AI Shifts from Cloud to Edge: The Rise of AI-Powered PCs and Devices

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On Fri, 10 Jan, 4:02 PM UTC

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The Consumer Electronics Show (CES) 2025 showcases a significant shift in AI technology from cloud-based data centers to edge devices, with AI-capable PCs and other smart devices taking center stage.

AI Moves to the Edge: A New Era of Computing

The Consumer Electronics Show (CES) 2025 has unveiled a significant shift in artificial intelligence (AI) technology, moving from cloud-based data centers to edge devices. This transition marks a new era in computing, with AI capabilities being integrated into personal computers, laptops, robots, cars, and other devices closer to home 12.

The Rise of AI PCs

One of the most attention-grabbing developments at CES was the introduction of "AI PCs." These personal computers boast chips that promise a level of performance once limited to powerful data centers. Nvidia, a leading player in this field, announced a ramped-up line of graphics processing units (GPUs) that imbue PCs with AI capabilities 1.

Nvidia's CEO, Jensen Huang, received a celebrity-like reception at CES, where he unveiled "Project DIGITS," described as a personal AI supercomputer. This project features a new Nvidia "superchip" designed for prototyping, fine-tuning, and running large AI models on desktop computing systems 12.

Edge AI: Offline and Private

The shift to edge AI brings significant advantages in terms of privacy and offline functionality. Kamesh Medapalli, senior vice president of innovation and technology at Infineon Technologies, explained that functions like engaging with generative AI chatbots, which previously required sending requests to cloud-based data centers, could now be handled locally on a PC or smartphone 13.

This local processing means users don't need an internet connection or cloud interaction, ensuring data privacy and local storage. The AI edge extends beyond PCs to various devices where processors can be embedded, including robots, cameras, and cars 12.

Market Projections and Industry Impact

Market tracker Canalys projects that AI-capable PCs will account for approximately 40% of overall PC shipments in 2025, with that number expected to more than double by 2028 12. This widespread adoption of AI-accelerating silicon in personal computing is anticipated to be transformative, enabling new and improved user experiences, driving productivity gains, and personalizing devices at scale 1.

Industry Response and Consumer Interest

The industry's response to this shift has been enthusiastic. At CES, companies like Gigabyte Technology showcased PCs enhanced with Nvidia high-performance processors, attracting significant interest from attendees. Mia Qu of Gigabyte noted particular interest in graphics cards and gaming laptops featuring top-tier Nvidia technology 13.

Real-World Applications and Benefits

Techsponential analyst Avi Greengart observed that chip and laptop vendors at CES are seeing AI capabilities resonate with consumers who want to speed up workflow, extend battery life, and enhance video calls. This practical application of AI technology in everyday tasks demonstrates its potential to make a tangible difference in users' lives 13.

As AI continues to integrate into edge devices, it promises to revolutionize personal computing, offering improved performance, enhanced privacy, and new capabilities that were once the domain of cloud-based systems. This shift represents a significant step forward in making AI technology more accessible and useful in everyday life.

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