What is an AI PC and why is Nvidia betting on it?

Artificial intelligence (AI) has transformed data centres, cloud computing and smartphones. Now, Nvidia wants to bring that same AI power directly to personal computers.

At Computex in Taiwan, Nvidia chief executive Jensen Huang unveiled RTX Spark, a new AI-focused chip developed with MediaTek that is designed to run AI applications and autonomous AI agents directly on laptops and desktops. The launch comes as PC makers search for their next growth driver, even as demand for AI-powered computers remains mixed.

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So what exactly is an AI PC, and why are companies such as Nvidia, Microsoft, HP and Dell betting heavily on the category?

What is an AI PC?

An AI PC is a computer designed to handle AI workloads directly on the device instead of relying on cloud-based servers.

Unlike traditional PCs, AI PCs can run AI assistants, chatbots and other machine learning applications locally. This reduces dependence on remote data centres and can improve response times while lowering internet requirements for certain tasks.

What makes AI PCs different from regular computers?

The biggest difference is the presence of a dedicated Neural Processing Unit (NPU).

An NPU is a specialised chip designed specifically for AI-related tasks. It works alongside the central processing unit (CPU) and graphics processing unit (GPU) to accelerate AI workloads while consuming less power.

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These processors can handle functions such as language processing, image generation, real-time transcription, AI assistants and other machine-learning applications more efficiently than conventional PCs.

Why is Nvidia pushing AI PCs now?

Nvidia believes the next wave of AI adoption will happen on personal devices.

The company's RTX Spark platform is designed to run AI agents locally. These software systems can perform tasks with limited human input, such as searching for information, organising files, drafting documents or executing workflows across applications.

Running such agents on-device could reduce dependence on cloud infrastructure while offering faster responses and greater control over data.

Nvidia and Microsoft have framed the initiative as an effort to reshape the personal computer for the AI era, similar to how smartphones evolved after the introduction of mobile app ecosystems.

Are consumers actually buying AI PCs?

The answer is mixed. HP recently reported that AI-enabled computers accounted for 44% of its PC shipments during the latest quarter, up from more than 35% in the previous quarter. The company said demand for AI systems helped support stronger-than-expected financial results.

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However, not every manufacturer is seeing the same trend. Dell said earlier this year that the AI boom had not yet translated into the level of PC demand it had expected.

Which companies are building AI PCs?

Nvidia said systems powered by RTX Spark will be launched by companies including ASUS, Dell, HP, Lenovo, Microsoft and MSI later this year, with additional products expected from Acer and Gigabyte.

Microsoft and Qualcomm have already introduced Copilot+ PCs, a category of computers built specifically for on-device AI processing.

What challenges could slow adoption?

The biggest concern may not be demand but supply. Industry analysts say growing demand for AI infrastructure is creating shortages in key memory components such as DRAM and NAND flash, driving up costs for device makers that remain heavily dependent on imported components.

Among consumer electronics categories, smartphones and laptops are expected to bear the biggest impact.

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“Rising DRAM and NAND memory prices, along with increasing display costs, are already pushing up the bill of materials for smartphones and PCs, making it difficult for OEMs to maintain aggressive pricing across segments," said Prachir Singh, Senior Research Analyst at Counterpoint Research, previously told Business Today.

As a result, AI PCs could become more expensive just as manufacturers are trying to convince consumers to upgrade.

Are there privacy concerns?

Privacy remains one of the most debated aspects of AI PCs.

Microsoft faced criticism in 2024 after introducing Recall, a feature that recorded user activity and created a searchable history of actions performed on the device. Privacy advocates raised concerns about the amount of information being stored.

Following backlash, Microsoft delayed the rollout and later introduced stronger security measures before making the feature available to a limited group of users.