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Microsoft Chief Executive Officer (CEO) Satya Narayana Nadella speaks at a live Microsoft event in the Manhattan borough of New York City, October 26, 2016.

Lucas Jackson | Reuters

Microsoft‘s Build developer conference kicks off on Tuesday, giving the company the opportunity to showcase its latest artificial intelligence projects, following high-profile events this month hosted by OpenAI and Google.

One area where Microsoft has a distinct advantage over others in the AI race is in its ownership of Windows, which gives the company a massive PC userbase.

Microsoft CEO Satya Nadella said in January that 2024 will mark the year when AI will become the “first-class part of every PC.”

The company already offers its Copilot chatbot assistant in the Bing search engine and, for a fee, in Office productivity software. Now, PC users will get to hear more about how AI will be embedded in Windows and what they can do with it on new AI PCs.

Build comes days after Google I/O, where the search giant unveiled its most powerful AI model yet and showed how its Gemini AI will work on computers and phones. Prior to Google’s event, OpenAI announced its new GPT-4o model. Microsoft is OpenAI’s lead investor, and its Copilot technology is based on OpenAI’s models..

For Microsoft, the challenge is twofold: keeping a prominent position in AI and bolstering PC sales, which have been in the doldrums for the past two years following an upgrade cycle during the pandemic.

In a recent note on Dell to investors, Morgan Stanley analyst Erik Woodring wrote that he remains “bullish on the PC market recovery” due to commentary from customers and recent “upward revisions to notebook” original design manufacturer (ODM) builds.

Technology industry researcher Gartner estimated that PC shipments increased 0.9% in the quarter after a multi-year slump. Demand for PCs was “slightly better than expected,” Microsoft CFO Amy Hood said on the company’s quarterly earnings call last month.

Generative-AI startups like OpenAI beginning to monetize their cutting-edge technology

New AI tools from Microsoft could offer another reason for enterprise and consumer customers to upgrade their aging computers, whether they’re made by HP, Dell or Lenovo.

“While Copilot for Windows does not directly drive monetization it should, we believe, drive up usage of Windows, stickiness of Windows, customers to higher priced more powerful PCs (and therefore more revenue to Microsoft per device), and likely search revenue,” Bernstein analysts wrote in a note to investors on April 26, the day after Microsoft reported earnings.

While Microsoft will provide the software to handle some of the AI tasks sent to the internet, its computers will be powered by chips from AMD, Intel and Qualcomm for offline AI jobs. That could include, for example, using your voice to ask Copilot to summarize a transcription without a connection.

What’s an AI PC?

The key hardware addition to an AI PC is what’s called a neural processing unit. NPUs go beyond the capabilities of traditional central processing units (CPUs) and are designed to specifically handle artificial intelligence tasks. Traditionally, they’ve been used by companies like Apple to improve photos and videos or for speech recognition.

Microsoft hasn’t said what AI PCs will be capable of yet without an internet connection. But Google’s PIxel 8 Pro phone, which doesn’t have a full computer processor, can summarize and transcribe recordings, recommend text message responses and more using its Gemini Nano AI.

Computers with Intel’s latest Lunar Lake chips with a dedicated NPU are expected to arrive in late 2024. Qualcomm’s Snapdragon X Elite chip with an NPU will be available in the middle of this year, while AMD’s latest Ryzen Pro is expected sometime during the quarter.

Intel says the chips allow for things like “real-time language translation, automation inferencing, and enhanced gaming environments.”

Apple has been using NPUs for years and recently highlighted them in its new M4 chip for the iPad Pro. The M4 chip is expected to launch in the next round of Macs sometime this year.

Windows on Arm

Qualcomm, unlike Intel and AMD, offers chips powered by Arm-based architecture. One of Microsoft’s sessions will talk about “the Next Generation of Windows on Arm,” which will likely cover how Windows runs on Qualcomm chips and how that’s different from Intel and AMD versions of Windows.

Intel still controls 78% of the PC chip market, followed by AMD at 13%, according to recent data from Canalys.

In the past, Qualcomm has promoted Snapdragon Arm-based computers by touting their longer battery life, thinner designs and other benefits like cellular connections. But earlier versions of Qualcomm’s chips were limited in what they offered consumers. In 2018, for example, the company’s Snapdragon 835 chip couldn’t run most Windows applications

Microsoft has since improved Windows to handle traditional apps on Arm, but questions remain. The company even has an FAQ page dedicated to computers running on ARM hardware. 

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How quantum could supercharge Google’s AI ambitions

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How quantum could supercharge Google’s AI ambitions

Inside a secretive set of buildings in Santa Barbara, California, scientists at Alphabet are working on one of the company’s most ambitious bets yet. They’re attempting to develop the world’s most advanced quantum computers.

“In the future, quantum and AI, they could really complement each other back and forth,” said Julian Kelly, director of hardware at Google Quantum AI.

Google has been viewed by many as late to the generative AI boom, because OpenAI broke into the mainstream first with ChatGPT in late 2022.

