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Microsoft touts AI-ready PCs as memory costs rise and sales fall
Microsoft is urging businesses to count PC refreshes as part of their AI investment, arguing that powerful Windows computers can run some AI workloads locally. It says this can reduce cloud costs, improve response times and keep data on the device, while positioning Windows as a platform for different AI models and agents.
The pitch comes as higher memory prices and weak demand are weighing on PC sales. Microsoft’s Windows OEM and Devices revenue fell 22 per cent year on year to $3.55 billion in its fiscal first quarter, and it warned that the next quarter’s revenue could be down 30 per cent. IDC said PC shipments fell 20.1 per cent year on year in the third quarter to 62.7 million units; memory makers’ focus on higher-margin chips for AI data centres has contributed to rising costs.
In short
- Microsoft wants businesses to treat PC upgrades as AI spending.
- Local AI workloads could reduce cloud costs and keep data on devices.
- Higher memory prices and weak demand are holding back PC sales.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Microsoft’s case is that newer PCs can run some AI tasks on the device, potentially cutting cloud-computing costs, speeding up responses and keeping sensitive data local. If businesses are already planning hardware upgrades, including AI-capable PCs in that refresh could give them a flexible platform for different models and agents while preparing for wider AI use.
The case against
Businesses may reasonably question whether AI features justify buying more powerful PCs while memory prices are rising and demand is weak. The reported sales decline and Microsoft’s forecast suggest the upgrade pitch comes amid a strained market; firms may prefer to defer purchases or pay for cloud AI only where it delivers clear value, rather than commit to hardware whose benefits depend on future workloads.
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Originally published by The Register as “Microsoft’s AI PC push meets a wall of RAM prices, but Redmond is still beating the drum”.