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>Windows itself is about to change in a really big way such that it already requires AI-specific hardware

The AI models that everyone wants to use are cloud based. What is the purpose of AI hardware on users' machine?

Local processing of privacy-sensitive data, that is: personal files and what is shown on screen. Just think about Recall.

The purpose of AI hardware on users' machine is that then MS can hand-wave away any privacy concerns, claiming that anything sensitive is handled on-device.

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