Late last year, Google made clear that it wouldn’t be caught on the backfoot again. The company unveiled a breakthrough quantum computing chip called Willow, which it says can solve a benchmark problem unimaginably faster than what’s possible with a classical computer, and demonstrated that adding more quantum bits to the chip reduced errors exponentially. 

“That’s a milestone for the field,” said John Preskill, director of the Caltech Institute for Quantum Information and Matter. “We’ve been wanting to see that for quite a while.”

Willow may now give Google a chance to take the lead in the next technological era. It also could be a way to turn research into a commercial opportunity, especially as AI hits a data wall. Leading AI models are running out of high-quality data to train on after already scraping much of the data on the internet.

“One of the potential applications that you can think of for a quantum computer is generating new and novel data,” said Kelly. 

He uses the example of AlphaFold, an AI model developed by Google DeepMind that helps scientists study protein structures. Its creators won the 2024 Nobel Prize in Chemistry. 

“[AlphaFold] trains on data that’s informed by quantum mechanics, but that’s actually not that common,” said Kelly. “So a thing that a quantum computer could do is generate data that AI could then be trained on in order to give it a little more information about how quantum mechanics works.” 

Kelly has said that he believes Google is only about five years away from a breakout, practical application that can only be solved on a quantum computer. But for Google to win the next big platform shift, it would have to turn a breakthrough into a business. 

Watch the video to learn more.

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Nintendo Switch 2 retail preorder to begin April 24 following tariff delays

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Nintendo Switch 2 retail preorder to begin April 24 following tariff delays

An attendee wearing a Super Mario costume uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025. 

Isabel Infantes | Reuters

Nintendo on Friday announced that retail preorder for its Nintendo Switch 2 gaming system will begin on April 24 starting at $449.99.

Preorders for the hotly anticipated console were initially slated for April 9, but Nintendo delayed the date to assess the impact of the far-reaching, aggressive “reciprocal” tariffs that President Donald Trump announced earlier this month.

Most electronics companies, including Nintendo, manufacture their products in Asia. Nintendo’s Switch 1 consoles were made in China and Vietnam, Reuters reported in 2019. Trump has imposed a 145% tariff rate on China and a 10% rate on Vietnam. The latter is down from 46%, after he instituted a 90-day pause to allow for negotiations.

Nintendo said Friday that the Switch 2 will cost $449.99 in the U.S., which is the same price the company first announced on April 2.

“We apologize for the retail pre-order delay, and hope this reduces some of the uncertainty our consumers may be experiencing,” Nintendo said in a statement. “We thank our customers for their patience, and we share their excitement to experience Nintendo Switch 2 starting June 5, 2025.”

The Nintendo Switch 2 and “Mario Kart World bundle will cost $499.99, the digital version “Mario Kart World” will cost $79.99 and the digital version of “Donkey Kong Bananza” will cost $69.99, Nintendo said. All of those prices remain unchanged from the company’s initial announcement.

However, accessories for the Nintendo Switch 2 will “experience price adjustments,” the company said, and other future changes in costs are possible for “any Nintendo product.”

It will cost gamers $10 more to by the dock set, $1 more to buy the controller strap and $5 more to buy most other accessories, for instance.

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Etsy touts ‘shopping domestically’ as Trump tariffs threaten price increases for imports

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Etsy touts 'shopping domestically' as Trump tariffs threaten price increases for imports

An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.

Victor J. Blue/Bloomberg via Getty Images

Etsy is trying to make it easier for shoppers to purchase products from local merchants and avoid the extra cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.

In a post to Etsy’s website on Thursday, CEO Josh Silverman said the company is “surfacing new ways for buyers to discover businesses in their countries” via shopping pages and by featuring local sellers on its website and app.

“While we continue to nurture and enable cross-border trade on Etsy, we understand that people are increasingly interested in shopping domestically,” Silverman said.

Etsy operates an online marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The site, which had 5.6 million active sellers as of the end of December, competes with e-commerce juggernaut Amazon, as well as newer entrants that have ties to China like Temu, Shein and TikTok Shop.

By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to allow for negotiations. Trump also signed an executive order that will end the de minimis provision, a loophole for low-value shipments often used by online businesses, on May 2.

Temu and Shein have already announced they plan to raise prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, many of whom source their products from China, have said they’re considering raising prices.

Silverman said Etsy has provided guidance for its sellers to help them “run their businesses with as little disruption as possible” in the wake of tariffs and changes to the de minimis exemption.

Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the company’s fourth-quarter earnings call in late February that he expects Etsy to benefit from the tariffs and de minimis restrictions because it “has much less dependence on products coming in from China.”

“We’re doing whatever work we can do to anticipate and prepare for come what may,” Silverman said at the time. “In general, though, I think Etsy will be more resilient than many of our competitors in these situations.”

Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass some of those costs on to consumers.

Etsy shares are down 17% this year, slightly more than the Nasdaq.

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