The upcoming 2025 Consumer Electronics Show (CES) in Las Vegas, USA, promises to highlight a shift in the computing landscape, with major chip manufacturers like Intel, AMD, and Qualcomm seizing the initiative to unveil cutting-edge edge AI chip products tailored for personal computersThis anticipated innovation signifies the migration of elaborate AI models, previously confined to cloud servers, directly to local PC environments, allowing for a surge in AI applications on personal devices.

The introduction of edge AI chips is expected to breathe new life into the PC industry, introducing a range of exciting applications and interactive experiences reminiscent of a “second spring” for PC technologyUnlike traditional PC chipsets, these new AI-integrated microprocessors will collectively house CPU, GPU, and NPU functionalities, thereby enhancing support for running AI applications directly on personal machines.

In a bid to dominate this emerging marketplace, these chip powerhouses staged several pre-show product announcements ahead of CES

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The new chips are set to begin integration into laptops from major original equipment manufacturers (OEMs) such as HP, Dell, and Lenovo in the first half of 2025, ready to be made available to consumers.

On January 6, Intel took center stage to unveil its second-generation Core Ultra processors, which will form the backbone of AI PCsThis lineup comprises a series of edge AI chips, including the 200V, 200HX, 200H, and 200U, each tailored for different laptop configurationsThese sophisticated chips amalgamate Intel's CPU, GPU, and NPU components, laying the hardware foundation necessary for running generative AI applications on laptopsAt this inaugural event, Intel’s acting co-CEO, Michelle Johnston Holthaus, announced the debut of the Panther Lake processor – Intel’s first chip built on its 18A fabrication technology, scheduled for release in late 2025.

Tracing back two decades, the PC market has been predominantly ruled by x86 architecture, with Intel retaining a stronghold over this segment

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Recent data from Mercury Research indicates that while Intel’s market share has dipped in recent years, the company still commands over 70% of the x86 PC sector, while AMD holds around 25%. This robust position underscores Intel’s commitment to leading the charge in edge AI for PCs.

According to Xíng Mùzǐ, the assistant vice president from Yunxiu Capital’s semiconductor division, Intel currently enjoys an advantageous position in the AI PC arenaReports from research firm iResearch further reveal that Intel's Ultra series of AI PC main chips have already made inroads into products from dominant players like Microsoft, Dell, HP, and HuaweiHowever, as the AI PC market evolves rapidly, the competitive landscape remains uncertainWith CES just around the corner, AMD and Qualcomm have also unveiled their latest AI PC chip offerings.

On the same day, AMD introduced a complete suite of products, including the Ryzon AI Max and AI 300 and 200 series processors designed specifically for AI applications

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AMD proudly claimed that chips from the Ryzon AI Max series could drive a large language model, boasting 700 billion parameters from a personal computerAdditionally, Qualcomm unveiled its Snapdragon X platform for AI PCs, which adopts an ARM architecture, diverging from the x86 strategy employed by Intel and AMDCompany representatives informed reporters that this marks Qualcomm's fourth platform within its X series aimed at PCs, targeting devices priced around $600.

Experts forecast that shipments of AI PCs are poised for a dramatic upswing, with estimates suggesting that in 2024, total shipments could exceed 40 million unitsIn order to meet user demands for running local AI models, and to enhance multimedia content and business processing capabilities, AI PC hardware will continue to improve, focusing on significant enhancements in NPU computing power, rising above 40 TOPS, and increasing storage capacities.

In addition to the aforementioned three companies showcasing their new products at CES, NVIDIA had been rumored to announce their AI PC CPU during the event; however, CEO Jensen Huang did not present such a product at the show

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Despite this absence, the newly launched NVIDIA RTX 50 series products highlight the firm's continued commitment to standalone GPUs, with many AI PCs featuring not only the main chip but also discrete GPUs to further amplify edge AI processing capabilitiesFor example, certain high-end gaming laptops and business models from Dell's Alienware and Inspiron brands incorporate Intel's Ultra series alongside NVIDIA’s RTX 40 discrete graphics cards, with prices exceeding 40,000 RMB.

The advent of AI PCs represents a paradigm shift, promising a revolutionary user experience unlike anything available from traditional PCsAs per iResearch, user interaction is projected to evolve from conventional mouse, keyboard, and touch screen methods to more intuitive systems utilizing gesture recognition, eye-tracking, and voice interactionWith the broad adoption of AI applications like personal intelligent agents, AI PCs could redefine what constitutes a new entry point for technology engagement

Nevertheless, achieving seamless user experience mandates rigorous advancements in computing power, energy efficiency, and cost management, which must be meticulously addressed to earn consumer trust and satisfaction.

To facilitate a naturally flowing user experience, advanced edge computing capabilities are indispensableCompanies such as Intel, AMD, and Qualcomm are dedicated to enhancing the processing power of their chipsFor example, Intel's latest Core Ultra 200H series processors combine GPU, CPU, and NPU functionalities, providing a staggering 99 TOPS of computing power.

Simultaneously, sustaining low power consumption with these chips remains a goal among manufacturers, focusing on maximizing the battery life of AI PCsAMD, for instance, asserted that its Ryzon AI 300 series could deliver over 24 hours of operating timeAnalysts at Counterpoint emphasize that the equilibrium between computational power and energy usage will serve as a pivotal competitive factor for manufacturers in the future.

In addition to enhancing performance and reducing power consumption, chip manufacturers also face the pressing challenge of lowering costs to achieve more affordable pricing for AI PCs

The high costs associated with edge AI chips inevitably inflate the overall pricing of AI PCsPresently, the market mainly features high-end devices catering to business professionals, tech enthusiasts, and gamers, often with steep prices ranging from 20,000 to 40,000 RMBNevertheless, Intel and Qualcomm have introduced products aimed specifically at mainstream PC markets, with price points between 4,000 to 8,000 RMB expected to launch within the first half of this year.

According to Canalys, global shipments of AI PCs are projected to achieve a compound annual growth rate of 44% from 2024 to 2028, with laptops expected to dominate this segment, while desktop PCs will comprise a minor shareHowever, as growth continues at this rigorous pace, technical challenges must be addressedAs AI PC penetration increases, the enhanced computational power, data transfer rates, and reduced power consumption of edge AI chips must be developed further to attract a broader audience