Microsoft is in its AI PC era | The Vergecast

Intro (00:00:00)

• David Pierce introduces the Vergecast podcast.
• He mentions that he is currently in the woods in Virginia with bad internet and no cell connectivity.
• He recommends finding a place with no internet connection to relax and lean into it for a couple of days.
• The show will discuss the recent Microsoft Surface event and OpenAI.

Microsoft’s AI Surface event w/Tom Warren (00:02:00)

• Qualcomm's new Snapdragon X chips promise increased power and efficiency, bringing Windows PCs on par with Apple's silicon-based Macs.
• The combination of power and efficiency enables new device designs, such as Windows tablets and portable gaming devices, with all-day battery life and 5G connectivity.
• Qualcomm has made similar claims in the past, leading to skepticism about the actual improvements.
• Microsoft's recent event showcased the new generation of PCs, with various companies announcing their own Snapdragon devices.
• Tom Warren, who attended the event in Seattle, provides an update on the event.

Copilot Plus PCs (00:03:41)

• Microsoft introduced new AI-powered PCs, called "co-pilot plus PCs," featuring the Microsoft Pluton Processing Unit (MPU) for accelerated AI tasks, improved performance, and extended battery life.
• These PCs offer AI-powered features such as "Recall" for quick information retrieval, live captions, and translation capabilities.
• Microsoft demonstrated its on-device AI processing capabilities, including real-time translation during video calls and AI-assisted gaming experiences.
• The "AI Explorer" feature analyzes user activities on the PC, raising privacy concerns, but Microsoft assures that data remains on the device and is not uploaded to the cloud.
• Microsoft emphasizes the assistive nature of AI, enhancing user experiences rather than replacing human workers, and plans to integrate AI-powered features like text-to-image generation and language translation into Windows and other products.

Surface Pro and Surface Laptop details (00:11:48)

• Microsoft unveiled the Surface Laptop and Surface Pro, featuring an upgraded OLED display, improved keyboard and trackpad, and detachable wireless keyboard.
• Both devices run on Windows on ARM with Snapdragon X Elite and Plus chips, offering enhanced performance and speed comparable to regular Windows laptops.
• Microsoft highlighted significant improvements in app compatibility and battery life, with up to 16 hours of web browsing and 20 hours of local video playback.
• The event showcased Microsoft's focus on Qualcomm-powered devices and the transition to ARM processors, while downplaying partnerships with Intel and AMD.
• Microsoft emphasized the AI capabilities of its new chips, claiming 45 trillion operations per second, potentially surpassing the M4 chip.
• Qualcomm's acquisition of Nuvia, founded by ex-Apple engineers, is seen as a key factor in the improved performance of their ARM chips.
• Microsoft aims to differentiate itself from previous attempts by delivering on its promises and providing a seamless user experience.
• The new AI features showcased during the event have generated positive reactions and excitement.
• Microsoft's focus on battery life and overall performance is crucial to the success of its new PCs.
• Microsoft's strategy aims to attract users who might have considered alternatives like the iPad Pro, emphasizing the advantages of a full-fledged operating system.

OpenAI’s ChatGPT-4o event w/Kylie Robison (00:23:41)

• OpenAI's event showcased GPT-40, a sophisticated language model, and a voice assistant resembling Scarlett Johansson's voice, named "Sky."
• Despite rumors, OpenAI's presentation focused on GPT-40's natural language capabilities rather than introducing a search engine or GPT-5.
• Microsoft introduced a new AI-powered chatbot with a flirty personality, sparking discussions about its potential benefits and risks.
• The Vergecast highlighted the importance of accuracy in AI systems, contrasting Google's pre-recorded AI demo with OpenAI's live demonstration.
• Microsoft is venturing into the AI PC era, while OpenAI CEO Sam Altman hinted at the potential for AI to become more human-like, referencing the movie "Her."
• Initial reactions to ChatGPT have been both positive and negative, acknowledging its impressive abilities while recognizing its limitations.

OpenAI vs Google I/O demos (00:33:33)

• OpenAI's recent AI demo showcased impressive capabilities but also made frequent errors, leading to mixed reactions online.
• Competitors like Google, Microsoft, Apple, and Thropic are rapidly developing similar AI technologies, creating a highly competitive landscape in the AI industry.
• The AI industry is experiencing rapid advancements, with companies constantly leapfrogging each other in terms of innovation, making it difficult to predict long-term leaders.
• The training of AI models is expensive and challenging, leading some to believe that only a few companies will be able to dominate the market.
• Despite the challenges, the AI market still presents a lucrative opportunity for companies looking to make a lot of money quickly.

The Future of AI hardware (00:38:18)

• Companies are investing heavily in AI hardware and robotics.
• Meta is developing AI headphones and Ray-Bands.
• Sam Altman's Love from is working on AI projects.
• Conversational AI assistants are expected to advance.
• Concerns about data usage and privacy persist.
• AI hardware is seen as the future of technology.
• Recent failures of companies like Humane and Rabbit do not deter from the potential of AI hardware.
• The current interface for AI is through smartphones, but this may not be the case in the future.

What’s the tea on OpenAI and Apple? (00:40:31)

• Microsoft is focusing on developing AI for PCs and integrating it into their hardware products, marking the beginning of the AI PC era.
• OpenAI's decision to prioritize Mac users for their new ChatGPT app over Windows users has sparked speculation about tensions between OpenAI and Microsoft.
• Meta is facing challenges in developing earbuds with built-in cameras due to hair obstruction and overheating issues.
• Google IO and WWDC, held four weeks apart, may significantly impact the economics of the AI industry.
• Apple's potential integration of OpenAI's technology could disrupt the industry, leading to speculation about a potential shift in the relationship between Apple and Microsoft.
• The New York Times has become prominent in reporting on "horny AI," with technology columnist Kevin Roose gaining attention for his coverage.
• Ilia Sutskever, a key figure in the OpenAI controversy, has left the company, leading to speculation about further departures and a divide within OpenAI between those who want to use AI for good and those who want to use it for profit.
• Google's recent AI announcements were likely motivated by the potential financial gains in the AI industry.

What if Apple made a touchscreen Macbook (Vergecast Hotline) (00:51:15)

• The iPad's restricted application model is seen as the main issue, limiting its functionality compared to traditional computers.
• The iPad's form factor offers advantages for specific use cases, but Apple prioritizes the form factor over meeting users' needs.
• Apple's approach to computers focuses on ease of use, while Microsoft embraces the AI PC era.
• A touchscreen Mac may not solve many problems, and the web browser experience on a Mac is richer than on an iPad due to operating system limitations.
• The best version of an iPad is considered more interesting than a Mac with a touchscreen, but Windows users accustomed to touchscreens on PCs may disagree.
• Microsoft's Surface device is more similar to an iPad in spirit than a Mac, despite running Windows and having similar capabilities.
• Microsoft's response to web applications was to focus on cloud services, while Apple restricted app deployment on the iPad to the App Store, resulting in great but limited iPad apps.
• Google failed to capitalize on its potential in the hardware market with Chromebooks and Android tablets.
• The simplicity pursued by Apple with the iPad has limitations, and a great desktop web browsing environment could solve many of the iPad's problems.
• A touchscreen MacBook is seen as a more likely step towards a perfect all-in-one computer than overhauling the app model.
• European regulations may force Apple to allow other web browsers with their own engines on iPads, potentially leading to a more open ecosystem.
• Apple's reluctance to open up the iPad's operating system is seen as protective due to the device's unique vision and lack of market pressure compared to laptops.