s Copilot Plus software.

Microsoft emphasized that the AI features will operate directly on the device, eliminating the need for data to be sent to and from remote data centers and avoiding subscription fees. AI offerings will include live translation, image generation, and advanced interaction capabilities through chats and simple prompts rather than traditional file navigation.

Microsoft’s strategic pivot to AI has been well-received by Wall Street, propelling the company to become the world’s largest by market capitalization, surpassing Apple.

As OpenAI’s primary investor, Microsoft has committed around $13 billion in cloud computing credits to support OpenAI’s extensive computing needs. In return, Microsoft leverages OpenAI’s models, such as GPT-4 for text and DALL-E for images, to enhance its products with advanced AI capabilities.

Nadella’s announcement follows similar AI-related updates from Google and OpenAI last week, which showcased advancements in their chatbots, including more human-like interactions and new abilities to comprehend surroundings through video. Google also revealed plans to incorporate AI answers into its leading search engine, despite concerns it might impact advertising revenue or reduce web traffic.