Nvidia, renowned for its dominance in the artificial intelligence (AI) chip sector, is now venturing into the personal computer market, historically dominated by Intel.
Sources informed Reuters that Nvidia is discreetly working on central processing units (CPUs) that would support Microsoft’s Windows OS, employing technology from Arm Holdings. This move is aligned with Microsoft’s strategy to bolster chip manufacturers in creating Arm-based processors for Windows PCs, challenging Apple. Apple has made significant strides, nearly doubling its market share since unveiling its proprietary Arm-based chips for Macs over the past three years, as per IDC’s initial Q3 data.
Following the Reuters report detailing Nvidia’s intentions, Nvidia’s stocks soared by 3.84%, while Intel’s dipped by 3.06%. Arm’s shares also rose by 4.89%.
Both Nvidia’s Ken Brown and Microsoft’s Pete Wootton, among others, chose not to comment on the matter.
Apple’s custom chips have set a benchmark by providing Mac computers with enhanced battery longevity and remarkable performance, comparable to high-energy chips. Microsoft executives, impressed by Apple’s Arm-based chips’ efficiency—especially with AI processing—are keen to emulate this standard, a source shared.
In 2016, Microsoft collaborated with Qualcomm to transition the Windows OS to Arm’s foundational processor architecture, familiar to smartphone users. Qualcomm enjoyed exclusive rights to produce Windows-compatible chips until 2024. However, once this agreement lapses, Microsoft intends to diversify its chip suppliers.
“Microsoft’s aim is to avoid reliance on a single supplier, like Intel, from their past experiences,” remarked Jay Goldberg, CEO of D2D Advisory.
Moreover, Microsoft is urging chip manufacturers to integrate advanced AI capabilities into their CPUs. With AI-infused software such as Copilot becoming integral to Windows’ future, Nvidia, AMD, and their peers will need to allocate on-chip resources accordingly.
However, the transition isn’t without challenges. Software developers have heavily invested in crafting code for Windows based on the x86 computing structure, utilized by both Intel and AMD. This means codes designed for x86 chips won’t seamlessly work on Arm-based models.
Intel, on the other hand, has been incorporating AI features into its chips and recently exhibited a laptop harnessing features akin to ChatGPT.